This document provides best practices for running successful affiliate marketing programs. It discusses 15 key areas including having a leak-free website, using dedicated landing pages, ongoing testing and optimization, creating a sense of urgency for affiliates, avoiding unrealistic goals, maintaining two-way communication channels, and more. The overall message is that affiliate program managers should focus on proactive management, clear communication, and motivating affiliates to continuously drive sales.

1. How To Succeed
in Affiliate Marketing
Affiliate Program Best Practices
Presented by: Geno Prussakov
CEO & President, AM Navigator LLC
www.amnavigator.com
Founder & Chair, Affiliate Management Days
www.affiliatemanagementdays.com
Tel.: (+1) 888-588-8866
Email: geno@amnavigator.com
Twitter: @ePrussakov
.

2. It’s All About the Ecosystem

3. The Result

4. Focus
 Basics (definitions, payment models)
 Affiliate management best practices

5. The Basics

6. Affiliate Marketing is…
...performance-based marketing,
whereby affiliates promote a
merchant's product (or service) and
get remunerated for every customer
sent to the merchant.

7. Payment Models
Cost Per Sale (CPS) – Affiliates get a
percentage of the sale.
The most widely used payment
model (~80% of affiliate programs)

8. Payment Models

9. Payment Models
Cost Per Lead (CPL) – Affiliates
receive compensation for referred
leads (e.g. forms submitted,
subscriptions, free trials, etc)

10. Payment Models

11. Payment Models
Cost Per Click (CPC) – Ceasing
model (mainly due to a large
volume of fraud).
eBay – the only major merchant who
uses a modified version of it, QCP
(Quality Click Pricing), where the per-
click rate changes daily based on the
value of affiliate-referred traffic.

12. Payment Models

13. Payment Models
Pay Per Call (PPCall) – Advertisers
pay affiliates for "hot leads" that
call in.
Just as with other models, these have
to be "qualified" actions. Payments
for phone leads bridges the gap
between online and offline.

15. Payment Models
Lots of room for Hybrid Models
E.g.:
CPS + CPL
CPS/CPL + PPCall
CPS + CPL + PPCall

16. Best Practices for
Running Affiliate Programs

17. 1. Don’t Manage Affiliates

18. 1. Don’t Manage Affiliates
… in reality:
we’re not affiliate managers
but affiliate program managers

19. Be a Leader
7 Rs
• Reachable
• Responsive
• Real
• Realistic
• Responsible
• Reflective
• Resonating
.

20. Be a Leader
7 Rs 3 Is
Transformational Leadership
• Reachable
• Responsive • inspirational motivation
• Real
• intellectual stimulation
• Realistic
• individualized consideration
• Responsible
.
• Reflective
• Resonating

21. 2. Leak-Free Website

22. Leaks - Definition
Leaks – external links within your website that
lead to sites which do not credit your affiliates
for the work they perform.

23. Leaks - Examples
1. Phone Number
2. Live Chat
3. AdSense Units
4. Affiliate Links
5. Links to Related Stores/Sites
6. Links to Other Merchants
7. Links to Other Affiliates

24. Leak #1 – Phone Number

25. Leak #1 – Phone Number

26. Leak #2 – Live Chat

27. Leak #2 – Live Chat
Good answer:

28. Leak #3 – AdSense

29. Leak #4 – Affiliate Links
Amazon widget example:

30. Leak #5 – Related Stores/Sites

31. Leak #6 – Other Merchants

32. Leak #7 – Links to Affiliates

33. Go Leak-Free!!

34. 3. Dedicated Landing Pages

35. Dedicated Landing Pages
We’ve analyzed 50 randomly selected merchants
(from Internet Retailer Top 500 list) on 3 major
affiliate networks (CJ, LinkShare, GAN)…

36. Dedicated Landing Pages
4 Points to Cover:
1. Reinforce promo/campaign's details
2. Provide detailed instructions (if
customer needs to do something)
3. Spell out any restrictions
4. Have clear calls to action
.

37. 4. Testing & Conversion Rate
Optimization

38. Testing & Optimization
What to Test?
• Headlines
• Calls to action
• Page style & layout
• Images
• Descriptive copy
• Pricing & promos
.

39. Testing & Optimization
Tools to Employ
What to Test?
• Google Website Optimizer
• Headlines • Visual Website Optimizer
• LiveBall
• Calls to action • A/Bingo
• Page style & layout • PickFu
• Images • Vertster
• Unbounce
• Descriptive copy • Sitespect's A/B Testing
• Pricing & promos • Five Second Test
• Vanity

40. 5. Program Agreement
Don’t confuse with affiliate network’s agreement!

41. 5. Program Agreement

42. 5. Program Agreement
Merchant naïvete -- loss
of defensive behaviors
and adaptations needed
to deal with “predators”

43. Program agreement
What to Cover?
• Coupon & discounts policy
• Trademark policy
• Policies on loyalty affiliates
• Policies on toolbars, adware & parasitic behavior

44. Program agreement
What to Cover?
• Coupon & discounts policy
• Trademark policy
• Policies on loyalty affiliates
• Policies on toolbars, adware & parasitic behavior
How to Word It?
1. Foreword
2. Summary
3. Agreement itself

45. Program agreement
What to Cover?
• Coupon & discounts policy
• Trademark policy “How often do you read TOS?”
• Policies on loyalty affiliates
• Toolbars, adware, parasites
How to Word It?
1. Foreword
2. Summary
3. Agreement itself

46. Program agreement
Get your free sample:
www.AMNavigator.com/TOS.html

47. 6. Policing & Enforcement

48. Monitor Trademark Use
In Paid Search Campaigns:
• iTrademarkBidding – www.itrademarkbidding.com
• Brandverity PoachMark – brandverity.com/poachmark
• SearchMonitor – thesearchmonitor.com/affiliate_monitor
• AdGooroo Trademark Insight – www.adgooroo.com
In Domain Names:
• CitizenHawk – www.citizenhawk.com
.

49. 7. Approval Email
What % of your current affiliates are active?
…between 5% and 10%

50. 7. Approval Email
Pattern to Follow
1. Remind them of your program details
2. Include an activation promo
3. Enclose performance-based incentive
4. Pre-coded affiliate links (incl. coupons, feed, etc)
5. Detailed contact information

51. ―What’s the maximum acceptable affiliate program
application response time?‖

52. 8. Sense of Urgency

53. Create a Sense of Urgency!

54. 9. Hard-to-Reach Goals

55. Unrealistic/Demotivating Goals
Important details:
 AOV ~$650
 So, for 0.5% increase - 31 orders/mo
 …and for 1% bump - 91 such orders

56. 10. Commission Drops

57. Commission Drops

58. Commission Drops

59. 11. Competitive Intelligence

60. 5 Ways to Spy on Competition
1. Analyze their performance stats
2. Become their customer &
affiliate
3. Create automatic monitoring
campaigns
4. Do friend and follow them
5. Employ traffic measuring tools

61. 12. Proactive Management

62. Proactive Management
Proactive – ―Acting in anticipation of future
problems, needs, or changes‖ (Webster's
Dictionary)

63. 13. 2-Way Communication Channel

64. Chernobyl (illustration)

65. Global Problem

66. Global Problem

67. Communication Channel
Build a two-way communication channel
(via all available means, including
social media)

68. Preferred Communication Methods
Email - over 62%
Website - 14%
Social media - 12%
Source: AffStat Report

69. Communication Frequency
Source: AffStat Report

70. 14. Dedicated Affiliate Mini-Site

71. Recruitment Through Their Eyes
Google - 18%
Research - 5.7%
Blog - 5.7%
TOTAL: ~30%
Source: AffStat Report

72. Affiliate Program Mini-Site
Minimum
• Program Details (with sign-up link/form)
• Program Agreement
• Blog
Ideally
1. Program Details
2. Program Agreement
3. FAQ Section
4. Tips & Ideas
5. Creatives
6. Blog
7. Contact Us
.

73. 15. Playing Without the Ball
Perhaps the most important part of offensive
basketball is the part played by each man without
the ball.
~ John Woden, Naismith Hall of Fame Coach
One of the most difficult coaching tasks is to teach
players to carry out actions that don’t involve the
basketball — the magnet of the game.
~ Krause, Meyer & Meyer, Basketball Skills & Drills
Moving without the ball requires you to be adept at
starting, stopping, faking, and changing
directions. You must have excellent court
awareness and vision…
~ Ralph Pim, Winning Basketball

74. 15. Playing Without the Ball
Perhaps the most important part of offensive
basketball is the part played by each man without
the ball.
~ John Woden, Naismith Hall of Fame Coach
One of the most difficult coaching tasks is to teach
players to carry out actions that don’t involve the
basketball — the magnet of the game.
~ Krause, Meyer & Meyer, Basketball Skills & Drills
Moving without the ball requires you to be adept at
starting, stopping, faking, and changing
directions. You must have excellent court
awareness and vision…
~ Ralph Pim, Winning Basketball

75. In Conclusion…

76. Mistakes & Areas to Rethink
1. Managing affiliates
2. Leaks
3. Dedicated landing pages
4. Testing & optimization
Thank you!! 5.
6.
Program agreement
Policing & enforcement
7. Approval email
8. Sense of urgency
9. Hard-to-reach goals
10. Commission drops
11. Competitive intelligence
12. Proactive management
13. Communication channel
14. Dedicated affiliate mini-site
15. Playing without the ball
www.amnavigator.com/blog | 1-888-588-8866 | geno@amnavigator.com