Affiliate Marketing - Digital Marketing Training - Skill Digita

Copyright © 2014, iProspect Communicate 2, Inc. All rights reserved.
INTRODUCTIONTO
AFFILIATE
MARKETING

1. What is affiliate marketing
2. Why is it good for your business
3. How to set up an affiliate
program
4. Rule setting
5. Do’s and Don’ts
6. Finding affiliates
7. How to grow a network that
collectively prospers
8. The tools and the technologies
involved
WHATWILLWE LEARNTODAY

THE BASICS

“Affiliate marketing is a type of performance-
based marketing in which a business rewards
one or more affiliates for each visitor or
customer brought by the affiliate's own
marketing efforts
WHAT IS AFFILIATE MARKETING

• The Merchant
– The brand or retailer
• The Network
– A middle man between the affiliate and the brand. Often a software solution provider.
• The Affiliate / Publisher
– The guy driving the traffic that he wishes to be paid for
• The Customer
– The unsuspecting customer who the affiliate attracts to the brand 
• TheTechnology
– The technology provider that is implemented to track affiliate performance, manage
creative, offers, outreach and automated payments
• The Agency
– An agent brought in to manage all of the above and alleviate the client’s headache
THE KEY PLAYERS

THE MERCHANTS
Brands, Retailers

THE NETWORKS
Affiliate and Advertising Networks

THE AFFILIATES
Network Affiliates | Aggregators | Direct Publishers
Anyone with
Networks Aggregators Publishers

Customer
comes to the…
Affiliate, who
sends the customer
to the…
Merchant,
who facilitates an
action.
Customer
does something;
lead, sale,
download etc.
Merchant
pays affiliate for the
action
Everyone is
happy

BASIC AFFILIATEWORKFLOW

CPM: Cost per mille (1,000 impressions)
CPC: Cost per click
CPL: Cost per lead
CPA: Cost per acquisition
COA%: % of revenue (Cost of Acquisition)
CPE: Cost per email
CPV: Cost perVideoView
CPD: Cost per download
EPC: Earnings per click
AFFILIATE JARGONS

SEO PPC Display
EDM
Word of
Mouth
Social
Coupons Content Dark Arts
HOW DO AFFILIATES MAKETHEIR BUSINESS

Pay Per Anything
•Pay affiliates for certain actions the
merchant customises
Pay Per Click
•Raw: IP address may be counted twice
•Unique: IP Address counted once
•Blind: Unknown if raw or unique
Pay Per Sale
•Percentage: Pay based on the size of sale
•Flat: Pay equal for all sales
•Graduated: Pay set in increments
Pay Per Visit
•Pay affiliate for sending customers who
only look
Second Tier
•Pay affiliates for recruiting other affiliates
Combination
•Pay by a combination of Percentage, Flat
and graduated
STANDARD PAYMENT MODELS

• Indian affiliate models are still very nascent, but
growing rapidly.
• Primarily take the form of lead generation.
• In the more mature UK and US markets, where
eCommerce is common place +80% of the
affiliate programs are tracked on the resultant
sale.
• CPM, CPC as well as lead based models are
becoming more obsolete
Just think as a brand would you rather guarantee
business or site visits?
INDIAN AFFILIATE PROGRAMS

WHYAFFILIATE MARKETING
Affiliate
Sales
ROI
Scale
Branding
Reach
Opportunity

THE STEPSTO A PROGRAM CREATION
Decide how and
what you want to
sell
Set-up a tracking
and reporting
solution
Test and validate
sales are tracking
Configure daily
disposition reporting
Decide on the
affiliate payout
Define a brand and
affiliate guideline
Create a go-to
market strategy
Build creative off the
back of your
strategy
Empanel the affiliate
Give the affiliate
creative with their
unique Affiliate ID
integrated to track
Affiliate publishes
On a monthly basis,
take stock of sales
made by the affiliate
validate and payout
Set payment cycles
30-60 days after
month end
Pay on time, never
default or say
goodbye to the
affiliate!
Test, Hone, Refine
Build and generate
sustainable ROI

iProspect: Driving Digital Performance.
SET UP ATRACKING SOLUTION

• To track a program you must know your route
to sale
• If your sales are primarily converted offline
then a lead based CPL model may work best
• If sales can be fully completed online then a %
of revenue or CPA model will be best
PATHTO SALE
It is possible to have offline sales turned to a CPA model and
% of revenue, but this will require far more sophisticated
tracking mechanisms in place. Call tracking and strong CRM
systems.

• Referrer based
– Links coming direct to the site
• Redirect based
– Links coming via a tracking server
Principally they do the same thing though…
TWO MAINTYPES OFTRACKING SOLUTIONS

Customer
1
TRACKING BASICS
Ad
Unit
Affiliate
Tracking
System
Merchant
1. Customer comes to the
affiliate site
2. Clicks a banner
3. Redirects to a tracking
server
4. Tracking cookie drops
5. Customer is redirected to
Merchant
6. Customer buys
7. Tracking server marries
cookie to sale
8. Once validated, merchant
pays the affiliate
commission for sale
2
3
4
5
6
78

• The crux of tracking revolves around two
things:
– The unique affiliate ID
– The time of the delivery of the customer visit
• Every affiliate will carry a unique ID, this ID
will be paid out subject to the timing of the
initial visit
TRACKING
You generally don’t want to pay twice for things so…

First Click
• The affiliate that delivered the first visit within a give timeframe
Last Click
• The affiliate that delivered the visit that directly resulted to
the sale
Hybrid
• Percentage paid to first click, middle and last click within a
given timeframe
Multi-tiered
• Percentage paid out to the first / last click and the affiliate
that referred the affiliate that generated the sale
TIMINGS AND PAYOUTS
There are a number of tracked payout models:

• The most common cookie drop is a 30 day
period
• 60 days can incentivize affiliates to deliver a
lot more traffic
• Lifetime will mean all repeat business will
also be paid out to the affiliate
COOKIETIMES
Most common set-ups

REPORTING

• Try to configure a system that gives the
affiliate:
– Daily real-time reports
– Feed back mechanisms, Excel, API (This can be
tricky)
– Content tracking for the affiliate
AFFILIATE REPORTING
The more data and feedback you give the affiliate, the more
they can optimize and enhance their campaigns…
Limiting data limits what they can do!

• Using a network is a simple way to do this
• They have the systems and software to
manage the program
• The disadvantage of using a network is that
you have to pay for the software license as
well as commissions on all payouts
• You are also limited to their affiliate base
NETWORK SYSTEMS

PAYOUTS

• Getting the payouts right can make or break
your campaign
• Tiered payment structures where the big
affiliates get big payouts usually work best i.e.
< 50 sales - Rs.200 / sale
> 50 sales - Rs.225 / sale
> 100 sales - Rs.250 / sale
>500 sales - Rs.300 / sale
SETTINGTHE RIGHT PAYOUTS AND INCENTIVES

• Sign up for you competitor’s programs
• Assess their payouts
• Can you do creative payment structures
that can entice their affiliates away from
them?
– Better incentives
– Better promos
– Better reporting
• Use your other marketing channels (PPC,
FB, EDM) to assess an acceptable COA% or
CPA%
• Price too low and you may not make it
possible for your affiliate to monetize your
program
KNOWYOUR COMPETITION
Creating the go-to market strategy

Path to sale:
– WebsiteVisit
– Website Lead (Appointment)
– Visit clinic
– Diagnosis / free trial
– Sign up for treatment
EXAMPLE PAYMENT MODELS 1:
ONLINE
OFFLINE
In this scenario affiliates could be paid on the leads. Post 90
days they receive a bonus for successful signups. Transversely
if they have a poor signup ratio they are booted from the
program

Path to sale:
– WebsiteVisit
– Buy online
– C.O.D
EXAMPLE PAYMENT MODELS 2:
ONLINE
OFFLINE
In this scenario affiliates could be paid on any transaction. A
percentage of sale would be most appropriate 3-5%. C.O.D
sales will only be remunerated once the payment is made

Affiliates are as fickle as cats they will
always go where the cream is richest!!
Always remember…

BRAND AFFILIATEGUIDELINES

What affiliates can or can’t do:
• SEM / SEO?
– Brand bidding
– Competing
• Types of content they publish against
• Language used
• Association with other brands
• Exclusivity
• Miss-selling / Compliance
• Mailers / Can or Can’t (SpamWatch)
• The Dark Arts…
BRAND AFFILIATE GUIDELINES

• Brand Bidding
• Day Parting 8-8
• Cookie Bombing / Stuffing
• Email Spamming
• Content Spamming
• EmailViruses /Trojans
• Malware
AFFILIATE DARK ARTS
Be aware, make provisions, you do not want your brand in the mud!

• Make sure you have very clearT&Cs that the affiliate is
aware of and agrees to, this could be a web based form
• You will then need the following:
– Name
– Address
– Contact Number
– Email
– Websites he plans to use for promotion
– Payment details
• Cheque
• Bank transfer
– Tax details PAN /TAN /VAT
– Make sure you and your affiliate are aware of the tax
implications
EMPANELMENT

CREATIVE

• The more offers the better!
• Give the affiliates ads that will sell:
– Coupon codes
– Money off
– Bundles
– Referrals
• Every product you wish to sell needs to have a
creative unit.
• If you can dynamically generate creative
based on SKU codes then nothing like it!
CREATIVE

• Manage your creative
so that it
encompasses the
standard ad sizes
• Any site that carries
ads has the potential
to be an affiliate!
FORMATS
Standard Web Sizes

FINDINGAFFILIATES

• Create links on your
homepage to the affiliate
program
• Use PPC / SEO / Remarketing
• Start conversations on the
affiliate message boards and
forums
– Chat up the affiliates directly
– Use paid media to buy
targeted ad slots
METHOD ONE
Advertise your program

• Find content sites in your field that
carry AdSense or other affiliate
banners
• Approach directly with offers that are
more lucrative than their AdSense
payouts
• Sales revenue can sometimes be far
greater than CPC payouts
• The bloggersphere would be great for
this:
http://www.google.com/blogsearch
METHODTWO
Direct Approach

METHODTHREE
Poach competition
• Use sophisticated link analysis
software to understand your
competitors affiliate base
• Tools that track upstream and
downstream referral traffic will lead
you to the good affiliate sources
• Use persuasive payment structures
to directly snipe the affiliates away
• If they are good for your
competitors they will be good for
you ;)

• Sign up the networks
• Use analytics and reverse IP
tracking systems to
understand traffic source
• Isolate the big affiliate sites
that drive value
• Approach independently
outside of the Network
METHOD FOUR
Poach the networks

MAINTAININGA HAPPYAFFILIATE FAMILY

Don’t just set up a program and forget about your affiliates…
They are cats and you must give them good cream!
• Talk to them:
– Email updates
– Give them offers
– Festive specials
• Treat them:
– Have meet ups give booze and food
– Send them Diwali / Christmas gifts
• Engage with them:
– Join the affiliate forums
– Understand what the market is doing
– Who is paying / not paying
– Maintain your own reputation
MAKING AFFILIATES HAPPY

• Multi-tiered referral affiliate programs can lead to more
affiliates joining
• Multi tiered means that if I refer a friend I also take a cut of
the sales they deliver as my referral fees
• Affiliates know affiliates, this incentivises the affiliates
themselves to drive the program
• If multi-tiered programs don’t work for you then try a CPA
model for affiliate referrals
I.E. I refer a friend if that friend starts generating business you
give me a one time reward.
REFERRAL PROGRAMS

“ VERY IMPORTANT!
Be faithful to your affiliates, pay on time!
PAYOUTS
Raise any issue immediately.

SOFTWARE SOLUTIONS

• Pre built software will manage:
– Tracking
– Payouts
– De-duplication
– Sign-up / Empanelment
– Creative management
– Reporting
– Email and communication
– White labelling
WHY SOFTWARE

• DirectTrack
• PHG
• AffiliatePro
• AffiliateShop
• AffiliateTracking.com
• Commission Junction
• RevResponse
• AffiliateFuture
• Clickinc
• AffiliatesForAll
• Ultimate Affiliate
• Share ResultsTracking
• ShareASale
• LinkShare
• MoreNiche
• AffiliateTraction
• iDevAffiliate
• AvantLink
• ClickBank
THE LEADING SOFTWARE SOLUTION PROVIDERS FOR
AFFILIATE PROGRAMS
Very handy comparison Chart:
http://www.aceaffiliates.com/affiliate-education/affiliate-marketing-software-solutions-review.html

PRICING MODELS
Combinations of…
Fixed
Monthly Fee
Set-up
fee
% of Payout
One-
off fee

iProspect: Driing Digital Performance.
THE AGENCY MANAGED SERVICE

Affiliate Management
CPA Affiliate Network Base
`
Lead Generation
`
We Offer Two Core Affiliate Services

THE AFFILIATE PROPOSITION
• Affiliate network audit and consultancy
• Publisher recruitment & governance
• Strategy development and execution
• Network commercial negotiation
Our Core Services
Affiliate Management

The Affiliate Model
Affiliate Marketing at it very core is about relationships,
a relationship between three parties…
ADVERTISER PUBLISHER CONSUMER

Diversify
Traffic
Increase
Exposure
Client Benefits of Affiliate Advertising
Incremental
Revenue Channel
‘Pay on
Performance’
Model
✓ ✓ ✓
✓ ✓ ✓
Develop New
Partnerships &
Relationships
Increased
ROI

Leveraging Public Networks
`
2
Our 2 Core Affiliate Servicing Options
Public Publisher Base
Our Private network
`
1
Private Publisher Base
• Private Network
• Selected affiliate partners
• Powered by own technology
• Public Affiliate Network
• Access to thousands of affiliates
• Managed by Partner Network

Affiliate Marketing - Digital Marketing Training - Skill Digita

Affiliate Marketing - Digital Marketing Training - Skill Digita

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