Posts Tagged ‘affiliate marketing’

You Found Your Niche; Now Find Your Nano-niche.

Tuesday, February 10th, 2009

ramachandran-photo.jpg The world of affiliate marketing is immense. Those who are already in the affiliate marketing space know that breaking into this world can be a challenge, especially if you’re trying to promote a product or service that thousands of others are already promoting.

Many successful affiliates have found that if you really try to promote your “niche,” you will have greater success in driving sales. However, now that many current and prospective affiliate marketers know this trick of the trade if you will, it’s time to take it one step further.

What we are talking about comes from the idea of nano-niche marketing. Just like the Apple Nano is the smaller version of the iPod, a nano-niche is a smaller, more specific version of your niche.

Everyone has a niche, whether it is a hobby, or a sport, or simply some topic you know a lot about. For example, common hobbies include crafts, art or music. A nano-niche is breaking the hobby down one step further — a craft could be knitting hats, art could be painting landscapes, music could be the clarinet for beginners, etc.

The point is, the smaller you can focus your niche, the more focused you can make all of your affiliate marketing efforts (i.e. your blog, your video, etc). By honing in on a specific audience group, you can tailor your efforts and really engage with your audience. And the fact of the matter is, the more targeted your niche can be, the more likely it is that there will be an audience out there that has yet been reached.

Ultimately, successful affiliate marketing relies on driving sales through promotion. Therefore, if you are able to target and drive very specific traffic to your website, your conversion rates will be higher than just marketing to a huge general audience – driving your sales up immensely.

Although many people new to the affiliate marketing industry think to go big right off the bat, it is in fact more likely you will find success in the nano-niche, in the targeted and specific areas that others have yet to discover. So instead of going big, take that one extra step to go small – right to the audience that really wants and needs your product or service.

Dush Ramachandran is vice president of sales and business development at ClickBank.

Should DRTV Marketers Use Multiple Affiliate Networks?

Monday, December 8th, 2008

molander.jpg Should you be involved with multiple affiliate networks? Why or why not?

If so, how does it work technically—from a tracking, reporting and optimization perspective?

When it comes to affiliate programs, DRTV marketers are looking for more sales with less friction. I’ve complained for years that affiliate programs need a better means to achieve scale (providing marketers with an easier means to drive actions). Scale is Google’s “secret sauce” and responsible for cost-per-click’s (CPC) trouncing cost-per-acquisition (CPA). The CPC model has won that battle…for now.

In seeking out CPA scale (and the increased actions it may bring), DRTV marketers always find their way to the “multiple affiliate network” question—should they or shouldn’t they and what’s involved? Carolyn Tang has been around this block a few times and worked both sides of the fence at affiliates like MyPoints.com and marketers like Orbitz and CollectiblesToday.com (The Bradford Exchange). Today, she works as the client services lead at Chicago-based affiliate network Shareasale.

Simply stated, there are two primary concerns for retailers when swimming in multiple affiliate network ponds. These are:

1. Proper attribution of the sale:
Avoiding duplication of counts or scores among web marketing channels (affiliate, search, e-mail, etc.)
2. Proper payment:
Avoiding duplicate payments to affiliate networks (in scenarios where customers touch multiple affiliate sites or cookies)

Following is an excerpt from my conversation with Tang that gets to the nitty-gritty of what to be concerned with and how to make the decision.

Carolyn Tang: I think in the past, the emphasis has definitely been on duplicate reporting—on having to pay multiple times on a single transaction. Obviously, this is not very cost-effective. Funny thing is the technology has evolved to the point where we have a lot more reporting tools in place, such as Omniture or any third-party dashboard reporting tool. Many times, those tools don’t necessarily track correctly. They will attribute a transaction to a single marketing channel, but because of the way the technology is set up it may or may not attribute it to the correct channel. So I think, whereas before the driving concern was on overpaying on a single transaction, it is now on actually attributing the transaction to the proper channel.

Jeff Molander: So you’re saying that the technology now has improved that? (more…)

5 Easy-to-Implement Affiliate Marketing Tips for DRTV Marketers

Tuesday, November 18th, 2008

molander.jpg Tired of the same old tips and tricks about web affiliate marketing programs? “Communicate with them, treat them with respect” yada-yada. What about what really works? I pulled together a group of my most experienced, thought-leading colleagues to find out what’s moving the needle in affiliate marketing today. The below innovations are what I discovered. I’m happy to share these best practices. Yes, they can be quickly and easily applied—helping you manage your affiliates and extract maximum sales efficiency. Stay tuned to Electronic Retailer’s blog for candid interviews with these experts where they’ll “go deep” to reveal their secrets to success.

1. Allow affiliates to access a knowledge-driven feedback loop to improve their ROI and, as a result, increase yours.
a. Let affiliates “connect the ROI dots” between their investments (media spending) and your ultimate success (sales or new customers).
b. Provide select, trusted affiliates with limited, yet unfettered, access to your internal metrics and customer behavior data.

2. Strengthen relationships with superstar affiliates and open doors for potential superstars by actively, yet cautiously, investing hard and soft dollars in them.
a. Invest in affiliates: Underwrite affordable, educational opportunities and conferences for them. Sponsoring affiliates is very popular in the European realm.
b. Sponsor low-cost, virtual innovation forums and webinars that offer training opportunities for top affiliates.
c. Provide limited access to web metrics (i.e., Google Analytics, Omniture) and optimization tools that are already at your disposal, yet possess a high perceived (and applied!) value among affiliates.
d. Invest in affiliates: Subsidize the media buying of select, high-value affiliates by providing matching contributions to their expenditures or allowing access to your media buying prowess.

3. Develop and communicate a clear, well-reasoned search marketing policy to affiliates.
a. Audit your affiliate program for confluence with paid (PPC) search advertising efforts.
b. Understand value driven by affiliates across various categories based on audit results that demonstrate “triggers” of sales transactions.
c. Create business rules that negate and approve affiliate commissions based on logical rules that are shared openly and pro-actively with affiliates.
d. Understand where your search engine optimization “sweet spot” is by identifying where you want to spend time, energy (money). Assign “long tail” search terms/keywords (those able to generate less referral volume) to affiliates for their monetization efforts.

4. Experiment with social media affiliates.
a. Scale your most precious resource, time: Use new tools, such as Syntryx, to rapidly prospect for qualified affiliates.
b. Provide affiliates with access to helpful, innovative Web 2.0 linking technologies like Linkshare’s FlexLinks or Amazon’s various tools ranging from “SiteStripe” to widgets.
c. Give affiliates access to product data, coupons and other content via flexible, RSS-enabled technologies.

5. Consider creative, new approaches to paying and bonusing affiliates based on performance.
a. Throttle up payouts among performers who drive volume at a reasonable cost, considering channel confluence issues, etc.
b. Throttle down payouts among under-performers who’ve been given a fair chance, but are not performing on a quarterly basis.

Stay tuned for more actionable tips and interviews with experts in a variety of performance-focused web marketing strategies.

Jeff Molander is a leading Web marketing expert, author and speaker. He is CEO of Molander & Associates Inc.

Making Sense of Monetizing Blogs

Wednesday, October 15th, 2008

dunlap.jpg One of the most frequently discussed topics at the recent BlogWorld conference was how bloggers can monetize their blog. A blog is a labor of love for many, but as they pick up steam, bloggers realize that as long as they’re putting in the work, they might as well earn some money too. Many bloggers have found that ad programs such as Google AdSense are good for earning pennies, but ultimately don’t deliver the kind of profits they’re looking for.

The real opportunity in monetizing your blog, discussed at length by several industry experts at BlogWorld, is through affiliate marketing. Affiliate marketing is where you place links on your blog for products that relate to your topic. For example, if you write about personal health and wellness, you would choose products such as diet and exercise books to promote on your blog – as your readers would naturally be interested in products that will make them healthier.

When you place a link, you become an “affiliate” of the person selling the product. If someone clicks the link on your blog and then buys the product, you get a commission on that sale. Commissions can be as high as 75 percent of the sale, depending on the product you’re promoting. In general, digital products like ebooks have higher commission rates because they have no manufacturing or inventory costs.

Because affiliate marketing is an Internet-based business, there are literally thousands of people talking about this subject online every day. Take your time to read reviews and comments, and pick which affiliate marketing opportunity is best suited to your needs. Like any other important business decision, doing your homework will pay off in the long run. It will give your blog the best chance to bring in significant cash, as many other bloggers have already discovered.

Bob Dunlap is director of marketing for ClickBank.

Breathing New Life Into Affiliate Marketing

Tuesday, August 5th, 2008

molander1.jpg Let’s be honest. It’s been a while since anything interesting has turned up within the realm of online affiliate marketing. Yet that could change and soon. We need to know how and when to exploit the next performance-based marketing opportunity. Rest assured, there are exciting new opportunities for DRTV’ers big and small in affiliate marketing—but serious challenges lie ahead. From managing the intersection of search and affiliate programs to diversifying the mix of distribution points, the key question multichannel merchants should ask is, “How can affiliates be encouraged to send more incremental sales or new customers?”

Affiliates: Friends or Foes?
It’s a harsh reality: Web affiliates are taking a beating in search marketing. If you’ve been involved in affiliate marketing for more than a year, you’ve likely seen declining sales or leads from search-focused affiliates. Newbies and veterans of the performance-based strategies are noticing affiliates competing for searchers and wondering how to handle it. Do you ban them from using some tactics or all tactics? Do you partner selectively with them? The issue is a familiar one to the DRTV industry and was more thoroughly discussed by SendTec CEO Paul Soltoff in Electronic Retailer magazine. Bottom line is, affiliates are challenged and sometimes embattled. After wrangling with the issues, many DRTV marketers are asking “are affiliates even worth it?!”

Pockets of Innovation
Most DRTV marketers find such investment to be a difficult pill to swallow, and therefore, rely on affiliate networks to scale their efforts. This begs the question, what are affiliate networks doing to support affiliate innovation? What tools and educational support are available to open new doors? (more…)

The Evolving Online Morality

Thursday, April 17th, 2008

tomdellner032108.jpg If you’re an events manager with a death wish, invite Jason Calacanis to deliver the keynote address at your next conference. Sure, Calacanis—a serial Internet entrepreneur who made the bulk of his fortune with the sale of his company Weblogs, Inc. to AOL—will deliver an engaging, thought-provoking and sometimes flat-out inspirational talk. But then again, he might just start a riot.

After all, this is the guy who, at SES Chicago in 2006, announced—to a group of search professionals—that “SEO is bullshit!” and compared those engaging in SEO to “snake oil salesmen.”

It didn’t go over well
.

Having escaped Chicago, living to speak another day, Calacanis recently addressed a room full of affiliate marketers at the Affiliate Summit West. Apparently unruffled by the flap and furor over his SEO comments, Calacanis explained to the affiliate folks that the rest of the industry saw them as the bottom rung of the food chain, wired to make the quick buck.

There was no standing ovation.

But to be fair to Calacanis, he’s not some sort of egomaniacal misanthrope who gets a perverse pleasure out of standing on a stage and belittling the audience. (Actually, he might just take a little pleasure in it.) In fact, the point he’s trying to make is a valid and intriguing one.

First of all, Calacanis was over-generalizing for effect: he sees value in ethical SEO and understands that there are legitimate best practices to follow in designing, maintaining and promoting a site that will allow it to rank higher in search results. And he certainly doesn’t see anything wrong with the fundamental concept of affiliate marketing: engaging a group of websites to help sell product or generate leads as a sort-of extended sales force.

Calacanis has a problem with those interested in gaming the system to make a quick buck—whether it’s the black-hat SEO firm that exploits a weakness in a search engine algorithm to garner a temporary high rank for an undeserving website (until the search engine closes the loophole and the site plummets off the search results page) or the affiliate who steals content to game the search engines to generate more traffic and commissions, or the marketer who floods blogs, message boards and social networks with paid posts.

According to Calacanis, it’s all borne out of a misguided ethic that has pervaded the Internet since the mid-’90s: if one is technically capable of doing something, then it’s OK.

But he—and others—see reason for optimism. As more and more black-hat marketers exploit the various systems, these systems eventually break down, to be replaced by ones that are more resistant to gaming. Consumers are helping to drive change, too. We leave MySpace to go to Facebook and then to LinkedIn as policing technologies are developed that help eliminate spam or fraud. Sites like Angie’s List—a ratings and reviews site for home-improvement contractors—take off because they are curated to ensure the reviews’ (and reviewers’) legitimacy. In other words, because they earn our trust. Calacanis himself has developed Mahalo.com, a search engine that uses human beings to find and organize the best links for given search terms—and to filter out irrelevant or spam results.

A new ethic is evolving: trustworthiness is good for business.

Tom Dellner is executive editor of Electronic Retailer Magazine and editor of its supplement, Online Strategies