introduce affiliation marketing and referrals into your web strategy

Introducing Affiliation Marketing into your Web Strategy

Panel by:Juan A. Rodríguez

E-commerce Manager Aspasios.com

Summary1. What is Affiliation

2. Main Platforms Worldwide

3. Affiliation Pitch and Players

4. SWOT analysis on Affiliation

5. Referral and Loyalty Programs

6. Setting Up your Strategy

7. Cases


VRMA European SeminarJuan A. Rodríguez

Travel Distribution is a complex World…



Direct Sales Online are the most profitable ones





What is Affiliation Marketing?



How Aff. Mkt. Works?

Business Model that better suits for you





√ Basics of AffiliationWhat is AffHow works

Your Business Model?

Actionable Tips

The Affiliation Pitch





Affiliate Networks

Affiliate Networks are the Professional Marketplaces:

Brands have to pay a fee

Brands have to follow its rules (Tracking –Goals-Norms)

Marketing Cost (Brand):

- Set Up fee - Montly fee per use: +- 300€- Commission Fees: around 6% ( to be divided between the network (30%) and the Affiliate itself (70%)

BRANDS

Brands pay commissions from the € they generate in the Marketplace

Brands are promoted in the marketplace

In this special “league” they use players thanks to the Marketplace



The Players (Affiliates)

Affiliates = Players

They get money from the Brand through Marketplace (or directly in Owned

Programs)

Brand pay a commission per sale Player-Affiliate gets % from commission

Cost of Owned Programs:

- Technology to track sales and provide a backoffice

- Billing system- Person/Team recruiting Affiliates…- $$$$$



Agencies

Agencies = They negociate best agreement within

MarketplaceBetween Brands and Affiliate Networks

They get money from the Brand and pay Networks from it

Marketing Cost (Brand):

- From 10% onwards

- They work as an “Affiliation Manager”



Minimum Requeriments to play the League

Product (€) With margins to pay Affiliate Networks, Affiliates, and/or Agencies

Website with online booking

Drive to conversion

IT team?

Affiliation Manager?





Analyse your situation

√ Are you ready for Affiliation?

Choosing your business model ?

Deciding who to work with



Actionable Tips

SWOT: Strenght

Pay per result only sale/lead/call…

International Sales

Visibility

Niche Markets: couponing, emailers,

mobile…



SWOT: Weaknesses

Investment: resources, human, time

Canibalization between channels

Learning curve

Bookings duplicity

Cookies regulations



SWOT: Opportunities

New Business Opportunities

Apply features in our website

Reinforce our Brand in new markets opened first with

Affiliates

Mobile Apps/Marketing

Introduce Referral Programs



SWOT: Threads

Cookies Regulation

Tracking methods if cookies decline

Cross channeling: Users can use mobile, desktop, etc and difficulty to track sales

increase

The end of Affiliation…as we know it





Affiliation Software



• There are not universal solutions

• Depending on your needs you can opt to use an “Affiliation

Software”, build one, …”

• Affiliation is not for big companies only

Actionable Tips

Referral Marketing

Start-ups are using it to grow

Focus on “signups” or leads

You are never too small to use marketing tools





http://www.slideshare.net/mattangriffel/growth-hacking



4 Steps to launch an Affiliation Program

Design

Provide Recruit

Mesure


VRMA European SeminarJuan A. RodríguezCase Study



Case Study



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