This presentation is from Affiliate Summit East 2014 (August 10-12, 2014 New York City). Session Description: Discussion on a merchants’ need to focus on long-term customer acquisition goals through direct e-commerce sales and understand which payouts make the most sense for which affiliate models.

1. Dynamic Affiliate Payouts
When to Increase and When to Cut
Presented by:

2. Introductions
Joseph Hansen: CEO – Evolved Marketing

3. Introductions
Chris Kramer: Head of Operations – House of Kaizen

4. Introductions
Paul Schroader: President – PS Web Solutions

5. Session Format
Open panel discussion

6. What is the value of an Affiliate Sale?
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
2010 2011 2012 2013 2014
E-commerce Revenue thru June 2014
Untracked
E-mail
Social
Retargeting
Paid Search
Affiliate

7. What is the value of an Affiliate Sale?
Is it more valuable than a Dealer /
Retailer sale?
More than a Paid Search sale?
Retargeting?

8. What is the value of an Affiliate Sale?
Understand your Media Mix
Know your touch points
1+1+1+1+1 = 8 or 9

9. Affiliate Program’s Role in Media Mix
Standard Marketing Strategy
Drive
Capture
Convert
Retain

10. Are All Affiliate Sales equally valuable?
What role did the Affiliate play in the
sale?
Introducer?
Influencer?
Closer?

11. Affiliate Sales: Introducer Scenario 1
Whoa! That looks way
cool.
I didn’t even know these
existed.

12. Affiliate Sales: Introducer Scenario 2
I’m in the market for a
new mountain bike.
What are my options?

13. Affiliate Sales: Influencer Scenario 1
I’ve heard good things
about these new jet
packs.
I wonder which one is
the best.

14. Affiliate Sales: Influencer Scenario 2
I was going to buy this
product but, based on
this info, I think I need to
research the one they
recommend.

15. Affiliate Sales: Closer Scenario 1
I was thinking of buying
from Merchant X, but
this looks like a much
better deal.

16. Affiliate Sales: Closer Scenario 2
I want to buy this gadget
from Merchant X.
I wonder if they have a
coupon.

17. All Affiliates are not created equal

18. Establish a Payout Range
Commissions must be flexible in order to
maximize affiliate sales

19. Establish a Payout Range
Use various commission rates based on:
Understood Value of Affiliate’s sales
Incentive / Activation Strategy
Revenue Goals

20. Q & A

21. Contact Info
Joseph Hansen: www.linkedin.com/in/josephhansen
joseph@evolvedgroup.com
Chris Kramer: www.linkedin.com/in/chriskramer
chris@houseofkaizen.com
Paul Schroader: www.linkedin.com/in/paulschroader
pauls@pswebsolutions.com