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This presentation is from Affiliate Summit East 2014 (August 10-12, 2014 New York City). Session Description: Discussion on a merchants’ need to focus on long-term customer acquisition goals through direct e-commerce sales and understand which payouts make the most sense for which affiliate models.
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Dynamic Affiliate PayoutsWhen to Increase and When to Cut
Presented by:
Introductions
Joseph Hansen: CEO – Evolved Marketing
Introductions
Chris Kramer: Head of Operations – House of Kaizen
Introductions
Paul Schroader: President – PS Web Solutions
Session Format
Open panel discussion
What is the value of an Affiliate Sale?
2010 2011 2012 2013 2014$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
$4,000,000
$4,500,000
E-commerce Revenue thru June 2014
Untracked
Social
Retargeting
Paid Search
Affiliate
What is the value of an Affiliate Sale?
Is it more valuable than a Dealer / Retailer sale?
More than a Paid Search sale?
Retargeting?
What is the value of an Affiliate Sale?
Understand your Media Mix
Know your touch points
1+1+1+1+1 = 8 or 9
Affiliate Program’s Role in Media Mix
Standard Marketing Strategy
Drive
Capture
Convert
Retain
Are All Affiliate Sales equally valuable?
What role did the Affiliate play in the sale?
Introducer?
Influencer?
Closer?
Affiliate Sales: Introducer Scenario 1
Whoa! That looks way cool.
I didn’t even know these existed.
Affiliate Sales: Introducer Scenario 2
I’m in the market for anew mountain bike.
What are my options?
Affiliate Sales: Influencer Scenario 1
I’ve heard good things about these new jet packs.
I wonder which one is the best.
Affiliate Sales: Influencer Scenario 2
I was going to buy this product but, based on this info, I think I need to research the one they recommend.
Affiliate Sales: Closer Scenario 1
I was thinking of buying from Merchant X, but this looks like a much better deal.
Affiliate Sales: Closer Scenario 2
I want to buy this gadget from Merchant X.
I wonder if they have a coupon.
All Affiliates are not created equal
Establish a Payout Range
Commissions must be flexible in order to maximize affiliate sales
Establish a Payout Range
Use various commission rates based on:
Understood Value of Affiliate’s sales
Incentive / Activation Strategy
Revenue Goals
Q & A
Contact Info
Joseph Hansen: www.linkedin.com/in/josephhansen
Chris Kramer: www.linkedin.com/in/chriskramer
Paul Schroader: www.linkedin.com/in/paulschroader
