This document provides an overview of affiliate marketing. It defines affiliate marketing as rewarding affiliates for visitors or customers brought to a business through the affiliate's marketing efforts. The document outlines the key roles in affiliate marketing including merchants, networks, publishers, and customers. It discusses best practices for setting up a successful affiliate program such as evaluating fit, strategic planning, piloting a program, and ongoing growth. The document also addresses common myths and challenges as well as provides a real-life case study example of Jenny Craig's successful affiliate program.

1. Adam Boettiger Money for nothing Clicks for FREE (With deepest apologies to Mark Knopfler and Dire Straits)

3. Myths & Misperceptions

4. Building Blocks

5. Roadblocks & Landmines

6. Real-Life Examples

8. What is affiliate marketing? “Affiliate Marketing is an Internet-based marketing practice in which a business rewards one or more affiliates for each visitor or customer brought about by the affiliate's marketing efforts.” “Affiliate marketing is the equivalent of having an online sales force working 24/7 to sell your product or service and being compensated only if and when actions occur.”

9. What is affiliate marketing? “Affiliate Marketing is paying for advertising based solely on the end result generated.”

10. What is affiliate marketing? 1800Flowers.com ForgetfulHusbands.com

12. Pay-Per-Lead

13. Pay-Per-Click

14. Pay-Per-Action

15. Bounty – Affiliate Payment

17. Cdnow circa 1994

18. Amazon.com circa 1999

20. Retail

21. Personal Finance

22. Gaming and gambling

23. Travel

24. Telecom & Mobile Phone

25. Education

27. Incredible Reach

28. Establish a larger footprint in search engines

29. Quantified ROI

31. Yes, most brands online can benefit from one

33. Network

34. Publisher or Affiliate

36. Creative / Development

37. Technology

39. Affiliate Networks

41. Empower affiliates to succeed

42. Provide the tools they need to do so

43. Affiliate

44. Create volume (leads, sales or actions)

45. Make money

46. Affiliate Network

47. Create volume by aggregating reach

50. Total Revenue

51. Affiliate Network

53. Affiliate - % sale or bounty per action

54. Affiliate Network - % aggregate sales/actions

55. Agency

56. Retainer (T&M)

57. Hybrid (T&M + % bounty)

58. Performance (% bounty only)

60. Comparison shopping websites and directories

61. Loyalty websites

62. CRM sites that offer charitable donations

63. Coupon and rebate websites that focus on sales promotions

64. Content and niche market websites, including product review sites

65. Personal websites

66. Weblogs and website syndication feeds

67. E-mail list affiliates

68. Registration path or co-registration affiliates

69. Shopping directories

70. Cost per action networks

73. “We can turn an affiliate program on and off.”

74. “Publishers will compete for our ad budget.”

75. “If we build a program, they will come.”

76. “We’re Brand X. Everyone wants to do business with us.”

77. “Affiliate marketing is a waste of advertising dollars.”

79. How does your offer compare to others?

80. Do you have killer creative?

81. Are you using a known tracking system?

82. How does your offer back out?

83. Is your program capped or uncapped?

84. Is there a real opportunity for your partners?

86. Strategic Planning

87. Pilot Program

89. If no, can you secure them?

90. Do you have the authority to effect change if needed?

91. Is your company willing to change if needed?

93. Identify key internal/external resources & decision-makers

94. Secure a budget and program manager

95. Deploy & test a tracking/reporting system

96. Outline how billing and AP will be handled

97. Involve core affiliate partners in your strategy

98. Establish KPIs & define success

99. Develop ad creative and landing pages

100. Consider A/B & split testing options

102. Gross revenue generated (CLV x actions)

103. ROAS

104. Cost Per Action

105. Cost Per Visitor

106. Value of branding/awareness as a side benefit

108. To prove efficacy

109. To identify speed bumps and road blocks

110. To measure & benchmark KPIs

111. Allow a minimum of 120 days

112. Test a variety of ad creative and landing pages

113. Engage with a handful of affiliates / networks

114. Build a solid foundation that can be scaled

115. Report successes visually to executive team

117. Involve affiliate partners in growth planning

118. Partially automate the recruitment process

119. Consider additional creative development

120. Review how your offer and bounty compares to competitors

121. Solicit input from affiliate partners

122. Roll up your sleeves and grow your garden

124. Ongoing management & optimization

125. Commission 20-30% of sale

126. Signal-to-Noise Ratio of Affiliates

127. Client (individual) or Brand not a good fit

128. Program not a priority to brand

129. Minimal allocation of resources

131. No brand loyalty

132. Requires careful nurturing

133. Can’t be switched on and off

134. Control works against you

135. 80/20 rule applies

137. Jenny craig

138. Jenny craig

140. Lowest Cost Per Click, Cost Per Lead and Cost Per New Customer of all media channels, online and offline

141. Growth Phase began July 2009

142. High six figure revenue generated in 2009

143. 425% ROAS

144. Growth continues

146. Resources www.affiliatesummit.com

147. QUESTIONS? Adam Boettiger Digital Strategist The New Group Adam.Boettiger@thenewgroup.com 503.989.2668 @AdamBoettiger