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The E-Commerce Affiliate Marketing Opportunity © Copyright 2002, All Rights Reserved. May not be used without permission of the publisher.

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Presentation on theme: "The E-Commerce Affiliate Marketing Opportunity © Copyright 2002, All Rights Reserved. May not be used without permission of the publisher."— Presentation transcript:

1 The E-Commerce Affiliate Marketing Opportunity © Copyright 2002, All Rights Reserved. May not be used without permission of the publisher. Contact (301) 916-3900 EST. Presented by:

2 Affiliate Marketing Terminology… Merchant or Advertiser: an online business that markets and sells goods or services. Merchants establish affiliate programs as a cost-effective method to get consumers to purchase a product, register for a service, fill out a form, or visit a Web site. Affiliate or Publisher: a Web site owner that earns a commission for referring clicks, leads, or sales to a merchant.

3 Affiliate Marketing Terminology… Affiliate Marketing is a form of performance- based, partnership marketing in which a merchant pays a commission to an affiliate for generating clicks, leads, or sales through graphic or text links advertised by the affiliate on his website or in his newsletters. Performance Marketing is any form of online advertising in which a merchant/marketer pays purely for desired results, rather than paying for frequency and reach.

4 Affiliate Marketing Terminology… Software Solution Provider: A company that provides the basic tools necessary to administer an affiliate program, including, but not limited to, the ability to register affiliates, provide advertising to affiliates, and to track all activity at the affiliate level. Network Solution Provider: In addition to providing the tools necessary to administer an affiliate program, these companies also have large numbers of website owners who participate in affiliate programs registered with them. These affiliates then have the opportunity to review and join merchant programs offered through the network.

5 Affiliate Marketing Terminology… Affiliate Program Manager: An individual or group within an organization responsible for the success of the affiliate marketing channel. Key functions include: new affiliate acquisition, marketing training and support to affiliates, relationship development, and much more. Outsource Program Management: An external organization that expertly fills the role of the Affiliate Program Manager for its merchant clients. Such companies typically have deep knowledge of the affiliate marketing arena and key relationships in place.

6 The Amazon Associates Program, launched in July 1996, was not the first. Although today it’s the largest with over 500,000 affiliate partners. CDNow came first with their buyweb program in November 1994. (October 1995), (January 1996), and EPage (April 1996) all pre- date the Amazon program. History of Affiliate Marketing

7 LinkShare was the first affiliate network solution provider when they launched in 1996. Be Free also started in 1996 and is currently the only publicly-owned solution provider. Commission Junction launched in November 1998. Currently, there are seven network solution providers and over 15 software solution providers. History of Affiliate Marketing

8 The Affiliate Marketing Opportunity… Affiliate Programs Will Account for 20% ($53 Billion) of E-Commerce Sales by 2005 – up from $10.5 Billion in 2001. Based on U.S. sales only. Currently, there are over 10,000 merchants who utilize the affiliate marketing channel, including eight of the top ten e-commerce retail sites. This is not surprising considering …

9 Affiliate programs can be launched for as little as a few hundred dollars. The performance-based nature makes this channel extremely attractive and low risk. The Affiliate Marketing Opportunity…

10 Reason #1: The merchant’s site is unsuccessful, which could be due to a number of reasons … a weak business concept, a poorly written and designed site, unattractive pricing, etc. Opening the affiliate marketing channel is not a panacea for a weak online business… Why are many affiliate programs unsuccessful?

11 Reason #2 Inadequate resources are devoted to affiliate marketing initiatives. Unlike other advertising channels, a significant challenge exists in expanding one’s advertising through affiliate partners. Even affiliates who choose to partner with a merchant are not obligated to advertise for that merchant. Affiliates must be treated like an in-house sales force. They must be trained, motivated, and provided with effective sales tools. Why are many affiliate programs unsuccessful?

12 Your Affiliate Marketing Solution provides a complete, outsource solution to the management of its select clients affiliate programs. Whether you’re looking to launch a new program, or your existing affiliate program is not meeting expectations, LinkProfits’ group of experienced program managers and consultants are eager to assist you.

13 Jim Gribble Founder, E-Mail: Direct phone: (301) 916-3900 EST To request a free, no obligation proposal that addresses your specific needs, please click here To learn more about what LinkProfits can do for your partnership program initiatives contact:

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