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Dealing with Affiliates


									Dealing with Affiliates
    Kristopher B. Jones
     President & CEO,

• 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
• 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.
                  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
                            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
• 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.

• Bad Keyword Affiliate Policy – UGGS
• Good Keyword Affiliate Policy – Zappos
• Bad Trademark Affiliate Policy – UGGS
• Better Trademark Policy – 1800petmeds

• Affiliate should be your friend
• Build strategic relationships with a select
  group of professional SEM affiliates.
• Control as much of the real estate as
• Use the Affiliate Contract to control the
• Share info and require an NDA.

• 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.

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