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Affiliate Marketing

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Marius Motohon

on 9 July 2015

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Transcript of Affiliate Marketing

Affiliate Marketing

A way for a company to sell its products by signing up individuals or companies ("affiliates") who market the company's products for a commission
1. Pay for Performance – With affiliate marketing, you only pay if a certain predetermined action is met. No payment without results!

2. Low Risk – Affiliate marketing is considered very low-risk, because you don’t pay if it doesn’t work.

3. Diversify – Affiliates will use their own skills to get your brand noticed, such as SEO, Social Networking, Blogging, Email Marketing, and Mobile Marketing.
What is Affiliate Marketing?
Affiliate marketing at its very core is about relationships,
a relationship between four parties:
Affiliate Tracking
A cookie is a technology that works with web browsers to store information like user preferences, login or registration information, and shopping cart contents.
In affiliate marketing, one task that cookies manage is to remember the link or ad the visitor to a website clicks on
In the world of affiliate marketing, an advertiser can be a company selling a product like electronics, airline tickets, clothing or car parts, or an advertiser could also be an insurance company selling policies. The most important thing to remember is that you are an advertiser if you are ready to pay other people to help you sell and promote your business.
A publisher is an individual or company that promotes an advertiser’s product or service in exchange for earning a commission. Advertisers contractually agree to work with a publisher, then provide the publisher with creative – in the form of links, banner or text ads or even unique phone numbers – that the publisher incorporates into their website.
The consumer is the one who actually sees the ad and then makes an action (either by clicking a link or by submitting their information via a form) that takes them from the publisher’s website to the advertiser’s to complete the action, which we call a conversion.
In summary, cookies make tracking affiliate-referred-sales very convenient. The cookie can be read and used on any page or on any form, and can be used in conjunction with almost any ordering system. Plus, the cookie that records the affiliate's ID can "live" for as long as the merchant desires, allowing affiliates to get credit for customers who clicked on a link weeks, or months, before finally purchasing or making a repeat purchase.
Affiliate Marketing SWOT
4. Middlemen
1. Mobile. Mobile Internet is set to eclipse desktop Internet by 2014.
71% of smartphone owners shop on mobile
By 2015 over 60% of traffic (to the Top 500 e-retailers) will stem from smartphones

2. Social. Per BIA/Kelsey U.S. social ad revenues are set to grow from $6.1 bn in 2012 to $11 bn in 2017.
Affiliate marketing opportunities abound in: Social shopping, Social gaming, Podcasting, Q&A and review websites and Social media ads

3. Local. Per Berg Insight the total value of the global real-time location-based marketing spend will grow €526 million in 2012 to €6.5 billion in 2017
1. Click Fraud
2. Shady Partners
3. Cookie stuffing
1. Online merchants get free ad space and will only pay for proven results (pay per sale, pay per click, pay per lead).
2. Affiliates, on the other hand, require only an ad-space to promote the merchants’ products, and thus can enjoy watching the beautiful sunset while earning cash.
3. Advertisers can promote a product to a vast audience, giving their brands more exposure and recognition.
4. Marketers can collaborate with affiliate networks and can pretty much take care of the execution stages, giving the merchant little to no bother during the procedure.
5. Consumers that come from the affiliate’s site can provide important information concerning the latest trends and demands.
1. Affiliate link hijackers.
2. High competition
3. Pay on sale
Affiliate Marketing Safeguards
1. Do the research!

2. Walk before you run!

3. Understand the IT

4. Know your audience

5. Seek out the experts
Constructing your affiliate program
1. Merchant description with link to website

2. Commission structure (and clear breakdown into tiers/levels)

3. Information on cookie life

4. Availability of data feed for e-tailers, and multiple landing pages for service advertisers

5. Information on tools or any other competitive advantages

6. Any restrictions and/or special terms that affiliates should know about from the very outset
Weekly, Bi-monthly or Monthly Payments.

Can consist of Paypal, cheque, wire transfer or even credit card payments

1. May vary from merchant to merchant

2. Usually set up for new aquisition but some programs reward renewals as well

3. Can be st up on different tiers depending on the volume sold the previous month

4. MLM structures can be found in regular affiliate marketing where one affiliate refers another and gets residual commission from all of the referred sales
Table of contents
What is Affiliate Marketing
Affiliate tracking
Affiliate marketing SWOT
Affiliate Marketing Safeguards
Constructing your Affiliate Program
Strategic Search Affiliate
Affiliate Examples
Affiliate Marketing Safeguards
Pre-screen affiliate applications carefully (before approving them)

Set your locking period at a term that gives sufficient time to reverse payout on any invalid lead

Once fraud is caught, investigate the case to determine the cause of it.
Payment methods
European affiliates prefer the Wire transfer as payment method in detriment of PayPal or Check

Strategic Search Affiliate
1. DIY (Do It Yourself)

2 DIFM (Do It For Me)
Strategic Search Affiliate
1. Online screening
Search online & Identify keywords, competitors and local affiliates
Create your local affiliates database and start recruiting

2. Advertising
Search Engine Marketing campaigns
Cooperate with local directories, publishers, bloggers, influencers to review your affiliate program

3. Affiliate Networks
Work with your current affiliate network to do a geo-targeted approach of affiliates
Enroll your program in a niche network

4. Events
Attend events at a regional, country or niche level

Strategic Search Affiliate
1. Enrollment with one or several major Networks (Affiliate Window, Zanox, Tradedoubler)

2. Local Agencies/ Outsourced Program Managers

Why work with a local partner?

1. A local partner has the advantage of knowing the culture and the mentality of the affiliate
2. Working with a local partner can add extra value to your program – They can usually offer additional marketing services such as localized PPC campaigns, media buying, PR, etc.

Security software market leader Bitdefender has opened 4 different EU affiliate programs, for each of their target country offering their affiliates a localized experience.
For the major target countries – Germany, Spain, Italy they work with dedicated in-house Affiliate Managers while the UK program is managed by an outsourced agency.

Affiliate Examples
FindGift.com is a shopping catalog site where the user can search through a variety of types of gifts. Most gifts once "more details" is clicked, contain an affiliate link.
Affiliate Examples
ThisisWhyImBroke is an online catalog of creative, geeky or out of the ordinary products online. ThisisWhyImBroke earns certain affiliate commissions once the "Check it Out" button is clicked. Most affiliate links on the website are through the Amazon.com affiliate marketing program.
Affiliate Examples
Offers.com helps you save time and money with your online shopping by publishing thousands of deals, coupon codes, and service offers that are verified each day by our team of savings experts.
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