affiliate marketing - a love/hate relationship

Affiliates – A Love Hate Relationship

David JonesVP of E-Commerce

Arhaus Jewels

Some of the brands David has worked with:

Affiliates – A Love Hate Relationship

David JonesVP of E-Commerce

Arhaus Jewelshttp://www.arhausjewels.comWeb Only Business

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Affiliates – A Love Hate Relationship

Formula For All E-Commerce Business

WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE

= $$$$ MONEY

1,000,000 X 2.2% X $200

= $4,400,000

1,000,000 X 2.0% X $200

= $4,000,000

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Affiliates – A Love Hate Relationship

Formula For All E-Commerce Business

WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE

= $$$$ MONEY

1,200,000 X 2.0% X $200

= $4,800,000

1,000,000 X 2.0% X $200

= $4,000,000

Affiliates – A Love Hate Relationship

Speaking Of Traffic, What Are Typical Traffic Sources?

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Affiliates – A Love Hate Relationship

How Do Affiliates Work?

WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE

• Affiliates send traffic to your website• If anyone they send your way buys, they get X% of the sale

GET PAID FOR PERFORMANCE!

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Affiliates – A Love Hate Relationship

How Do Affiliates Work?

WEBSITE TRAFFIC X CONVERSION RATE X AVERAGE ORDER VALUE

• Affiliates send traffic to your website• If anyone they send your way buys, they get X% of the sale

GET PAID FOR PERFORMANCE!

Affiliates – A Love Hate Relationship

What are some popular Affiliate Networks?

Difference between networks is niche, cost, and size of the network

(Apple.com,BestBuy.com)

(Walmart.com, OfficeDepot.com)(Sears.com, Netflix.com)

(OneKingsLane.com, Wayfair.com)(Moosejaw.com, Bootbarn.com)

(Toys ‘R Us, Aeropostale)

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Affiliates – A Love Hate Relationship

Who Are Some Of The 200,000+ Popular Affiliates?

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Affiliates – A Love Hate Relationship

Who Are Some Of The 200,000+ Popular Affiliates?

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Affiliates – A Love Hate Relationship

Popular Types of Affiliates

• Coupons and deals

• Loyalty/Rebates

• Comparison Shopping

• Email only

• Straight content

• Social Media

Logically Speaking, How Does It Work?

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Affiliates – A Love Hate Relationship

Technically speaking, how Does It Work?One popular way is your affiliate network will give you a pixel.

<script type="text/javascript“ src="/library/javascript/avantlink/avmws_1011289.js"></script>

<script type= \"text/javascript\" > var _AvantMetrics = _AvantMetrics || [];"); sb.Append("_AvantMetrics.push(['order',{ order_id:'" + MyOrderNumber + "', amount:'" + SaleAmount + "',state:'" + strBillState + "', country:'" + strBillCountry + "'}]);"); </script>

THIS GOES ON EVERY PAGE

THIS GOES ON THE CHECKOUT ORDER CONFIRMATION PAGE

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Affiliates – A Love Hate Relationship

Now That You Signed Up An Affiliate Network, Now What?

• Recruit • Be found by affiliates in the network• Send the affiliate an email invitation• Social Media• Offer big % for an initial placement in high traffic area• Offer to signup now and we’ll give you X% commission• 80% of your affiliate revenue will probably be from 5-10 affiliates• Newsletters

• Incentivize• Give exclusive deals or exclusive coupon• Bonus them if they sell X% of product• Give them product• Give them their own landing page on your site

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Affiliates – A Love Hate Relationship

Things To Love About Affiliates

• Easy to setup

• Only get paid if they perform

• Easy to measure

• Usually only looking for a deal• Will call your 1-800 sales number, trying up your lines

for customers who will actually pay

Affiliates – A Love Hate Relationship

Things To Hate About Affiliates• Maybe would’ve got the sale anyway, added expense.

• Brand image

• Attribution

• Affiliates will bid on your branded terms in paid search and will bid on

terms you aren’t bidding on but are popular

• Affiliates will do anything for you to click their link even lie, cheat,

spam, even spyware

• Affiliates are super needy

• Customer Refunds and Cancellations!

• Customers referred aren’t the best customers

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Affiliates – A Love Hate Relationship

How can you keep affiliates honest?

• Constantly watch them & bust their chops

• Only let affiliates into your program that you want

• Take up the real estate on search engines that’s rightfully yours

• Including natural listing. Create your own coupon/promo page

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Affiliates – A Love Hate Relationship

How can you keep affiliates honest?

• Constantly watch them & bust their chops

• Only let affiliates into your program that you want

• Take up the real estate on search engines that’s rightfully yours

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Affiliates – A Love Hate Relationship

How Much Is It?

• Affiliates typically get 5-9% of each sale• Affiliate Networks typically gets 2 - 3% of each sale• Affiliate Network dedicated account manager

• Hire can be “in house”• Or, account manager at the network. Count on at least $20,000/year

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Affiliates – A Love Hate Relationship

How Do You Measure Performance?

• Affiliate Network will have a reporting platform• Google Analytics

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Affiliates – A Love Hate Relationship

How Do You Measure Performance?

• Affiliate Network will have a reporting platform• Google Analytics

Questions?

djones@arhaus.com

David JonesVP of E-Commerce

Arhaus Jewels