swimming with sharks: should a publisher be an advertiser?

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SURESH DAKSHINAPresident, Chargeback Gurus1-866-999-3758

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SURESH DAKSHINAPresident, Chargeback Gurus

AFFILIATE SUMMIT WEST 2017 | LAS VEGAS, NV

Swimming with SharksProfiting from Running Your Own Offers as an Advertiser

© Chargeback Gurus. All rights reserved.

Advertiser vs. Publisher

Pros & ConsSwimming with Sharks

Return on Investment ComparisonSwimming with

DolphinsAvoiding Sharks

What to Look for

As An Advertiser


Benefits of Being a PublisherPros• Low risk entry• Be your own boss

• Manage single department - Marketing• Switch between different products depending on sales

trends• Make money faster• Get treated well by advertisers and affiliate

networks


Disadvantages of Being a PublisherCons• Your business sleeps when you sleep• One man show• Limited income potential• Variable revenue stream• Keeping up with other publishers & trends• Play by the rules put in place by publisher

networks & advertisers


Advantages of Publisher Turned Advertiser

Pros• Larger income potential• Conduct your own traffic and control fraud sales• Hire other publishers to run your offers• Make money while you sleep / others work for you• Status upgrade• Sense of

accomplishment


Disadvantages of Publisher Turned Advertiser

Cons• A true entrepreneur• Limited knowledge• Long hours & sleepless nights• Getting the right resources• Analyze across various departments• Chargeback & fraud risks• Merchant account risks & cash flow shortage• Manage order spikes


Departments That Control Your Profitability

Sales/Marketing

Chargeback Recovery & Prevention

Payments Manufacturing

Customer Service

Fulfilment

CRM & IT


Anticipated Risks of Being An Advertiser

Sales & Marketing

• Planning & Forecasting Sales

• Managing Traffic & Publishers

• FTC Compliance

Payments & Merchant Accounts

• Processing Volume to Meet Your Sales Goals

• Hidden Fees & Reserves

• Tracking Payments & Reserves

Customer Service• Fluent & Courteous

• Call Answering Time

• Per-Minute Rate & Roundoff Billing


Anticipated Risks Continued…

Fulfillment• Shipping Time Frame &

Inventory Control

• Tracking Returns & Invalid Orders

• Fulfillment Cost Chargeback Recovery & Prevention• Chargeback Revenue Recovered

• Automated Systems

• Prevention Alerts Performance

Manufacturing• Product Quality & Manufacturing

Standards

• Manufacturing Time & Delivery

• Product & Packaging Costs

Fulfillment• Shipping Timeframe &

Inventory Control

• Tracking Returns & Invalid Orders

• Fulfillment Costs


Revenue ComparisonIncomeAnnual Sales Revenue

ExpenseMarketing CostsManufacturing CostsFulfillment CostsProcessing FeesCustomer ServiceChargeback RepresentmentIT, CRM & Misc.Operations Management

ANNUAL NET ROI

Publisher$2,400,000

$1,900,000NA NANANANA$ 100,000NA

$ 400,000

Advertiser$7,770,000

$2,880,000$ 216,000$ 360,000$1,555,400$ 250,000$ 30,000$ 60,000$ 100,000

$2,318,600


Tips to Get Started1. Network with other top advertisers to learn the business2. Have an investment fund of at least $100,000 to get started3. Ask for referrals from other advertisers when choosing vendors4. Chose the right agent when applying for merchant accounts 5. Negotiate rates with all your vendors6. Partner with an agency who can help you from start to finish7. Hire the right people to manage your 7 departments8. Get to know the analytics needed to determine your ROI9. Be vigilant about your campaign performance10. Ensure your vendors perform at the optimum level


SURESH DAKSHINA214-785-9140suresh@chargebackgurus.comwww.chargebackgurus.com

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swimming with sharks: should a publisher be an advertiser?

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