1. you pay nothing unless a sale is made

2. Market Pressures
 Google raises the bar in Paid Search with Adwords
Quality Score
 Search Engines continually improving their organic
search algorithms to personalise search results
 Maturity and size of the advertising market demands
more accountability, quality, performance & ROI
 Web users become smarter and more savvy expecting
high quality web sites and services
 Explosion of social networks and their ability to drive
sales through personal recommendations

3. What if the restaurant gave you 10% of the
bill of every friend you recommended it to?

4. Nothing New
“Affiliate Marketing” – not a new idea.

5. Good old days

8. Amazon Associates Program
One of the first online affiliate marketing programs and was launched in 1996.

9. Pioneers of Affiliate Marketing

10. Nothing else but PORN

11. Would you asociate your brand with porn?

12. Affiliate Marketing in Transition
Affiliate 1.0 Affiliate 2.0
>>>>>
Spam SEO sites High quality sites utilising user generated
content and comparison engines
Unauthorised PPC activity Closed groups of approved affiliates
providing complimentary PPC with
performance targets and accountability.
Free Stuff Sites Cash back and reward sites with long
term user bases
Part time affiliates Professional affiliate individuals and
companies with dedicated resources
Email Offer Newsletters Desktop Widgets & Moblie Phones
CPM Banners Google AdSense

13. Emmerging Sectors in Europe
 FMCG – 17%,
 Credits – 11%,
 Travel – 15%,
 Entertainment & games – 13%,
 Insurance – 8%,
 Medical products & beauty – 5%,
 Cars – 5%,
 Charity – 3%

14. “Online Affiliate Marketing” - allows a
company to track and measure the exact
source of sale & pay the commission to the
originator of that sale.

15. Payment Models

16. You Need Offers
– Banners

17. You Need Offers
– Product links

18. You Need Offers
– Widgets

19. You need to build a Platform
– Hosting
– Managing
– Tracking
– Reporting
– Payments

20. You need Partners
– Affiliates on Social Networks
– Search marketing affiliates
– Email marketing affiliates
– High traffic websites
– Coupon affiliates
– Niche content providers
– Product review sites

21. Partners Big & Small
 If you can pay $50 for a conversion – why
would you care were you got it from?
 It can be a website with only 20 users
 Too small to contact directly

22. Why partners?
• You need to partner with your
affiliates, because you have to come up
with price to keep everyone happy.

23. How to attract best affiliates?
• Compensation plan
• Quality is the bottom line
• Experiment with forms of advertising
(banners, product links, widgets)
• Focus on conversion optimisation

24. example
Price – 20’000 EUR
Dealers commision – n/a
Affiliate commission – 300 EUR
Cost per lead (registration for test drive) 30 EUR
Website converts 5% (1 of 20 will register)
Banner clickrate – 0,1% (1 of 1000)
Affliate needs 20’000 impressions for 1 lead (registration).
CPM price is 1 EUR – deal
CPM price is 2 EUR – no deal

25. The Network – it’s a techology
and a relationship connector

26. Network Benefits
 Active affiliate network (recruit & review)
 Reliable tracking & reporting technology
 Help setting the right price
 One payments solution
 Experienced support
 Hosting & Creative solutions

27. Why number of affiliates Matters
Number of Afiiliates on AdMix
700
600
500
400
300
200
100
0
December January February March April

28.  Social networks drive sales through personal
recommendations – Afiliate 2.0
 Affiliates require easy access to products, data
and pricing (API’s, web services, feed widgets)
 Employ user generated content
 Merchants need to accept that their
brand/products will be atomised by affiliates.
 Excellent communication from all parties.

29. you pay nothing unless a sale is made

31. If you’d like a copy of this presentation
OR
If you’d like to revolutionise your marketing
email dv@addvisors.lt
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