Partner Up, Affiliate Marketing In Action

© 2001 ClubMom, Inc. All Rights Reserved

Partner Up: Affiliate Marketing in ActionShawn Collins – Affiliate Manager, ClubMom, Inc.

June 21, 2001

Sponsored by: babcock | jenkins

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Outline What is Affiliate Marketing?

The Benefits of Affiliate Marketing

Become an Affiliate Yourself and Earn

Income

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Affiliate Program: a merchant pays a

commission to an affiliate for generating

clicks, leads, or sales from a graphic or text

link located on the affiliate’s site.From “Successful Affiliate Marketing for Merchants”

What is Affiliate Marketing?

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Affiliate: a Web site owner that earns a

commission for referring clicks, leads, or

sales to a merchant.From “Successful Affiliate Marketing for Merchants”


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Merchant: an online business that markets

and sells goods or services. Merchants

establish affiliate programs as a cost-

effective method to get consumers to

purchase a product, register for a service, fill

out a form, or visit a Web site.From “Successful Affiliate Marketing for Merchants”


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Win / Win Situation

Merchants gain desired

actions or consumer sales.

Affiliates earn money.

No Free Lunch – It Takes…

Hard Work

Know How

Time


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History of Affiliate Marketing

The Amazon Associates Program,

launched in July 1996, was not the first.

CDNow came first with their buyweb

program in November 1994.

AutoWeb.com (October 1995),

Kbkids.com/BrainPlay.com (January

1996), and EPage (April 1996) all pre-

date the Amazon program.


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LinkShare was the first affiliate

solution provider when they

launched in 1996.

Be Free also started in 1996.

Commission Junction launched in

November 1998.


More info. on affiliate solution providers at www.affiliatemanager.net/asp.htm

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First affiliate program directory was

Refer-it, launched in December

1997.

2-tier, AssociatePrograms.com,

CashPile, and ReveNews launched

in 1998.


More info. on affiliate directories at www.affiliatemanager.net/directories.htm

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Affiliate Marketing Models

Pay-per-click: affiliate is paid per visitor

they send.

Pay-per-lead: affiliate is paid if a visitor it

refers submits certain information.

Pay-per-sale: affiliate is paid a

percentage or flat rate for each sale it

generates from visitors it directs to you.


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Income

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“Affiliate marketing is a recession-proof

marketing channel." James Marciano, founder of Refer-it

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Is Your Business Suited for Affiliate Marketing?

Eight of the top ten retail sites for March 2001, as

ranked by Media Metrix, have an affiliate program.

If you are selling your goods or services well from

your site, affiliates can do it, too!

BUT… do you have enough margin to offer a

competitive commission rate? And are you willing

to invest in an affiliate manager, or better, an

affiliate team?


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Just the Stats, Part 1

In January 2001, a Forrester Research survey stated

that 83 percent of spending by 2003 will be pure cost-

per-action deals or a hybrid of CPM and performance.

This will be up from 62 percent in 2000.


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Jupiter Communications reports that affiliate programs

account for 11% of consumer transactions online, and

they project that figure to grow to 24% by 2002.


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affiliate metrix, inc. reported that in 2001, 18% of

affiliate programs using the pay per sale model

accounted for 21% or more of their company’s retail

transactions online.


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The Key Benefits

Opportunity to create a powerful and effective

marketing network for your product or service.

Risk-free advertising.

Focus on long-term marketing strategy, rather than

short-term tactical media buys.

Reduction in sales and marketing costs.


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Income

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Become an Affiliate Yourself and Earn Income

What’s good for the goose is good for the

gander.

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Free Content for Your Site

News of all types

Articles on many subjects

Web search services

Local news, weather, entertainment and events

Sports and stock information

Auctions

Consumer reviews and opinions


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Have Your Affiliate Team Become Affiliates

360 degree understanding of the industry.

Better understanding of affiliate issues.

First-hand knowledge of the tools and resources

needed to create a successful affiliate site.


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Better Yet, Hire Affiliates!

They are already familiar with the industry.

They are able to help affiliates with basic technical

issues, since they have their own site.

Less training necessary.

Example: Wendy, a ClubMom affiliate, now runs

the BabySongs.com affiliate program.


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2001 Merchant Report Research and benchmarking from 145 affiliate managers from a cross-section of the industry. Data includes:

average # of affiliate sites

conversion rates

impression numbers

staffing issues

affiliate team salaries

Available at http://www.affiliatemetrix.com/

For more information about affiliate marketing…

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© 2001 ClubMom, Inc. All Rights Reserved

Partner Up: Affiliate Marketing in Action

Shawn Collins – Affiliate Manager, ClubMom, Inc.

[email protected]

646-435-6513

http://www.affiliatemanager.net

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“Successful Affiliate Marketing for Merchants”

By Shawn Collins & Frank Fiore

$27.50 US - Que Publishing

ISBN: 0789725258

“If you run an affiliate program, you need this book.”

– Allan Gardyne, AssociatePrograms.com

Available at http://www.affiliatemanager.net/buynow.htm

For more information about affiliate marketing…