Swimming with Sharks: Should a Publisher be an Advertiser?
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This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: Publishers get paid for traffic, while advertisers make money while they sleep. Learn more about running your own offers.
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Swimming with Sharks: Should a Publisher be an Advertiser?
- 1. www.chargebackgurus.com SURESH DAKSHINA President, Chargeback Gurus 1-866-999-3758 Chargeback Gurus | Booth #720
- 2. © Chargeback Gurus. All rights reserved. SURESH DAKSHINA President, Chargeback Gurus AFFILIATE SUMMIT WEST 2017 | LAS VEGAS, NV Swimming with Sharks Profiting from Running Your Own Offers as an Advertiser
- 3. © Chargeback Gurus. All rights reserved. Advertiser vs. Publisher Pros & Cons Swimming with Sharks Return on Investment Comparison Swimming with Dolphins Avoiding Sharks What to Look for As An Advertiser
- 4. www.chargebackgurus.com Benefits of Being a Publisher Pros • Low risk entry • Be your own boss • Manage single department - Marketing • Switch between different products depending on sales trends • Make money faster • Get treated well by advertisers and affiliate networks
- 5. www.chargebackgurus.com Disadvantages of Being a Publisher Cons • Your business sleeps when you sleep • One man show • Limited income potential • Variable revenue stream • Keeping up with other publishers & trends • Play by the rules put in place by publisher networks & advertisers
- 6. www.chargebackgurus.com Advantages of Publisher Turned Advertiser Pros • Larger income potential • Conduct your own traffic and control fraud sales • Hire other publishers to run your offers • Make money while you sleep / others work for you • Status upgrade • Sense of accomplishment
- 7. www.chargebackgurus.com Disadvantages of Publisher Turned Advertiser Cons • A true entrepreneur • Limited knowledge • Long hours & sleepless nights • Getting the right resources • Analyze across various departments • Chargeback & fraud risks • Merchant account risks & cash flow shortage • Manage order spikes
- 8. www.chargebackgurus.com Departments That Control Your Profitability Sales/Marketing Chargeback Recovery & Prevention Payments Manufacturing Customer Service Fulfilment CRM & IT
- 9. www.chargebackgurus.com Anticipated Risks of Being An Advertiser Sales & Marketing • Planning & Forecasting Sales • Managing Traffic & Publishers • FTC Compliance Payments & Merchant Accounts • Processing Volume to Meet Your Sales Goals • Hidden Fees & Reserves • Tracking Payments & Reserves Customer Service • Fluent & Courteous • Call Answering Time • Per-Minute Rate & Roundoff Billing
- 10. www.chargebackgurus.com Anticipated Risks Continued… Fulfillment • Shipping Time Frame & Inventory Control • Tracking Returns & Invalid Orders • Fulfillment Cost Chargeback Recovery & Prevention • Chargeback Revenue Recovered • Automated Systems • Prevention Alerts Performance Manufacturing • Product Quality & Manufacturing Standards • Manufacturing Time & Delivery • Product & Packaging Costs Fulfillment • Shipping Timeframe & Inventory Control • Tracking Returns & Invalid Orders • Fulfillment Costs
- 11. www.chargebackgurus.com Revenue Comparison Income Annual Sales Revenue Expense Marketing Costs Manufacturing Costs Fulfillment Costs Processing Fees Customer Service Chargeback Representment IT, CRM & Misc. Operations Management ANNUAL NET ROI Publisher $2,400,000 $1,900,000 NA NA NA NA NA $ 100,000 NA $ 400,000 Advertiser $7,770,000 $2,880,000 $ 216,000 $ 360,000 $1,555,400 $ 250,000 $ 30,000 $ 60,000 $ 100,000 $2,318,600
- 12. www.chargebackgurus.com Tips to Get Started 1. Network with other top advertisers to learn the business 2. Have an investment fund of at least $100,000 to get started 3. Ask for referrals from other advertisers when choosing vendors 4. Chose the right agent when applying for merchant accounts 5. Negotiate rates with all your vendors 6. Partner with an agency who can help you from start to finish 7. Hire the right people to manage your 7 departments 8. Get to know the analytics needed to determine your ROI 9. Be vigilant about your campaign performance 10. Ensure your vendors perform at the optimum level
- 13. www.chargebackgurus.com SURESH DAKSHINA 214-785-9140 suresh@chargebackgurus.com www.chargebackgurus.com Gift #1 - FREE 15-Minute Assessment @ #720 Gift #2 –$100 dollars fraud-free VISA card