Referral & Affiliate Program

Project Leads: Tyrone Wang, Jason Maryne

Table of Contents

• Research

• Why

• Who

• Where

• How

• Timing

• Cost

• Metrics

• What

• Assumptions

• Marketing Direction

• Team Feedback

Research

• “Camefrom” columns in our 2014/2015 data sheets• Stable sales sources

Research

Origin PC – Affiliate Program Razer – Affiliate Program

Research

• Potential Affiliates

Why

• “Friends or Family” represents about 37% of our sales• We do not have a program to encourage

referrals• Maximize revenue in this category

• Competitors are entering this space with an affiliate or referral program

• Affiliate program caters to smaller streamers that want to be part of the “iBuypower Team”• Popular streamers are no longer viable to support• Cost of sponsorship is higher than before

Why

• Referral programs can lead to new customers• Cost of remarketing to older customers < cost of

requiring new customers

United States

Canada

Where

• Targeting current shipping routes and demographics

How

• Affiliate Program• Similar to OriginPC’s, affiliates will apply and after approval, they will

receive creative assets, affiliate dashboard, and affiliate links • Affiliate's earn a % per PC sold• Affiliates can earn sponsorship after a certain # of units

• Referral Program• Individuals can refer and earn a fixed amount or gaming peripherals• Points will be awarded based on # of referrals• Must create an account and generate a referral link or referral code

(similar to the affiliate program)

Timing

• Mock-Ups – Mid to Late May, 2015• Graphics team will create mock-ups for submission to Taiwan

• Programs should be ready to test by – June, 2015• A “usable” affiliate and customer dashboard • Logistical issues and bug testing• Graphics/Landing Page

• Expected Launch Date – July, 2015• This is all subject to change and dependent on potential coding

issues

Cost

Affiliate Program Referral Program

• % of sale per system sold• Can be tiered for unit amounts

• Similar to OriginPC commission policy

• Fixed or tier system• Customers can earn a fixed

amount or peripherals• We can also base it on tier

systems

• Depending on chosen peripherals or fixed amount awarded• $15 to $30 per referral

MetricsProgram Metrics

• Record # of referrals and affiliate units sold• Record costs for each acquisition• Develop performance metrics and ROI

• Allocate a budget for referral and affiliate costs

• KPIs • ROI – Based on cost of acquisition (commission or referral

awarded)• Units moved by each affiliate and the program in total• United moved from referrals• Net sales from each category• Profit Margins • ASP

What

• Generate a referral code or affiliate link to earn points

• Points can be used towards iBPmerchandise or peripherals

• Users can check their points in the dashboard of each account

• Points are awarded after the 30-day period• To prevent system abuse and

returns

Referral Program

What

Affiliate Program

• Apply to the program and receive an account with a dashboard, assets, and links

• Earn a commission based on system price

• Receive commission amount on quarterly basis

• Commissions are awarded after 30-day period to address return issues

WhatDashboard

Example of affiliate dashboard

• Every affiliate receives an account with a dashboard• Track referrals and sales

performance• Commission amount• Payment history• Payout date and payout address• Creative assets • Affiliate links

• Dashboard can be used for sponsored streamers• Track their performance • Upload new assets• Communication platform

Assumptions

Assumptions ReasonsAccurate backend data for “Friends

or Family”Our research concluded that a large

portion of sales its from this category, but we assume this data is accurate.

We have no other data sourceSufficient demand for these

programsThere is a sufficient need from our

customers to refer their friends and family because of the backend sales

dataReferral awards are valuable to

customersOffering peripherals or points for redemption line up with customer

needsIndividuals want to be affiliates,

which could lead to sponsorshipWe do not sponsor streamers with

low impression rates, but an affiliate program that could lead to

sponsorship may be attractive

Risks

Risks ReasonsCost Risk There may be additional costs that

we may not have anticipated with these programs

Marketing Risk Backlash from the communityregarding our products and referral

attemptsOperational Risk We run the risk of incurring high

development costs for an unprofitable program

Program Risk Customers take advantage of this program by exploiting loopholes

Marketing Direction

• Join the iBUYPOWER team and become an affiliate• “Join the family”• Work your way to the top

Affiliate Program

Referral Program

• Refer a friend and earn points toward gaming gear• Get rewarded for telling a

friend

Marketing Direction

• Develop a landing page to explain our programs

• Cater our offering to each segment (potential sponsors and customers)

• Detailed explanation with key benefits

• Push these programs on social media and with our sponsored streamers

• Emphasize key benefits each time

• Social media posts are sent out over a 6-month period to encourage new sign-ups

• Include a promotional card with each system to encourage referrals and the affiliate program

• Outline benefits in the card• Included with e-tail and core

shipments

Feedback