5 software niche affiliate success stories

5 Software Niche Affiliate Success Stories

Michael Ni, CMO/SVP Marketing & Products

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5 Software Verticals Affiliate Success StoriesWhat Are Some of the Best Practices to Drive Conversion in a

Software World

The Software Vertical

Why It’s Good …

… and in which Sub-Categories

5 case studies in Software Affiliate Success

What’s Your Next Move

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Vendors

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Merchants

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Merchants

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Affiliates

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Affiliates

Affiliates

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The Software Market Worldwide is estimated at over $260 billion

SaaS is a $12 billion market (2011) growing to $21 billion in 2015 growing at over 15% a year

Year-over-year growth in other key software categories around 6-10%

Software is fundamentally shifting to being purchased online …

… with Affiliate sales contributing an additional 10-15% to software vendors’ online sales, with some contributing over 30%

The Software VerticalThe Market

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Software is included in several verticals - accounting for up to 20% of the affiliate preferences*

Affiliate Preferences to DateUp to 20% already choose software related categories

* According to the data in the AffStat Report 2010

Pets Real Estate Spiritual Sports & RecreationContests / Giveaways

Toys & Hobbies

Travel & Auto

Wedding

Apparel

Books, Movies & Music

Career / Business OppDating

Department StoresEvent Tickets

FinancialFlowers & Gifts

Food & EntertainingGift CertificatesGreen / EcoHealth & Beauty

Home & Garden

Insurance / Financial Services

Jewelry & Accessories

MagazinesMedical

Computers & Elec-tronics8.97%

Office & Business7.46% Outlet & Discount

3.73% Education0.4%Gaming

0.1%

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1. GREATER COMMISSIONS bigger affiliate margins (generally up to 85%) compared to physical products (generally up to 50%)

2. MORE CHANCES TO CONVERT VISITORS try before you buy, “Freemium”

3. EASIER TO SELL known need, does not have to be touched, immediate gratification, attractive prices for customers

4. EASIER TO HANDLE no hassles over delivery, time zones - as in some physical products

5. AN ANNUITY recurring revenues opportunities, upgrade, renewals focused, multiple modules and related add-on opportunities

Advantages of Promoting SoftwareFast Selling, Low Maintenance, Recurring Revenue

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Top Selling Software CategoriesConsumer Titles Comprise the Bulk of Affiliate SW Sales

Utilities/Security: est. $ 3 bln. market in 2011

Audio-Video Tools: est. $ 2.5 bln. in 2011

Productivity: est. $ 10 bln. in 2011

Games: est. $ 47.5 bln. in 2011

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ChallengesWhat Do Prospects Need to Get Past to Make a Decision

A considered purchasePrice point, Dependencies, Complexity

Fear, uncertainly, and doubtMalware, Security, Compatibility

Comparability … TrialPrice, Functionality, Reputation, Credibility, Vendor Longevity, Support

What are some of the best practices to helping prospects along …

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WHILE THERE’S NO RECIPE FOR

SUCCESS…

PROVEN IDEAS CAN ALWAYS HELP

5 examples in the Avangate Affiliate Network

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IncrediMailSoftware Vendors as Affiliates

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Freemium: IncrediMail Free

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Freemium: IncrediMail Plus, Toolbars

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Offers email customization tools & widgets “Leadership in trailing-edge technology”

Brings value into very commoditized market

Secrets to IncrediMail Success Feature-filled, functional Freemium version leads to Premium “IncrediMail Plus”

Add-ons accessorize Freemium & Premium versions to expand revenue flow from existing customers

Associates with other complementary vendors to cross-sell whenever possible

Uses social media to amplify their messages about “old-fashioned” communication tools. Use “Crowd-sourced” endorsements to drive popular accessories to the top

IncrediMail benefits Provides continuous added value to their customers

Generates additional interest on frequent return visits

Generates add-on sales with conversion rates of over 10%** Avangate Affiliates Network

IncrediMail

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Freesoft.tvbok.comOriginal Content

Freesoft.tvbok.com: Original Content

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FreeSoft.tvbok.com

Affiliate website for the Japanese audience

Offers “how to’s” for various software products & PC-related activities

Secrets to their success

As an affiliate, Freesoft.tvbok.com promotes video tools and uses tutorials and reviews as customer conversion pages.

The benefits

Provides added value to its website visitors (over 2 million page views monthly)

Generates affiliate sales with a conversion rate of over 0.8%*

Freesoft.tvbok.comUse original content to convert audience

* Avangate Affiliates Network

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BitsDuJour.comLeverage the power of the discount coupon

BitsDuJour: Power of Coupons

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BitsDuJour.comLeverage the power of the discount coupon

BitsDuJour: Widget

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Power of CouponsBitsDuJour Offers heavily discounted software titles, each deal only for 24 hours

Leverages coupons and sense of urgency to reach/grow broad audience

Secrets to BitDuJour’s Success Promotes PC & Mac software titles with steep discounts (over 50%)

Community & crowd-sourced W.O.M. marketing

Work with multiple affiliate networks & with vendors directly.

» Affiliate cross-sell program (widget on other affiliate websites)

» Vendor program (get part of the affiliate commission back)

Seasonal & special campaigns – BitsDuJour Holiday Bundle

The Big benefit Discounted product offers generate a conversion rate of over 20%*

BitsDuJour.com

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Myce.comUser generated content & communities to deliver affiliate promotions

Myce.com: User Generated Content & Communities to Deliver Affiliate Promotions

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Leverages the Shared Bond of Community Website targeted to consumer electronics, gadgets and technology community,

engaging members into reviews, discussions and forums

Secrets to Myce.com’s success Power of user generated content

Create a strong community around it, attracting traffic

Contextual advertising used to generate sales

Crowd-sourced promoted software in specialized sections and forums

The Big benefit Added value through reviews and social interaction on forums and discussions

Affiliate conversion rate of over 1.5%*

Myce.comUser Generated Content & Communities to Deliver Affiliate Promotions

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Product catalog with localized user experience

Siliconaction.com.br

SiliconAction: Extensive Catalog, Local User Experience

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SiliconAction: Installment Plan

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SiliconAction: Brand and Product-Specific Keywords on local markets

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Product catalog with localized user experience Brazilian product catalog / e-tailer selling software online with over 1,400 titles

Secrets to SiliconAction’s success Localized buying experience (localized payment methods, installment plans, etc.)

Recognize their role in supporting local purchase user experience rather than deep investigation, comparison, consideration

Generate traffic via targeted PPC campaigns, newsletters and advertising serving as a regional conduit for latest software availability

Uses both the affiliate and reseller model being flexible to offer the largest selection

The Big benefit Generate sales as an affiliate with a conversion rate of ~20%*

Linked to from vendors to handle traffic from that region, trusted to use AdWords


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Software is a rich vertical that has inherent advantages to be sold online … both standalone, as well added onto existing affiliate sites

Consumer focused software categories currently perform best …

… but growing opportunities in business, and SaaS solutions creating interesting niche possibilities in this huge market ($12 billion), not to mention, education

Get started - join a dedicated software affiliate network – let them handle tracking & payments and benefit from their advanced marketing features

PC business maybe declining, but in the post-PC era, the software business is more vital than ever

Finally …

Takeaways

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Find a parade and get in front of it!

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