This presentation is from Affiliate Summit West 2017 (January 15-17, 2017 in Las Vegas, Nevada). Session description: For bottom line clarity, learn the hidden internal metrics of the 4C’s – Clickthrough, Conversion, Cancellation and Commission – that can produce flawless results.

1. The Metrics Diamond
THE 4C’S OF AFFILIATE REVENUE
Click through Conversions Cancelations Commissions

2. Introductions
52 Years of Combined Experience!
Click through Conversions Cancelations Commissions
John LoBrutto
Director of Affiliate Solutions &
Partnerships, Liquid Web, LLC
16 years experience in affiliate &
online marketing
Mike Allen
Affiliate Solutions Provider,
Businesswright Consulting LLC
18 years experience in affiliate marketing
& management
Jeannine Crooks
Client Services Manager,
Affiliate Window
18 years experience in affiliate
marketing

3. Overview
High Volume Affiliate campaigns are strategic partnerships between
Advertisers and Publishers, managed within an Affiliate Network. Publishers
need to maximize the cost of traffic and Advertisers need to manage the cost
of sales – both needing to develop a favorable ROI.
A question of cost vs. revenue
Maximize the program revenue
Partner with profitable campaigns
It’s not just the commission rate
Understanding the metrics
Click through Conversions Cancelations Commissions
Why is this topic important?

4. 4C’s of Affiliate Marketing
Exercise A: High Volume (Optimized)
Click through Conversions Cancelations Commissions
Impressions 25,000 Results
CTR - Click Through Rate 4% 1000
CR - Conversion Rate 3% 30
CX - Cancelation Rate 10% -3
CPA - Cost Per Action $200 27 x 200
Publisher Revenue $5,400
Impressions 25,000 Results
CTR - Click Through Rate 4% 1000
CR - Conversion Rate 1% 10
CX - Cancelation Rate 20% -2
CPA - Cost Per Action $200 8 x 200
Publisher Revenue $1,600
Exercise B: Low Volume
Performance dramatically effects Publisher’s Revenue

5. 4C’s of Affiliate Marketing
Exercise A: High Volume (Optimized)
Click through Conversions Cancelations Commissions
Impressions 25,000 Results
CTR - Click Through Rate 4% 1000
CR - Conversion Rate 3% 30
CX - Cancelation Rate 10% -3
CPA - Cost Per Action $200 27 x 200
Publisher Revenue $5,400
Impressions 25,000 Results
CTR - Click Through Rate 4% 1000
CR - Conversion Rate 1% 10
CX - Cancelation Rate 20% -2
CPA - Cost Per Action $675 8 x 675
Publisher Revenue $5,400
Exercise C: Low Volume (High Commission)
Performance dramatically effects Advertiser’s Commission (Payout)

6. Click through
Publisher: Volume traffic is expensive and prime ad locations need Advertisers
who can perform. Testing multiple ads and Advertisers is essential to
maximize site revenue.
Are Impressions clicking through?
Positioning of Product/Services/Special offers
Site organization above/below the fold
Cost of Traffic
Paid Traffic vs. SEO
New or Existing Window
Click through Conversions Cancelations Commissions
Is testing ads important?

7. Click through
Advertiser: High Volume campaigns begin with traffic volume and quality.
First step is to get customers to the offer, the next step is to have a great offer!
Are Impressions matching traffic volume?
Is the Traffic Qualified
Appeal of offer
Exclusive offers
Coupons
Do the links work?
Click through Conversions Cancelations Commissions
Is my ad getting any attention?

8. Click through
Network: Tracking and reporting each phase of the click path is the network’s
primary role. Sharing the information with both the merchant and affiliate
ensures both can optimize the shopper’s path for maximum results.
Are Impressions tracked?
Tracking & Reporting value
First or last click
Use of sub id
Product level tracking
Can Google Analytics help?
Click through Conversions Cancelations Commissions
Do I need a Network for Tracking?

9. Conversions
Publisher: Traffic is expensive and if it doesn’t convert, there is no ROI.
Publishers must compare advertisers and know what works best for their site.
Is the Product or Service accurately described?
What is the Advertiser Value Proposition?
Is the Landing Page Co-Branded?
Can I get an Exclusive offer?
EPC (Earning Per Click)
Testing…Testing…Testing!
Click through Conversions Cancelations Commissions
How can I help maximize conversions?

10. Conversions
Advertiser: Effectively monitoring the conversion metrics is an important focus
in optimizing campaigns. Advertisers hold the responsibility of providing a
product or service that sells to the Publisher’s audience.
Is the offer compelling and converting
Is pricing competitive?
Advertiser Landing Page Optimization
Does Deep Linking help?
How many clicks to purchase/ Cart Optimization
Are Add On Items commissionable?
Click through Conversions Cancelations Commissions
Why are conversions so important?

11. Conversions
Network: Capturing the conversion data is critical for everyone. While the
information involved is basically the same, each network processes the data
differently, making the choice of the network/merchant pairing vital.
What constitutes a conversion?
Can I manually update an untracked sale and does it report?
Reporting, Attribution and Recording assists
Pixels, Cross Device and other tracking methods
How does ad blocking affect the tracking?
Click through Conversions Cancelations Commissions
Am I getting paid for all the sales I generate?

12. Cancelations
Publisher: Cancelations are the least controllable metric for Publishers. It is
important to understand their impact to the campaign and net commission.
Is the offer “too good to be true”?
Is the Product/Offer positioning accurate?
How do cancelations affect my Revenue?
Net vs. Gross Commission payments
What are the Lock periods?
Is there coupon tracking & attribution?
What is the Return Policy or Free Trial timeframe?
Click through Conversions Cancelations Commissions
Does the sales volume offset cancelations?

13. Cancelations
Advertiser: Even if everything goes as planned through the sales funnel, a
customer cancelation or return negates everything!
Is the traffic generating a large volume of Fraud?
Is the Traffic Quality a good fit for my product or service?
Can the Product Positioning be improved?
Are customers canceling after a Free Trial period?
Is my Support & Response time effective?
Is there an issue with Product Quality?
Click through Conversions Cancelations Commissions
Are my cancelations controllable?

14. Cancelations
Network: Controlling cancelations is vital. Both affiliates and merchants should
study available data to identify and remove cancelation triggers.
Tracking, trends and granularity of reporting
Detailing cancel codes and understanding the reasons
Manual updates and partial commissions
Lock Periods
Industry standards and recommendations
Click through Conversions Cancelations Commissions
Cancelations affect Networks too!

15. Commissions
Publisher: It’s not just about commission, it’s about what gets commissioned.
Negotiate based on revenue expectations and work with the Advertiser
dynamically as a partner.
What is the EPC?
Net vs. Gross commission and Lock Period
Evaluate Investment recovery and Maximize Revenue
Work with Multiple partners
Are there commission deductions for coupons?
Is the advertiser slow to pay?
Click through Conversions Cancelations Commissions
Are my Revenue expectations being met?

16. Commissions
Advertiser: The question is… Can I maximize performance to minimize the
commission amount per sale? Optimize…Optimize…Optimize!
Different Commission Terms for different Publishers
Do I have a Fraud protection policy?
What is the overall Rev Share strategy?
Evaluating Commissions vs. Marketing spend
Am I constrained by a Budget?
Percent vs. Flat Rate vs. Volume tiers
Attribution of New vs. Existing customers
Click through Conversions Cancelations Commissions
How do I manage costs while increasing sales?

17. Commissions
Network: A network’s job is to ensure that merchants pay the right commission
to affiliates. Comprehensive tracking and reporting is mandatory to confirm this
for all parties.
How can the Networks set up Commissions?
Problem Resolution / Untracked or Disputed Sales
Advertiser accountability / Funding Status
Ability to expire Publisher as fraud prevention
Reporting of all metrics
Payment timeframe & methods
Click through Conversions Cancelations Commissions
Does the network meet my needs?

18. Let’s Review: 4C’s of Affiliate Marketing
Click through Conversions Cancelations Commissions
Optimizing a High Volume Campaign by working through the Sales Funnel
Impressions 25,000 Results
CTR - Click Through Rate 4% 1000
CR - Conversion Rate 3% 30
CX - Cancelation Rate 10% -3
CPA - Cost Per Action $200 27 x 200
Publisher Revenue $5,400
 Advertiser Branding / Publisher Traffic Volume
 Appeal of Offer & Landing Page Optimization
 Stickiness of the Sale / Support of Product
 Negotiate the bottom line

19. Maximize Revenue Opportunities
Click through Conversions Cancelations Commissions
Open Discussion
Consistent Testing and Optimization of the diamond metrics will yield the best
possible results for your campaigns. Publishers, Advertisers and Networks must
work closely together to find out what works and what doesn’t.
Each campaign is unique and sometimes you need to walk away and try again with
another partner or partners. Once a working model is developed, it can then be
duplicated.
Just like cutting a Diamond, the results take time to shape, form and polish… until
the perfect gem is created!

20. Q&A Time
Thank you!
Click through Conversions Cancelations Commissions
John LoBrutto
jlobrutto@liquidweb.com
Mike Allen
mike@businesswright.com
Jeannine Crooks
jeannine.crooks@affiliatewindow.com