5 Steps to Accelerate Your Affiliate International ExpansionCristian Miculi – Sr. Affiliate Marketing Manager

2

› Profitability – is it worth expanding?

AgendaAccelerating the International Growth through Affiliates

› Where to develop locally?

› The 5 steps to accelerate expansion through affiliates with examples

3

a

Who I amCristian MiculiSr. Affiliate Marketing Manager, Avangate

+1 650.249.5280 ext. 4645 cm@avangate.com linkedin.com/in/cristimiculipop

6+ years of hands-on experience within affiliate marketing in the digital goods area (managed over 100 affiliate programs)

Presentations at Affiliate Summit / other affiliate venues

Published articles in FeedFront, Revenue Performance magazines

Focus on growing affiliate programs for merchants

4WHY?

SO YOU WANT TO EXPAND VIA AFFILIATES…

5

Definitely take it into account if…You have products that can serve multiple local markets

e.g. appliances, clothes, software products, subscriptions, relevant eBooks and magazines

The business model is easy to scale internationally e.g. digital goods, locally manufactured physical goods

You’re getting relevant traffic (5%+ of total) from other countries

You’re getting inquiries about availability in certain territories

Are you ready to expand via affiliates?Run a profitability check

6

Think twice before making this step if…Affiliates are not generating significant sales for you

e.g. min. 5% of your total volumes via affiliates

The products you sell have a high selling pointe.g. cars, housing - rentals, professional business products

You sell local specific services that don’t apply to other marketse.g. credit scoring, insurance, transport

Going abroad would mean a huge logistical investment from your sidee.g. showrooms, product stocks, etc.

Just try itWorst case scenario: turn the expansion into a long-term deal

7

Where should you expand?Western Europe, China, Japan, Australia, Brazil, India

8

Hot affiliate niches – digital goods verticalUtilities, security, audio-video in English speaking countries, Germany, etc.

Top 10 countries with affiliate referred sales1. United States of America

2. Canada

3. United Kingdom

4. Australia

5. Japan

6. France

7. Germany

8. Netherlands

9. Brazil

10. Italy

Top 5 niches in digital goods vertical1. eBooks2. Utilities / PC Support3. Monitoring / Security4. Audio-video tools5. Productivity

Source: Avangate stats, December 2013

Regional affiliates examplesDownload.com (US)Altech-Ads (Japan)Chip.de (Germany)01Net (France)Softonic (Spain)Siliconaction (Brazil)PC Advisor (UK)

9

a

Accelerating ExpansionYou decided where to go.You know you want to use affiliates.

10

5 Steps to Accelerate the Affiliate ExpansionCustomize offer, get local assistance, reward performance

1. Customize offer – website interface, payment methods, support

2. Use local affiliate networks for recruitment

3. Get help from local agencies / OPMs on managing the program locally

4. Nurture relationships with performers – get them to sell more

5. Address the local opportunities – hot shopping dates, events

11

Choose partners to support you with… Local payment methods

Tax handling – Merchant of Record

Support in local language

Customized shopping cart & emails

Regional pricing

Localized websites

1. Customize OfferDress like a local

12

France’s Carte Bleue has a market share of 60%

Alipay is the dominant online payment platform in China, accounting for approximately 50% of the market.24% of all online

payments made by Brazilian shoppers are processed through the Boleto Bancario system.

Konbini payments account for up to 17% of ecommerce transactions in Japan.

Over 25% of shoppers in the Netherlands prefer iDeal, a standardized online banking-based payment method.

13

ActionsCustomized shopping cart

Regional pricing

AVS4YOU – 40% increase in sales volumesThrough localized shopping cart and regional pricing

Put your screenshot hereResults5% increase in conversion rates

30% decrease of shopping cart abandon rates

40% more sales in France, 20% increase for Germany

Source: Avangate

14

ActionsLocalized website for Germany, including presentation video!

Got local support number

Started supporting local payment methods

99Designs: +50%-60% growth in DE vs. USAfter localizing the website for Germany

Put your screenshot here

Results50 to 60% increased growth in Germany vs. US

Source: TNW Conference Europe 2013, Keynote Patrick Llewellyn, 99Designs CEO

15

When searching… Segment the affiliates from the network you

already work with

See which business models they support

Ask for clients case studies

Get a look at their top publishers

Look into the possibility of them managing your program in their network

2. Use local affiliate networksRecruit people that target those regions

North America: CJ, ShareASale, LinkShare

Europe: Zanox, Affiliate Window, Trade Doubler

Latin America: Clickmagic, Soicos, Pampa Network

Asia: 8Affiliate, J-A-Net, DGM-India

16

ActionsPartnership with local affiliate network adTriplex

Local affiliate network to manage program

Kaspersky Turkey – 400% uplift in salesFrom local affiliate network

Put your screenshot hereResultsAffiliate sales going through adTriplex grew the overall program performance with more than 400%

Source: Avangate

17

Have the relevant leverage for your expansion Save time & money – focus on other things

Accelerate adoption – agencies / OPMs hold the relevant relationships

See other local opportunities you may not have thought about

Get an expert advice on where to take your program further

3. Get local help to manage programUse agencies and affiliate OPMs with local knowledge

To help your local online presence, also look at agencies for the other channels as well as:

Market research

Lead generation

Localization of campaigns

18

ActionsHired local agency to handle UK affiliate program: day-to-day management, recruitment, campaigns proposals, reporting.

Bitdefender UK: +50% YOY in affiliate volumesWith local agency handling affiliate program

Put your screenshot hereResults50% YOY increase for the UK program

Source: Bitdefender

19

Identify, reward performance, motivate You might have affiliates in your original

program that are able to sell locally

Use performance tiers and adjust them according to territory specifics

Keep the communication open – you’ll be the first to know about a better deal from your competitors

Meet your affiliates at events

4. Nurture relationship with performersAffiliate manager important for 75% of affiliates

Source: AffStat 2013 Report

20

ActionsCustom version for Incredimail users with special discounted pricing to penetrate US market.

Special affiliates commission for Incredimail.

Exclusive email and holidays campaigns for Incredmail users to increase adoption.

IObit – top local affiliate doing 66% of salesPartnership with Incredimail to penetrate US market

Put your screenshot here

Results60%+ of affiliate volumes of Iobit were generated by Incredimail

Source: Avangate

21

Get noticed locally: Create a calendar of local holidays and hot

shopping dates

Take part at local performance marketing events for networking and education

Run ads on influencer blogs / magazines

5. Address the local opportunitiesBuild affiliate awareness to your program

22

ActionsLaunched program on network with local capabilities whose account managers helped with local, shopping, cultural and language issues.

85% increase in UK sales for YesAsia.com Via customizing website information & recruiting local affiliates

Put your screenshot hereResultsYesAsia.com affiliate program has seen an increase in sales by:

• 86% across the UK,

• 97% across USA,

• 65% across France

• 58% across Germany.

23

Recap: Accelerating Affiliates ExpansionCustomize offer, get local assistance, reward performance

• +40-60% more sales1. Customize offer – website interface, payment methods, support

• +400% more sales2. Use local affiliate networks for recruitment

• +50% more sales3. Get help from local agencies / OPMs on managing the program locally

• +200% more sales4. Nurture relationships with performers – get them to sell more

• +86% more sales5. Address the local opportunities – hot shopping dates, events

24

Successful expansions via affiliatesWhere can you get more examples?

Put your screenshot here

Ask the affiliate network you’re working with about this

See case studies from local agencies and affiliate networks

Online marketing communities / affiliate marketing blogs: eConsultancy, Geno Prussakov, ABestWeb, etc.

25

TO BOLDLY GO WHERE MANY HAVE GONE BEFORE

EXPANDING THE BUSINESS VIA AFFILIATES

26

1. Be ready to address the local market

2. Use affiliates to penetrate the new local market – risk-free

3. Get all the local help / experience to drive your efforts

4. Be educated about the local opportunities and take advantage of them

5. Monitor what your competitors are doing and keep your performing affiliates loyal

Key TakeawaysJust Try It!

Avangate B.V.Amsterdam, The NetherlandsTel: +31 20 890 8080

Avangate Inc.Redwood Shores CA., USATel: (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