VIEWS: 30 PAGES: 10 POSTED ON: 6/27/2011
Dealing with Affiliates SPEAKER: Kristopher B. Jones President & CEO, Pepperjam Overview • Affiliate Friend or Foe • It’s a Land Grab - Available Real Estate for your competitors or for your affiliates • Working Strategically & Selectively with SEM Affiliates • Setting Rules & Guidelines • Examples…. Affiliates – Friend or Foe • Affiliates are your friend, if you work with them strategically. • 95% - 5% (super) affiliate rule and slim profit margins. • In many cases, SEM affiliates are more sophisticated than you are at search. • SEM Agencies can be expensive or cost prohibitive; Professional SEM Affiliates work solely on a performance basis. • Believe it or not you can “control” what affiliates do. It’s all about better communication & transparency. “Affiliates” Potential Strategic Partners • SEM Professionals • SEM Agencies • Niche Website Owners • Coupon / Value Proposition Websites • Comparison Engines? • Amazon? • eBay? It’s a Land Grab • Search results represent available real estate. • Ex. Google offers users 10 organic (SEO) listings and up to 10 paid listings. • The more land you own, on average, the more sales / leads you will generate. • Work strategically with a few professional SEM affiliates and control more land. • You can’t be selfish if you don’t own the real estate. Working Strategically with Key SEM Affiliates • It’s Your Choice – Your Competitors or Your Affiliates! • Identify potential partners (Start with a list of 5 or so.) • Carefully select your SEM affiliate partners. • Define a list of keywords from the head and long tail. • BROKER THE DEAL: Agree to provide internal conversion data and metrics. The Rules • Use the basic affiliate contract or add an amendment to control the relationship. • You must share information – Require an NDA Agreement. • Set minimum / maximum bidding rules. • Restrict or include certain keywords. • Allow affiliates to bid on Trademarks. Examples • Bad Keyword Affiliate Policy – UGGS • Good Keyword Affiliate Policy – Zappos Shoes • Bad Trademark Affiliate Policy – UGGS • Better Trademark Policy – 1800petmeds Summary • Affiliate should be your friend (transparency). • Build strategic relationships with a select group of professional SEM affiliates. • Control as much of the real estate as possible. • Use the Affiliate Contract to control the relationship. • Share info and require an NDA. Conclusion • Generate more affiliate sales by working strategically with key affiliates. • Transparency is everything – know who your top affiliates are and work with them to help you cover more real estate and grow your affiliate program. • Thanks for your time. pepperjamSEARCH - http://www.pepperjamsearch.com Pepperjam Blog - http://www.pepperjamblog.com
"Dealing with Affiliates"