Description
Book SynopsisAffiliate marketing is hot; here's how to get your program going Nearly every retailer in the Internet Retailers' Top 500 has an affiliate marketing program. Now free affiliate networks, automation software, and pay-for-performance compensation models are making it easy for small businesses to take advantage of this marketing tool.
Table of ContentsForeword xxvii
Introduction xxix
Part I History, Terminology, and Introductory Remarks 1
Chapter 1 Understanding Affiliate Marketing 3
What Is Affiliate Marketing? 4
Affiliates, Subaffiliates, and Superaffiliates 5
Affiliates 5
Subaffiliates 6
Superaffiliates 7
Universality of Affiliate Marketing 9
Marketing Channels and Types of Affiliates 9
Content Publishing 10
Couponing 10
Data Feeds 11
Email Marketing 12
Paid Search 12
Loyalty Marketing 12
Social Media 15
Video 15
Popularity 17
Chapter 2 Budget, Payments, and Related Considerations 19
Budgeting 20
Performance-Based Models 21
Interaction with Other Channels 24
Reversal Policies and Related Considerations 25
Duplicate Orders 27
Locking Periods and Lock Dates 27
Consider a Nonreversal Policy 29
Part II Month 1: Pre-Launch Research and Analysis 31
Chapter 3 Week 1: Perform Competitive Marketing Analysis 33
Monday: Understand SWOTT Analysis 34
Tuesday: Identify Strengths and Weaknesses 36
Strengths 36
Weaknesses 36
Wednesday: Evaluate Opportunities, Trends, and Threats 37
Opportunities and Trends 37
Threats 39
Thursday: Present Your Analysis to Your Boss/Client 39
Friday: Develop a Competitive Intelligence Strategy 41
Join Affiliate Programs 42
Follow Competitor in Other Ways 42
Set Up Automatic Monitoring 43
Employ Traffic Monitoring Tools 44
Chapter 4 Week 2: Understanding Tracking and Reporting 47
Monday: Evaluate Affiliate Networks 48
Affiliate Networks 48
Tuesday: Understand CPA Networks and How They Work 56
Wednesday: Assess In-House Solutions 61
Making the Choice 63
Thursday: Analyze Payment Options 64
What Do Affiliates Prefer? 64
Outsourced Payment Solutions 66
Friday: Understand the Importance of Cookies 67
Chapter 5 Week 3: Evaluate Program Management Options 69
Monday: Understand the Basics 70
Autopilot vs Proactive Management 70
Key Management Elements 71
Manage the Program, Not Affiliates 74
Tuesday: Set Your Expectations 74
Wednesday: Outline Qualifications and Certification 76
Affiliate Program Manager Qualifications 76
Education and Certification 77
Thursday: Weigh In-House vs Outsourced Solutions 78
Friday: Determine Compensation and Draft Contact 80
Determining Compensation 80
Drafting the Contracting Agreement 82
Sample Outsourced Program Management Agreement 86
Chapter 6 Week 4: Finalize Payment Models and Cookie Life 89
Monday: Decide on the Payment Models to Use 90
Tuesday: Determine Whether You Need a Two-Tier Program 94
Wednesday: Study Cookie Retention Data and Make Conclusions 95
Cookie Retention Rates 95
Return Days Analysis 96
Conclusion 99
Thursday: Calculate Commission Budgeting in Incentives 99
Incentives and Tiered Commission Increases 101
Types of Monetary Incentives 101
Friday: Finalize Overall Payment Terms 104
Qualifying Action 104
Cookie Life 104
Payment Models 104
Commission 105
Incentives 105
Locking Period 105
Part III Month 2: Setting Your Affiliate Program Up 107
Chapter 7 Week 1: Develop Creative Inventory 109
Monday: Review Types of Creatives Used by Affiliates 110
Deciding Where to Start 115
Tuesday: Understand and Put Together Text Links 117
Wednesday: Learn About Banner Usage and Popular Sizes 119
Banner Sizes 119
File Size 121
Thursday: Review Banner Creation Mistakes and Work on Banners 122
10 Mistakes to Avoid 122
Examples of Good Affiliate Banners 124
Check What’s Working for Your Competition 125
Friday: Develop a Dynamic Creative Policy 126
Chapter 8 Week 2: Data Feeds, Coupons, and Plug-Ins 129
Monday: Learn About Data Feeds 130
How Do You Create a Data Feed? 131
Data Feed Standard 132
Tuesday: Study and Avoid Common Data Feed Mistakes 133
Wednesday: Discover Feed Importing Options 136
Computer Programs 136
Online-Based Solutions 136
On-Server Applications 140
Private-Label Solutions 141
Network-Based Solutions 142
Thursday: Develop Your Coupon Strategy 143
Solution to Possible Conflict with Coupon Affiliates 144
What Coupons Should Merchants Offer? 145
Types of Deals That Convert Best 146
What Makes a “Killer Coupon”? 146
Landing Pages for Coupons 147
Friday: Understand Add-Ons and Plug-Ins 149
Chapter 9 Week 3: Research and Develop Program Policies 153
Monday: Work on Your Coupon and Discounts Policy 154
Pseudo-couponing 154
Examples of Coupon Policies 156
Tuesday: Develop Your Trademark Policy 158
Trademarks and Paid Search 158
Trademarks and Domain Names 159
How to Word the Agreement 160
Wednesday: Formulate Policies Regarding Loyalty and Rebates Affiliates 163
The Rotten Apple 164
Thursday: Word Your Recommendations on Affiliate Disclosures 167
Requirement to Disclose Relationships 167
Implications for Affiliate Marketers 169
Everyone Is Accountable 170
How to Word Disclosures and Agreements 171
Friday: Finalize Your Affiliate Program Agreement 172
Chapter 10 Week 4: Final Brushstrokes 183
Monday: Implement Tracking and Test the System 184
Tuesday: Prepare the Text for Three Email Templates 185
Application Receipt 186
Approval Email 187
Recruitment Phase 190
Welcoming Phase 190
Routine Phase 191
Additional Approval Emails 191
Denial Email 192
Wednesday: Set Up Your Affiliate Program Support Base 193
Sign-up Link 194
Nonexistent Link 194
Broken Link 194
No Real Info 195
Vague Verbiage 195
Program Bio 195
Mini-Sites 196
Five Common Problems with Text 200
Email Address 201
Thursday: Prepare Announcement Text 201
The Checklist 201
Three Types of Calls to Action 201
Sample Announcement 202
Friday: Compile Lists of Keywords and Best Sellers 204
Keyword Lists 204
Best-Seller Lists 209
Part IV Month 3: Program Launch and Affiliate Program Management 211
Chapter 11 Week 1: Launch the Affiliate Program and Recruit 213
Monday: Announce Program Launch 214
Press Release Websites 214
Affiliate Marketing Websites 214
Affiliate Program Directories 216
Social-Media Channels 218
Affiliate Networks 218
Tuesday: Study Affiliate Recruitment Tools and Techniques 219
Free Recruitment Tools 219
Seven Avenues of Affiliate Recruitment 220
Wednesday: Develop a Direct-Contact Recruitment Strategy 227
Three Forms of Direct Contact 228
How Not to Do It 229
How to Make It Shine 230
Sample Texts for Affiliate Recruitment 233
Thursday: Formulate Your Social Media Approach 236
Types of Social Media and Where to Start 236
Essential Points to Remember 237
Blogging Tips 238
Get Ready to Rock ’n’ Roll! 240
Friday: Plan to Attend Conferences and Shows 240
Affiliate Marketing Conferences and Events 241
Other Conferences on Online Marketing 242
Chapter 12 Week 2: Plan Your Affiliate Communication 243
Monday: Study Affiliate-Preferred Channels of Communication 244
Global Problem 244
Preferred Communication Channels 245
Two-Way Symmetric Communication 246
Types of Communication 247
Tuesday: Decide on Frequency of Newsletters and Approach 247
Communication Frequency and Response Time 248
Formulate Your Approach and Stick to It 249
Wednesday: Learn How to Put Together Affiliate Newsletters 250
Affiliate Newsletter Format and Characteristics 250
Three p’s to Remember Before Hitting Send 251
July Winners 252
August 2009 Promo 253
Creatives 253
Meet Us at Affiliate Summit East 2009 253
Motivating Through Newsletters 255
Thursday: Launch Social-Media Efforts 256
Affiliate Forums 256
Microblogging 258
Social Networking 259
Friday: Start Writing Your Affiliate Program’s Blog, Developing FAQs and Tutorials 260
Basic Questions 260
Detailed Instructional Section 261
Chapter 13 Week 3: Program Management 265
Monday: Categorize Affiliates 266
Tuesday: Develop Fraud Prevention Policy and Enforcement Rules 268
Fraud Prevention 268
Enforcement Policy 271
Wednesday: Start Profiling Affiliates 272
Thursday: Forget About Managing, and Start Leading! 274
Twenty Differences Between Management and Leadership 275
The Four Most Valued Characteristics of a Leader 277
It’s All About Emergent Leadership 280
Friday: Become a Transformational Leader 281
Chapter 14 Week 4: Affiliate Motivation 285
Monday: Learn About Motivation in General and Marketing to Marketers in Particular 286
Motivation Is Always Multifaceted 286
Keys to Moving Mountains 287
Focus on Personal Advancement, Needs, and Goals 287
Forget About “Motivation” by Threat 288
Tuesday: Study Contingency Theory 290
Contingency Approach 290
The Nature of Affiliates 291
Applications of Contingency Models to Affiliate Program Management 291
Wednesday: Understand How Extrinsic Motivation Works 294
Five Golden Rules of Successful Extrinsic Motivation 294
Examples of Incentive Campaigns 295
Motivation by Money vs Autonomy, Mastery, and Purpose 297
Thursday: Learn More About Intrinsic Motivation 298
Intrinsic Motivation—The Ultimate Goal 299
Nicholson’s Method and Affiliate Context 300
Motivating Culturally Diverse Affiliates 301
Friday: Arrive at Your Own Optimal Approach 302
Part V Month 4: Advanced Management and Analysis 305
Chapter 15 Week 1: Study and Learn to Deal with Parasitism and Problematic Affiliates 307
Monday: Monitor Red Flags in Affiliate Applications 308
Tuesday: Learn About Affiliate Parasitism 313
Three Types of Parasites 313
Program Agreement 314
Cookie Stuffing 315
Wednesday: Educate Yourself on Adware and Toolbars 316
What Parasites Are and How They Work 318
What Affiliates Think 320
Thursday: Police Trademark Violators 320
Platform-Based Tools 321
Independent Tools 321
Friday: Learn About Coupon Theft and Copycat Sites 325
The Problem 325
The Solution 326
Copycat Sites 328
Chapter 16 Week 2: Master Affiliate Program Analytics and Optimization 329
Monday: Understand What KPIs and Metrics to Focus On 330
KPIs for Advertisers/Merchants 330
Tuesday: Split Test to Improve Conversions 332
Conversion Optimization 333
What to Test 335
How to Test Effectively 336
Wednesday: Explore Alternative Tracking Solutions and Compensation Models 337
Cookieless Tracking 338
Alternative Compensation Models 338
Thursday: Engage in Ongoing Competitive Intelligence 342
Why? 343
How? 343
What? 344
Friday: Analyze Progress and Stay Informed 346
Monitor Affiliate Program Performance 347
Be on Top of Industry Trends and Developments 347
Chapter 17 Deadliest Mistakes to Avoid 351
Mistakes, Errors, and Lessons to Learn 352
15 Mistakes Committed by Merchants 352
Mistake 1: Leaky Websites 353
Mistake 2: “Autopilot” Approach to Affiliate Program 354
Mistake 3: Unclear or Absent Program TOS 354
Mistake 4: Nonexistent PPC Policy 354
Mistake 5: Embarrassing Commission Rates 354
Mistake 6: Short Cookie Life 354
Mistake 7: Insisting on Home Page Links 355
Mistake 8: Insisting on Promotion of Best Sellers 355
Mistake 9: Commission Drops 355
Mistake 10: Lack of Advanced Notifications 356
Mistake 11: Late Payments 356
Mistake 12: Changes That Affect Affiliate Links 357
Mistake 13: Tampering with Tracking Code 357
Mistake 14: Unrealistic Goals for Commission Increases 357
Mistake 15: Asking for Something You Cannot Return 358
25 Affiliate Program Management Mistakes 358
Mistake 16: Managing Affiliates 358
Mistake 17: Assuming You Are Smarter Than Affiliates 358
Mistake 18: Assuming All Affiliates Are Prone to Fraud 359
Mistake 19: Terminating Inactive Affiliates 359
Mistake 20: Practicing a “One-Size-Fits-All” Approach 360
Mistake 21: Believing Money Is the Best Incentive 360
Mistake 22: Being Impersonal 360
Mistake 23: Belated Approvals 360
Mistake 24: Untargeted Recruitment Emails 360
Mistake 25: Use of Email Addresses Based on Free Servers 360
Mistake 26: Not Responding to Affiliate Emails and Questions 361
Mistake 27: Failing to Maintain an Ongoing Communication Channel 361
Mistake 28: Informing Affiliates of the Obvious 361
Mistake 29: Ignoring Affiliate Suggestions 362
Mistake 30: Low-Quality Answers to Questions 362
Mistake 31: Asking Affiliates How They Can Do Better 363
Mistake 32: Selective Helping 363
Mistake 33: Typos, Spelling Mistakes, and Code Errors 363
Mistake 34: Insisting on Phoning 363
Mistake 35: Termination of Affiliate Accounts Without Notice 363
Mistake 36: Dryness and Blandness 364
Mistake 37: Unkept Promises 364
Mistake 38: Ultimatums 364
Mistake 39: Showing One Affiliate’s Site to Others 365
Mistake 40: Failing to Admit Mistakes 365
Chapter 18 Affiliate Program Promotion Ideas 367
Sharing Ideas 368
Better Base Conditions for Select Affiliates 369
Free Domain Giveaway 369
Arithmetic Progression Bonuses 370
Cobranded Version of a Good Affiliate Tool 370
Segment Your Products 371
Learn to Celebrate 371
Run “Happy Weeks” 372
Classic “Happy Week” Idea 373
An A-B-C-D-E Idea 374
A 1-2-3-4-5 Idea 375
Colors Idea 376
Lingua-Symbolic Idea for One Week 377
Sliding Scale of Commission Increases 379
Bonus Weeks 380
Growth Tied to Commission 380
Offer Tripled Commission 380
Run a Lottery 381
Let Them “Test-Drive” It 383
Offer 100-Percent Commissions 383
Run a “Free Graphics Help” Week 384
Award “Every-Third-Sale” Gifts 384
Cash for Everything: CAIs, FSBs, and So On 385
Cross-Program Promotions 385
Dynamic Scripts 387
Commission-Beating Policy 387
Exclusive Coupons for Select Affiliates 388
Time-Sensitive Private Offers 388
Free Content Help 388
Activation Incentives 389
Turn a Sale into a Contest 390
Glossary of Abbreviations 393
Index 401
