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Does (Affiliate Program) Size Matter
Cristian Miculi – Sr. Manager, Affiliate Services
2
Things we’ll have clarified…
The number of
network & standalone
programs you should
be running
What you should look
at before running
multiple programs
How much of a
difference in revenue
you should expect
Special thanks:
Rick Gardiner, iAffiliate Management
Brook Schaaf, Schaaf-PartnerCentric
Geno Prussakov, AM Navigator
Denis Tkachev, Bitex Group
3
Running Program on Multiple Platforms
Benefits Challenges
Cost
Consistency across
networks
Tracking &
deduplication
Program
management
Flexibility for
publishers
Technology & tools
Increased reach
Increased revenue
4
Adding New Networks: When to Do it
1. Need to accelerate growth on the
overall program – market exposure,
revenue.
2. New products / services launched are
not a good fit for current program –
need for niched affiliates.
3. Need to go international – working with
local affiliate networks.
Top 3 Most Often Reasons when Companies Consider This
5
Adding New Networks: What to Look at
1. Experience with similar merchants –
notable results, number of similar
merchants.
2. Affiliate program management features
– technology, support
3. Affiliate network demographics -
number of active affiliates, affiliate
types, where they sell, etc.
Top 3 Indicators to Check before Engaging
Source: AffStat 2014 report
6
Bottom Line: Active Affiliates
Sooner or later every affiliate manager
has to face it – most affiliates on
board the affiliate program are
inactive. Some have christened it a 5-
80 Rule: 5% of your affiliates do 80%
of the work. […] The number of active
affiliates on board the affiliate
programs I manage fluctuates from
3.5% to 14%.
Geno Prussakov, “A Practical Guide to
Affiliate Marketing”
7
Juiciest Part Up Next
8
Perfect Mix for Multiple Platforms
NO UNIVERSALLY VALID RECIPE – depends on merchant goals
Affiliate Program %
Contribution from Total
Revenue
Recommended Number of
Affiliate Programs
Incremental Revenue Uplift
0% - 4%
(Re)launching affiliate program
1 niche + 1 general Min. 100% by adding the
general network
4% - 8%
Growing affiliate program
1 niche + 1 general Min. 50% by adding the
general network
8% - 15%
Established affiliate program
1 niche + 1 general + 1
regional
Depends on regional market
reach
15%+
Very niched affiliate program
1 niche + 1 general + 1
general + regional / local
Min. 25% by adding the
general network; regional /
local depends on market reach
No niche networks for you?
Look for your competitors’
programs!
9
Actions
Worked with Avangate partner iAffiliate Management
on growing affiliate program.
Extended the Avangate Affiliate Program by adding a
program in CJ
Abbyy USA – 197% Growth of Affiliate Sales
Via Managed Services in niche network + general network
Put your screenshot here
Results
Increased affiliate sales by 197% YoY
Affiliate contribution to total sales rose from 6% to 11%
Source: Avangate
10
Actions
Partnership with local affiliate network adTriplex
Local affiliate network to manage program
Kaspersky Turkey – 400% uplift in sales
From local affiliate network
Put your screenshot here
Results
Affiliate sales going through adTriplex grew the overall
program performance with more than 400%
Source: Avangate
11
Actions
Telestream chose to consolidate all affiliates in the
Avangate Affiliate Network – niche network for
software & services
Telestream – Successfully Consolidated Program
Chose a Single Affiliate Network to Run Program
Put your screenshot here
Results
Affiliate Sales were down 20% in the first 3 months,
but after that they got back at the same level.
66% YoY increase in affiliate revenue after
consolidation
Source: Avangate
One size does not fit all!
Works for very niched
products/services and
well established brands
12
Evaluate your needs and resources
Go with a niche network and at least one general network
For regional development – go with local networks
Monitor your competitors and where they run their programs
Key Takeaways
Scale efficiently
Avangate B.V.
Amsterdam, The Netherlands
Tel: +31 20 890 8080
Avangate Inc.
Redwood Shores CA., USA
Tel: (650) 249 - 5280
info@avangate.com info@avangate.com
Thank you
Cristian Miculi
+1 650 249-5280 ext. 4645
cm@avangate.com
linkedin.com/in/cristimiculipop

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Does (Affiliate Program) Size Matter?

  • 1. Does (Affiliate Program) Size Matter Cristian Miculi – Sr. Manager, Affiliate Services
  • 2. 2 Things we’ll have clarified… The number of network & standalone programs you should be running What you should look at before running multiple programs How much of a difference in revenue you should expect Special thanks: Rick Gardiner, iAffiliate Management Brook Schaaf, Schaaf-PartnerCentric Geno Prussakov, AM Navigator Denis Tkachev, Bitex Group
  • 3. 3 Running Program on Multiple Platforms Benefits Challenges Cost Consistency across networks Tracking & deduplication Program management Flexibility for publishers Technology & tools Increased reach Increased revenue
  • 4. 4 Adding New Networks: When to Do it 1. Need to accelerate growth on the overall program – market exposure, revenue. 2. New products / services launched are not a good fit for current program – need for niched affiliates. 3. Need to go international – working with local affiliate networks. Top 3 Most Often Reasons when Companies Consider This
  • 5. 5 Adding New Networks: What to Look at 1. Experience with similar merchants – notable results, number of similar merchants. 2. Affiliate program management features – technology, support 3. Affiliate network demographics - number of active affiliates, affiliate types, where they sell, etc. Top 3 Indicators to Check before Engaging Source: AffStat 2014 report
  • 6. 6 Bottom Line: Active Affiliates Sooner or later every affiliate manager has to face it – most affiliates on board the affiliate program are inactive. Some have christened it a 5- 80 Rule: 5% of your affiliates do 80% of the work. […] The number of active affiliates on board the affiliate programs I manage fluctuates from 3.5% to 14%. Geno Prussakov, “A Practical Guide to Affiliate Marketing”
  • 8. 8 Perfect Mix for Multiple Platforms NO UNIVERSALLY VALID RECIPE – depends on merchant goals Affiliate Program % Contribution from Total Revenue Recommended Number of Affiliate Programs Incremental Revenue Uplift 0% - 4% (Re)launching affiliate program 1 niche + 1 general Min. 100% by adding the general network 4% - 8% Growing affiliate program 1 niche + 1 general Min. 50% by adding the general network 8% - 15% Established affiliate program 1 niche + 1 general + 1 regional Depends on regional market reach 15%+ Very niched affiliate program 1 niche + 1 general + 1 general + regional / local Min. 25% by adding the general network; regional / local depends on market reach No niche networks for you? Look for your competitors’ programs!
  • 9. 9 Actions Worked with Avangate partner iAffiliate Management on growing affiliate program. Extended the Avangate Affiliate Program by adding a program in CJ Abbyy USA – 197% Growth of Affiliate Sales Via Managed Services in niche network + general network Put your screenshot here Results Increased affiliate sales by 197% YoY Affiliate contribution to total sales rose from 6% to 11% Source: Avangate
  • 10. 10 Actions Partnership with local affiliate network adTriplex Local affiliate network to manage program Kaspersky Turkey – 400% uplift in sales From local affiliate network Put your screenshot here Results Affiliate sales going through adTriplex grew the overall program performance with more than 400% Source: Avangate
  • 11. 11 Actions Telestream chose to consolidate all affiliates in the Avangate Affiliate Network – niche network for software & services Telestream – Successfully Consolidated Program Chose a Single Affiliate Network to Run Program Put your screenshot here Results Affiliate Sales were down 20% in the first 3 months, but after that they got back at the same level. 66% YoY increase in affiliate revenue after consolidation Source: Avangate One size does not fit all! Works for very niched products/services and well established brands
  • 12. 12 Evaluate your needs and resources Go with a niche network and at least one general network For regional development – go with local networks Monitor your competitors and where they run their programs Key Takeaways Scale efficiently
  • 13. Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080 Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280 info@avangate.com info@avangate.com Thank you Cristian Miculi +1 650 249-5280 ext. 4645 cm@avangate.com linkedin.com/in/cristimiculipop