The Top 5 Affiliate Management Myths Debunked

The Top 5Affiliate Management

Myths DebunkedKaren McMahon, The Affiliate Whisperer

Kim Rowley, Key Internet MarketingKim Salvino, Chateau 20Vanessa Branco, Versa9Amy Ely, Under Armour

Agenda• Introduction• Myth #1: Launching = Instant Revenue• Myth #2: Affiliate Marketing is Risk Free• Myth #3: It Doesn’t Work For Small Businesses• Myth #4: Affiliates Don’t Add Value• Myth #5: I Need Paid Placements Year Round• Questions?

Myth #1: Launching = Instant Revenue

Overview• Manage your expectations

o A look at affiliate program launch statistics• Look at it from the affiliate perspective

o It takes time for affiliates to get startedo Auto-approvals help

• Have a solid affiliate strategy• Keep calm and carry on!• Take time to educate your affiliates



Key Influencer**If your site is not already primed to convert

consumers to buyers, then affiliate traffic will NOT increase your revenue.**

Set Yourself Up For Success• Your product/offer is your responsibility• You must attract & recruit affiliates



Your Product/Offer is Your Responsibility• Quality product/offer, non-gimmicky• Site must instill consumer confidence

o Clear, easy navigationo Crisp product imageso Functional in all browserso No interference (no ads, no pop-ups, no flash heavy ads)

• Ongoing site optimization



You Must Attract & Recruit Affiliates• Supply creative that converts + deep links• Assess your competition• Ensure products appeal to their site audience• Provide accessible and responsive support • Share marketing materials

o Demographics, seasonality information, top sellers, new products


Myth #2: Affiliate Marketing is Risk FreeGaming The System• Some affiliates look for easy money

o Forced clicks, pop ups, etc.• Loyalty & incentive sites can entice customer

fraud

Legal Compliance & Managing Multiple Relationships• Evolving FTC regulations• Managing hundreds of relationships is a challenge

Myth #2: Affiliate Marketing is Risk Free

Myth #2: Affiliate Marketing is Risk FreeProtect Your Program• Manually approve affiliates• Use monitoring tools and run your own tests• Review changes in performance• Stay informed on FTC updates• Leverage all available support

o Call center, network reps, etc.

Myth #2: Affiliate Marketing is Risk Free

Myth #3: It Doesn’t Work For Small

BusinessesA Big Brand Name Isn’t Required For Success• Look at your affiliate program as part of your total

brand marketing strategy• Address poor converting links and banners• Focus your attention• Keep your links fresh• Manage your affiliate program costs

Myth #3: It Doesn’t Work For Small Businesses

Myth #3: It Doesn’t Work For Small

BusinessesQuestions To Ask Yourself• Who are your current affiliates? Who else can you contact?• Does your offer match the affiliate type & their marketing

activities?• Are you providing the proper tools for affiliate success?• When was the last time you contacted your affiliates?

o Do you know who is performing well and who isn’t? o What can you do to help low performers?

• What kind of payouts and incentives are you using to attract & motivate your affiliates?

Myth #3: It Doesn’t Work For Small Businesses

Myth #4: Affiliates Don’t Add Value

Proven Results• Affiliate marketing is a powerful source of new

customer businesso Some merchants in the 50%-70% range for new-to-file

• Attribution studies reinforce that this channel drives incremental value



Measuring Holistically - AttributionAffiliate marketing affects other channels/affiliates. Some affiliates (not all) are under-rewarded since last-click doesn’t show full funnel…some affiliates are over-rewarded if only focusing on last-click.



Affiliate (Just Like Every Other) Has Its Own Silo• Search, display, affiliate, video and social are all

ignorant of other contributing channelso Some affiliates introduce (originate) the entire transaction!!!




Understanding How Affiliates Impact Each Other….(Data courtesy C3 Metrics)

• Prior to using C3 Metrics measurements, 52% of last click revenue (and cost) came from top 3 affiliates

(excludes google remarketing)

52%

ZERO


• Top 25 affs indexed on attributed value vs. last click• Affiliates driving highest value are in Top 25, not Top

3• Aff #16 delivering more value than #1 paid affiliate


0

20

40

60

80

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120

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

Attribution Index



Results • Affiliates further down the chain will do well• Affiliates at very top will have comp adjusted• Cash-back affiliates continue to do well b/c they originate

customers • Advertisers will focus on origination + demand generation…

less on last second “jump ins” (focus more on starting rather than finishing)

• In five years, 50% of digital ad dollars will use attribution vs. last click/last view (Gartner)

Myth #5: I Need Paid Placements Year

RoundKey Questions• What are your success metrics? Revenue? Return

on Ad Spend (ROAS)? Impressions/Visits? Branding?

Explore Your Options• Placements are not a requirement to grow

revenueo Test performance with & without placements

• Be selective: choose top performing placements at times when extra visibility is needed

Myth #5: I Need Paid Placements Year Round


RoundCase Study: December 2013• Bookings drop due to seasonality during this

period• Schedule placements to coincide with best sale of

the yearCampaign Statistics• Budget: $37,350• Revenue Driven by Placements: $144,813.72• Return on Ad Spend: 288%



RoundMitigate Risk by Allocating Spend For Both

Content & Coupon SitesSpend by Placement Type



RoundContent Sites Have Significantly Higher

Return Than Coupon SitesReturn on Ad Spend


We Welcome Your Questions!

Questions?

Contact Us

Find Us On TwitterKaren McMahon @Aff_Whisperer

Kim Rowley @kimarketingKim Salvino @kim_salvino

Vanessa Branco @VanBrancAmy Ely @aely

The Top 5 Affiliate Management Myths Debunked

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