This presentation is from Affiliate Summit West 2014 (January 12-14, 2014 in Las Vegas, NV). Session description: Four top producing affiliate managers dispel the myths and mysteries of program management and show a clear, grounded path to doing it right.

1. The Top 5
Affiliate Management
Myths Debunked
Karen McMahon, The Affiliate Whisperer
Kim Rowley, Key Internet Marketing
Kim Salvino, Chateau 20
Vanessa Branco, Versa9
Amy Ely, Under Armour

2. Agenda
•
•
•
•
•
•
•
Introduction
Myth #1: Launching = Instant Revenue
Myth #2: Affiliate Marketing is Risk Free
Myth #3: It Doesn’t Work For Small Businesses
Myth #4: Affiliates Don’t Add Value
Myth #5: I Need Paid Placements Year Round
Questions?

3. Myth #1: Launching =
Instant Revenue
Overview
• Manage your expectations
o A look at affiliate program launch statistics
• Look at it from the affiliate perspective
o It takes time for affiliates to get started
o Auto-approvals help
• Have a solid affiliate strategy
• Keep calm and carry on!
• Take time to educate your affiliates
Myth #1: Launching = Instant Revenue

4. Myth #1: Launching =
Instant Revenue
Key Influencer
**If your site is not already primed to convert
consumers to buyers, then affiliate traffic will NOT
increase your revenue.**
Set Yourself Up For Success
• Your product/offer is your responsibility
• You must attract & recruit affiliates
Myth #1: Launching = Instant Revenue

5. Myth #1: Launching =
Instant Revenue
Your Product/Offer is Your Responsibility
• Quality product/offer, non-gimmicky
• Site must instill consumer confidence
o
o
o
o
Clear, easy navigation
Crisp product images
Functional in all browsers
No interference (no ads, no pop-ups, no flash heavy ads)
• Ongoing site optimization
Myth #1: Launching = Instant Revenue

6. Myth #1: Launching =
Instant Revenue
You Must Attract & Recruit Affiliates
• Supply creative that converts + deep links
• Assess your competition
• Ensure products appeal to their site audience
• Provide accessible and responsive support
• Share marketing materials
o Demographics, seasonality information, top sellers, new
products
Myth #1: Launching = Instant Revenue

7. Myth #2: Affiliate
Marketing is Risk Free
Gaming The System
• Some affiliates look for easy money
o Forced clicks, pop ups, etc.
• Loyalty & incentive sites can entice customer fraud
Legal Compliance & Managing Multiple Relationships
• Evolving FTC regulations
• Managing hundreds of relationships is a challenge
Myth #2: Affiliate Marketing is Risk Free

8. Myth #2: Affiliate
Marketing is Risk Free
Protect Your Program
• Manually approve affiliates
• Use monitoring tools and run your own tests
• Review changes in performance
• Stay informed on FTC updates
• Leverage all available support
o Call center, network reps, etc.
Myth #2: Affiliate Marketing is Risk Free

9. Myth #3: It Doesn’t Work
For Small Businesses
A Big Brand Name Isn’t Required For Success
• Look at your affiliate program as part of your total
brand marketing strategy
• Address poor converting links and banners
• Focus your attention
• Keep your links fresh
• Manage your affiliate program costs
Myth #3: It Doesn’t Work For Small Businesses

10. Myth #3: It Doesn’t Work
For Small Businesses
Questions To Ask Yourself
• Who are your current affiliates? Who else can you contact?
• Does your offer match the affiliate type & their marketing
activities?
• Are you providing the proper tools for affiliate success?
• When was the last time you contacted your affiliates?
o Do you know who is performing well and who isn’t?
o What can you do to help low performers?
• What kind of payouts and incentives are you using to attract &
motivate your affiliates?
Myth #3: It Doesn’t Work For Small Businesses

11. Myth #4: Affiliates Don’t
Add Value
Proven Results
• Affiliate marketing is a powerful source of new
customer business
o Some merchants in the 50%-70% range for new-to-file
• Attribution studies reinforce that this channel drives
incremental value
Myth #4: Affiliates Don’t Add Value

12. Myth #4: Affiliates Don’t
Add Value
Measuring Holistically - Attribution
Affiliate marketing affects other channels/affiliates.
Some affiliates (not all) are under-rewarded since lastclick doesn’t show full funnel…some affiliates are overrewarded if only focusing on last-click.
Myth #4: Affiliates Don’t Add Value

13. Myth #4: Affiliates Don’t
Add Value
Affiliate (Just Like Every Other) Has Its Own Silo
• Search, display, affiliate, video and social are all
ignorant of other contributing channels
o Some affiliates introduce (originate) the entire transaction!!!
Myth #4: Affiliates Don’t Add Value

14. Myth #4: Affiliates Don’t
Add Value
Understanding How Affiliates Impact Each Other….
(Data courtesy C3 Metrics)
• Prior to using C3 Metrics measurements, 52% of last click
revenue (and cost) came from top 3 affiliates
ZERO
52%
(excludes google remarketing)
Myth #4: Affiliates Don’t Add Value

15. Myth #4: Affiliates Don’t
Add Value
• Top 25 affs indexed on attributed value vs. last click
• Affiliates driving highest value are in Top 25, not Top 3
• Aff #16 delivering more value than #1 paid affiliate
Attribution Index
120
100
80
60
40
20
0
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Myth #4: Affiliates Don’t Add Value
19
20
21
22
23
24
25

16. Myth #4: Affiliates Don’t
Add Value
Results
• Affiliates further down the chain will do well
• Affiliates at very top will have comp adjusted
• Cash-back affiliates continue to do well b/c they originate
customers
• Advertisers will focus on origination + demand
generation…less on last second “jump ins” (focus more on
starting rather than finishing)
• In five years, 50% of digital ad dollars will use attribution vs. last
click/last view (Gartner)
Myth #4: Affiliates Don’t Add Value

17. Myth #5: I Need Paid
Placements Year Round
Key Questions
• What are your success metrics? Revenue? Return
on Ad Spend (ROAS)? Impressions/Visits? Branding?
Explore Your Options
• Placements are not a requirement to grow revenue
o Test performance with & without placements
• Be selective: choose top performing placements at
times when extra visibility is needed
Myth #5: I Need Paid Placements Year Round

18. Myth #5: I Need Paid
Placements Year Round
Case Study: December 2013
• Bookings drop due to seasonality during this period
• Schedule placements to coincide with best sale of
the year
Campaign Statistics
• Budget: $37,350
• Revenue Driven by Placements: $144,813.72
• Return on Ad Spend: 288%
Myth #5: I Need Paid Placements Year Round

19. Myth #5: I Need Paid
Placements Year Round
Mitigate Risk by Allocating Spend For Both Content &
Coupon Sites
Spend by Placement Type
Myth #5: I Need Paid Placements Year Round

20. Myth #5: I Need Paid
Placements Year Round
Content Sites Have Significantly Higher Return Than
Coupon Sites
Return on Ad Spend
Myth #5: I Need Paid Placements Year Round

21. We Welcome Your
Questions!
Questions?

22. Contact Us
Find Us On Twitter
Karen McMahon @Aff_Whisperer
Kim Rowley @kimarketing
Kim Salvino @kim_salvino
Vanessa Branco @VanBranc
Amy Ely @aely