20 Affiliate Program Mistakes to Avoid

Affiliate Summit West 2010 20 Affiliate Program Management Mistakes to Avoid Evgenii “Geno” Prussakov Founder, AM Navigator

Introduction ,[object Object],[object Object]

Outline ,[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object]

Leaks - Definition ,[object Object]

Leaks - Types ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Leaks – Example (type 1) Telephone Number

Leaks – Example (type 1) Live Chat

Leaks – Example (type 2) AdSense (Google ads)

Leaks – Example (type 3) Amazon widgets

Leaks – Example (type 4) Links to “network” stores/sites

Leaks – Example (type 5) Affiliate links & links to other merchants

Errors Committed by Merchants ,[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],Merchant naïvete -- loss of defensive behaviors and adaptations needed to deal with “predators”

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Short Cookie Life ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Cookie Retention Data ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Source: "Web Analytics Analyzed" blog by Paul Strupp at blogs.sun.com

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],As a valued [Merchant Name] affiliate partner, I wanted to let you know that we are currently working to make our program, and our partnerships, as successful as possible. In order to continue to support the success of our current partnership we are unable to continue to offer you a flat 4% commission on all goods. Starting at the end of February, our new offer will be lowered to 1.5% on all goods.

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],As a valued [Merchant Name] affiliate partner, I wanted to let you know that we are currently working to make our program, and our partnerships, as successful as possible . In order to continue to support the success of our current partnership we are unable to continue to offer you a flat 4% commission on all goods. Starting at the end of February, our new offer will be lowered to 1.5% on all goods.

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Errors Committed by Merchants ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Notify affiliates at least one month in advance

Mistakes of Affiliate Managers

Mistakes of Affiliate Managers ,[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],Affiliate marketing is “the art of doing a merchant's marketing better than they can, and profiting from it.” -- Chris Sanderson, AMWSO

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],ASSUME = + U + ME

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],Merchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you.

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],Merchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you. Affiliate: We are not doing any direct linking to [your site]. What makes you think we are?

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],Merchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you. Affiliate: We are not doing any direct linking to [your site]. What makes you think we are? Merchant: Great! We didn’t. We just saw your sales pick up and wanted to ensure you knew our keyword policy.

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],Motivating affiliates by threat =

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],Motivating affiliates by threat = " dead-end strategy" Even in traditional management “threats are generally counterproductive” and “always demotivating” “ We can motivate people to their highest levels of potential by presenting them with opportunities to succeed instead of telling them what to do” -- Alexander Haim Streetwise Motivating & Rewarding Employees

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],As you may know from previous experience, [Merchant Name] works each month to a set budget. While in the past, if they surpass that budget, we have been forced to remove partners. This is never ideal and we want to prevent this from happening as much as possible. As of right now, we are on track to surpass our February budget. To prevent this, we are asking you to take a 1% commission cut through the rest of the month. We ask that you opt into the lower-commission offer immediately, or we will have to remove you from the program . This is only a short-term adjustment, so we thank you, in advance, for your cooperation and understanding.

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],Contingency Approach There is “no one universal solution… but the correct solution will depend on the unique needs of the situation” -- Montana, P.J., Charnov, B.H. Management

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],Contingency Approach Main situational variables: 1) affiliate maturity 2) task at hand

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],… things that make people satisfied and motivated … are different in kind from the things that make them dissatisfied. …even if managed brilliantly [environmental factors] don’t motivate anybody to work much harder or smarter. People are motivated, instead, by interesting work, challenge and increasing responsibility. These intrinsic factors answer people’s deep-seated need for growth and achievement. [bold font mine] -- Frederick Herzberg

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],“Compensation and incentive packages” are not motivating enough for people. A manager “can charge a person’s battery, and then recharge it, and recharge it again,” but “it is only when one has a generator of one’s own that we can talk about motivation.” [bold font mine] -- Frederick Herzberg One More Time. How Do You Motivate Employees Harvard Business Review, Jan. 2003

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Communicate regularly and on different levels

Channels of Communication ,[object Object],[object Object],[object Object],Source: AffStat 2009

Frequency of Communication ,[object Object],[object Object],[object Object],Source: AffStat 2009

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Listening is not enough. Hear them and respond.

3 R s to Remember ,[object Object],[object Object],[object Object]

Mistakes of Affiliate Managers ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]

Checklist  Top 20 Mistakes to Avoid: Pick it up at www.amnavigator.com/ASW10.htm

Soviet Pasta (illustration) Soviet Pasta Diameter - 7.62 mm

Soviet Pasta (illustration) Soviet Pasta Diameter - 7.62 mm AKM (AK-47) assault rifle Caliber - 7.62 mm

Thank You! [email_address] amnavigator.com /blog twitter.com/eprussakov

20 Affiliate Program Mistakes to Avoid

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20 Affiliate Program Mistakes to Avoid