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2010 AFFILIATE SUMMIT AFFSTAT REPORT


Affiliate Marketing Benchmarks




                Affiliate Summit
         realdeal@affiliatesummit.com
        http://www.affiliatesummit.com
            http://www.affstat.com
ASE10
AUGUST 15-17 - HILTON NEW YORK




                ASE10

Register today @ www.AffiliateSummit.com
2010 Affiliate Summit AFFSTAT REPORT




Table of Contents

SECTION1:THE SURVEY

Affiliate Marketing by the Numbers           4

SECTION2:THEIR WORDS

Affiliates Speak Out                         23

SECTION3:RESOURCES

Glossary                                     28
Message Boards                               32
Blogs                                        33




                                                                                          2
                                                                                          Page




                    Copyright  2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                                                                                        1
                                                                                         Section




Affiliate Facts & Figures
State of the Industry in Affiliate Marketing



F      or the last seven years, AffStat has delivered annual affiliate marketing benchmarks that are
       crucial to the development of any affiliate marketing program. The 2010 Affiliate Summit
       AffStat report is no exception.
Over eleven hundred and fifty affiliates were surveyed for the 8th Annual Edition, on their methods,
preferences, and strategies based on their experience in the industry.
The research has been designed to increase awareness and foster best-practices in the affiliate
marketing industry. As you peruse this report, it is our hope that you consider the results and how they
affect your role as an affiliate, merchant, network or vendor.




Missy Ward & Shawn Collins
Co-Founders, Affiliate Summit




                                                                                                           3
                                                                                                           Page




                      Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




Affiliate Marketing by the Numbers
                   Do you maintain an opt-in e-mail list for your site(s)?




                       No
                      48.5%

                                                                 Yes
                                                                51.5%




                Do you promote your affiliate links in PPC search engines?



                                                                                   Yes
                                                                                  44.5%

                                                                                          Yes
                                                                                          No
                                  No
                                 55.5%
                                                                                                4
                                                                                                Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                    Finish this sentence: I have been an affiliate since...

                                                                1997, 2.6%
                                       1996, 2.6%
          2010, 9.6%
                                                                     1998, 2.2%
                                                                                       1999, 4.8%

                                                                                  2000, 5.3%

                                                                                             2001, 3.9%

                       2009, 16.7%
                                                                                            2002, 3.1%


                                                                                          2003, 5.3%



                                                                                   2004, 5.3%
      2008, 8.8%



                                                                         2005, 11.4%
            2007, 9.6%
                                          2006, 8.8%




                                                                                                          5
                                                                                                          Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               Do you prefer network or independent affiliate programs?


                                                                           Independent
                                                                             programs
                                                                              14.0%
                  No preference
                      38.6%



                                                             Network
                                                             programs
                                                              47.4%




                 How many affiliate programs do you actively promote?

                                                                          1
                                51 or more                              10.9%
                                  21.0%
                    41-50
                    0.9%




                                                                      2-5
                 31-40                                               26.6%
                 0.9%

                21-30
                9.6%

                                 11-20
                                 10.0%
                                                                        6-10
                                                                                            6



                                                                       20.1%
                                                                                            Page




                    Copyright     2010. Affiliate Summit – http://www.affiliatesummit.com
                                             Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




             How many return days for cookies would you consider to be fair?


                                       365 Days          Lifetime
                                         2.7%              2.7%                1 - 7 Days
                                                                                 13.0%
           91 - 180 Days
                4.8%
                                                                                          8 - 14 Days
                                                                                              0.7%
          90 Days
           12.3%

              60 Days
               22.6%                                            15 - 30 Days
                                                                   40.4%



                        31 - 59 Days
                            0.7%




               Do commission payment policies (how often a program pays)
                    affect your decision to promote an affiliate offer?




                            No
                           41.0%


                                                               Yes
                                                              59.0%
                                                                                                        7
                                                                                                        Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               Have you successfully requested an increase in commission
                              from an affiliate manager?




                                                                                    Yes
                                                                                   38.1%

                                              No
                                             61.9%




                                How many domains do you own?

                                                 0                          1
                                               0.8%                       13.7%
                    5 to 10
                    11.7%



                                                                                 5 to 10
                                                                                 11.7%

                                21 or more
                                  31.0%                                          11 to 20
                                                                                  6.5%



                                                                      2 to 4
                                                                                            8



                                                                      24.6%
                                                                                            Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               Do you own any domains dedicated to a particular affiliate
                                    program?


                                                                               Yes
                                                                              47.3%


                                        No
                                       52.7%




            How often would you like to hear from your affiliate managers?

                                                Never
                                                3.8%
                                                                           Weekly
                    Quarterly                                              36.1%
                     11.1%




                                         Monthly
                                          49.0%                                           9
                                                                                          Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                How do you most often find out about an affiliate program
                                    and then join?


                         Research of
                          Network
                          Offerings                                 Advertising in
                            6.2%          Word of Mouth           print publications
                                              1.3%                       4.6%
                         Personal
                         Research
                           5.7%
                     Other
                     1.0%
                                                              Affiliate directory
                                                                     18.3%
            Google                                                                     Affiliate Forums
            18.0%                                                                             1.3%



                                                                                    Affiliate Manager
                                                                                           blogs
                                                                                            5.7%


           Conferences
             11.3%
                                                                            Affiliate Manager
                                                                              Contacts You
                   Affiliate Manager          Affiliate Manager                    16.2%
                     is on Twitter               is active on
                           3.9%               message boards
                                                      6.4%

                                                                                                          10
                                                                                                          Page




                     Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                            Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               What is your preferred method for finding out information
                              from an affiliate manager?

                                                  Video                        Affiliate Forum
                                Twitter
                                                  1.9%                               0.5%
                                 2.4%
            Social Network
                  Site
                 1.0%                                                           Blog
                                                                                8.1%
                   Phone
                    1.4%
                                                                                       Company site
                                                                                          13.8%
      Network internal
          email
          21.4%
                                                                                        Instant Messenger
                                                                                               2.4%



         Network area for                            Merchant Email
            merchant                                     41.0%
              6.2%




                                                                                                            11
                                                                                                            Page




                    Copyright     2010. Affiliate Summit – http://www.affiliatesummit.com
                                             Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                How much information should an affiliate manager make
                                 available to you?

                                                                   Twitter
                                                                    2.4%


                                                                                    Email
                                                                                    35.2%
                          Phone, IM & Email
                               40.4%




                                                                              IM
                         Phone                                               6.3%
                         15.7%




            How would you prefer to be contacted by affiliate managers on
                               an individual basis?


                       Phone, IM and                                   Social Network
                           Email                                            0.8%
                          11.9%

                     Phone
                     12.6%

                                                                     Email
              Network Interface                                      64.4%
                   0.8%


                          IM
                         9.5%
                                                                                            12
                                                                                            Page




                    Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                            Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                What is your preferred method of commission payment?


                                                ePassporte
                                                   0.5%
                                PayPal
                                17.0%                                  Check
                                                                       17.0%

                         Wire
                         3.4%




                                                Direct deposit
                                                    62.1%




                          What is your preferred payment threshold?

                            Over $100
                              2.0%                                      $0
                                                                       15.2%



                 $100
                 28.9%
                                                                                    $25
                                                                                   24.5%

                                               $50
                                              29.4%
                                                                                           13
                                                                                           Page




                    Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                            Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                      What industry/merchant types do you prefer to promote?


           Contests/Giveaways
                 0.10%
                                         Travel & Auto
                                             6.75%
                                                                             Apparel
                                 Toys & Hobbies           Wedding             6.45%        Books, Movies & Music
                                     5.44%                 0.10%                                   6.75%

     Sports & Recreation
            5.95%
                                                                                                 Career/Business Opp
          Spiritual                                                                                     0.30%
           0.20%


        Real Estate                                                                                          Dating
          0.10%                                                                                              0.71%
       Pets                                                                            Computers &
      0.40%                                                                             Electronics
                                                                                          8.97%           Department
      Outlet & Discount                                                                                     Stores
           3.73%                                                                                            4.33%


                                                                                                               Education
                                                                                                                 0.40%
      Office & Business
            7.46%                                                                                                   Event
                                                                                                                   Tickets
                                                                                                                   0.10%

         Medical                                                                                                   Financial
         0.10%                                                                                                      0.10%
                                                                                                          Flowers & Gifts
          Magazines
                                                                                                              4.64%
           2.52%

                                                                                                  Food & Entertaining
      Jewelry & Accessories                                                                             5.85%
              4.74%                                                                            Gaming
                                                                                                0.10%
                                         Home & Garden
              Insurance / Financial         6.15%
                    Services
                                                         Health & Beauty   Green/Eco           Gift Certificates
                     5.54%
                                                              8.47%          0.20%                  3.33%
                                                                                                                               14
                                                                                                                               Page




                           Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                                  Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




              What is the minimum EPC (earnings per 100 clicks) for you to
                             promote an affiliate program?

                                                                                Less than $5.00
                     More than                                                       15.0%
                      $30.00
                      24.2%


       $25.01 - $30.00
            5.0%

                                                                 $5.01 -
                                                                 $10.00
         $20.01 - $25.00                                         30.8%
              9.2%

                 $15.00 - $20.00
                     10.8%                                       $10.01 - $15.00
                                                                      5.0%


                   What is the highest reversal rate you would accept?

                                                 20-25%
                       16-20%                     5.0%
                        6.9%                                              0%
                                                                         9.9%


                    11-15%
                     5.9%




                  6-10%
                  21.8%                                      1-5%
                                                             50.5%
                                                                                                  15
                                                                                                  Page




                    Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                            Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               What is the most important factor in choosing a merchant?
                                              Search Marketing
                                                Competition
                      Product or                    0.5%                            Affiliate
                    Service Quality                                               management
                    or Uniqueness                                                    16.1%
                         8.0%
                                                                                Allows
                                                                             incentivized
               Payout amount                                                    traffic
                   30.7%                                                         0.5%


                  Optimized
                  Creatives &                                                     Brand
                 Landing Pges                        EPC                        awareness
                     0.5%                           18.1%                         25.6%




                                What are your preferred link types?
                                                         Widgets
                                                          0.4%
                           Text
                          24.5%


            Storefronts                                     Banners
               6.4%                                          25.8%
                                                                                 Data feed
      Product Photos                                                              12.2%
          0.4%

             Pop-ups                                                                 Dynamic Rich
              3.2%                                                                      Media
                Landing Pages                                                           7.1%
                    12.2%                                     HTML for solo e-
                                                                                                    16


                                                                  mail
                                                                  7.7%
                                                                                                    Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                  Do you cloak links (CGI, .htaccess, meta redirect, etc.)?



                                                                           Yes
                                                                          38.4%




                                        No
                                       61.6%




                      What is your average gross monthly income with
                                     affiliate programs?

                                                 $100 - $500
                                                    4.5%                 $501 - $1000
                            Under $100
                                                                            2.0%
                              4.5%
                                                                                 $1,001 - $5,000
                                                                                      7.4%

                                                                              $5, 001 - $10,000
                                                                                    1.5%
                                                                               $10,001 - $15,000
                                                                                     5.0%
                                I would rather
                                   not say
                                    55.4%                                      Over $15,000
                                                                                  4.0%
                                                                                                   17


                                                                      Don't know
                                                                        15.8%
                                                                                                   Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




               Are you currently using any URL Shortening Services in your
                                    marketing efforts?




                                                                           Yes
                                                                          40.4%

                                         No
                                        59.6%




                  If you answered YES to the question above, which URL
                        Shortening Services are you actively using?
                                                     twurl.nl
                                tinyurl.com
                                                      3.5%
                                    1.8%                                  WP Pretty Link
                        su.pr                                                 0.9%
                        0.9%

                   ow.ly
                   38.9%
                                                                 bit.ly
                                                                 42.5%




                       itshrunk.com
                            0.9%                                       budurl.com
                                                                          3.5%
                                                                                           18


                                       is.gd
                                                     Custom                 cli.gs
                                       4.4%
                                                                            1.8%
                                                                                           Page




                                                      0.9%

                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                 Does your affiliate marketing plan currently incorporate
                         marketing on social networking sites?




                          No, 32.5%



                                                                 67.5%




                If you answered YES to the above questions, which social
                 networking sites are you currently using in your affiliate
                                   marketing efforts?
                                                  bebo         del.icio.us
                                                  1.2%           6.3%
                                                                                digg
                                                                                7.7%


                                            Twitter                                    Facebook
                                            26.9%                                        25.9%

              Stumbleupon
                  8.0%
              Reddit
               0.2%
                                                                                             Friendster
                          Ning                                                                  1.5%
                          0.2%
                              Myspace                                               Google Buzz
                                                                                                          19


                               9.0%             LinkedIn                               0.2%
                                                                    hi5
                                                                                                          Page




                                                 10.2%
                                                                   2.7%

                       Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                    Are you currently integrating video in your affiliate
                                     marketing plan?



                                                                           Yes, 29.4%




                                          70.6%




                Are you currently using any WordPress plugins or widgets
                         designed for affiliate marketing efforts?




                                                                              Yes, 32.0%




                                         No, 68.0%                                         20
                                                                                           Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




            If you answered YES to the above question, which affiliate marketing
                    related plugins and widgets are you currently using?

                                                          123Linkit
                                       WP-Marketer          1.1%
                                          9.8%
                           WFReview
                             4.3%
                                                                                     Avantlink Widget
     Simple Link Cloaker                                        Amazon                     1.1%
            5.4%                                              Reloaded for
                                                               WordPress
                                                                 20.7%                     Bounce.cc
   ShareASale Make a                                                                         4.3%
        Widget
         14.1%                                                                                          Buy.at
                                                                                                       Content
                                                                                    DataFeedr
                                                                                                       Widget
                                                                                      2.2%
          Self-developed                                                                                 1.1%
               1.1%                                                                  DataFeedFile.com
                                                                                     Featured Product
    MaxBlogPress Ninja                                                                    Plugin
        Affiliate                                                               eBay       5.4%
          2.2%                                                                  1.1%

                     LinkShare RSS               LinkShare Link
                       DealFeed                     Lookup                   LinkShare AdMix
                         10.9%                        9.8%                         5.4%




                                                                                                                 21
                                                                                                                 Page




                     Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                            Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                If you are currently using WordPress to build out affiliate
                     sites, what is your preferred WordPress theme?
                                             WPNow
                                              4.8%


            Woo Themes
               9.6%



                                                              Affiliate Theme
                                                                    26.5%

                            Thesis for
                            WordPress
                                                                                      Custom built
                             26.5%
                                                                                         8.4%



                                                                                  Elegant Themes
                                                                                       2.4%
                      Thematic
                        2.4%
                                                                                  Headway
                                          StudioPress               Pagelines
                                                                                    3.6%
                                             14.5%                  iBlogPro
                                                                      1.2%




                                                                                                     22
                                                                                                     Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                                                                                              2
                                                                                              Section




Affiliates: Their Words
When given a soapbox, what do affiliates have to say about things?



T
        he statistics tell one version of the story. But to truly get a complete picture of the triumphs and hurdles
        of affiliates, you’ve got to hear things straight from their mouths.
        The following is an uncensored view into the opinions of affiliates on a variety of other subjects.
Affiliates were asked to share any complaints, ideas, suggestions or opinions they have regarding affiliate
marketing.
Read what happens when affiliates stop being polite, and start being real. This is the Real World – Affiliate style.




                                                                                                                       23
                                                                                                                       Page




                       Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                               Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




Affiliates Speak Out on the Issues
       Please give us advance notice of new products where possible, it makes all the difference

       Own up to your company mistakes - even if it costs you money.
       My biggest complaint is that companies that the average person haven't heard of you always seem to
       get automatically accepted, and the brand name companies you always seem to get rejected. What's up
       with that? My web site is called Brand Name Depot, I will only put Brand Name companies on my site.
       The whole purpose of my site is to offer my visitors convenient one stop shopping with companies that
       we're all familiar with, and to offer them as many choices in each category so they could do their
       comparison shopping all within one site. When I keep getting rejection notices, it make the possibility of
       easy comparison shopping for my visitors, and takes away a little of my site credibility. I can't help but
       wonder, are these companies afraid of a little competition, competing with companies already on my
       site, on the same level as them? Something to think about. My filling out the applications, I do to go
       through the motions to get affiliated with them. Also, what I am really doing, is inviting them to be on
       my site. Are they always that gracious in accepting invitations?
       Need more input from affiliate managers.
       Cookie based programs are designed to benefit Advertiser and Networks not the affiliate or publishers.
       Many times Networks are walking my money back and forth for weeks but not finished reaches my bank
       account. - These situations only lead to loss of confidence in affiliate networks and advertisers.

       Update with new promos regularly, and make me aware of them. Also think critically about the quality
       of your feed. Lousy feeds are a waste of everyone's time.

       We as affiliates do not like it when affiliate managers pull shady stuff, like allowing certain publishers to
       break the rules. If you piss us off enough, all it takes is one phone call to the CEO of the advertiser that
       you are working for and we can let them know exactly how they can save hundreds of thousands of
       dollars (in some cases, millions) by dumping your ass. (and reversing the commissions of your buddy
       who happens to be in the affiliate program breaking all of the rules) Play fair, or face the vindictive
       wrath of the publishers! Just remember, we got the exact same eyeballs on you, that you got on us.
       Pay attention to your affiliates and what's happening in our industry.

       It would be really nice to have easier access to product codes.
       Update your tools and creatives often to keep up with the changing look/feel of the web.

       Run more Promotions, where you can earn a bonus if you reach a given goal.
       I dislike it when an advertiser is overly restrictive of keywords that can be used. For example, there was
       a company trying to sell wood chips for fuel, but they won't let you bid on wood chips as a keyword?
                                                                                                                       24


       What's up with that?
                                                                                                                       Page




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                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




       Link Networking. Link Networking. Link Networking. Nothing else matters except backlinks to your web
       site and that takes link networking.
       It should be easier to reach affiliate managers or at least know who is managing programs before signing
       up.
       I appreciate quick responses to questions about affiliate programs, same day or quicker. Thanks!

       Affiliate managers rarely make any effort to respond to my problems, complaints or request for help.

       Prompt email response time is always a plus, but that's a given.
       Be clearer about what levels/tiers need to be reach in order for commission level to be increased. This
       way, less wasted efforts can be placed on programs/campaigns with stricter budget and less flexibility.
       Need more video across the board; YouTube-like video, clickable.

       Please don't terminate poor performing advertisers. I had a site which was slowly gaining in traffic, but
       the affiliate manager terminated the agreement, due to lack of sales. So I signed up with their
       competition, and as the traffic finally hit, I made money from the new program. I think some manager
       just didn't like the look of his report, so they trimmed out the underperformers, to make the report (and
       their efforts ) look better. The underperformers are not hurting anything, you never know when the
       search engine algorithm will be tweaked to favor certain on or off page factors.

       Performance Incentives are a must for any serious affiliate program. While top affiliates can always
       attempt to contact the affiliate manager, having an automatic tiered system for different levels of
       affiliate is key to continued affiliate satisfaction.

       Never, under any circumstances, lie to a publisher. If you don't an answer to a question admit that and
       either move on, or find out. Making stuff up will have me going elsewhere regardless of payout
       Affiliate managers need to take a more public stance on industry issues; many are all too silent on
       critical issues including parasites, toolbars, and merchant good standards and practices. I also believe
       that the affiliate -merchant TOS needs to become more balanced and protect affiliates more.
       Why aren't more marketers offering PayPal as a choice for payment?

       Not all of us have programming capability, so programs or networks that provide me the ability to
       display multiple products in one place with minimal effort are preferable to me - SAS has this and
       AvantLink also, with options to create product displays in HTML or JAVA - programs that only have
       banners are just too hard to promote these days. More tools, more communication, more ideas shared
       help.

       I believe before a company can reverse a commission they should give a specific reason why not only to
       prevent it from happening in the future but also as a courtesy to the affiliate so that we know what is
       going on.
                                                                                                                   25



       I would like to hear from my affiliate managers if they discontinue or change an item. This could be a
                                                                                                                   Page




       monthly email newsletter.

                      Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                             Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




       Cookies should last forever.

       Commission should be distributed as long as customer retains the service and remain with the
       advertiser.

       This industry is the worst example of fairness in compensation! Internet sales have gone up and up while
       publisher commissions have gone down and down over the years. Something's not adding up, and it is
       frankly insulting to see that ad networks think so little of their publishers' ad space. Ad technologies
       virtually take over the viewer experience, and the presenter is left with lost audiences and nothing to
       show for it. Ad networks need to start compensating fairly, or they will run their network dry.
       Most affiliate managers do not respond in a timely manner. Most often commissions are not tracked or
       paid in a timely manner.
       Need more apps for bloggers
       I don't have TIME to be replacing offers all the time. I have a content site. Ads are secondary. I need the
       ads to take care of themselves.

       I understand the need to have minimum payment thresholds, but if I never make the threshold, then I
       should still get my money that I earned from below the minimum.
       Some companies need to make their image links easier to use -- some of the images appear extremely
       small or extremely large on a website. In addition there are times that you can click on the same image
       two different times and each time it takes you to a different landing page -- e.g. one time it goes to a
       landing page for the product. The next time it goes to the home page for the company.

       These people need to be fired: Affiliate managers who do not respond to emails, who expire publishers
       without warning or explanation, who will not help a publisher with a problem concerning an advertiser,
       who treat publishers as second class citizens.
       Offer up the best method for promoting your product based on what you have seen. video, twitter,
       Facebook, PPC, mailing lists, etc.

       Weekly payouts please.
       Policies are too fuzzy most don't understand the difference between bidding on a trademark (TM) or a
       TM + specific term, like TM review, TM deals etc. They don't understand that in the second case search
       engine customers are not looking for their site.

       Am frustrated with merchants who refuse to place my Google Conversion code on their thank you pages
       (even though I consistently generate at least $5K/mo revenue for one in particular). Also, paying out
       only once per month is difficult for programs that I promote solely via PPC.

       I think that publishers should get paid twice a month. Allowing this will give participants faster time to
       reinvest their advertisers.
                                                                                                                     26



       I would like to see better and more honest reporting, better uptimes.
                                                                                                                     Page




                      Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




       Learn my nickname. I hate being called my full name. If I'm going to bring your company $20k/month in
       sales, you can at least afford to learn my preferred name. That's all I ask.
       Reach out. More information is better than no information. Don't be afraid to email us often.

       I wish there was more emphasis on quality over quantity of affiliates. I also wish there was more
       emphasis on ethics and building long-term trust.

       It's annoying when program managers spam my Inbox with useless stuff! I tend to ignore those that
       email me too often. On the other hand, I DO appreciate information that is actually useful to me and
       sent ONLY when it's actually warranted. Don't know the difference? Send me ONE email and ask me to
       subscribe if I want more.

       I'd like to see more banner ads with African American models. I run a Website that's focused on the
       African American community but I'm having a difficult time getting my audience to click because there a
       few ads with people that look like them.
       I have had affiliate managers quietly implement changes to their keyword policy without notifying me
       and then reverse my commissions when they catch me violating the TOS. This practice is unprofessional
       and unethical. This has personally cost me over a thousand dollars in ad expenses and several times that
       in commission in just the past 3 months.




                                                                                                                  27
                                                                                                                  Page




                      Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                             Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




                                                                                         3
                                                                                             Section




Affiliate Marketing Resources
Some things to make your job easier.



T
        here are some great resources out there that can make your job a whole lot easier. Here is a glossary to
        explain all of the industry terms, plus lists of suggested message boards, blogs, and Twitter accounts
        that you should know about.




                                                                                                                   28
                                                                                                                   Page




                       Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




Affiliate Marketing Glossary
Affiliate marketing has a language all its own. Below is a collection of some of the frequently used terms I’ve
defined over time.
Affiliate: a Web site owner that earns a commission for referring clicks, leads, or sales to a merchant.
Affiliate Agreement: terms between a merchant and an affiliate that govern the relationship.
Affiliate Information Page: a page or pages on your Web site that explains clearly and concisely what your
affiliate program is all about.
Affiliate Link: a piece of code residing in a graphic image or piece of text placed on an affiliate's Web page that
notifies the merchant that an affiliate should be credited for the customer or visitor sent to their Web site.
Affiliate Manager: the manager of an Affiliate Program who is responsible for creating a newsletter, establishing
incentive programs, forecasting and budgeting, overseeing front-end marketing of the program, and monitoring
the industry for news and trends.
Affiliate Program (also an Associate, Partner, Referral, or Revenue Sharing Program): a merchant pays a
commission to an affiliate for generating clicks, leads, or sales from a graphic or text link located on the affiliate's
site.
Affiliate Program Directory: directory of affiliate programs, featuring information such as the commission rate,
number of affiliates, and affiliate solution provider. Associate-It, AssociatePrograms.com and Refer-it are among
the largest Affiliate Program Directories.
Affiliate Solution Provider: company that provides the network, software, and services needed to create and
track an affiliate program.
Auto-Approve: affiliate application approval process where all applicants are automatically approved for an
affiliate program.
Commission: income an affiliate receives for generating a sale, lead or click-through to a merchant's Web site.
Sometimes called a referral fee, a finder's fee or a bounty.
Cookies: small files stored on the visitor's computer, which record information that is of interest to the
merchant site. With affiliate programs, cookies have two primary functions: to keep track of what a customer
purchases, and to track which affiliate was responsible for generating the sale (and is due a commission).
Contextual Link: integration of affiliate links with related text.
Conversion Rate: percentage of clicks that result in a commissionable activity (sale or lead).
CPA (Cost Per Action): cost metric for each time a commissionable action takes place.
CPC (Cost Per Click): cost metric for each click of an advertising link.
                                                                                                                           29


CPM (Cost Per Thousand): cost metric for one thousand banner advertising impressions.
CPO (Cost Per Order): cost metric for each time an order is transacted.
                                                                                                                           Page




                        Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                                Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




eCPC: stands for 'effective Cost Per Click’. Affiliates that earn on a CPA or CPO will back their numbers into an
eCPC. It is calculated by dividing total earnings by their number of clicks. For example, if an affiliate earned
$1500 from 3000 clicks, the CPC would equal $1500/3000, or $0.50.
eCPM: stands for 'effective Cost Per Thousand impressions'. Affiliates that earn on a CPA or CPO will back their
numbers into an eCPM. It is calculated by dividing total earnings by their number of impressions in thousands.
For example, if an affiliate earned $1500 from 75,000 impressions, the CPM would equal $1500/75, or $20.00.
Hybrid Model: affiliate commission model that combines payment options (i.e. CPC & CPA).
In-house: alternative to using an affiliate solution provider; building affiliate program architecture within a
company.
Lifetime Value of a Customer (LVC): the amount of sales in dollars that a customer in his lifetime will spend with
a particular company.
Manual Approval: affiliate application approval process where all applicants are manually approved for an
affiliate program.
Merchant: an online business that markets and sells goods or services. Merchants establish affiliate programs as
a cost effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a
Web site.
Pay-Per-Sale: program where an affiliate receives a commission for each sale of a product or service that they
refer to a merchant's Web site. Pay-per-sale programs usually offer the highest commissions and the lowest
conversion ratio.
Pay-Per-Lead: program where an affiliate receives a commission for each sales lead that they generate for a
merchant Web site. Examples would include completed surveys, contest or sweepstakes entries, downloaded
software demos, or free trials. Pay-per-lead generally offers midrange commissions and midrange to high
conversion ratios.
Pay-Per-Click: program where an affiliate receives receive a commission for each click (visitor) they refer to a
merchant's Web site. Pay-per-click programs generally offer some of the lowest commissions (from $0.01 to
$0.25 per click), and a very high conversion ratio since visitors need only click on a link to earn the affiliate a
commission.
Predatory Advertising: method that creates or overlays links or banners on Web sites, spawns browser
windows, or any method invented to overwrite or redirect affiliate links.
Residual Earnings: programs that pay affiliates not just for the first sale a shopper from their sites makes, but all
additional sales made at the merchant's site over the life of the customer.
ROAS: stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar
spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising
spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending.
                                                                                                                        30
                                                                                                                        Page




                        Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                                Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




ROI: stands for 'Return on Investment'. This is what all marketing managers want to see from the money they
spend on their marketing and advertising campaigns. The higher the sales, the larger the number of shoppers
and the greater the profit margin generated by sales – the better the ROI.
Super Affiliates: that small percentage of sites - the top 1% of affiliates, based on performance and earnings -
that generate the lion’s share of the revenue for your program. They are born marketers and are very successful
with the affiliate program they promote from their sites.
Two-tier: affiliate marketing model that allows affiliates to sign up additional affiliates below themselves, so that
when the second tier affiliates earn a commission, the affiliate above them also receives a commission. Two-tier
affiliate marketing is also known as MLM (Multilevel Marketing).




                                                                                                                        31
                                                                                                                        Page




                       Copyright    2010. Affiliate Summit – http://www.affiliatesummit.com
                                               Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




Affiliate Marketing Message Boards
What are affiliates saying about your program? Monitor and participate in these message boards regularly to
maintain a grip on the affiliate community:
       5 Star Affiliate Marketing Forums

       A Best Web

       AffiliatePrograms.com

       Affiliates4U (UK)

       Amazon.com

       AssociatePrograms.com

       Digital Point

       Earner’s Forum

       Webmaster World

       Wicked Fire




                                                                                                              32
                                                                                                              Page




                       Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                              Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




Blogs for Affiliate Marketers to Read
The affiliate marketing blogosphere is expanding constantly. Blogs are a great resource for news and
information in affiliate marketing as it happens, as well as to learn more about tactics affiliates are using (and
some you shouldn't use).

Here are some blogs focused on or related to affiliate marketing to check out.

        5 Star Affiliate Marketing Blogs - http://affiliate-blogs.5staraffiliateprograms.com/
        Ad Hustler - http://www.adhustler.com/
        ADS-links.com - http://www.ads-links.com/
        Advertising & Marketing Blog - http://www.jonathantreiber.com/
        AffBuzz - http://www.affbuzz.com/
        Affiliate Classroom - http://blog.affiliateclassroom.com/
        Affiliate Marketing Blog by Shawn Collins - http://blog.affiliatetip.com/
        Affiliate Marketing The Smart Way - http://www.thelazymarketer.com/blog/
        Affiliate Program Advice - http://www.affiliateprogramadvice.com/
        Affiliate Stuff - http://www.affiliatestuff.co.uk/
        Affiliate Summit - http://www.affiliatesummit.com/blog/
        Affilorama - http://www.affilorama.com/blog
        Azam Marketing Blog - http://www.azam.info/
        Andy Beard - http://www.andybeard.eu/
        Beer Monies - http://www.beermonies.com/
        Brandon Adcock dot Com - http://www.brandonadcock.com/
        Bryn Youngblut - http://bryn.me/
        Cash Tactics - http://www.cashtactics.net/
        CDF Networks - http://www.cdfnetworks.com/
        Chris Bloczynski dot Com - http://www.chrisbloczynski.com/
        chrisbrogan.com - http://www.chrisbrogan.com/
        CJ UK Blog - http://www.cjblog.co.uk/
        copyblogger - http://www.copyblogger.com/
        Cost Per News - http://www.costpernews.com/
        Dennis Yu - http://www.dennis-yu.com/
        FeedFront Magazine - http://www.feedfront.com/
        GeekCast.fm - http://www.geekcast.fm/
        Geno's Affiliate Marketing Blog - http://www.amnavigator.com/blog/
        Google Affiliate Network Blog -http://googleaffiliatenetwork-blog.blogspot.com/
        How to Make Money Online - http://www.jonathanvolk.com/
        Ian Fernando - http://www.ianfernando.com/
        Internet Geek Girl - http://www.internetgeekgirl.com/
        Jangro 2.0 - http://www.jangro.com/
        Jeremiah Cooper dot Com - http://www.jeremiahcooper.com/
        JimKukral.com - http://www.jimkukral.com/blog/
                                                                                                                     33


        John Chow dot Com - http://www.johnchow.com/
        JoelComm.com - http://www.joelcomm.com/
                                                                                                                     Page




        JustinDupre.com - http://www.justindupre.com/

                        Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                               Some Rights Reserved.
2010 Affiliate Summit AFFSTAT REPORT




       Lee McCoy's Affiliate Marketing Blog - http://www.leemccoy.co.uk/
       Legacy Affiliate Blog - http://www.legacyaffiliateblog.com/
       LinkShare Blog - http://www.linkshareblog.com/
       MadPPC - http://www.madppc.com/
       Many Body Theory - http://www.manybodytheory.com/
       MediaTrust Blog - http://blog.mediatrust.com/
       MissyWard.com - http://www.missyward.com/
       Money Making Scoop - http://www.moneymakingscoop.com/blog/
       MurrayNewlands.com - http://www.murraynewlands.com/
       Nerdy Affiliate - http://www.nerdyaffiliate.com/
       NETexponent Blog - http://www.netexponentblog.com/
       NickThrolson.com - http://www.nickthrolson.com/
       Nickycakes.com - http://www.nickycakes.com/
       OffWhiteHat.com - http://www.offwhitehat.com/
       OOOFF.com - http://www.oooff.com/php-affiliate-seo-blog/
       Performance Marketing Alliance - http://www.performancemarketingalliance.com/
       PPC.bz - http://www.ppc.bz/
       ProBlogger - http://www.problogger.net/
       Prosper202 Blog - http://prosper.tracking202.com/blog/
       ReveNews - http://www.revenews.com/
       Shankman.com - http://www.shankman.com/
       Share Results Blog - http://blog.shareresults.com/
       ShareASale Blog - http://blog.shareasale.com/
       Shock Marketer - http://www.shockmarketer.com/
       ShoeMoney - http://www.shoemoney.com/
       Super Affiliate Mindset - http://www.superaffiliatemindset.com/
       The Real Tim Jones - http://www.therealtimjones.com/
       Thoughts on Affiliate Marketing from Logan Thompson - http://www.lrthompson.com/
       TrishaLyn.com - http://www.trishalyn.com/
       TylerCruz.com - http://www.tylercruz.com/
       UberAffiliate - http://www.uberaffiliate.com/
       Webgains UK Blog - http://blog.webgains.com/
       Webgains USA Blog - http://usablog.webgains.com/
       Winning the Web - http://www.winningtheweb.com/
       Who is Andrew Wee - http://www.whoisandrewwee.com/
       Wiseaff - http://www.wiseaff.com/
       ZacJohnson.com - http://www.zacjohnson.com/                                        34
                                                                                          Page




                    Copyright   2010. Affiliate Summit – http://www.affiliatesummit.com
                                           Some Rights Reserved.
Learn from the rock stars of the affili-
ate marketing, email marketing, blog-
ging, podcasting, video, search engine
marketing and social media world, as
they break down the how and why of
Internet marketing in a clear, easy to
understand way.

These are the people that do this stuff
every day. Find out how they do what
they do to achieve success with their
online businesses.

Their voices, their ideas, their action
items, and their lessons learned from
mistakes – all for you to grow your
business the day you start reading the
book.
¼

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  • 1. 2010 AFFILIATE SUMMIT AFFSTAT REPORT Affiliate Marketing Benchmarks Affiliate Summit realdeal@affiliatesummit.com http://www.affiliatesummit.com http://www.affstat.com
  • 2. ASE10 AUGUST 15-17 - HILTON NEW YORK ASE10 Register today @ www.AffiliateSummit.com
  • 3. 2010 Affiliate Summit AFFSTAT REPORT Table of Contents SECTION1:THE SURVEY Affiliate Marketing by the Numbers 4 SECTION2:THEIR WORDS Affiliates Speak Out 23 SECTION3:RESOURCES Glossary 28 Message Boards 32 Blogs 33 2 Page Copyright  2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 4. 2010 Affiliate Summit AFFSTAT REPORT 1 Section Affiliate Facts & Figures State of the Industry in Affiliate Marketing F or the last seven years, AffStat has delivered annual affiliate marketing benchmarks that are crucial to the development of any affiliate marketing program. The 2010 Affiliate Summit AffStat report is no exception. Over eleven hundred and fifty affiliates were surveyed for the 8th Annual Edition, on their methods, preferences, and strategies based on their experience in the industry. The research has been designed to increase awareness and foster best-practices in the affiliate marketing industry. As you peruse this report, it is our hope that you consider the results and how they affect your role as an affiliate, merchant, network or vendor. Missy Ward & Shawn Collins Co-Founders, Affiliate Summit 3 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 5. 2010 Affiliate Summit AFFSTAT REPORT Affiliate Marketing by the Numbers Do you maintain an opt-in e-mail list for your site(s)? No 48.5% Yes 51.5% Do you promote your affiliate links in PPC search engines? Yes 44.5% Yes No No 55.5% 4 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 6. 2010 Affiliate Summit AFFSTAT REPORT Finish this sentence: I have been an affiliate since... 1997, 2.6% 1996, 2.6% 2010, 9.6% 1998, 2.2% 1999, 4.8% 2000, 5.3% 2001, 3.9% 2009, 16.7% 2002, 3.1% 2003, 5.3% 2004, 5.3% 2008, 8.8% 2005, 11.4% 2007, 9.6% 2006, 8.8% 5 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 7. 2010 Affiliate Summit AFFSTAT REPORT Do you prefer network or independent affiliate programs? Independent programs 14.0% No preference 38.6% Network programs 47.4% How many affiliate programs do you actively promote? 1 51 or more 10.9% 21.0% 41-50 0.9% 2-5 31-40 26.6% 0.9% 21-30 9.6% 11-20 10.0% 6-10 6 20.1% Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 8. 2010 Affiliate Summit AFFSTAT REPORT How many return days for cookies would you consider to be fair? 365 Days Lifetime 2.7% 2.7% 1 - 7 Days 13.0% 91 - 180 Days 4.8% 8 - 14 Days 0.7% 90 Days 12.3% 60 Days 22.6% 15 - 30 Days 40.4% 31 - 59 Days 0.7% Do commission payment policies (how often a program pays) affect your decision to promote an affiliate offer? No 41.0% Yes 59.0% 7 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 9. 2010 Affiliate Summit AFFSTAT REPORT Have you successfully requested an increase in commission from an affiliate manager? Yes 38.1% No 61.9% How many domains do you own? 0 1 0.8% 13.7% 5 to 10 11.7% 5 to 10 11.7% 21 or more 31.0% 11 to 20 6.5% 2 to 4 8 24.6% Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 10. 2010 Affiliate Summit AFFSTAT REPORT Do you own any domains dedicated to a particular affiliate program? Yes 47.3% No 52.7% How often would you like to hear from your affiliate managers? Never 3.8% Weekly Quarterly 36.1% 11.1% Monthly 49.0% 9 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 11. 2010 Affiliate Summit AFFSTAT REPORT How do you most often find out about an affiliate program and then join? Research of Network Offerings Advertising in 6.2% Word of Mouth print publications 1.3% 4.6% Personal Research 5.7% Other 1.0% Affiliate directory 18.3% Google Affiliate Forums 18.0% 1.3% Affiliate Manager blogs 5.7% Conferences 11.3% Affiliate Manager Contacts You Affiliate Manager Affiliate Manager 16.2% is on Twitter is active on 3.9% message boards 6.4% 10 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 12. 2010 Affiliate Summit AFFSTAT REPORT What is your preferred method for finding out information from an affiliate manager? Video Affiliate Forum Twitter 1.9% 0.5% 2.4% Social Network Site 1.0% Blog 8.1% Phone 1.4% Company site 13.8% Network internal email 21.4% Instant Messenger 2.4% Network area for Merchant Email merchant 41.0% 6.2% 11 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 13. 2010 Affiliate Summit AFFSTAT REPORT How much information should an affiliate manager make available to you? Twitter 2.4% Email 35.2% Phone, IM & Email 40.4% IM Phone 6.3% 15.7% How would you prefer to be contacted by affiliate managers on an individual basis? Phone, IM and Social Network Email 0.8% 11.9% Phone 12.6% Email Network Interface 64.4% 0.8% IM 9.5% 12 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 14. 2010 Affiliate Summit AFFSTAT REPORT What is your preferred method of commission payment? ePassporte 0.5% PayPal 17.0% Check 17.0% Wire 3.4% Direct deposit 62.1% What is your preferred payment threshold? Over $100 2.0% $0 15.2% $100 28.9% $25 24.5% $50 29.4% 13 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 15. 2010 Affiliate Summit AFFSTAT REPORT What industry/merchant types do you prefer to promote? Contests/Giveaways 0.10% Travel & Auto 6.75% Apparel Toys & Hobbies Wedding 6.45% Books, Movies & Music 5.44% 0.10% 6.75% Sports & Recreation 5.95% Career/Business Opp Spiritual 0.30% 0.20% Real Estate Dating 0.10% 0.71% Pets Computers & 0.40% Electronics 8.97% Department Outlet & Discount Stores 3.73% 4.33% Education 0.40% Office & Business 7.46% Event Tickets 0.10% Medical Financial 0.10% 0.10% Flowers & Gifts Magazines 4.64% 2.52% Food & Entertaining Jewelry & Accessories 5.85% 4.74% Gaming 0.10% Home & Garden Insurance / Financial 6.15% Services Health & Beauty Green/Eco Gift Certificates 5.54% 8.47% 0.20% 3.33% 14 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 16. 2010 Affiliate Summit AFFSTAT REPORT What is the minimum EPC (earnings per 100 clicks) for you to promote an affiliate program? Less than $5.00 More than 15.0% $30.00 24.2% $25.01 - $30.00 5.0% $5.01 - $10.00 $20.01 - $25.00 30.8% 9.2% $15.00 - $20.00 10.8% $10.01 - $15.00 5.0% What is the highest reversal rate you would accept? 20-25% 16-20% 5.0% 6.9% 0% 9.9% 11-15% 5.9% 6-10% 21.8% 1-5% 50.5% 15 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 17. 2010 Affiliate Summit AFFSTAT REPORT What is the most important factor in choosing a merchant? Search Marketing Competition Product or 0.5% Affiliate Service Quality management or Uniqueness 16.1% 8.0% Allows incentivized Payout amount traffic 30.7% 0.5% Optimized Creatives & Brand Landing Pges EPC awareness 0.5% 18.1% 25.6% What are your preferred link types? Widgets 0.4% Text 24.5% Storefronts Banners 6.4% 25.8% Data feed Product Photos 12.2% 0.4% Pop-ups Dynamic Rich 3.2% Media Landing Pages 7.1% 12.2% HTML for solo e- 16 mail 7.7% Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 18. 2010 Affiliate Summit AFFSTAT REPORT Do you cloak links (CGI, .htaccess, meta redirect, etc.)? Yes 38.4% No 61.6% What is your average gross monthly income with affiliate programs? $100 - $500 4.5% $501 - $1000 Under $100 2.0% 4.5% $1,001 - $5,000 7.4% $5, 001 - $10,000 1.5% $10,001 - $15,000 5.0% I would rather not say 55.4% Over $15,000 4.0% 17 Don't know 15.8% Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 19. 2010 Affiliate Summit AFFSTAT REPORT Are you currently using any URL Shortening Services in your marketing efforts? Yes 40.4% No 59.6% If you answered YES to the question above, which URL Shortening Services are you actively using? twurl.nl tinyurl.com 3.5% 1.8% WP Pretty Link su.pr 0.9% 0.9% ow.ly 38.9% bit.ly 42.5% itshrunk.com 0.9% budurl.com 3.5% 18 is.gd Custom cli.gs 4.4% 1.8% Page 0.9% Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 20. 2010 Affiliate Summit AFFSTAT REPORT Does your affiliate marketing plan currently incorporate marketing on social networking sites? No, 32.5% 67.5% If you answered YES to the above questions, which social networking sites are you currently using in your affiliate marketing efforts? bebo del.icio.us 1.2% 6.3% digg 7.7% Twitter Facebook 26.9% 25.9% Stumbleupon 8.0% Reddit 0.2% Friendster Ning 1.5% 0.2% Myspace Google Buzz 19 9.0% LinkedIn 0.2% hi5 Page 10.2% 2.7% Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 21. 2010 Affiliate Summit AFFSTAT REPORT Are you currently integrating video in your affiliate marketing plan? Yes, 29.4% 70.6% Are you currently using any WordPress plugins or widgets designed for affiliate marketing efforts? Yes, 32.0% No, 68.0% 20 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 22. 2010 Affiliate Summit AFFSTAT REPORT If you answered YES to the above question, which affiliate marketing related plugins and widgets are you currently using? 123Linkit WP-Marketer 1.1% 9.8% WFReview 4.3% Avantlink Widget Simple Link Cloaker Amazon 1.1% 5.4% Reloaded for WordPress 20.7% Bounce.cc ShareASale Make a 4.3% Widget 14.1% Buy.at Content DataFeedr Widget 2.2% Self-developed 1.1% 1.1% DataFeedFile.com Featured Product MaxBlogPress Ninja Plugin Affiliate eBay 5.4% 2.2% 1.1% LinkShare RSS LinkShare Link DealFeed Lookup LinkShare AdMix 10.9% 9.8% 5.4% 21 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 23. 2010 Affiliate Summit AFFSTAT REPORT If you are currently using WordPress to build out affiliate sites, what is your preferred WordPress theme? WPNow 4.8% Woo Themes 9.6% Affiliate Theme 26.5% Thesis for WordPress Custom built 26.5% 8.4% Elegant Themes 2.4% Thematic 2.4% Headway StudioPress Pagelines 3.6% 14.5% iBlogPro 1.2% 22 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 24. 2010 Affiliate Summit AFFSTAT REPORT 2 Section Affiliates: Their Words When given a soapbox, what do affiliates have to say about things? T he statistics tell one version of the story. But to truly get a complete picture of the triumphs and hurdles of affiliates, you’ve got to hear things straight from their mouths. The following is an uncensored view into the opinions of affiliates on a variety of other subjects. Affiliates were asked to share any complaints, ideas, suggestions or opinions they have regarding affiliate marketing. Read what happens when affiliates stop being polite, and start being real. This is the Real World – Affiliate style. 23 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 25. 2010 Affiliate Summit AFFSTAT REPORT Affiliates Speak Out on the Issues Please give us advance notice of new products where possible, it makes all the difference Own up to your company mistakes - even if it costs you money. My biggest complaint is that companies that the average person haven't heard of you always seem to get automatically accepted, and the brand name companies you always seem to get rejected. What's up with that? My web site is called Brand Name Depot, I will only put Brand Name companies on my site. The whole purpose of my site is to offer my visitors convenient one stop shopping with companies that we're all familiar with, and to offer them as many choices in each category so they could do their comparison shopping all within one site. When I keep getting rejection notices, it make the possibility of easy comparison shopping for my visitors, and takes away a little of my site credibility. I can't help but wonder, are these companies afraid of a little competition, competing with companies already on my site, on the same level as them? Something to think about. My filling out the applications, I do to go through the motions to get affiliated with them. Also, what I am really doing, is inviting them to be on my site. Are they always that gracious in accepting invitations? Need more input from affiliate managers. Cookie based programs are designed to benefit Advertiser and Networks not the affiliate or publishers. Many times Networks are walking my money back and forth for weeks but not finished reaches my bank account. - These situations only lead to loss of confidence in affiliate networks and advertisers. Update with new promos regularly, and make me aware of them. Also think critically about the quality of your feed. Lousy feeds are a waste of everyone's time. We as affiliates do not like it when affiliate managers pull shady stuff, like allowing certain publishers to break the rules. If you piss us off enough, all it takes is one phone call to the CEO of the advertiser that you are working for and we can let them know exactly how they can save hundreds of thousands of dollars (in some cases, millions) by dumping your ass. (and reversing the commissions of your buddy who happens to be in the affiliate program breaking all of the rules) Play fair, or face the vindictive wrath of the publishers! Just remember, we got the exact same eyeballs on you, that you got on us. Pay attention to your affiliates and what's happening in our industry. It would be really nice to have easier access to product codes. Update your tools and creatives often to keep up with the changing look/feel of the web. Run more Promotions, where you can earn a bonus if you reach a given goal. I dislike it when an advertiser is overly restrictive of keywords that can be used. For example, there was a company trying to sell wood chips for fuel, but they won't let you bid on wood chips as a keyword? 24 What's up with that? Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 26. 2010 Affiliate Summit AFFSTAT REPORT Link Networking. Link Networking. Link Networking. Nothing else matters except backlinks to your web site and that takes link networking. It should be easier to reach affiliate managers or at least know who is managing programs before signing up. I appreciate quick responses to questions about affiliate programs, same day or quicker. Thanks! Affiliate managers rarely make any effort to respond to my problems, complaints or request for help. Prompt email response time is always a plus, but that's a given. Be clearer about what levels/tiers need to be reach in order for commission level to be increased. This way, less wasted efforts can be placed on programs/campaigns with stricter budget and less flexibility. Need more video across the board; YouTube-like video, clickable. Please don't terminate poor performing advertisers. I had a site which was slowly gaining in traffic, but the affiliate manager terminated the agreement, due to lack of sales. So I signed up with their competition, and as the traffic finally hit, I made money from the new program. I think some manager just didn't like the look of his report, so they trimmed out the underperformers, to make the report (and their efforts ) look better. The underperformers are not hurting anything, you never know when the search engine algorithm will be tweaked to favor certain on or off page factors. Performance Incentives are a must for any serious affiliate program. While top affiliates can always attempt to contact the affiliate manager, having an automatic tiered system for different levels of affiliate is key to continued affiliate satisfaction. Never, under any circumstances, lie to a publisher. If you don't an answer to a question admit that and either move on, or find out. Making stuff up will have me going elsewhere regardless of payout Affiliate managers need to take a more public stance on industry issues; many are all too silent on critical issues including parasites, toolbars, and merchant good standards and practices. I also believe that the affiliate -merchant TOS needs to become more balanced and protect affiliates more. Why aren't more marketers offering PayPal as a choice for payment? Not all of us have programming capability, so programs or networks that provide me the ability to display multiple products in one place with minimal effort are preferable to me - SAS has this and AvantLink also, with options to create product displays in HTML or JAVA - programs that only have banners are just too hard to promote these days. More tools, more communication, more ideas shared help. I believe before a company can reverse a commission they should give a specific reason why not only to prevent it from happening in the future but also as a courtesy to the affiliate so that we know what is going on. 25 I would like to hear from my affiliate managers if they discontinue or change an item. This could be a Page monthly email newsletter. Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 27. 2010 Affiliate Summit AFFSTAT REPORT Cookies should last forever. Commission should be distributed as long as customer retains the service and remain with the advertiser. This industry is the worst example of fairness in compensation! Internet sales have gone up and up while publisher commissions have gone down and down over the years. Something's not adding up, and it is frankly insulting to see that ad networks think so little of their publishers' ad space. Ad technologies virtually take over the viewer experience, and the presenter is left with lost audiences and nothing to show for it. Ad networks need to start compensating fairly, or they will run their network dry. Most affiliate managers do not respond in a timely manner. Most often commissions are not tracked or paid in a timely manner. Need more apps for bloggers I don't have TIME to be replacing offers all the time. I have a content site. Ads are secondary. I need the ads to take care of themselves. I understand the need to have minimum payment thresholds, but if I never make the threshold, then I should still get my money that I earned from below the minimum. Some companies need to make their image links easier to use -- some of the images appear extremely small or extremely large on a website. In addition there are times that you can click on the same image two different times and each time it takes you to a different landing page -- e.g. one time it goes to a landing page for the product. The next time it goes to the home page for the company. These people need to be fired: Affiliate managers who do not respond to emails, who expire publishers without warning or explanation, who will not help a publisher with a problem concerning an advertiser, who treat publishers as second class citizens. Offer up the best method for promoting your product based on what you have seen. video, twitter, Facebook, PPC, mailing lists, etc. Weekly payouts please. Policies are too fuzzy most don't understand the difference between bidding on a trademark (TM) or a TM + specific term, like TM review, TM deals etc. They don't understand that in the second case search engine customers are not looking for their site. Am frustrated with merchants who refuse to place my Google Conversion code on their thank you pages (even though I consistently generate at least $5K/mo revenue for one in particular). Also, paying out only once per month is difficult for programs that I promote solely via PPC. I think that publishers should get paid twice a month. Allowing this will give participants faster time to reinvest their advertisers. 26 I would like to see better and more honest reporting, better uptimes. Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 28. 2010 Affiliate Summit AFFSTAT REPORT Learn my nickname. I hate being called my full name. If I'm going to bring your company $20k/month in sales, you can at least afford to learn my preferred name. That's all I ask. Reach out. More information is better than no information. Don't be afraid to email us often. I wish there was more emphasis on quality over quantity of affiliates. I also wish there was more emphasis on ethics and building long-term trust. It's annoying when program managers spam my Inbox with useless stuff! I tend to ignore those that email me too often. On the other hand, I DO appreciate information that is actually useful to me and sent ONLY when it's actually warranted. Don't know the difference? Send me ONE email and ask me to subscribe if I want more. I'd like to see more banner ads with African American models. I run a Website that's focused on the African American community but I'm having a difficult time getting my audience to click because there a few ads with people that look like them. I have had affiliate managers quietly implement changes to their keyword policy without notifying me and then reverse my commissions when they catch me violating the TOS. This practice is unprofessional and unethical. This has personally cost me over a thousand dollars in ad expenses and several times that in commission in just the past 3 months. 27 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 29. 2010 Affiliate Summit AFFSTAT REPORT 3 Section Affiliate Marketing Resources Some things to make your job easier. T here are some great resources out there that can make your job a whole lot easier. Here is a glossary to explain all of the industry terms, plus lists of suggested message boards, blogs, and Twitter accounts that you should know about. 28 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 30. 2010 Affiliate Summit AFFSTAT REPORT Affiliate Marketing Glossary Affiliate marketing has a language all its own. Below is a collection of some of the frequently used terms I’ve defined over time. Affiliate: a Web site owner that earns a commission for referring clicks, leads, or sales to a merchant. Affiliate Agreement: terms between a merchant and an affiliate that govern the relationship. Affiliate Information Page: a page or pages on your Web site that explains clearly and concisely what your affiliate program is all about. Affiliate Link: a piece of code residing in a graphic image or piece of text placed on an affiliate's Web page that notifies the merchant that an affiliate should be credited for the customer or visitor sent to their Web site. Affiliate Manager: the manager of an Affiliate Program who is responsible for creating a newsletter, establishing incentive programs, forecasting and budgeting, overseeing front-end marketing of the program, and monitoring the industry for news and trends. Affiliate Program (also an Associate, Partner, Referral, or Revenue Sharing Program): a merchant pays a commission to an affiliate for generating clicks, leads, or sales from a graphic or text link located on the affiliate's site. Affiliate Program Directory: directory of affiliate programs, featuring information such as the commission rate, number of affiliates, and affiliate solution provider. Associate-It, AssociatePrograms.com and Refer-it are among the largest Affiliate Program Directories. Affiliate Solution Provider: company that provides the network, software, and services needed to create and track an affiliate program. Auto-Approve: affiliate application approval process where all applicants are automatically approved for an affiliate program. Commission: income an affiliate receives for generating a sale, lead or click-through to a merchant's Web site. Sometimes called a referral fee, a finder's fee or a bounty. Cookies: small files stored on the visitor's computer, which record information that is of interest to the merchant site. With affiliate programs, cookies have two primary functions: to keep track of what a customer purchases, and to track which affiliate was responsible for generating the sale (and is due a commission). Contextual Link: integration of affiliate links with related text. Conversion Rate: percentage of clicks that result in a commissionable activity (sale or lead). CPA (Cost Per Action): cost metric for each time a commissionable action takes place. CPC (Cost Per Click): cost metric for each click of an advertising link. 29 CPM (Cost Per Thousand): cost metric for one thousand banner advertising impressions. CPO (Cost Per Order): cost metric for each time an order is transacted. Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 31. 2010 Affiliate Summit AFFSTAT REPORT eCPC: stands for 'effective Cost Per Click’. Affiliates that earn on a CPA or CPO will back their numbers into an eCPC. It is calculated by dividing total earnings by their number of clicks. For example, if an affiliate earned $1500 from 3000 clicks, the CPC would equal $1500/3000, or $0.50. eCPM: stands for 'effective Cost Per Thousand impressions'. Affiliates that earn on a CPA or CPO will back their numbers into an eCPM. It is calculated by dividing total earnings by their number of impressions in thousands. For example, if an affiliate earned $1500 from 75,000 impressions, the CPM would equal $1500/75, or $20.00. Hybrid Model: affiliate commission model that combines payment options (i.e. CPC & CPA). In-house: alternative to using an affiliate solution provider; building affiliate program architecture within a company. Lifetime Value of a Customer (LVC): the amount of sales in dollars that a customer in his lifetime will spend with a particular company. Manual Approval: affiliate application approval process where all applicants are manually approved for an affiliate program. Merchant: an online business that markets and sells goods or services. Merchants establish affiliate programs as a cost effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a Web site. Pay-Per-Sale: program where an affiliate receives a commission for each sale of a product or service that they refer to a merchant's Web site. Pay-per-sale programs usually offer the highest commissions and the lowest conversion ratio. Pay-Per-Lead: program where an affiliate receives a commission for each sales lead that they generate for a merchant Web site. Examples would include completed surveys, contest or sweepstakes entries, downloaded software demos, or free trials. Pay-per-lead generally offers midrange commissions and midrange to high conversion ratios. Pay-Per-Click: program where an affiliate receives receive a commission for each click (visitor) they refer to a merchant's Web site. Pay-per-click programs generally offer some of the lowest commissions (from $0.01 to $0.25 per click), and a very high conversion ratio since visitors need only click on a link to earn the affiliate a commission. Predatory Advertising: method that creates or overlays links or banners on Web sites, spawns browser windows, or any method invented to overwrite or redirect affiliate links. Residual Earnings: programs that pay affiliates not just for the first sale a shopper from their sites makes, but all additional sales made at the merchant's site over the life of the customer. ROAS: stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending. 30 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 32. 2010 Affiliate Summit AFFSTAT REPORT ROI: stands for 'Return on Investment'. This is what all marketing managers want to see from the money they spend on their marketing and advertising campaigns. The higher the sales, the larger the number of shoppers and the greater the profit margin generated by sales – the better the ROI. Super Affiliates: that small percentage of sites - the top 1% of affiliates, based on performance and earnings - that generate the lion’s share of the revenue for your program. They are born marketers and are very successful with the affiliate program they promote from their sites. Two-tier: affiliate marketing model that allows affiliates to sign up additional affiliates below themselves, so that when the second tier affiliates earn a commission, the affiliate above them also receives a commission. Two-tier affiliate marketing is also known as MLM (Multilevel Marketing). 31 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 33. 2010 Affiliate Summit AFFSTAT REPORT Affiliate Marketing Message Boards What are affiliates saying about your program? Monitor and participate in these message boards regularly to maintain a grip on the affiliate community: 5 Star Affiliate Marketing Forums A Best Web AffiliatePrograms.com Affiliates4U (UK) Amazon.com AssociatePrograms.com Digital Point Earner’s Forum Webmaster World Wicked Fire 32 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 34. 2010 Affiliate Summit AFFSTAT REPORT Blogs for Affiliate Marketers to Read The affiliate marketing blogosphere is expanding constantly. Blogs are a great resource for news and information in affiliate marketing as it happens, as well as to learn more about tactics affiliates are using (and some you shouldn't use). Here are some blogs focused on or related to affiliate marketing to check out. 5 Star Affiliate Marketing Blogs - http://affiliate-blogs.5staraffiliateprograms.com/ Ad Hustler - http://www.adhustler.com/ ADS-links.com - http://www.ads-links.com/ Advertising & Marketing Blog - http://www.jonathantreiber.com/ AffBuzz - http://www.affbuzz.com/ Affiliate Classroom - http://blog.affiliateclassroom.com/ Affiliate Marketing Blog by Shawn Collins - http://blog.affiliatetip.com/ Affiliate Marketing The Smart Way - http://www.thelazymarketer.com/blog/ Affiliate Program Advice - http://www.affiliateprogramadvice.com/ Affiliate Stuff - http://www.affiliatestuff.co.uk/ Affiliate Summit - http://www.affiliatesummit.com/blog/ Affilorama - http://www.affilorama.com/blog Azam Marketing Blog - http://www.azam.info/ Andy Beard - http://www.andybeard.eu/ Beer Monies - http://www.beermonies.com/ Brandon Adcock dot Com - http://www.brandonadcock.com/ Bryn Youngblut - http://bryn.me/ Cash Tactics - http://www.cashtactics.net/ CDF Networks - http://www.cdfnetworks.com/ Chris Bloczynski dot Com - http://www.chrisbloczynski.com/ chrisbrogan.com - http://www.chrisbrogan.com/ CJ UK Blog - http://www.cjblog.co.uk/ copyblogger - http://www.copyblogger.com/ Cost Per News - http://www.costpernews.com/ Dennis Yu - http://www.dennis-yu.com/ FeedFront Magazine - http://www.feedfront.com/ GeekCast.fm - http://www.geekcast.fm/ Geno's Affiliate Marketing Blog - http://www.amnavigator.com/blog/ Google Affiliate Network Blog -http://googleaffiliatenetwork-blog.blogspot.com/ How to Make Money Online - http://www.jonathanvolk.com/ Ian Fernando - http://www.ianfernando.com/ Internet Geek Girl - http://www.internetgeekgirl.com/ Jangro 2.0 - http://www.jangro.com/ Jeremiah Cooper dot Com - http://www.jeremiahcooper.com/ JimKukral.com - http://www.jimkukral.com/blog/ 33 John Chow dot Com - http://www.johnchow.com/ JoelComm.com - http://www.joelcomm.com/ Page JustinDupre.com - http://www.justindupre.com/ Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 35. 2010 Affiliate Summit AFFSTAT REPORT Lee McCoy's Affiliate Marketing Blog - http://www.leemccoy.co.uk/ Legacy Affiliate Blog - http://www.legacyaffiliateblog.com/ LinkShare Blog - http://www.linkshareblog.com/ MadPPC - http://www.madppc.com/ Many Body Theory - http://www.manybodytheory.com/ MediaTrust Blog - http://blog.mediatrust.com/ MissyWard.com - http://www.missyward.com/ Money Making Scoop - http://www.moneymakingscoop.com/blog/ MurrayNewlands.com - http://www.murraynewlands.com/ Nerdy Affiliate - http://www.nerdyaffiliate.com/ NETexponent Blog - http://www.netexponentblog.com/ NickThrolson.com - http://www.nickthrolson.com/ Nickycakes.com - http://www.nickycakes.com/ OffWhiteHat.com - http://www.offwhitehat.com/ OOOFF.com - http://www.oooff.com/php-affiliate-seo-blog/ Performance Marketing Alliance - http://www.performancemarketingalliance.com/ PPC.bz - http://www.ppc.bz/ ProBlogger - http://www.problogger.net/ Prosper202 Blog - http://prosper.tracking202.com/blog/ ReveNews - http://www.revenews.com/ Shankman.com - http://www.shankman.com/ Share Results Blog - http://blog.shareresults.com/ ShareASale Blog - http://blog.shareasale.com/ Shock Marketer - http://www.shockmarketer.com/ ShoeMoney - http://www.shoemoney.com/ Super Affiliate Mindset - http://www.superaffiliatemindset.com/ The Real Tim Jones - http://www.therealtimjones.com/ Thoughts on Affiliate Marketing from Logan Thompson - http://www.lrthompson.com/ TrishaLyn.com - http://www.trishalyn.com/ TylerCruz.com - http://www.tylercruz.com/ UberAffiliate - http://www.uberaffiliate.com/ Webgains UK Blog - http://blog.webgains.com/ Webgains USA Blog - http://usablog.webgains.com/ Winning the Web - http://www.winningtheweb.com/ Who is Andrew Wee - http://www.whoisandrewwee.com/ Wiseaff - http://www.wiseaff.com/ ZacJohnson.com - http://www.zacjohnson.com/ 34 Page Copyright 2010. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
  • 36. Learn from the rock stars of the affili- ate marketing, email marketing, blog- ging, podcasting, video, search engine marketing and social media world, as they break down the how and why of Internet marketing in a clear, easy to understand way. These are the people that do this stuff every day. Find out how they do what they do to achieve success with their online businesses. Their voices, their ideas, their action items, and their lessons learned from mistakes – all for you to grow your business the day you start reading the book.
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