practical affiliate marketing · 2015-06-23 · business rewards one or more affiliates for ......
TRANSCRIPT
Practical Affiliate Marketing
Tuesday 9th June 2015
Stephen Whitelaw
35 years technology experience
•Internet, Web, Digital, Social Media.
•www.linkedin.com/in/stephenwhitelaw
•www.kimtag.com/stephenwhitelaw
•@toowist
About
• Your name?
• What you your job role/title?
• Affiliate Marketing and Online Advertising experience?
• Expectations from today?
“
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
Affiliate Marketing a.k.a...
Also known as...
» Associate Program
» Internet Affiliate Marketing
» Direct Marketing
» Performance Marketing
» Partner Marketing
» Pay-Per-Performance Marketing
» Referral Program
Some definitions …Who’s who?
Advertiser (also called Merchant or Retailer)
Has products (or services) to sell
Pays commission on referral/sales
(e.g. Uses Adwords)
Publisher (also called Reseller or Affiliate)
Earns Commission
Accepts ads on their website
(e.g. Uses Adsense)
Affiliate Networks
These are 3rd party companies linking Advertisers and Publishers
How it works …
A performance based relationship with ‘Action’ and ‘Reward’
Advertisers provide you with ..
• Text links
• Banners
• Widgets
• Flash Animation
• Email templates
What is An Affiliate Network?
An Affiliate Network is a third party that acts as liaison between Affiliates and Merchants
•Allows Affiliates to find Merchants which are suitable for their site
•Allows Merchants to find Affiliate sites that expands reach to their target audience
•Services include tracking technology, reporting tools, payment aggregation and processing
•Provides a creative bank or repository for storing and accessing creative assets
• Is no cost for an Affiliate to join
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Affiliate Commission Model
• Pay-per-Performance (Revenue Share) - merchant pays affiliate commission based on a percentage of the total order value
• Pay-per-Lead / Cost-per-Acquisition – merchant pays affiliate commission for every lead or order referred from their site
• Cost per Impression – merchant pays affiliate commission for every 1,000 impressions of their banner on affiliates’ site
• Cost per Click – merchant pays affiliate commission every time a visitor clicks on their banner on the affiliates’ site
Some more definitions !
• PPC – Pay Per Click (Google + Facebook)
• CPA – Cost Per Action/Aquisition
• CTR – Click Through Rate
• CPC – Cost Per Click (Facebook)
• CPM – Cost per Thousand (Facebook)
• eCM – effective Cost Per Thousand Impressions
• CPL – Cost Per Lead
• CPS – Cost Per Sale
• CPI – Cost per Install
• CPE – Cost per Email
• CPD – Cost per Download
• CPV – Cost per Video View
Cost Per Action …
Cost Per Lead …
Cost Per Click (CPC) or Pay Per
Click (PPC)
The Key is Tracking …
Cookies …
• 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
COOKIE TIMES Most common set-ups
Affiliates are as fickle as cats they will
always go where the cream is richest!!
Always remember…
• 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 - .20 / sale
> 50 sales - .225 / sale
> 100 sales - .250 / sale
>500 sales - .300 / sale
SETTING THE RIGHT PAYOUTS AND INCENTIVES
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• Pay per Sale (PPS/CPS) – 80% of all programs
• Pay per Lead/Cost per Lead 20% of all programs
• Pay per Click/Cost per Click (PPC/CPC)
• Pay per Call
Most common performance based models
www.ahrefs.com
www.moz.com/researchtools/ose
USE LINK ANALYSIS SOFTWARE TO UNDERSTAND YOUR COMPETITORS AFFILIATE BASE
Why use an Affiliate Network?
3 ways to work …
• Go direct
e.g. Sign up with Amazon Affiliate program.
• Go through an Affiliate Network
e.g. CJ, Linkshare, ShareASale, ClickBank, PepperJam, Affiliate Window (own buy.at), Affiliate Futures, Tradedoubler.
• Go through an Affiliate Aggregator.
e.g. Viglink, Skimlinks, Adsense, Kontera, Infolinks.
Huge Affiliate Companies are now
houshold names …
MoneySupermarket.com – Floated for £1 billion
Confused.com - £700 million valuation
uSwitch.com – Acquired by EW Scripps for £210 million
Kelkoo – Acquired by Yahoo for €475m
© Stephen Whitelaw 2010
Amazon Associate model
© Stephen Whitelaw 2010
OfferVault
© Stephen Whitelaw 2010
Commission Junction
Affiliate Window
Advice for Advertisers (those who have a service/product to sell)
THE STEPS TO A CREATE AFFILIATE PROGRAM
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
Who pays who what?
Advertiser has a product that retails (RRP) at
£100
Affiliate/Merchant gets say 10% of RRP = £10
CPA Network (e.g. CJ) gets 30% of affiliate
commission = £3.33
Thus the advertiser gives away £13.33
Time to sell some stuff on Pinterest
Advertising on Linkedin
Checkout…
Useful Affiliate Marketing & Online Advertising Books