Internet Retailer 2006 Workshop Summary: Affiliate Marketing - The Unsung Hero of Online Marketing

June 25, 2006
Filed Under General |

Internet Retailer

Boris Wertz, COO, Abebooks.com

20-30% of orders come from affiliate marketing

Research network hosted versus internally hosted options

Payout type - pay per sale, per lead, Hybrid - bonus for first time buyers

Tools - Establish a good mix of standard and advanced link types, provide deep and up to date data feeds

Staffing needs decision point - internal versus external

Familiarize yourself with payout types, run promotions

Retention - retention of affiliates is difficult, use CRM to track, communicate regularly with affiliates, etc

Optimization - Segment publisher by recruitment type, test landing pages, etc 

Measurement - compare MOM and YOY and web analytics 

Chris Henger, substituting for Stuart Frankel, President, Performics.com 

Affiliate marketing is 5-20% of online sales (interesting that his figure is lower than the Abe Books speaker – maybe book category is higher?)– reach customers in the research and purchase mode

Affiliate marketing is fast growing but is a mature web space

Affiliate marketing is intertwined with the search channel 

Mass, open or private program - which one is right for you?

Approved, live and active program

Understand, Develop, Perform

Understand payment terms in your category and brand management implications.

Compliance lab to learn from affiliates. 

Steven Denton, President, Linkshare.com

Communication is paramount, affiliates prefer e-mails IMs

Send segmented newsletters and engage in proactive outreach

Suggested site - thebudgetfashionista.com

Compensation Structures will vary - tiered and bonus offers and sales contests and promotions

Hidden pitfalls - don’t dedicate enough resources, focusing on sheer number of affiliates, viewing affiliate marketing as cheap advertising    

Hub of affiliate marketing activity - abestweb.com




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