2009 affiliate summit affstat report
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Over four-hundred and fifty affiliates were surveyed on their methods, preferences, and strategies for the 2009 Affiliate Summit AffStat Report.The report features dozens of charts of data, based on the responses from the participating affiliates.Also included, an uncensored view into the opinions of affiliates on a variety of other subjects.Affiliates were asked to share any complaints, ideas, suggestions or opinions they have regarding affiliate marketing.Plus, some great resources for affiliate marketers: a glossary to explain industry terms, as well as lists of suggested message boards, blogs, and Twitter accounts that you should know about.TRANSCRIPT
2009 AFFILIATE SUMMIT AFFSTAT REPORT
Affiliate Marketing Benchmarks
Affiliate Summit [email protected]
http://www.affiliatesummit.com http://www.affstat.com
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Table of Contents
S E C T I O N 1 : T H E S U R V E Y Affiliate Marketing by the Numbers 2
S E C T I O N 2 : T H E I R W O R D S Affiliates Speak Out 17
S E C T I O N 3 : R E S O U R C E S Glossary 21 Message Boards 24 Blogs 25 Twitter 30
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Copyright 2009. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
Affiliate Program Merchant Facts & Figures State of the Industry in Affiliate Marketing
ver four-hundred and fifty affiliates were surveyed on their methods, preferences, and strategies for the 2009 Affiliate Summit AffStat Report.
This section features the results of the survey.
Most affiliates work solo, and scant data exists to tell the story of the affiliate marketer .
As an industry, we are rich in speculation, but poor when it comes to aggregating the facts and figures that drive this business.
Take a look at the following results. You are bound to find some surprises and think twice about the way you operate as an affiliate, merchant, network, or vendor.
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Affiliate Marketing by the Numbers
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Affiliates: Their Words When given a soapbox, what do affiliates have to say about things?
he statistics tell one version of the story. But to truly get a complete picture of the triumphs and hurdles of affiliates, you’ve got to hear things straight from their mouths.
The following is an uncensored view into the opinions of affiliates on a variety of other subjects.
Affiliates were asked to share any complaints, ideas, suggestions or opinions they have regarding affiliate marketing.
Read what happens when affiliates stop being polite, and start being real. This is the Real World – Affiliate style.
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Affiliates Speak Out on the Issues Please add Carousel Widgets.
1. Don't lie...the truth is too easily found out. 2. If you're new, get training from other experienced AMs 3. Don't cut me off because I only promote one or two products right now. Down the line, I may do a site where I can promote more. 4. Don't ask me to promote products that my site readers would have no interest in.
I hate it when I reply to an unsolicited manager email because it has relevance to me and then the manager does not reply. I have quit programs over this. If you aren't going to respond to me why bother sending me mail? Also, stop treating Canadian affiliates (and non-USA publishers for that matter) like second class citizens. Some of us perform much better than "homeland" based publishers while honestly working within your service agreements. This is a global industry - keep this in mind and you will find some amazing markets out there.
Notification of a "Big Weekend Sale" on Friday night isn't going anywhere. Get us the information in time to fit it into a busy schedule. Respond to emails, don't set your email filters so tight that you can't receive plain text with a link question.
NO toolbars in affiliate marketing.
I've been an affiliate manager, so I know the difficult job they have ... trying to please the merchants, their bosses and the affiliates ... all at the same time. Dealing with a wide range of personalities isn't easy either. My biggest issue is always communication. If there is an issue, it is handled and I know why there is a problem. Being well compensated is an issue too. I also like affiliate managers who follow up and ensure I meet the commitments I made.
I sell nearly $3 Million per year (gross sales) with zero PPC. Keep your programs clean (no parasites) if you want to grab my attention.
Know what you're are talking about. How can I ask a question if I know that you don't know the answer?
I hate having to look all over the site for links for ads. I feel that all new links should be found in the links management area of the merchant. If not then all new ads should be provided with personal links.
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If it were possible to program e-mails to contain the types of links requested by affiliates and only those links it would greatly speed up the process of changing them out on sites. It would be nice if affiliates were told in advance of things that affect their sites rather than after the event - for example, telling an affiliate that a merchant has made a decision that affects links immediately rather than as of, say, 7 days hence, is assuming that affiliates have nothing more pressing to do than make changes to links the instant they are asked to!
My main compliment to good affiliate managers goes to those who are willing to work with me on my level. They don't assume I know everything and are willing to let me learn. My biggest complaint goes to those affiliate managers who send me invitations to join their program "after looking at my site" and then reject me when I apply to their program. Or they approve me and then delete me after a month or so because of "poor performance", but they never contact me to work with me.
Of all the affiliate companies I am signed under with, I am hoping they are all honest with paying out to the affiliates like me. One time I felt like I didn't trust a big affiliate network and sometimes others. I wish there would be investigators to check these affiliate companies with their honesty.
The affiliate tools are either too complicated or severely lacking. Interfaces are usually too cluttered and the search options rarely work. Also, merchants should be required to provide basic banners such as the 125x125, 120x30|60|90 and 468x60. Skyscrapers, half-page, etc suck up too much screen real estate. Lastly, what's with this nonsense of dropping an affiliate if they don't make a sale in 6 months? If I'm serving up your ads, that means I'm getting you eyeballs. Maybe people just aren't interested in your products!
It seems that if you don't make any sales you get left alone. When money starts rolling in everyone wants to start asking questions. Affiliate marketing is a cut throat business. Many tactics take time and money to learn and affiliates should not be bombarded with questions having to explain how they market. If there is no spamming or deception involved, does it really matter? Everyone is making money and isn't that what it's all about.
I'd like to see more of them accept incentive traffic. As long as you don't misrepresent the merchant it shouldn't matter where the sales or leads come from as long as they are reliable.
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Affiliate programs have too low a return rate. For a targeted site it should be higher than a mass marketer (think niche marketing). ROI is too low given the constant work involved. I would like to see more partnerships, for instance, if I run targeted sites I would lease that site to the advertiser rather than work with straight affiliate programs. I own targeted sites & once the economy improves I will sell them rather than work for a low ROI. Not worth the marketing effort under the current conditions.
I get the heebie jeebies when I see/read a lot of the affiliate marketing stuff out there. To me, an affiliate program should match the site's theme. If your site's theme is simply to push an affiliate program without providing any useful content, what's the point?
Call us more often, and plan meetings with us in person at conferences. Stop the blog blasts and email newsletters.
More AM need to communicate with affiliates.
That publishers only have a limited amount of space for sales ads and needs to be taken into consideration when sending out emails. Weekly sales are better than daily as most affiliates have more than one merchant and they can become bogged down with emails. It is sometimes hard to answer 300 to 1,000 emails a day!
I'm at that stage where I'm finding a balance. A well-established merchant without PopShops will lose to a new merchant WITH PopShops.
I think AM's need to scour their data. Even if there are solutions in place, they only work as good as your data; the keywords, prod names, descriptions, etc. The data you have for your site is far different than what I need to promote those items on my site. Cut the gibberish and give me shorter descriptions. Include keywords that customers would search for outside of your site. You have to think outside of your site to really provide valuable data to your affiliates. Any kind of industry news or alerts are great to share. Your affiliates will absorb your passion for this as a career and not just a quick buck.
Not being able to directly talk with the merchant. The "separation" of merchant and affiliate by networks and 3rd party AM's discourages productive collaboration.
Stop sending useless emails. 5 emails from one program in a week is WAY TOO MUCH! Sending them once a month requires planning, but you are supposed to be a m a n a g e r.
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Affiliate Marketing Resources Some things to make your job easier.
here are some great resources out there that can make your job a whole lot easier. Here is a glossary to explain industry terms, plus lists of suggested message boards, blogs, and Twitter accounts that you should know about.
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Affiliate Marketing Glossary Affiliate marketing has a language all its own. Below is a collection of some of the frequently used terms.
Affiliate: a Web site owner that earns a commission for referring clicks, leads, or sales to a merchant.
Affiliate Agreement: terms between a merchant and an affiliate that govern the relationship.
Affiliate Information Page: a page or pages on your Web site that explains clearly and concisely what your affiliate program is all about.
Affiliate Link: a piece of code residing in a graphic image or piece of text placed on an affiliate's Web page that notifies the merchant that an affiliate should be credited for the customer or visitor sent to their Web site.
Affiliate Manager: the manager of an Affiliate Program who is responsible for creating a newsletter, establishing incentive programs, forecasting and budgeting, overseeing front-end marketing of the program, and monitoring the industry for news and trends.
Affiliate Program (also an Associate, Partner, Referral, or Revenue Sharing Program): a merchant pays a commission to an affiliate for generating clicks, leads, or sales from a graphic or text link located on the affiliate's site.
Affiliate Program Directory: directory of affiliate programs, featuring information such as the commission rate, number of affiliates, and affiliate solution provider. Associate-It, AssociatePrograms.com and Refer-it are among the largest Affiliate Program Directories.
Affiliate Solution Provider: company that provides the network, software, and services needed to create and track an affiliate program.
Auto-Approve: affiliate application approval process where all applicants are automatically approved for an affiliate program.
Commission: income an affiliate receives for generating a sale, lead or click-through to a merchant's Web site. Sometimes called a referral fee, a finder's fee or a bounty.
Cookies: small files stored on the visitor's computer, which record information that is of interest to the merchant site. With affiliate programs, cookies have two primary functions: to keep track of what a customer purchases, and to track which affiliate was responsible for generating the sale (and is due a commission).
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Contextual Link: integration of affiliate links with related text.
Conversion Rate: percentage of clicks that result in a commissionable activity (sale or lead).
CPA (Cost Per Action): cost metric for each time a commissionable action takes place.
CPC (Cost Per Click): cost metric for each click of an advertising link.
CPM (Cost Per Thousand): cost metric for one thousand banner advertising impressions.
CPO (Cost Per Order): cost metric for each time an order is transacted.
eCPC: stands for 'effective Cost Per Click’. Affiliates that earn on a CPA or CPO will back their numbers into an eCPC. It is calculated by dividing total earnings by their number of clicks. For example, if an affiliate earned $1500 from 3000 clicks, the CPC would equal $1500/3000, or $0.50.
eCPM: stands for 'effective Cost Per Thousand impressions'. Affiliates that earn on a CPA or CPO will back their numbers into an eCPM. It is calculated by dividing total earnings by their number of impressions in thousands. For example, if an affiliate earned $1500 from 75,000 impressions, the CPM would equal $1500/75, or $20.00.
Hybrid Model: affiliate commission model that combines payment options (i.e. CPC & CPA).
In-house: alternative to using an affiliate solution provider; building affiliate program architecture within a company.
Lifetime Value of a Customer (LVC): the amount of sales in dollars that a customer in his lifetime will spend with a particular company.
Manual Approval: affiliate application approval process where all applicants are manually approved for an affiliate program.
Merchant: an online business that markets and sells goods or services. Merchants establish affiliate programs as a cost effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a Web site.
Pay-Per-Sale: program where an affiliate receives a commission for each sale of a product or service that they refer to a merchant's Web site. Pay-per-sale programs usually offer the highest commissions and the lowest conversion ratio.
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Pay-Per-Lead: program where an affiliate receives a commission for each sales lead that they generate for a merchant Web site. Examples would include completed surveys, contest or sweepstakes entries, downloaded software demos, or free trials. Pay-per-lead generally offers midrange commissions and midrange to high conversion ratios.
Pay-Per-Click: program where an affiliate receives receive a commission for each click (visitor) they refer to a merchant's Web site. Pay-per-click programs generally offer some of the lowest commissions (from $0.01 to $0.25 per click), and a very high conversion ratio since visitors need only click on a link to earn the affiliate a commission.
Predatory Advertising: method that creates or overlays links or banners on Web sites, spawns browser windows, or any method invented to overwrite or redirect affiliate links.
Residual Earnings: programs that pay affiliates not just for the first sale a shopper from their sites makes, but all additional sales made at the merchant's site over the life of the customer.
ROAS: stands for 'Return on Advertising Spending'. This is the amount of revenue generated for every dollar spent on advertising. For instance, a ROAS of $1 means you're generating $1 in sales for every $1 in advertising spend, and a ROAS of $5 means you generate $5 in sales for every $1 in spending.
ROI: stands for 'Return on Investment'. This is what all marketing managers want to see from the money they spend on their marketing and advertising campaigns. The higher the sales, the larger the number of shoppers and the greater the profit margin generated by sales – the better the ROI.
Super Affiliates: that small percentage of sites - the top 1% of affiliates, based on performance and earnings - that generate the lion’s share of the revenue for your program. They are born marketers and are very successful with the affiliate program they promote from their sites.
Two-tier: affiliate marketing model that allows affiliates to sign up additional affiliates below themselves, so that when the second tier affiliates earn a commission, the affiliate above them also receives a commission. Two-tier affiliate marketing is also known as MLM (Multilevel Marketing).
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Affiliate Marketing Message Boards What are affiliates saying about your program? Monitor and participate in these message boards regularly to maintain a grip on the affiliate community:
5 Star Affiliate Marketing Forums - http://affiliate-marketing-forums.5staraffiliateprograms.com/
ABestWeb - http://forum.abestweb.com/
affiliates4U (UK) - http://www.affiliates4u.com/
AffSpot - http://www.affspot.com/
AssociatePrograms.com -http://www.associateprograms.com/discus/index.php
Digital Point - http://forums.digitalpoint.com/
SitePoint - http://www.sitepoint.com/forums/
Wicked Fire - http://www.wickedfire.com/
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Blogs for Affiliate Marketers to Read The affiliate marketing blogosphere is expanding constantly. Blogs are a great resource for news and information in affiliate marketing as it happens, as well as to learn more about tactics affiliates are using (and some you shouldn't use).
Here are some blogs focused on or related to affiliate marketing to check out.
49above - http://blog.49above.com/
5 Star Affiliate Marketing Blogs - http://affiliate-blogs.5staraffiliateprograms.com/
Ad Hustler - http://www.adhustler.com/
ADS-links.com - http://www.ads-links.com/
Advertising & Marketing Blog - http://www.jonathantreiber.com/
AffBuzz - http://www.affbuzz.com/
Affiliate Classroom - http://blog.affiliateclassroom.com/
Affiliate Confession - http://www.affiliateconfession.com/
Affiliate Love Project - http://www.affiliatelp.com/
Affiliate Marketing Blog by Shawn Collins - http://blog.affiliatetip.com/
Affiliate Marketing The Smart Way - http://www.thelazymarketer.com/blog/
Affiliate Program Advice - http://www.affiliateprogramadvice.com/
Affiliate Stuff - http://www.affiliatestuff.co.uk/
Affiliate Summit - http://www.affiliatesummit.com/blog/
Affilorama - http://www.affilorama.com/blog
Affzilla.com - http://www.affzilla.com/
Azam Marketing Blog - http://www.azam.info/
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Andy Beard - http://www.andybeard.eu/
Beer Monies - http://www.beermonies.com/
Blue Hat SEO - http://www.bluehatseo.com/
Branding100.com - http://www.branding100.com/
Brandon Adcock dot Com - http://www.brandonadcock.com/
Bryn Youngblut - http://bryn.me/
Cash Tactics - http://www.cashtactics.net/
CDF Networks - http://www.cdfnetworks.com/
Chris Bloczynski dot Com - http://www.chrisbloczynski.com/
chrisbrogan.com - http://www.chrisbrogan.com/
Christian Affiliate Marketers - http://www.christianaffiliatemarketers.com/
CJ UK Blog - http://www.cjblog.co.uk/
copyblogger - http://www.copyblogger.com/
Cost Per News - http://www.costpernews.com/
Dennis Yu - http://www.dennis-yu.com/
FeedFront Magazine - http://www.feedfront.com/
Fraser’s Affiliate Marketing Blog - http://www.affiliateblog.co.uk/
GeekCast.fm - http://www.geekcast.fm/
Geno's Affiliate Marketing Blog - http://www.amnavigator.com/blog/
Google Affiliate Network Blog - http://googleaffiliatenetwork-blog.blogspot.com/
How to Make Money Online - http://www.jonathanvolk.com/
Ian Fernando - http://www.ianfernando.com/
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Income Zombie - http://www.incomezombie.com/
Internet Geek Girl - http://www.internetgeekgirl.com/
Jangro 2.0 - http://www.jangro.com/
Jeremiah Cooper dot Com - http://www.jeremiahcooper.com/
JimKukral.com - http://www.jimkukral.com/blog/
John Chow dot Com - http://www.johnchow.com/
JoelComm.com - http://www.joelcomm.com/
JustinDupre.com - http://www.justindupre.com/
Lee McCoy's Affiliate Marketing Blog - http://www.leemccoy.co.uk/
Legacy Affiliate Blog - http://www.legacyaffiliateblog.com/
LinkShare Blog - http://www.linkshareblog.com/
LisaPicarille.com - http://www.lisapicarille.com/
MadPPC - http://www.madppc.com/
Many Body Theory - http://www.manybodytheory.com/
MediaTrust Blog - http://blog.mediatrust.com/
MissyWard.com - http://www.missyward.com/
Money Making Scoop - http://www.moneymakingscoop.com/blog/
MsDanielle.com - http://www.msdanielle.com/
murraynewlands.com - http://www.murraynewlands.com/
Nerdy Affiliate - http://www.nerdyaffiliate.com/
NETexponent Blog - http://www.netexponentblog.com/
NickThrolson.com - http://www.nickthrolson.com/
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Nickycakes.com - http://www.nickycakes.com/
OffWhiteHat.com - http://www.offwhitehat.com/
OOOFF.com - http://www.oooff.com/php-affiliate-seo-blog/
Pepperjam Blog - http://www.pepperjam.com/blog/
Performance Marketing Alliance - http://www.performancemarketingalliance.com/
PPC.bz - http://www.ppc.bz/
PPC Fool - http://www.ppcfool.com/
ProBlogger - http://www.problogger.net/
Prosper202 Blog - http://prosper.tracking202.com/blog/
ReveNews - http://www.revenews.com/
Shankman.com - http://www.shankman.com/
Share Results Blog - http://blog.shareresults.com/
ShareASale Blog - http://blog.shareasale.com/
Shock Marketer - http://www.shockmarketer.com/
ShoeMoney - http://www.shoemoney.com/
Slightly Shady SEO - http://www.slightlyshadyseo.com/
Super Affiliate Marketing Blog - http://www.aojon.com/
Super Affiliate Mindset - http://www.superaffiliatemindset.com/
Tactic Tester - http://www.tactictester.com/
The Real Tim Jones - http://www.therealtimjones.com/
Thoughts on Affiliate Marketing from Logan Thompson - http://www.lrthompson.com/
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Trevor Nash-Keller 2.0 - http://www.trevornashkeller.com/
TrishaLyn.com - http://www.trishalyn.com/
TylerCruz.com - http://www.tylercruz.com/
UberAffiliate - http://www.uberaffiliate.com/
Webgains UK Blog - http://blog.webgains.com/
Webgains USA Blog - http://usablog.webgains.com/
WesMahler.com - http://www.wesmahler.com/
Winning the Web - http://www.winningtheweb.com/
Who is Andrew Wee - http://www.whoisandrewwee.com/
Wiseaff - http://www.wiseaff.com/
ZacJohnson.com - http://www.zacjohnson.com/
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People to Follow on Twitter There are lots of folks Tweeting about affiliate marketing and issues related to the industry. Here are some we'd suggest following - they are the speakers from Affiliate Summit East 2009:
Stephanie Agresta - http://twitter.com/stephagresta
Mike Allen - http://twitter.com/mta1
Tim Ash - http://twitter.com/tim_ash
Sarah Austin - http://twitter.com/pop17
Larry Bailin - http://twitter.com/LarryBailin
Debbi Ballard - http://twitter.com/DebbiABallard
Shashi Bellamkonda - http://twitter.com/shashib
Jay Berkowitz - http://twitter.com/JayBerkowitz
Jamie Birch - http://twitter.com/JamieEBirch
Scott Brinker - http://twitter.com/chiefmartec
Chris Brogan - http://twitter.com/chrisbrogan
Mike Buechele - http://twitter.com/mikebuechele
Deborah Carney - http://twitter.com/loxly
Brent Csutoras - http://twitter.com/brentcsutoras
David Dalka - http://twitter.com/dalka
Trisha Lyn Fawver - http://twitter.com/trishalyn
Todd Friesen - http://twitter.com/oilman
Karen Garcia - http://twitter.com/karengarcia
Gab Goldenberg - http://twitter.com/GabGoldenberg
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Jen Goode - http://twitter.com/JGoode
Michael Gray - http://twitter.com/graywolf
Jeff Greenbaum - http://twitter.com/jeffgreenbaum
Tyrona Heath - http://twitter.com/tyrona
Rae Hoffman - http://twitter.com/sugarrae
Mike Jacobs - http://twitter.com/mikeyjake
Zac Johnson - http://twitter.com/moneyreign
Kris Jones - http://twitter.com/pepperjamceo
Bennet Kelley - http://twitter.com/internetlawcent
Gary Kibel - http://twitter.com/GaryKibel_law
Beth Kirsch - http://twitter.com/bethkirsch
Jim Kukral - http://twitter.com/jimkukral
Eric Lander - http://twitter.com/ericlander
David Lewis - http://twitter.com/cashbaq
Stephanie Lichtenstein - http://twitter.com/StephARC
Brian Littleton - http://twitter.com/Brianlittleton
Graham MacRobie - http://twitter.com/grahammacrobie
Todd Malicoat - http://twitter.com/stuntdubl
Melanie Mitchell - http://www.twitter.com/melaniemitchell
Kate Morris - http://www.twitter.com/katemorris
Vinny O'Hare - http://twitter.com/vinnyohare
Scott Parent - http://twitter.com/americancliche
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Copyright 2009. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
32
Christopher Park - http://www.twitter.com/BLAIRAffiliates
Neil Patel - http://twitter.com/neilpatel
Lisa Picarille - http://www.twitter.com/lisap
Scott Polk - http://twitter.com/scottpolk
Geno Prussakov - http://twitter.com/eprussakov
Dush Ramachandran - http://twitter.com/DushR
Wil Reynolds - http://twitter.com/wilreynolds
Lisa Riolo - http://twitter.com/lisariolo
Bud Rosenthal - http://twitter.com/turnhere
Steve Schaffer - http://twitter.com/SteveSchaffer
Jeremy Schoemaker - http://twitter.com/shoemoney
Alex Schultz - http://twitter.com/alexschultz
Melanie Seery - http://twitter.com/mellies
Peter Shankman - http://twitter.com/skydiver
Carolyn Shelby - http://twitter.com/cshel
Joshua Sloan - http://twitter.com/sloanzone
Brian Solis - http://twitter.com/briansolis
Joe Stepniewski - http://twitter.com/digijoe
Michael Streko - http://twitter.com/streko
Michael Vorel - http://twitter.com/michaelvorel
Evan Weber - http://twitter.com/experienceads
Karen White - http://twitter.com/KarenWhite_LV
2 0 0 9 A F F I L I A T E S U M M I T A F F S T A T R E P O R T
Copyright 2009. Affiliate Summit – http://www.affiliatesummit.com Some Rights Reserved.
33
Chris Winfield - http://twitter.com/chriswinfield
Woody Wood - http://twitter.com/AmazonAssociate
Dennis Yu - http://twitter.com/dennisyu
Affiliate Summit Related Twitter Accounts
Affiliate Summit - http://twitter.com/affiliatesummit
FeedFront Magazine - http://twitter.com/feedfront
GeekCast.fm - http://twitter.com/geekcast
Shawn Collins - http://twitter.com/affiliatetip
Missy Ward - http://twitter.com/missyward
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Affiliate Summit [email protected]
http://www.affiliatesummit.com http://www.affstat.com
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