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Sample - Table of Contents + Introduction + Vendors Overview

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Sample - Table of Contents + Introduction + Vendors Overview

Affiliate Marketing: A Buyer's Guide

E-consultancy

April 2004

Table of Contents

Introduction / About the Author 

1. Overview

1.1 What is Affiliate Marketing? 

1.1.1 The Basic Concept 

1.1.2 Origins 

1.2 What are 'affiliates'? 

1.2.1 Affiliates of the Past 

Super Affiliates

1.2.3 Unethical Affiliates and Spyware

1.2.4 What is a Two-Tiered Affiliate Program?

1.3 What is Affiliate Tracking Software and how does it work?

1.3.1 The Process 

1.3.2 The importance of cookies 

1.4 Terminology 

1.4.1 Abbreviations 

1.4.2 Glossary 

1.5 Tips, Advice and Further Research

1.5.1 Online Advice Sources 

1.5.2 Further Reading 

2. The Top 10 Dos and Don'ts of Affiliate Marketing

2.1 Do. 

2.1.1 Do pay your affiliate on time

2.1.2 Do employ a professional affiliate manager

2.1.3 Do pay your affiliates as generous a commission as you can

2.1.4 Do advertise your affiliate program on your web site

2.1.5 Do submit your affiliate program to search engines and specialist directories 

2.1.6 Do provide product feeds to your affiliates

2.1.7 Do focus on converting your site visitors more efficiently

2.1.8 Do sell your unique proposition to your affiliates

2.1.9 Do check on affiliates delivering no clicks or results

2.1.10 Do keep looking for new affiliates

2.2 Don't. 

2.2.1 Don't worry about the number of affiliates that you have in your program

2.2.2 Don't look at affiliate marketing as a quick fix

2.2.3 Don't think of affiliate marketing as a cheap alternative to other advertising 

2.2.4 Don't treat your affiliate as a collective group

2.2.5 Don't rely on banner ads to drive clicks

2.2.6 Don't believe there is any such thing as a 'totally managed outsourced solution' 

2.2.7 Don't accept affiliates known to use adware or spyware

2.2.8 Don't forget about tracking offline conversions

2.2.9 Don't be afraid to admit to your affiliates that you are new to affiliate marketing 

2.2.10 Don't look too much over your shoulder at your competitors' affiliate program

3. Setting up your own Affiliate Program

3.1 What are the basic resources that you will you need?

3.1.1 Affiliate Manager 

3.1.2 Production skills 

3.1.3 Technical skills 

3.2 What linking methods will you need and what works best?

3.2.1 Linking methods and resulting conversion rates

3.2.2 Banners, Buttons, Pop Ups and Skyscrapers

3.3 Outsource or do it in-house? 

3.3.1 Keeping it in-house 

3.3.2 Outsourcing to affiliate solutions provider

3.3.3 Which is right for you? 

3.4 Business-to-business affiliate marketing

3.5 Affiliates and Search Engine Marketing

3.6 Affiliates and Discounts 

4. Choosing an Affiliate Solutions Provider

4.1 Questions you should ask an Affiliate Solution Provider

4.2 Overview of the Affiliate Solution Providers in the Marketplace

4.2.1 Advertising.com 

4.2.2 AffiliateFuture.com

4.2.3 AffiliateWindow.com 

4.2.4 Befree.com 

4.2.5 CJ.com

4.2.6 DealGroupMedia.com 

4.2.7 Kowabunga Technologies 

4.2.8 OnlineMediaGroup.co.uk 

4.2.9 PaidOnResults.com 

4.2.10 Perfiliate Technologies 

4.2.11 TradeDoubler.com 

4.2.12 Wheel 

4.2.13 Referback.com 

4.2.14 Smartquotes.com 

5. Detailed profiles of 11 UK Affiliate Solution Providers

Introduction / About the Author

My name is Jessica Luthi and I am the affiliate manager for www.ASOS.com.
My background in affiliate marketing is extensive. I started as affiliate manager for www.ukaffiliates.com in 1998. I joined www.affiliatewindow.com in June 2000 as operations manager and then joined www.ASOS.com in April 2002 as their affiliate manager. Prior to my arrival ASOS.com had already partnered with www.ukaffiliates.com, www.cj.com and www.tradedoubler.com within six months I set about consolidating our affiliate program to just one affiliate solution provider, which after careful consideration, we decided we would remain with www.tradedoubler.com. I am an affiliate in my spare time with multiple themed websites and I am well known and respected in the industry of affiliate marketing.


I will be using ASOS.com by way of example of a highly successful affiliate program. ASOS.com (PLC) is a fashion Internet store specialising in designer brands with a celebrity twist. We are currently number two on hitwise.com above Top Shop, Figleaves.com, La Redoute, Marks & Spencer and Laura Ashley. ASOS.com Ltd is a PLC and the share forecast is good. Our success is based on understanding our customers and their shopping habits combined with a strong product range and powerful online and offline marketing campaigns.

Our affiliate program drives between twenty-five and thirty percent of all online sales. We offer our affiliates between seven and ten percent commission and we have many hybrid deals in place. Our affiliate program is popular with all affiliates as our conversions are good and we offer affiliate incentives. Whist I run a fashion related affiliate program, the ground rules for a successful affiliate program can be applied to any product or service online.

This affiliate review is ideal for anyone who has little or no understanding of affiliate marketing in the UK. This review would be ideal for anyone just looking for the essential resources in affiliate marketing in the UK. I have, where possible, used a layman's terms approach which will help you to understand how affiliate marketing can help your online business and in turn help you make the right decisions. I hope you enjoy this review as much as I have enjoyed writing it. If you have any comments or question please feel free to contact me [email protected]

Following is an excerpt from the 'Choosing an Affiliate Solution Provider' section - for the full 50 page report including the detailed profiles on the providers outlined below go to:

https://www.e-consultancy.com/publications/affiliate-marketing-buyers-guide/

4.2 Overview of the Affiliate Solution Providers in the Marketplace

Below are brief summaries of the main affiliate solution providers operating in the UK. For more detail on each of these, please refer to section 5 which follows.

4.2.1 Advertising.com

Advertising.com technology is run through AdLearn. AdSelect is their second network Their Affiliate Solution aspect to their company is based on the principal of key account management, where the focus is on close relationships with key affiliates. "We strive to provide strong campaigns, with competitive payouts and exclusive offers." Kirsten Nielson.

Advertising.com's roots can be found in the U.S.A and they have a strong foothold there. However in the UK, they are still trying to find their niche. They offer a bespoke advertising solution, which incorporates an affiliate marketing arm.


4.2.2 AffiliateFuture.com

AffiliateFuture.co.uk has been running for the past 2 years and is now the fastest growing affiliate network with over 250 merchants. They range from the big brands like Virgin Atlantic, Natwest Bank and Reebok to the smaller companies like soessential.co.uk. The network is owned by the Internet Business Group Plc www.ibg.co.uk who are one of the advertising, e-commerce and professional services groups. They see the differentiating facto between themselves and their competitors in terms of innovative easy linking methods and low merchant costs "AffiliateFuture.co.uk were the first site to provide a shopping search to affiliates. The Advanced Shopping Search tool is the first shopping facility to return individual products, pricing, images and merchant seller of any product." Peter Dickenson, Account Manager.

4.2.3 AffiliateWindow.com
Affiliatewindow.com were a slow starter in the industry. In the early years they were perceived as the poor relation. However, by releasing themselves from the shackles of a third party tracking software company, they have developed their own in-house tracking and have gone on to become one of the industry leaders in affiliate solution providers. Affiliatewindow.com have become innovators rather then followers which can be attributed to their team of specialists in software development and affiliate marketing practices. Affiliatewindow.com have an anti parasite policy and fast affiliate payment.

4.2.4 Befree.com

Now part of Valueclick - see CJ.com below

4.2.5 CJ.com

Recently acquired by Valueclick and part of Befree.com. CJ.com's roots are based firmly in the USA with a satellite office here in the UK. The Network of merchants and affiliates is enormous. CJ.com lost a bit of their popularity over the years, perhaps becaming victims of their own success. The support service, as an affiliate and as a merchant, was poor. Navigation of the website was a long and frustrating experience. However, CJ.com are addressing these issues and improvements are on the way. The software does calculate in $ US dollars, which can be confusing for both the UK affiliate and UK merchant. However this is another issue that is currently being addressed. The UK team is very supportive and attentive. CJ.com currently has "spyware" partners in their network but you can ask for them not to allow these affiliates to have access to your program.

4.2.6 DealGroupMedia.com (also known as Ukaffiliates.com)

As one of the pioneers in affiliate marketing they continue to evolve incorporating a bespoke formula to enhance their merchants' performance. However, one drawback is that merchants are unable to communicate with their affiliates directly. With their merger with Webgravity in 2003, DealGroupMedia are able to offer an extensive range of complementary services, which they see as the main differentiator between themselves and their competitors. "Last year's merger with search company Webgravity led a wave of consolidation in the market - the future holds continual active progression and the breadth of services differentiates us from competitors." James Cooper, Accounts Manager

4.2.7 Kowabunga Technologies

Founded in 1996 in Westland, Michigan USA. By being a software provider rather than a network, Kowabunga charge only for the solution software and services and neither charge a percentage of sales nor require a monthly minimum payout of commissions. Merchants also own the relationship with their affiliates as well as having the freedom to contact them whenever they wish. Their marketing partnership is with TeamAffiliate.com who manage, for a fee, the merchant's affiliate program. The software is not cheap but for any merchants wanting to set up their own in-house affiliate program this company appears to be very popular. Some of their clients include Buyagift.co.uk and Chipsworld.co.uk

4.2.8 OnlineMediaGroup.co.uk

Online Media Group's affiliate marketing division OMGUK.com was launched in 2002, initially focusing on Financial Services and Insurance programs, but more recently exploring other mainstream product categories. Unlike many networks, OMGUK.com is paid purely by performance, with no set up or management charges. OMGUK.com see their key points of difference as being "No set up or management charges. Heavy emphasis on account management and brand protection. Active affiliate recruitment and management." Oli Matthews, Head of Client Services. One draw back is that merchants cannot communicate directly with their affiliates.

4.2.9 PaidOnResults.com

PaidOnResults was set-up by two long-standing affiliates who have worked in the industry since 1997. They are an affiliate focused company and believe that if you don't give the same level of service to your top affiliates as you do to your merchant clients then you will not deliver top flight results for those merchants. PaidOnResults are very selective in the type of merchant / partners they bring onboard. Although one of the newest affiliate solution providers, PaidOnResults is a highly innovative affiliate marketing company. For example they were the first network to introduce "customer base" programs. "We very much see Paid On Results being the market leader in two years time. We will achieve this by being honest to our partners, providing new and innovative tools and ideas for marketing in this sector and simply by driving quality and effective results for both merchant and affiliate alike." Clarke Duncan, Director.

4.2.10 Perfiliate Technologies

A percentage of the revenues that Perfiliate (the company behind the Buy.at community webshops) earns goes to a charity. Buy.at says that their success is built on their relationships with their top performing affiliates. "We make sure we do the basics right like always being there for support and always paying on time." Malcom Cowley, Affiliate / Merchant Manager. Amongst their client list they boast Marks & Spencer, Amazon.co.uk, RAC & Blackwells.

4.2.11 TradeDoubler.com

"With a local presence in 15 European markets and a client base of 660 advertisers and country networks totalling nearly half a million publishers, TradeDoubler is the only truly Pan European network." Nicola Reed, Public Relations. Tradedoubler.com is a very polished company with is roots based in Sweden. Their linking methods are the same as most affiliate solution providers but with a heavy emphasis on dynamic linking. All affiliates must be pre-qualified by the merchant before allowing the affiliate to place the merchants' links on their website. Their software and reporting has come on leaps and bounds over the last year. TradeDoubler.com are popular amongst big brands. Clients include Apple, Dell, John Lewis, Renault and Kelkoo

4.2.12 Wheel

Wheel is a UK-based full service digital communications agency with an impressive client list. Their affiliate marketing solution is part of a much broader agency offering but they are the first such agency to recognise the benefits of affiliate marketing and develop skills and expertise in this area to offer to their clients such as Laura Ashley, Bank of Scotland, Freeserve, Opodo, Marks & Spencer.

Below are two Affiliate Solution Providers not profiled in more detail in the affiliating matrix which follows in Section 5:

4.2.13 Referback.com

Gambling is one of the most lucrative markets on the internet, which explains why you see more and more online casinos and sports books opening their virtual doors. There are several established software suppliers like MicroGaming and PlayTech. Their software not only contains the casino and games, but also the affiliate tracking software.

The online gambling industry is also one of the most controversial industries and in several countries it is illegal to offer or advertise online casinos and / or sports books. For several years the US government has tried to pass legislation, which would make online gambling illegal. Recently the South African government voted and accepted laws, which will make online casinos and sports books illegal in their country. This was unexpected by many of the online casino operators, gambling marketing agencies and MicroGaming, who are all based in South Africa.

One of the first operators of online casinos in the industry is the Belle Rock Gaming Group, which runs several well-known online casinos like The Gaming Club and River Belle casino. Their affiliate programs are managed and marketed by ReferBack which again is one of the first companies to offer webmasters the opportunity to market online gambling on their web sites. More and more affiliate marketing companies are emerging in this industry e.g. WagerShare, CasinoProfitShare and IOG Ltd. There are several forums on the internet where you will be able to contact these affiliates. One of the most well known ones is probably the GPWA (https://www.gpwa.net).

4.2.14 Smartquotes.com

SMART-Quotes Ltd is a personal finance broker established in 2001. They provide access to products and services from the high street lenders, insurers and credit card issuers. They use affiliate marketing as the way of advertising their comparison services. Smart-Quotes is still emerging in the marketplace and if their friendly approach is any thing to go by, we envisage this finance specialist affiliate solution provider to be up there with the rest of them come 2005.


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