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Affiliate Marketing

Affiliate Marketing. Top Tips for Merchants and Affiliates. What is affiliate marketing?. Definition of affiliate marketing. Affiliate marketing is:-

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Affiliate Marketing

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  1. Affiliate Marketing Top Tips for Merchants and Affiliates

  2. What is affiliate marketing?

  3. Definition of affiliate marketing Affiliate marketing is:- Where a third party (or Affiliate) generates sales or leads for the seller (or Merchant) and receives a commission for each successful sale or lead

  4. Merchants (sellers or service provider) • Merchants include both large multi national companies and smaller businesses • Most Merchants tend to use affiliate marketing to sell products to consumers (so they can pay commission on a sale) but it can be used for lead generation (for the sale of services) and business to business • Affiliate marketing works very well for certain types of Merchants • New businesses (with no SEO traffic) • Companies with low budgets or where the cost per acquisition is expensive using other methods (such as pay per click) • Big brand names that want maximum sales

  5. Affiliates (advertisers) • Affiliates can be anybody with a website or blog, that wants to earn some extra cash • These include directory sites, loyalty sites, cash-back sites, sites where you earn points, blogs, other e-commerce sites and shopping site/ecommerce aggregators • Affiliates may already have established traffic, extensive database lists for email marketing, or may use SEO and PPC to get visitors to their site (and then to the Merchants’ sites)

  6. Benefits of Affiliate Marketing • Market Development • Other people sell for you • Pay only when a sale is made • Gain new customers at low cost • Often cheaper than PPC • Faster than SEO

  7. Sales of products – routes to market

  8. Sales of services – routes to market

  9. Affiliate marketing of products Affiliate Feed With feeds from various Merchants • Affiliate site • Marketing carried out by Affiliate £ Visitors clicks through to Merchants site Merchant Sells product to visitor

  10. Affiliate marketing of services • Affiliate site • Marketing carried out by Affiliate Lead generation Visitors details collected and transferred £ Visitors clicks through to Merchants site Merchant Visitor completes form

  11. Many affiliates do both? Affiliate Feed With feeds from various Merchants • Affiliate and/or lead generation site • Marketing carried out by Affiliate Lead generation Visitors details collected and transferred £ Visitors clicks through to Merchants site Visitors clicks through to Merchants site Merchant Sells product to visitor Merchant Visitor completes form Product sales Lead generation

  12. Examples of large affiliate sites(super affiliates)

  13. Quidco - Cash back

  14. Greasy palm - Cashback

  15. Mutual points - Earn points

  16. MyIce – points to be used online and offline

  17. Examples of affiliate product feed sites

  18. Example of affiliate product feed sites

  19. Example of affiliate product feed sites

  20. Example of a banner ad on an affiliate site

  21. Shopping directory

  22. Click through to M & S – note url has tracking code added

  23. AdSense from Google looks like an affiliate ad but you get paid on a click

  24. Example of lead generation

  25. Business to business advertisers

  26. Lead generation site

  27. The elements of an affiliate programme

  28. How does it work? TrackingSoftware Goesthrough Clicks on Redirectsto Visitor AffiliateWebsite Sendscommission Merchant Site

  29. Key elements of an affiliate programme • Having a programme and commission structure in place to attract affiliates • Getting enough affiliates to join your programme • Ability to track which affiliate generated a successful sale or lead • Easy to manage the programme and pay the affiliates • Ability to reject sales or leads if they are fraudulent or payment is not received

  30. Options for managing an affiliate programme • Use an affiliate network • Create your own programme on the network • Use network’s tracking software • Let the network promote and recruit your affiliates • Use networks tools to manage the programme • do this yourself • use networks in-house services (managed service) • recruit an agency

  31. Options for managing an affiliate programme • DIY • Set-up your own programme • Invest in third party tracking software • Market and recruit your own affiliates • Manage your programme yourself (or recruit an agency)

  32. Example of affiliate software

  33. Advantages and disadvantages For small or first time users – we recommend using an affiliate network

  34. Using an affiliate network

  35. Using an affiliate network • A Merchant registers with an affiliate network and adds their details/programme to the site. • The programme is advertised to the affiliates registered on the network • Affiliates can choose to subscribe to the programmes offered and adds the banner or text ad to their own site. • The affiliate generates traffic or leads for the Merchant • The sale or leads are tracked due to the presence of tracking code on the thank you page of the Merchant’s website and cookies added to the visitors computer • The Merchant pays a price per lead or commission for each lead or sale (via the network)

  36. Affiliate Networks

  37. Log in as an Affiliate and see the Merchant directory

  38. Example of a programme for selling products

  39. Creative

  40. Example of a programme for lead generation

  41. Creative

  42. Affiliate feeds

  43. Typical costs and commissions

  44. Costs and commissions

  45. Setting up your programme

  46. Choosing an affiliate network • Set-up costs • Monthly costs • % Over-rider • Number of UK affiliates • Sector experiences and other Merchants similar to you • Ease of use of interface • Minimum contract period • Other conditions and costs

  47. Preparing your campaign • Apply for an account • Pay deposit/set-up fee • Prepare your programme for affiliates • Provide description of company and website with average sales and order size • Commissions offered (and/or cost per leads) • Bonuses and additional commission tiers for affiliates hitting certain targets • Restrictions eg PPC advertising on brand name • Text and creative (banners and buttons) to be used on affiliate sites • Add tracking code to your site and possibly create a different landing page • Run test and then make live

  48. Managing your campaign • Monitor daily and check all sales/leads – reject bogus sales/leads • Reject unsuitable affiliates • Offer monthly promotions and bonuses to increase take-up and sales

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