How to Make B2sB Affiliate Marketing Profitable

January 10, 2012

Affiliate Summit West

Panelists

Marty MarionAffiliate Marketing Manager

Deluxe Corp.

Sherry TingleyOwner

One Click LLC.

George HansenDirector of Sales

Digital River – oneNetworkDirect

Agenda

What is B2sB affiliate marketing The opportunity B2sB Affiliate Marketing, why now? B2sB vs. B2C differences Who is the B2sB audience & how to market to them Will the SB buy from an Affiliate? Top things an Affiliate can do tomorrow to earn big Panel discussion Q & A Key takeaways / wrap

What is B2sB Affiliate Marketing?

Marketing business products & services to small businesses

How big is the opportunity?28.7 million SBs in North America

(with < 20 employees)

26,501,128 2,204,103

Sources: 2009 IRS/U.S. Census Bureau, Statistics Canada 2007

How much do SBs spend?

$142.3 Billion /yr.On goods and services to run and promote their business*

On average, SBs will spend

about $5,000 /yr. on these products & services

How much of that budget do YOU want?

Includes:Marketing servicesComputers and softwarePrintingOffice suppliesBusiness formsPromotional productsAppareletc.

Does not include:Raw materialsManufacturing equipmentUtilitiesetc.

Sources: SBs Directions 2011, Gartner 2011, Deluxe Corp. 2010 , IBIS World 2011, Barnes 2011 & InfoTrends 2009

How much do SBs spend online?

Over 60% make business purchases online

That’s 17.2 million potential customers

With an $86.1 billion combined budget

Source: Small Business Directions, 2011; n=842 SBs

How much of this could be in the Affiliate Channel?

B2sB Affiliate – why now?Overall Affiliate Revenues Projected to Soar Despite economic downturn, Merchants are projected to pay out over

$4 Billion in commissions by 2014

Source: Forrester Research Affiliate Marketing Forecast, 7/09 (US)

B2sB Affiliate – why now?

Going mainstreamAs budgets tighten, Merchants are increasingly adding Affiliate Marketing to their marketing mix

Usually not part of a fixed marketing budget

Low risk pay for performance model

Provides a competitive ROI compared to other channels

Healthy competition between affiliates is leading to more relevant niche sites increasing traffic and conversions

Merchants and Affiliates are increasingly working directly together toward mutually beneficial results

B2sB Affiliate – why now?

B2sB Affiliate Footprint is relatively small B2C market is fully matured and saturated

B2sB is just entering its growth stages

B2sB merchants increasingly entering the channel, so their growth incentive is at an all time high

What does this mean for B2sB affiliates? Less competition

Incremental revenue stream

Higher average commissions

Time to establish expertise “before the rush”

B2sB vs. B2C – differences

SB Consumers Purchase decisions are less

impulsive & require more info

They are “cost conscious” not “price sensitive”

Looking to answer a question or solve a business problem

B2sB vs. B2C – differences

SB Merchants Depending on the product/service

AOV can be substantially larger

Overall higher commission rates

Place education in the Affiliates hands, similar to offline distributed selling model

B2sB vs. B2C – differences

SB Affiliates Play a crucial part of informing

SBs consumer in the purchase process

Builds a strong and direct working relationship with Merchants

Understand that the B2sB affiliate blueprint for success is still being drafted

A little more effort will equal a lot more $$

Who’s your target audience?

or

Who’s your target audience?

Small Business

Over 3/4 of SBs are run by sole proprietors

The same people who buy shoes, CDs, TVs, gadgets, gifts and more

They use similar purchase behaviors when buying for their business

More SBs look to buy products online than those trying to sell online*

A recently survey by Deluxe Corp.

How do you reach the SB Consumer?

Are there people who make money (or want to) by doing what I describe on my site?

If you answered “YES” you already have a B2sB opportunity

Am I already providing content that is relevant to SBs?

Business Services & How To sites• SEO, hosting, social media,

marketing, business growth, time management, etc.

Business Products• Office supplies, computers, software,

checks, forms, printer Ink, business cards, etc.

How do you reach the SB Consumer?

Can I create or provide something that would speak directly to a small business owner’s needs?

Business Segmentation• Creating SB categories within existing

sites, offers and email lists can take your marketing in a new & profitable direction

How do you reach the SB Consumer?

By asking these Questions…

How can this help SBs attract more customers?

How can this help SBs manage their time and money more efficiently?

How can this help SBs keep their customers coming back?

And putting the answers into practice on your site...

How do you engage the SB Consumer?

Will the SB buy from an Affiliate?

Yes! The decision making process is less about emotion & more about knowledge & trust

Yes! Price sensitivity is more about added value of the product or service they are buying…They are still looking to cut costs so balance here is crucial

Yes! SBs are everywhere, easy local access to business products & services is not

Yes! More SBs look to PURCHASE business products online than those who try to SELL them

Yes! The SB consumer needs 24/7 access to products so that they can buy for their business outside of their own business hours

Understanding the small business consumer = $$

Top things an Affiliate can do tomorrow to earn big

Reach out to merchants & establish an open line of communication Don’t be passive in your relationship

B2B Merchants rely on the connection between their distributors & the consumer

B2B Merchants are more willing to share data, take advantage

Create a SB section of your site The SBs Consumer is looking for a place to go…GIVE IT TO THEM

Create a section / content just for the SB Consumer – SEO/SEM

Affiliate Marketing is not simply building links and collecting commissions

Organize your site with visitors in mind creating content to support product sales Merchandise site with as much care as you would a consumer product site

Insure that relevant content surrounds the products & services you promote

Top things an Affiliate can do tomorrow to earn big

Educate your visitors, offer a POV and show expertise Pack your site with relevant content, and make sure they can find it

The SB Consumer is looking for an answer, GIVE IT TO THEM

Its your site, share an opinion

Connect with or create a blog around the SB Products / Services you offer Social Media - I’m sure you use it, but don’t just spam, have an opinion

Niche vertical blogs - Connect to your prospects where they are

Sell like products Organize SB products / services in “Stacks”

You have brought them to your site for a reason, ASK FOR THE SALE

Top things an Affiliate can do tomorrow to earn big

Test products, promotions & content continually Don’t set it and forget it!

Understanding the SB market will quickly make your efforts successful

Share successes and challenges with your Merchants Share what works and doesn’t

Data - You have it, the Merchant has it, combine it and win big

The more you and your Merchant work together, the easier success will be

Participate in the industry You don’t have to give away your secrets to participate in the industry

Two heads are better than one, share your success & learn about others

Look for places to earn more money through contests, surveys, etc.

Panel discussion

Q & A

Key takeaways / wrap up The SB consumer is still a consumer! The SB consumer is looking for answers & experts! Organizing your site with relevant content! If you learn from your visitors and the sales they create, you WILL

create more sales! Communicate openly with your Merchants, they are eager to work

with you! Potential for higher AOVs & commission rates! Be patient, effort = reward! B2sB is an incremental way to grow your business today!

We are all here to make more money….follow these steps and you will