5 Software Niche Affiliate Success Stories

5 So%ware Niche Affiliate Success Stories

Michael Ni, CMO/SVP Marke<ng & Products

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Who are you? Affiliates, ISV’s, networks, vendors …

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5 So%ware Ver<cals Affiliate Success Stories What Are Some of the Best Prac<ces to Drive Conversion in a

So%ware World

!   The So)ware Ver.cal

!   Why It’s Good …

!   … and in which Sub-‐Categories

!   5 case studies in So)ware Affiliate Success

!   What’s Your Next Move

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Vendors

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Merchants

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Merchants

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Affiliates

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Affiliates

Affiliates

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!   The So)ware Market Worldwide is es.mated at over $260 billion

!   SaaS is a $12 billion market (2011) growing to $21 billion in 2015 growing at over 15% a year

!   Year-‐over-‐year growth in other key so)ware categories around 6-‐10%

!   So)ware is fundamentally purchased online …

!   … with Affiliate sales contribu.ng an addi<onal 10-‐15% to so%ware vendors’ online sales, with some contribu.ng over 30%

The So%ware Ver<cal The Market

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!   So%ware is included in several ver.cals -‐ accoun.ng for up to 20% of the affiliate preferences*

Affiliate Preferences to Date Up to 20% already choose so%ware related categories

* According to the data in the AffStat Report 2010

Pets Real Estate

Spiritual

Sports & Recrea.on

Contests / Giveaways

Toys & Hobbies

Travel & Auto

Wedding

Apparel

Books, Movies & Music

Career / Business Opp

Da.ng

Department Stores

Event Tickets

Financial

Flowers & Gi)s

Food & Entertaining

Gi) Cer.ficates

Green / Eco

Health & Beauty Home & Garden

Insurance / Financial Services

Jewelry & Accessories

Magazines

Medical

Computers & Electronics 8.97%

Office & Business 7.46%

Outlet & Discount 3.73%

Educa<on 0.4% Gaming

0.1%

So%ware related

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1.   GREATER COMMISSIONS bigger affiliate margins (generally up to 85%) compared to physical products (generally up to 50%)

2.   MORE CHANCES TO CONVERT VISITORS try before you buy, “Freemium”

3.   EASIER TO SELL known need, does not have to be touched, immediate gra.fica.on, ahrac.ve prices for customers

4.   EASIER TO HANDLE no hassles over delivery, .me zones -‐ as in some physical products

5.   AN ANNUITY recurring revenues opportuni.es, upgrade, renewals focused, mul.ple modules and related add-‐on opportuni.es

Advantages of Promo<ng So%ware Fast Selling, Low Maintenance, Recurring Revenue

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Top Selling So%ware Categories Consumer Titles Comprise the Bulk of Affiliate SW Sales

!   U<li<es/Security: est. $ 3 bln. market in 2011

!   Audio-‐Video Tools: est. $ 2.5 bln. in 2011

!   Produc<vity: est. $ 10 bln. in 2011

!   Games: est. $ 47.5 bln. in 2011

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Challenges What Do Prospects Need to Get Past to Make a Decision

!   A considered purchase Price point, Dependencies, Complexity

!   Fear, uncertainly, and doubt Malware, Security, Compa.bility

!   Comparability … Trial Price, Func.onality, Reputa.on, Credibility, Vendor Longevity, Support

What are some of the best prac.ces to helping prospects along …

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WHILE THERE’S NO RECIPE FOR

SUCCESS…

PROVEN IDEAS CAN ALWAYS HELP

5 examples in the Avangate Affiliate Network

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IncrediMail So%ware Vendors as Affiliates

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Freemium: IncrediMail Free

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Freemium: IncrediMail Plus, Toolbars

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!   Offers email customiza<on tools & widgets   “Leadership in trailing-‐edge technology”

  Brings value into very commodi.zed market

!   Secrets to IncrediMail Success   Feature-‐filled, func.onal Freemium version leads to Premium “IncrediMail Plus”

  Add-‐ons accessorize Freemium & Premium versions to expand revenue flow from exis.ng customers

  Associates with other complementary vendors to cross-‐sell whenever possible

  Uses social media to amplify their messages about “old-‐fashioned” communica.on tools. Use “Crowd-‐sourced” endorsements to drive popular accessories to the top

!   IncrediMail benefits   Provides con.nuous added value to their customers

  Generates addi.onal interest on frequent return visits

  Generates add-‐on sales with conversion rates of over 10%* * Avangate Affiliates Network

IncrediMail

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Freeso%.tvbok.com Original Content

Freeso%.tvbok.com: Original Content

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!   FreeSo%.tvbok.com

  Affiliate website for the Japanese audience

  Offers “how to’s” for various so)ware products & PC-‐related ac.vi.es

!   Secrets to their success   As an affiliate, Freeso).tvbok.com promotes video tools and uses tutorials and reviews

as customer conversion pages.

!   The benefits   Provides added value to its website visitors (over 2 million page views monthly)

  Generates affiliate sales with a conversion rate of over 0.8%*

Freeso%.tvbok.com Use original content to convert audience

* Avangate Affiliates Network

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BitsDuJour.com Leverage the power of the discount coupon

BitsDuJour: Power of Coupons

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BitsDuJour.com Leverage the power of the discount coupon

BitsDuJour: Widget

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Power of Coupons !   BitsDuJour

  Offers heavily discounted so)ware .tles, each deal only for 24 hours

  Leverages coupons and sense of urgency to reach/grow broad audience

!   Secrets to BitDuJour’s Success   Promotes PC & Mac so)ware .tles with steep discounts (over 50%)

  Community & crowd-‐sourced W.O.M. marke.ng

  Work with mul.ple affiliate networks & with vendors directly.

»  Affiliate cross-‐sell program (widget on other affiliate websites)

»  Vendor program (get part of the affiliate commission back)

  Seasonal & special campaigns – BitsDuJour Holiday Bundle

!   The Big benefit   Discounted product offers generate a conversion rate of over 20%*

BitsDuJour.com

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Myce.com User generated content & communi<es to deliver affiliate promo<ons

Myce.com: User Generated Content & Communi<es to Deliver Affiliate Promo<ons

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!   Leverages the Shared Bond of Community   Website targeted to consumer electronics, gadgets and technology community, engaging

members into reviews, discussions and forums

!   Secrets to Myce.com’s success   Power of user generated content

  Create a strong community around it, ahrac.ng traffic

  Contextual adver.sing used to generate sales

  Crowd-‐sourced promoted so)ware in specialized sec.ons and forums

!   The Big benefit   Added value through reviews and social interac.on on forums and discussions

  Affiliate conversion rate of over 1.5%*

Myce.com User Generated Content & Communi<es to Deliver Affiliate Promo<ons

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Product catalog with localized user experience Siliconac<on.com.br

SiliconAc<on: Extensive Catalog, Local User Experience

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SiliconAc<on: Installment Plan

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SiliconAc<on: Brand and Product-‐Specific Keywords on local markets

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!   Product catalog with localized user experience   Brazilian product catalog / e-‐tailer selling so)ware online with over 1,400 .tles

!   Secrets to SiliconAc<on’s success   Localized buying experience (localized payment methods, installment plans, etc.)

  Recognize their role in suppor.ng local purchase user experience rather than deep inves.ga.on, comparison, considera.on

  Generate traffic via targeted PPC campaigns, newslehers and adver.sing serving as a regional conduit for latest so)ware availability

  Uses both the affiliate and reseller model being flexible to offer the largest selec.on

!   The Big benefit   Generate sales as an affiliate with a conversion rate of ~20%*

  Linked to from vendors to handle traffic from that region, trusted to use AdWords

Siliconac<on.com.br

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!   So)ware is a rich ver<cal that has inherent advantages to be sold online … both standalone, as well added onto exis.ng affiliate sites

!   Consumer focused so)ware categories currently perform best …

!   … but growing opportuni<es in business, and SaaS solu.ons crea.ng interes.ng niche possibili.es in this huge market ($12 billion), not to men.on, educa.on

!   Get started -‐ join a dedicated so)ware affiliate network – let them handle tracking & payments and benefit from their advanced marke.ng features

!   PC business maybe declining, but in the post-‐PC era, the so%ware business is more vital than ever

!   Finally …

Takeaways

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Find a parade and get in front of it!

Avangate Inc. Redwood City CA., USA Tel: +1 650 249 5280

Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080

[email protected] www.avangate.com

Thank you

5 Software Niche Affiliate Success Stories

Technology

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