2009 Philly Search Camp What Is Affiliate Marketing

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Information about 2009 Philly Search Camp What Is Affiliate Marketing

Published on October 8, 2009

Author: SearchCampPhilly

Source: slideshare.net

What is Affiliate Marketing? Presented by Donna McCarthy October 4, 2007

What is Affiliate Marketing? An online marketing channel that gives businesses access to an online “pay for performance” sales force and allows web site owners to earn additional revenue from promoting another company’s products or services. Stated more simply, you send people to a web site, they buy something, and you get paid a commission. Merchants only pay affiliate partners for results, such as a lead or a purchase “pay-for-performance”. Affiliates don’t carry any inventory, they just refer their visitors to the merchant’s site.

An online marketing channel that gives businesses access to an online “pay for performance” sales force and allows web site owners to earn additional revenue from promoting another company’s products or services.

Stated more simply, you send people to a web site, they buy something, and you get paid a commission.

Merchants only pay affiliate partners for results, such as a lead or a purchase “pay-for-performance”.

Affiliates don’t carry any inventory, they just refer their visitors to the merchant’s site.

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

Also known as . . .

Associate Program

Internet Affiliate Marketing

Direct Marketing

Performance Marketing

Partner Marketing

Pay-Per-Performance Marketing

Referral Program

Who are the Key Players? There are three key players in any affiliate program: The Affiliate (Publisher) The Merchant (Advertiser) The Affiliate Network The Affiliate Program Manager

There are three key players in any affiliate program:

The Affiliate (Publisher)

The Merchant (Advertiser)

The Affiliate Network

The Affiliate Program Manager

Benefits of An Affiliate Program Benefits for Merchant . . . Provides an experienced, “pay for performance” sales force Allows immediate access to the market Offers market intelligence Increases Merchants’ exposure and brand awareness Merchants and Affiliates only succeed if they both succeed

Benefits for Merchant . . .

Provides an experienced, “pay for performance” sales force

Allows immediate access to the market

Offers market intelligence

Increases Merchants’ exposure and brand awareness

Merchants and Affiliates only succeed if they both succeed

Benefits of An Affiliate Program Benefits for Affiliate . . . Generate additional income Part time, full time, you choose Low (NO) barriers to entry A chance to partner with top brands No inventory, no customer service issues

Benefits for Affiliate . . .

Generate additional income

Part time, full time, you choose

Low (NO) barriers to entry

A chance to partner with top brands

No inventory, no customer service issues

What is an Affiliate? A person or web site that sends visitors to another web site in exchange for a commission. Affiliates are . . . Publishers or Partners Blogs or Forums An online Marketing Sales Force

A person or web site that sends visitors to another web site in exchange for a commission.

Affiliates are . . .

Publishers or Partners

Blogs or Forums

An online Marketing Sales Force

Types of Affiliates Sites Shopping – site are virtual malls. The consumer shops for various brands and products on site. These sites are not driven by particular coupon or deal offer Coupon/Deal – most popular affiliate model. These sites are shopping sites that require merchant to provide consumer with either a coupon, percent off savings, or free shipping offer Comparison Shopping – sites sell items using a comparison model. These sites usually require a data feed of merchants’ products. Loyalty/Rewards – sites where a percent of the merchant’s commission is used to pay reward to consumer. Allows consumer to select their reward option. Rewards can include cash, airline miles, credit card points, or donation to charity or organization

Shopping – site are virtual malls. The consumer shops for various brands and products on site. These sites are not driven by particular coupon or deal offer

Coupon/Deal – most popular affiliate model. These sites are shopping sites that require merchant to provide consumer with either a coupon, percent off savings, or free shipping offer

Comparison Shopping – sites sell items using a comparison model. These sites usually require a data feed of merchants’ products.

Loyalty/Rewards – sites where a percent of the merchant’s commission is used to pay reward to consumer. Allows consumer to select their reward option. Rewards can include cash, airline miles, credit card points, or donation to charity or organization

Types of Affiliate Sites (cont.) Content – sites are usually not shopping sites. Consumers go to sites because the content is of particular interest. Sites to particular product contained in site Search – affiliates promote merchants via search engine marketing, using either natural or paid search practices. Blogs/Forums – sites post or feature article that focus on a particular product or merchant and include an product affiliate link to the product.

Content – sites are usually not shopping sites. Consumers go to sites because the content is of particular interest. Sites to particular product contained in site

Search – affiliates promote merchants via search engine marketing, using either natural or paid search practices.

Blogs/Forums – sites post or feature article that focus on a particular product or merchant and include an product affiliate link to the product.

Affiliate Sites

What is An Affiliate Network? An Affiliate Network is a third party which acts as liaison between Affiliates and Merchants Also. . . Facilitates the forming of partnerships Tracking, reporting and a payment form Creative asset repository And best of all . . . Charges no fee for Affiliates to join

An Affiliate Network is a third party which acts as liaison between Affiliates and Merchants

Also. . .

Facilitates the forming of partnerships

Tracking, reporting and a payment form

Creative asset repository

And best of all . . . Charges no fee for Affiliates to join

Affiliate Networks (Double Click / Performics)

Affiliate Program Management An affiliate program manager is highly specialized. They need to know. . . General on-line marketing practices HTML Search and Social Media Site building Ability to trouble shoot technical issues Comprehensive knowledge of online marketing space Options for Affiliate Program Management: In-House affiliate program manager Affiliate Network Client Services Outsourced Program Manager (OPM)

An affiliate program manager is highly specialized. They need to know. . .

General on-line marketing practices

HTML

Search and Social Media

Site building

Ability to trouble shoot technical issues

Comprehensive knowledge of online marketing space

Options for Affiliate Program Management:

In-House affiliate program manager

Affiliate Network Client Services

Outsourced Program Manager (OPM)

How Does It Work? Affiliate downloads Merchant creative from Network Consumer visits Affiliate site and clicks Merchant’s creative Cookie is set on Consumer’s browser which identifies Merchant, Affiliate and creative link Consumer is directed to Merchant’s website Consumer makes purchase from Merchant Merchant captures purchase information and transmits sales file to Affiliate Network Or pixel, which has been added on Merchant’s cart page, captures purchase information Affiliate Network tracks sales transactions and pays Affiliates commissions

Affiliate downloads Merchant creative from Network

Consumer visits Affiliate site and clicks Merchant’s creative

Cookie is set on Consumer’s browser which identifies Merchant, Affiliate and creative link

Consumer is directed to Merchant’s website

Consumer makes purchase from Merchant

Merchant captures purchase information and transmits sales file to Affiliate Network

Or pixel, which has been added on Merchant’s cart page, captures purchase information

Affiliate Network tracks sales transactions and pays Affiliates commissions

Merchant Programs

Affiliate Commission Models Pay-per-Performance (Revenue Share) - affiliate commission based on a % of the total order value Pay-per-Lead / Cost-per-Acquisition – affiliate commission based on a % of the total order value Cost per Impression / Cost Per Click - affiliate charges the merchant a fee for banner views or clicks

Pay-per-Performance (Revenue Share) - affiliate commission based on a % of the total order value

Pay-per-Lead / Cost-per-Acquisition – affiliate commission based on a % of the total order value

Cost per Impression / Cost Per Click - affiliate charges the merchant a fee for banner views or clicks

Affiliate Marketing Diagram Order Conformation Affiliate Site Merchant Site Online Shopper

Q & A Questions?

Questions?

Donna C. McCarthy Director of Performance Marketing [email_address] 646-290-8659 x6006 Skype:donnamccarthy Twitter: DonnaMcCarthy

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