Chapter 9, Affiliate programs. The following will be discussed in this chapter: How an affiliate program works, selecting an affiliate-program reward structure, attracting affiliates, monitoring an affiliate program, affiliate solution providers, web-site “stickiness”.
Trang 19.3.6 CPM (CostPerThousand Model 9.4 Attracting Affiliates
9.5 Monitoring An Affiliate Program
9.6 Affiliate Solution Providers
9.6.1 Commission Junction 9.6.2 LinkShare
9.6.3 Be Free 9.6.4 ClickTrade 9.6.5 PlugInGo.com
Trang 4• How it works
– Merchant places banner on affiliate’s Web site
– When a person clicks through to the merchant’s site via the advertisement on the affiliate’s site and makes a purchase, a commission on the sale is typically awarded to the affiliate
Trang 7• Can include new customer registrations and having visitors sign up to receive a newsletter or use a free demo
• Mailsweeps.com
Trang 8– express.com
– Virtual store
• Allows affiliates to sell merchant’s products without requiring visitor to leave the affiliate’s site
Trang 9• Multitiered model
– Also known as the multilevel model
• New affiliates are recruited by current affiliates, who are then rewarded with a percentage of the new affiliates’ revenues
– Twotiered model involves only the original affiliate and its
recruits, also known as subaffiliates
• ValueClick
Trang 10• Hybrid model
– Combines features of multiple models
– Can make an affiliate program more competitive– Can increase the cost for the merchant
– FreeShop.com
Trang 11– Not used as often as the other models because merchants prefer to pay for actions
– CPM is often used to price traditional advertising methods
Trang 12– Deja.com
• Directory
– A site that provides aggregated information and links to sites relevant to specific topics
• Determine reward structures and commission
amounts of competitors
Trang 13• Use tracking information
– To analyze effectiveness of programs, make improvements, monitor payment schedules and identify strongest affiliates
• Creating tracking solutions
– By creating duplicates of every Web page, each affiliate can link to an individually assigned page
• Referred visitors will click through to only the mirror page
(the duplicate page) designated for that specific affiliate, allowing companies to record these visits separately
• Costs include time, hosting and updating mirror pages, payments, marketing, creditcard processing and customer service
• Affiliate program software
– AffiliateZone.com, My Affiliate Program and ProTRACK
Trang 14• Affiliate solution providers
– Companies that can provide endtoend solutions for a
company’s affiliate program– Recruit affiliates and merchants to participate in programs, conduct accurate tracking, provide detailed reporting for merchants and affiliates and distribute commissions
– Fees may be required for affiliate solution services
Trang 15• Commission Junction offers design,
implementation and management services (B2B affiliations)
Trang 16• LinkShare offers affiliate programs for B2B and B2C
• Affiliates can join payperclick, payperlead and paypersale programs for free
• Merchants can use The LinkShare Network , a
Private Label Network or a combination of the
two to develop affiliate programs
– LinkShare Network provides merchants with access to companies that have become affiliates through
LinkShare
• LinkShare Synergy
– Private Label Network allows merchants to sign up
Trang 179.6.2 LinkShare
Trang 18• Be Free, Inc BFAST (affiliateprogram enabler)
– Allows companies to target affiliates in a segmented manner– Rewards and compensation determined by the merchant
– Be Free tracks impressions, clickthroughs and sales for both the merchant and its affiliate partners
– Be Free records each time a promotion is viewed or acted upon
– When a sale is made, Be Free receives information through its connection with the merchant’s site
– Reporting.net is used to provide performance information
Trang 199.6.3 Be Free
Trang 209.6.3 Be Free
Trang 21• ClickTrade is part of Microsoft bCentral
• Webbased service provides tracking and payment services
• Companies can sign up to be affiliates for free
• Provides reports including tracking of affiliates
Trang 23• Stickiness of a site
– The ability to keep people at a site and interested in its content
• Update content frequently, carefully organize a site, provide quality customer service to keep visitors browsing
• Merchants can offer virtual stores to affiliates
– Offer ecommerce capabilities to sites that want to
participate in affiliate programs, but also want to keep visitors at their sites
• Nexchange and CrossCommerce
– Can control their brands’ presentation on affiliate sites
Trang 24– Provides stepbystep process for design and
implementation
• Select a category from the listed choices
• Select a subcategory to further concentrate on a particular market
• Choose a store design, store colors and store typography
• Personalize store with a name, slogan and logo.
• Provide personal information such as email address, name,
Trang 259.7 Vstore.com Feature
Trang 26• Adbility
– Offers information on various forms of marketing, including
Trang 279.8 Becoming an Affiliate
Trang 289.8 Becoming an Affiliate
Trang 29• Some programs have requirements to become an affiliate
Trang 31• BabyCenter offers a commissionbased affiliate program
• Pays members for all sales originating from their sites
• Pays affiliates for their own personal shopping through the links on their sites
• Affiliates are paid on a quarterly basis
• BabyCenter Affiliate Gateway provides earning
reports, images and links that can be downloaded
to connect to the merchant site
Trang 32– Restrictions include spamming, pornography, hate mail and illegal activities
Trang 33Programs
• Costs
– Merchant is required to pay the affiliate, with the amount depending on the prespecified terms of the program
• Costs can rise with increases in the number of clickthroughs, purchases or other specified actions
– Losing visitors through affiliate links
– Developing and implementing the program
• Internet affiliate program taxation
– Commissions collected by affiliates are considered income and will be taxed
– State taxation on sales made through affiliates in states other than the state where the merchant is located has not been
settled
Trang 34• AssociateIt , AssociatePrograms.com, Refer-it and
AffiliateFind.com
Trang 35and Search Engines