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The Ins and Outs of Affiliate Marketing Campaigns
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Let the professionals help you... in mass:
Affiliate marketing networks provide an environment where companies who have something to sell
(Advertisers) meet with companies who know how to sell it (Publishers). Many large Affiliate
marketing networks provide hundreds of products to be sold to their network of thousands of
publishers.
Affiliate marketing networks generally work on a performance basis (CPA), where you only pay
when a sale or lead is generated for you. You receive a sale or lead at a predetermined cost and
then award the affiliate network with a bounty for generating the sale or lead for you. The Affiliate
network then pays their publishers for generating sales on your behalf, minus what the network
keeps for itself for putting the deal together. This may sound similar to a shopping portal, however
there are some distinct differences. A shopping portal places your products in direct connection
with the online shopper. Affiliate marketing networks place your products in direct connection with
publishers (marketing or media companies.) Each publisher will then use their own resources to
generate sales for you, be it PPC, SEO, email, banners and the like.
Not every product or service will work with an affiliate marketing campaign, and many affiliate
networks will not accept your offer unless certain criteria are met. The average website is not
"marketing ready" for an affiliate marketing campaign, and often requires a redesign or a separate
website to allow for easy sales or lead conversions. Most sales lead generation campaigns work
across affiliate marketing networks as long as you are not trying to collect too much information, or
information that makes your customers feel nervous such as a social security number. For product
sales, you need to present a very attractive offer like "a free 7 day trial for a diet pill", "free services
for 1 month", or anything that can be considered a low risk bargain. An offer such as "a 42 inch
plasma screen Television for only $1,597" will not work. As always, there are exceptions, and you
may need to work closely with your affiliate manager to produce a campaign that will be popular
amongst the publishers.
Due to the nature of the affiliate networks, they can be volatile and risky, and are not
recommended for any company until they have a lot of internet marketing experience under their
belt. The overall sales potential of affiliate network marketing can be enormous, and any time
gigantic sales numbers come into play, so do gigantic risks. Many affiliate networks have what are
known as "Super Affiliates" who have the potential to generate hundreds of thousands of dollars in
sales commissions each month. The volatility stems from both the marketing power available
through an affiliate network, along with the performance-based environment they provide.
For the most part, the publishers who do the selling through the affiliate networks are greedy. They
want to sell only the products and services that yield them the most revenue. It is their right, after
2. all, because they are working on a performance basis and assume all marketing risks. If a good
offer comes across an affiliate network, where a lot of money can be made, many publishers will
market the product and sales will come streaming in. If a product comes in that does not generate
good, or at least acceptable, revenue for the publishers, they will chose to not market the product
and sales will be almost nonexistent. It is difficult to find the right balance to satisfy all parties
involved (advertiser, publisher, affiliate network, and potential customer.) All parties must be happy
in order to yield a successful affiliate campaign. The swing between a high performing campaign
and an unpopular one can be tremendous. This volatility introduces significant risk, which comes
in three flavors.
Affiliate Network Marketing Risk:
(1) Not enough business
You have put significant time and resources into building an Affiliate marketing campaign. You
have commissioned all types of marketing creative, website design and even bulked up your sales
staff. Despite this preparation, your offer is not a money maker for the publishers, and they are not
marketing your campaign. Your expenses have increased in anticipation of increased sales that
simply never materialized.
(2) Too much business
You hit the nail on the head... Your offer is hot and the publishers love it. They love it so much that
sales flow in faster than you can handle. Your call center can handle 50 leads per day but the
publishers are generating 200. For each sale or lead made you must pay a commission whether or
not you can address it. You are literally downing in too much business, and your pocketbook can't
hold out long enough to expand accordingly.
(3) Cheating
You didn't invest much effort in validating your sales or leads. Your affiliate marketing campaign is
generating a lot of leads, but sales are not happening. You are receiving numerous disconnected
phone numbers, invalid credit card numbers or people who say "I only signed up for the free gift."
Leads are coming in, but a bunch of crooked publishers are submitting fake information to get paid
as if their data was real. Notice how that last lead had a Texas area code, their zip code was
"12345," they stated they live in Alaska and gave you the credit card number
"4444555544445555."
Many Affiliate marketing networks will also ask if they can run your campaign exclusively. This
means that they are the only affiliate network that can provide your offer to the world. There are
some distinct advantages and disadvantages to running your campaign exclusively with one
network.
Exclusive Affiliate network Campaign Advantages:
Your Affiliate marketing campaign manager may pass your campaign on to other affiliate
marketing networks, and manage your account for you. This saves you considerable time by not
having to seek out new networks, organizing campaign launches, marketing creative, and other
tasks required to launch a new campaign.
You will not have to pay startup fees or sign contracts for the affiliate marketing networks that your
affiliate manager passes your campaign on to. You simply work under your single agreement with
your affiliate manager. This can save you thousands of dollars in startup costs, and lots of time.
3. Affiliate marketing networks use exclusive campaigns as "bragging rights," and often give priority
to their exclusive campaigns. Your campaign is more likely to be advertised to the publishers and
given special attention. This helps to get your campaign noticed by the publisher, and ultimately
increases sales or lead flow.
Exclusive Affiliate network Disadvantages:
Your campaign manager will outsource your campaign to other affiliate marketing networks. You
will not know exactly who is marketing your offer and therefore the quality of the web traffic coming
into your website is unknown.
Your affiliate manager may not be as ambitious as you. Your campaign may not get passed on to
other affiliate marketing networks, and because it is an exclusive offer you can't pass it on to other
networks. Growth may become stifled.
The publishers who run your campaign through outsourced affiliate networks will not receive as
high of a payout (sales commission). There are effectively two affiliate marketing networks: Your
direct affiliate network and the outsourced network. More hands are in the pot, taking money and
leaving less for the publishers themselves. The decreased publisher bounty with result in
decreased interest in your campaign, so the outsourced affiliate marketing networks will not be as
productive as if you worked with them directly.
Most affiliate networks will want to incorporate email marketing into your campaign. This is
strongly recommended, as sales or lead generation volumes could be significantly higher. If you
do allow your campaign to be email marketed, you will need to be able to maintain an email
suppression list. The suppression list is a list of email addresses of people who want to opt-out
from receiving your offer. An opt-out link must be provided on your email marketing creative where
people can opt-out from your offer. You must then supply the suppression file to your affiliate
network so they can in turn pass your suppression file to their publishers. This is a part of the Can-
Spam law and it can be effectively managed with a small opt-out landing page connected to a
simple database. Make sure you provide an updated suppression file to the affiliate networks at
least once per week.
Launching affiliate marketing campaigns that convert:
Your goal is to generate a campaign that puts the most money possible into your publisher's
pockets, while also generating a profit yourself. Keep in mind that a break-even campaign is also a
successful campaign as long as you can re-market to your clients and generate additional sales,
upgrades, etc.
Design your campaign to maximize conversions. Minimize the clicks needed to purchase a
product, or have your lead generation form on the home page. Don't collect information that you
really do not need, or that people do not like to give out (like an SSN.) You may have to build a
unique website for the affiliate marketing campaign if your current website is not fine-tuned for
affiliate marketing.
You are competing against all of the other campaigns on an affiliate network, not just ones selling
the same thing you are. Publishers optimize the offers they market and drop the poor performing
campaigns. Design an offer that works both for you and your publishers; your affiliate manager
can help.
Make the steps necessary to allow your campaign to be email marketed by the publishers. This
4. means you will need to create Can-Spam compliant email marketing creative, an opt-out page
linked to a database, and provide access to an updated suppression file (a text dump of your
database suppression file.) Email marketing will significantly amplify your campaign's
effectiveness.
Develop a large selection of various marketing creative, lots of standard size banners, multiple
email creative, multiple email titles and subject lines, various text links and so on. Your affiliate
manager will provide you a list of critical media types and sizes, but try to provide more than their
minimum requirements.
Stay on top of lead quality and fraud. No matter how advanced your validation system may get,
someone will try to sneak fake data past you. Make sure that you can track all lead sources,
including the subIDs that are passed on through the affiliate network.
Every time you make a change to your website, submit a test to ensure that the affiliate campaign
is still running as it should be. If your website has an error preventing sales conversions or
introduces tracking problems, you may be asked to pay the publishers for their lost business.
Remember that your broken website will affect many companies who stuck their neck out for you.
Be prepared for large volumes of leads, or no leads at all.
The risks associated with affiliate network marketing are many, and they are significant. You must
be on your toes, thinking ahead and quick to move if things turn sour. But if you come prepared
and design an offer that the publishers love, the financial rewards can be enormous.
About the Author:
Chris W. Sharp is the founder and President of SharpNET Solutions, and industry leading Internet
marketing company since 1999. You can visit SharpNET's corporate website for additional articles
and Internet marketing services at http://www.sharpnetsolutions.com.
Article Source:
http://EzineArticles.com/?expert=Chris_W_Sharp
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