20 affiliate program management mistakes to avoid
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Affiliate Summit West 2010
20 Affiliate Program ManagementMistakes to Avoid
Evgenii “Geno” PrussakovFounder, AM Navigator
Introduction
You must learn from the mistakes of others. You can't possibly live long enough to make them all yourself.
-- Sam Levenson
Introduction
An error doesn't become a mistake until you refuse to correct it.
-- Orlando A. Battista
Outline
1. Merchant errors (10)
2. Affiliate program manager mistakes (10)
3. Checklist
Errors Committed by Merchants
Errors Committed by Merchants1. “Leaky” website
Leaks - DefinitionLeaks – external links within your website that lead to sites
which do not credit your affiliates for the work they perform.
Leaks - TypesLeaks – external links within your website that lead to sites
which do not credit your affiliates for the work they perform.
Types of Leaks:
1. Telephone number / Live chat2. AdSense units3. Amazon widgets4. Links to “network” stores/sites5. Affiliate links & links to other merchants
Leaks – Example (type 1)Telephone Number
Leaks – Example (type 1)Live Chat
Leaks – Example (type 2)AdSense (Google ads)
Leaks – Example (type 3)Amazon widgets
Leaks – Example (type 4)Links to “network” stores/sites
Leaks – Example (type 5)Affiliate links & links to other merchants
Errors Committed by Merchants1. “Leaky” website
2. “Autopilot” approach
Errors Committed by Merchants1. “Leaky” website
2. “Autopilot” approach
Autopilot – “device for automatically steering ships, aircraft, and spacecraft.”
Errors Committed by Merchants1. “Leaky” website
2. “Autopilot” approach
Such systems of directing vehicles without assistance from human beings are excellent when used in the contexts they were created for.
Affiliate marketing is not one of them!
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach
3. Unclear/absent program TOS
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach
3. Unclear/absent program TOS
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach
3. Unclear/absent program TOS
Merchant naïvete -- loss of defensive behaviors and adaptations needed to deal with “predators”
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS
4. Inexistent PPC policy
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS
4. Inexistent PPC policy
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy
5. Embarrassing commission rates
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates
6. Short cookie life
Short Cookie Life5 hours or under
•Sephora.com (4 hrs)•Toys R Us, Babies R Us•eToys.com•Miles Kimball Company•ShopNBC.com
12-24 hours
•Nordstrom.com (12 hrs)•Enterprise.com (23 hrs)•Chase.com (23 hrs)•Amazon (24 hrs)
3 Days
•Apple iTunes•Champs Sports•Dell•ESPN Shop•Foot Locker•Walmart
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates
6. Short cookie life
Cookie Retention Data
• 1 day – 85%
• 2 days – 75%
• 3 days – 70%
• 4 days – 63%
• 45 days ~ 50%
• 340 days ~ 20%
Source: "Web Analytics Analyzed" blog by Paul Strupp at blogs.sun.com
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life
7. Commission drops
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life
7. Commission dropsAs a valued [Merchant Name] affiliate partner, I wanted to let you know that we are currently working to make our program, and our partnerships, as successful as possible. In order to continue to support the success of our current partnership we are unable to continue to offer you a flat 4% commission on all goods. Starting at the end of February, our new offer will be lowered to 1.5% on all goods.
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life
7. Commission dropsAs a valued [Merchant Name] affiliate partner, I wanted to let you know that we are currently working to make our program, and our partnerships, as successful as possible. In order to continue to support the success of our current partnership we are unable to continue to offer you a flat 4% commission on all goods. Starting at the end of February, our new offer will be lowered to 1.5% on all goods.
Commission Decrease
Commission Decrease
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life7. Commission drops
8. Unrealistic goals for commission increases
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life7. Commission drops
8. Unrealistic goals for commission increases
Swimmer (illustration)
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life7. Commission drops8. Unrealistic goals for commission increases
9. Tampering with tracking code
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life7. Commission drops8. Unrealistic goals for commission increases9. Tampering with tracking code
10. Late/inexistent notifications
Errors Committed by Merchants1. “Leaky” website2. “Autopilot” approach3. Unclear/absent program TOS4. Inexistent PPC policy5. Embarrassing commission rates6. Short cookie life7. Commission drops8. Unrealistic goals for commission increases9. Tampering with tracking code
10. Late/inexistent notificationsNotify affiliates at least one month in advance
Mistakes of Affiliate Managers
Mistakes of Affiliate Managers1. Believing they need to manage affiliates
Mistakes of Affiliate Managers1. Believing they need to manage affiliates
… when, in reality:
not affiliate managers
but affiliate program managers
Mistakes of Affiliate Managers1. Believing they need to manage affiliates
2. Assuming they are smarter than affiliates
Mistakes of Affiliate Managers1. Believing they need to manage affiliates
2. Assuming they are smarter than affiliates
Affiliate marketing is “the art of doing a merchant's marketing better than they can, and profiting from it.”
-- Chris Sanderson, AMWSO
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates
3. Assuming all affiliates are prone to fraud
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates
3. Assuming all affiliates are prone to fraud
ASSUME = + U + ME
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates
3. Assuming all affiliates are prone to fraudMerchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you.
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates
3. Assuming all affiliates are prone to fraudMerchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you.
Affiliate: We are not doing any direct linking to [your site].What makes you think we are?
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates
3. Assuming all affiliates are prone to fraudMerchant: I wanted to let you know that we strictly prohibit direct linking to our website from search engines. Please update any campaigns or otherwise we will not be able to continue working with you.
Affiliate: We are not doing any direct linking to [your site].What makes you think we are?
Merchant: Great! We didn’t. We just saw your sales pick up and wanted to ensure you knew our keyword policy.
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud
4. Treating affiliates a employees
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud
4. Treating affiliates a employeesMotivating affiliates by threat =
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud
4. Treating affiliates a employees
Motivating affiliates by threat = "dead-end strategy"
Even in traditional management “threats are generally counterproductive” and “always demotivating”
“We can motivate people to their highest levels of potential by presenting them with opportunities to succeed instead of telling them what to do”
-- Alexander HaimStreetwise Motivating & Rewarding Employees
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud
4. Treating affiliates a employeesAs you may know from previous experience, [Merchant Name] works each month to a set budget. While in the past, if they surpass that budget, we have been forced to remove partners. This is never ideal and we want to prevent this from happening as much as possible. As of right now, we are on track to surpass our February budget. To prevent this, we are asking you to take a 1% commission cut through the rest of the month.
We ask that you opt into the lower-commission offer immediately, or we will have to remove you from the program. This is only a short-term adjustment, so we thank you, in advance, for your cooperation and understanding.
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees
5. Treating all affiliates the same way
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees
5. Treating all affiliates the same wayContingency Approach
There is “no one universal solution… but the correct solution will depend on the unique needs of the situation”
-- Montana, P.J., Charnov, B.H.Management
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees
5. Treating all affiliates the same wayContingency Approach
Main situational variables: 1) affiliate maturity
2) task at hand
Contingency Approach (grid)
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way
6. Believing money is the best incentive
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way
6. Believing money is the best incentive…things that make people satisfied and motivated … are different in kind from the things that make them dissatisfied. …even if managed brilliantly [environmental factors] don’t motivate anybody to work much harder or smarter. People are motivated, instead, by interesting work, challenge and increasing responsibility. These intrinsic factors answer people’s deep-seated need for growth and achievement. [bold font mine]
-- Frederick Herzberg
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way
6. Believing money is the best incentive“Compensation and incentive packages” are not motivating enough for people.
A manager “can charge a person’s battery, and then recharge it, and recharge it again,” but “it is only when one has a generator of one’s own that we can talk about motivation.” [bold font mine]
-- Frederick HerzbergOne More Time. How Do You Motivate Employees
Harvard Business Review, Jan. 2003
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive
7. Losing personality
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive
7. Losing personality
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality
8. Lack of communication
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality
8. Lack of communicationCommunicate regularly and on different levels
Channels of Communication
1. Email (42%: 38% mass e-mail, 4% personal msgs)2. Blog (17%) 3. Network internal email (17%)
Source: AffStat 2009
Frequency of Communication
1. Monthly (42%)2. Weekly (39%)3. Quarterly (11%)
Source: AffStat 2009
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality8. Lack of communication
9. Ignoring affiliate suggestions
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality8. Lack of communication
9. Ignoring affiliate suggestionsListening is not enough. Hear them and respond.
3 Rs to Remember
1. Reachable
2. Responsive
3. Real
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality8. Lack of communication9. Ignoring affiliate suggestions
10. Failing to admit mistakes
Mistakes of Affiliate Managers1. Believing they need to manage affiliates2. Assuming they are smarter than affiliates3. Assuming all affiliates are prone to fraud4. Treating affiliates a employees5. Treating all affiliates the same way6. Believing money is the best incentive7. Losing personality8. Lack of communication9. Ignoring affiliate suggestions
10. Failing to admit mistakes
Checklist
Top 20 Mistakes to Avoid:
Pick it up at www.amnavigator.com/ASW10.htm
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Thank You!
geno@amnavigator.comamnavigator.com/blog
twitter.com/eprussakov
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