Affiliate Marketing Management
PES.agency is a specialist performance marketing agency and it means that affiliate channel for many of our e-commerce, gambling and crypto clients remains to be a very big chunk of the traffic and profits. We hereby outline our approach to affiliate strategy and how we help clients to launch their affiliate programme from scratch.
Affiliate Marketing Requirements & Goals
Wider competitor landscape, who are your existing affiliates and current state of affairs with the promotions/deals and needs of those affiliates; we determine the capacity of the affiliate channel, understand the feasibility – whether our total costs are not higher than the expected revenue from the affiliate channel. Competition: i.e. direct competitor offers 40% revenue share (cost per sale).
Please note, that we have existing affiliate relationships and databases of active affiliates, so it is easier for our team to approach affiliate recruitment.
1. Quite obviously: successful setup, launch and operation of Affiliate Programme
2. Profitability: ensure minimal risk, increased stability and business sustainability from affiliate channel as opposed to more volatile SEM and Media channels.
3. Ensuring increased brand awareness and consistency.
Develop Affiliate Strategy
1. Define business model: revenue share seems to be initially the best option, though research should show whether pay per qualified lead or purchase could be viable and even more attractive to increase profitability. Key consideration that needs to be simulated according to various commission plans and scenarios, backed by the research.
2. Define key selling points for the programme (using product’s key selling points).
3. Decision about the platform – own, outsourced, whether to offer exclusivity via affiliate networks.
4. Help with the decision about affiliate management – own or outsourced.
5. Help to develop marketing communication / promotion strategy for affiliates – set of tools available and technical / creative implementation.
6. Define KPIs for the launch and implementation: new customers, revenue per customer, total revenues.
Develop plan and timelines
Plan would vary depending on the strategic choices that are stated above.
Plan would also include specific initiatives on:
– affiliates recruitment;
– affiliate activation and optimisation;
– marketing communication campaigns management, including tools and creatives;
– introducing acquisition promotions;
– analysis of commission plans and its development.
Control and Measurement
Weekly/monthly measurement according to set KPIs. Maintaining strong control over Terms and Conditions to prevent from fraud, illegal promotion methods and other legal issues. Re-evaluation of performance and modifications to the plan.
Now let’s devise an example of such Affiliate Marketing plan!
1. Current Situation – Research:
– existing affiliates;
– trends on the market;
– fill in the Boston matrix to determine where to go;
– set up the current grounds for Affiliate Programme, including key selling points.
All this should give an idea what are the opportunities for your affiliate marketing channel.
2. Defining – Goals:
We need to define the SMART Goals that reflect the business needs:
– sales – User Acquisition?
– revenues – Revenues from User Quality or LTV?
– traffic – Increased Brand Awareness.
Make it measurable!
3. Marketing Strategy
We use the opportunities defined in step 1 to develop strategies to achieve the goals defined in step 2:
– bold strategic points to be developed;
– describe the targeting;
– describe the positioning and branding.
We bear in mind that we can use in-house technologies and affiliate networks for Acquisition and Retention parts of the Strategy.
4. Marketing Mix
There are many issues to consider whilst designing a proper Marketing Plan using a standard mix and they are as follows:
– Promotional package
– Affiliate staff (experienced and customer-centric managers)
– Fraud management
– Terms and Conditions / Restrictions
– Cold leads
– Organic traffic, SEO
– Social Media
– Affiliate forum
– Affiliate blog
– Affiliate Programme sales presentation
– Tools (Syntryx, HitPath)
– Internal communication with Affiliates (e-mailings)
– Promotions to motivate Affiliates
– Affiliate compensation: decide on the plan – CPA, Revenue Share, Hybrid, etc
– Optimize lead funnel (landing pages)
5. Resources and Budget – a good idea to start with a 1 year operational plan?!
ROI – isn’t it what we are all striving for?
Sounds like a good plan to you? Feel free to ask any questions on the above. Wishing you all the success with your affiliate marketing