Does (Affiliate Program) Size Matter?
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The document discusses affiliate program management, focusing on the optimal number of programs, the benefits and challenges of running multiple platforms, and key factors for adding new networks. It highlights common reasons for expanding affiliate programs, offers insights into maximizing revenue through niche and general networks, and provides case studies demonstrating successful strategies. Key takeaways emphasize tailored approaches for merging networks and effective resource evaluation.
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Bottom Line: Active Affiliates
Sooner or later every affiliate manager
has to face it – most affiliates on
board the affiliate program are
inactive. Some have christened it a 5-
80 Rule: 5% of your affiliates do 80%
of the work. […] The number of active
affiliates on board the affiliate
programs I manage fluctuates from
3.5% to 14%.
Geno Prussakov, “A Practical Guide to
Affiliate Marketing”](https://image.slidesharecdn.com/4a-doesaffiliateprogramsizematter-150113161335-conversion-gate02/85/Does-Affiliate-Program-Size-Matter-6-320.jpg)
Does (Affiliate Program) Size Matter?
- 1. Does (Affiliate Program) Size Matter Cristian Miculi – Sr. Manager, Affiliate Services
- 2. 2 Things we’ll have clarified… The number of network & standalone programs you should be running What you should look at before running multiple programs How much of a difference in revenue you should expect Special thanks: Rick Gardiner, iAffiliate Management Brook Schaaf, Schaaf-PartnerCentric Geno Prussakov, AM Navigator Denis Tkachev, Bitex Group
- 3. 3 Running Program on Multiple Platforms Benefits Challenges Cost Consistency across networks Tracking & deduplication Program management Flexibility for publishers Technology & tools Increased reach Increased revenue
- 4. 4 Adding New Networks: When to Do it 1. Need to accelerate growth on the overall program – market exposure, revenue. 2. New products / services launched are not a good fit for current program – need for niched affiliates. 3. Need to go international – working with local affiliate networks. Top 3 Most Often Reasons when Companies Consider This
- 5. 5 Adding New Networks: What to Look at 1. Experience with similar merchants – notable results, number of similar merchants. 2. Affiliate program management features – technology, support 3. Affiliate network demographics - number of active affiliates, affiliate types, where they sell, etc. Top 3 Indicators to Check before Engaging Source: AffStat 2014 report
- 6. 6 Bottom Line: Active Affiliates Sooner or later every affiliate manager has to face it – most affiliates on board the affiliate program are inactive. Some have christened it a 5- 80 Rule: 5% of your affiliates do 80% of the work. […] The number of active affiliates on board the affiliate programs I manage fluctuates from 3.5% to 14%. Geno Prussakov, “A Practical Guide to Affiliate Marketing”
- 7. 7 Juiciest Part Up Next
- 8. 8 Perfect Mix for Multiple Platforms NO UNIVERSALLY VALID RECIPE – depends on merchant goals Affiliate Program % Contribution from Total Revenue Recommended Number of Affiliate Programs Incremental Revenue Uplift 0% - 4% (Re)launching affiliate program 1 niche + 1 general Min. 100% by adding the general network 4% - 8% Growing affiliate program 1 niche + 1 general Min. 50% by adding the general network 8% - 15% Established affiliate program 1 niche + 1 general + 1 regional Depends on regional market reach 15%+ Very niched affiliate program 1 niche + 1 general + 1 general + regional / local Min. 25% by adding the general network; regional / local depends on market reach No niche networks for you? Look for your competitors’ programs!
- 9. 9 Actions Worked with Avangate partner iAffiliate Management on growing affiliate program. Extended the Avangate Affiliate Program by adding a program in CJ Abbyy USA – 197% Growth of Affiliate Sales Via Managed Services in niche network + general network Put your screenshot here Results Increased affiliate sales by 197% YoY Affiliate contribution to total sales rose from 6% to 11% Source: Avangate
- 10. 10 Actions Partnership with local affiliate network adTriplex Local affiliate network to manage program Kaspersky Turkey – 400% uplift in sales From local affiliate network Put your screenshot here Results Affiliate sales going through adTriplex grew the overall program performance with more than 400% Source: Avangate
- 11. 11 Actions Telestream chose to consolidate all affiliates in the Avangate Affiliate Network – niche network for software & services Telestream – Successfully Consolidated Program Chose a Single Affiliate Network to Run Program Put your screenshot here Results Affiliate Sales were down 20% in the first 3 months, but after that they got back at the same level. 66% YoY increase in affiliate revenue after consolidation Source: Avangate One size does not fit all! Works for very niched products/services and well established brands
- 12. 12 Evaluate your needs and resources Go with a niche network and at least one general network For regional development – go with local networks Monitor your competitors and where they run their programs Key Takeaways Scale efficiently
- 13. Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080 Avangate Inc. Redwood Shores CA., USA Tel: (650) 249 - 5280 info@avangate.com info@avangate.com Thank you Cristian Miculi +1 650 249-5280 ext. 4645 cm@avangate.com linkedin.com/in/cristimiculipop