Transcript Affiliate Marketing

The E-Commerce
Affiliate Marketing
Opportunity
Presented by:
© Copyright 2002 LinkProfits.com, All Rights Reserved. May not be used without
permission of the publisher. Contact (301) 916-3900 EST.
Affiliate Marketing Terminology…
Merchant or Advertiser: an online business
that markets and sells goods or services.
Merchants establish affiliate programs as a
cost-effective method to get consumers to
purchase a product, register for a service, fill
out a form, or visit a Web site.
Affiliate or Publisher: a Web site owner that
earns a commission for referring clicks, leads,
or sales to a merchant.
Affiliate Marketing Terminology…
Affiliate Marketing is a form of performancebased, partnership marketing in which a
merchant pays a commission to an affiliate for
generating clicks, leads, or sales through
graphic or text links advertised by the affiliate
on his website or in his newsletters.
Performance Marketing is any form of online
advertising in which a merchant/marketer pays
purely for desired results, rather than paying for
frequency and reach.
Affiliate Marketing Terminology…
Software Solution Provider: A company that
provides the basic tools necessary to administer an
affiliate program, including, but not limited to, the
ability to register affiliates, provide advertising to
affiliates, and to track all activity at the affiliate level.
Network Solution Provider: In addition to providing
the tools necessary to administer an affiliate
program, these companies also have large numbers
of website owners who participate in affiliate
programs registered with them. These affiliates
then have the opportunity to review and join
merchant programs offered through the network.
Affiliate Marketing Terminology…
Affiliate Program Manager: An individual or
group within an organization responsible for the
success of the affiliate marketing channel. Key
functions include: new affiliate acquisition,
marketing training and support to affiliates,
relationship development, and much more.
Outsource Program Management: An external
organization that expertly fills the role of the
Affiliate Program Manager for its merchant
clients. Such companies typically have deep
knowledge of the affiliate marketing arena and
key relationships in place.
History of Affiliate Marketing
• The Amazon Associates Program,
launched in July 1996, was not the
first. Although today it’s the largest
with over 500,000 affiliate partners.
• CDNow came first with their buyweb
program in November 1994.
• AutoWeb.com (October 1995),
Kbkids.com/BrainPlay.com (January
1996), and EPage (April 1996) all predate the Amazon program.
History of Affiliate Marketing
• LinkShare was the first affiliate
network solution provider when they
launched in 1996.
• Be Free also started in 1996 and is
currently the only publicly-owned
solution provider.
• Commission Junction launched in
November 1998.
• Currently, there are seven network
solution providers and over 15
software solution providers.
The Affiliate Marketing Opportunity…
Affiliate Programs Will Account for 20% ($53
Billion) of E-Commerce Sales by 2005 – up
from $10.5 Billion in 2001.
Based on U.S. sales only. Forrester.com
Currently, there are over 10,000 merchants
who utilize the affiliate marketing channel,
including eight of the top ten e-commerce
retail sites.
This is not surprising considering …
The Affiliate Marketing Opportunity…
• Affiliate programs can be launched for as little
as a few hundred dollars.
• The performance-based nature makes this
channel extremely attractive and low risk.
Why are many affiliate programs
unsuccessful?
Reason #1:
The merchant’s site is unsuccessful, which
could be due to a number of reasons … a
weak business concept, a poorly written and
designed site, unattractive pricing, etc.
Opening the affiliate marketing channel is not a
panacea for a weak online business…
Why are many affiliate programs
unsuccessful?
Reason #2
Inadequate resources are devoted to affiliate
marketing initiatives.
Unlike other advertising channels, a significant
challenge exists in expanding one’s advertising
through affiliate partners. Even affiliates who
choose to partner with a merchant are not
obligated to advertise for that merchant.
Affiliates must be treated like an in-house
sales force. They must be trained, motivated,
and provided with effective sales tools.
Your Affiliate Marketing Solution
LinkProfits.com provides a complete,
outsource solution to the management of its
select clients affiliate programs.
Whether you’re looking to launch a new
program, or your existing affiliate program is
not meeting expectations, LinkProfits’ group
of experienced program managers and
consultants are eager to assist you.
To learn more about what LinkProfits can
do for your partnership program
initiatives contact:
Jim Gribble
Founder, LinkProfits.com
E-Mail: [email protected]
Direct phone: (301) 916-3900 EST
To request a free, no obligation proposal
that addresses your specific needs,
please click here.