5 posts categorized "Affiliate Business"

May 20, 2008

Growing Pains - Collaborating with Remote Workers

Our affiliate business, imwave, continues to grow, and the days of being a one man shop are long over.  Now I find myself looking at solutions to help manage a growing team.

Having read many great reviews of Basecamp, I have started testing the tool as a way to help keep track of what people are working on and to make sure important pieces of projects don't fall through the cracks.

There are a lot of project management tools out there, but this one seems to be getting a lot of traction.  It allows you to easily manage the communications and tasks involved in just about any kind of project.  You can have multiple teams of people both internal and external with access to the projects they are working on.

Pretty cool.

Has anyone out there used Basecamp?  I would love to hear your thoughts?  Are there other tools you like better?

Home Business Technical Support

Affiliate marketing businesses are great because you have lots of flexibility and if you work hard you can make quite a bit of money, but running your business out of our home can be challenging, especially when you have computer problems.

Now, I am fairly technical and can fix most software issues that arise, but lately I have been having some hardware issues with several computers at home.

I have had two laptops with broken powerjack issues (no way to charge them up), and another where the USB ports have decided to quit on me.

So I went to the number 1 organic listing in Google for "Laptop Powerjack Repair in Reston Virginia" (onCall258.com), gave them a call, and they came out to my home, picked up the laptops and fixed them up for me (actually the USB problem ended up being larger than I wanted to fix, so I kept that one with the broken USBs).

Score one, for local search engine marketing and search engine optimization efforts for onCall258!

Now I have my own local tech support team, cool!

If you can't find a local computer repair shop in Google, check out Angie's List, they have been life savers for me as well.  Found someone to help me out with my Squirrel issue there.

Oct 11, 2007

Sell Luxottica Group (NYSE: LUX) - Shutting down Ecommerce in Q4!!!

Earlier this month, I posted an article about information from the affiliate channel being used to predict stock prices.  Here is one you might want to take advantage of!

Luxottica Group (NYSE: LUX) is a leading company in the optical industry and owns a number of companies including Sunglass Hut, LensCrafters and EyeMed.

Here is the message we received from the Sunglass Hut affiliate team a few days ago:

In November, Sunglass Hut will unveil the first phase of its redesigned Sunglasshut.com website. The new site will deliver an outstanding online experience with the hottest brands and the latest styles.

The new Sunglasshut.com will elevate the customer experience through Fashion, Selection and Knowledge.

As Sunglass Hut launches the first phase, it will temporarily disable its E-commerce functionality on the site.  Sunglass Hut will reintroduce E-commerce to the site during the second phase of the redesign in Spring 2008.  Sunglass Hut promises to deliver an equally outstanding online buying experience with upgraded shopping cart functionality.

Please remove all banners and links by October 15, 2007.  The program will be temporarily paused and commissions will be suspended for the entire program until the site redesign is complete in 2008.  Please note that all relationships will remain intact during this time period.  Another communication will be sent when banners and links can be reinstated. 

Sunglass Hut and DoubleClick Performics look forward to working with all of our affiliate partners again in 2008 when all phases of the site redesign are complete.

As always, thank you for your support of the Sunglass Hut Affiliate Program. 

Please feel free to contact us if you have any questions.

Wow!!!  I would think that there would be a way to redesign the site in a development environment and keep E-Commerce running until the new system was ready to launch.  I can't imagine that shutting down online sales until next spring won't have an effect on their stock price.
The stock is up almost 11% this month, so it's probably a good time to buy some puts...

Maybe people just don't buy sunglasses during the Christmas season and winter skiing seasons.  No skiing, no vacations, no glasses?

I'm not sure how much of their business comes from online sales, but I'm sure it is not negligible.

You see a lot of odd things in this industry!

Oct 10, 2007

Misinformation in Affiliate Marketing

Each day I am surprised by the level of misinformation that is being spread regarding PPC marketing. It all started with Google’s one URL rule and has snowballed from there. Some is being propagated by internal search teams and some by outside agencies. Either way it all boils down to protecting their turf.

The Direct Linking issue has been one that is most often misunderstood.  Here is an example of a recent communication that I had with a program manager via email.

[PROGRAM MANAGER]
IMWAVE is in violation of MERCHANT’s keyword policy. MERCHANT affiliates are not allowed to use www.MERCHANT.com (or any variation thereof) as the visible URL. Please comply ASAP or we will have to deactivate you.

[ME]
Thank you for your email.  I have paused all of our promotions for MERCHANT while I review our campaign.  Imwave does not currently build out landing pages for our merchant partners and instead works only with ones that we can direct link to.
Do you have an alternate URL that we can use to promote your company?  If not, I’m afraid we may have to stop promoting the MERCHANT program permanently.

Thanks in advance,
Tony

[PROGRAM MANAGER]
Thanks! I'll get back to you with our Search Policy as I am waiting for an update from the Search team over here. As far as I know, you can use your affiliate links to link to MERCHANT but the display URL in the ad can not be www.MERCHANT.com or any variation of that.

Otherwise, our own ads get knocked out.  I'll get you the search terms as soon as I have them in hand.

Note that the Internal Search Team is apparently writing the Search Policy

[ME]
I appreciate you looking into this.  There are a few concerns that I wanted to share with you.  In Google, if I directly link to the URL from your CJ links (MERCHANT.com) Google requires me to show MERCHANT.com in my ad.  If I show something else, they will shut off my ads for violating their guidelines (inaccurate display URL).  It may not happen immediately (usually does) but it will happen, so that is not a good long term solution.

As PPC marketers, the chances that our ads will “knock out” yours, is almost zero even if we use your URL.  Many times, internal search departments do not understand this and simply think that allowing it will increase their costs.

In the rare case where our keyword terms do overlap, we would typically not be bidding high enough to have our ads show over yours.  The hope is that we can generate a huge list of terms that you are not currently bidding on and if that’s the case, then again there isn’t a conflict on ads.  We have done this with other advertisers very successfully and without increasing their internal search costs.  If this sounds like something you may want to pursue, please let me know.  I’d be happy to have a call to discuss how we have made this work with other large merchants.

Tony

[PROGRAM MANAGER]
According to our Search team, 2 ads can't use the same display URL on the same keyword. One will always be knocked out. If you are seeing otherwise, we'd love to see a screenshot.

Per Google’s policy: http://www.google.com/adwords/learningcenter/text/18928.html
Affiliate Policy: Affiliates get paid a commission to promote a merchant's website and drive traffic or create sales on that site. We allow affiliates to use AdWords advertising. Please note that we will only allow one ad for affiliates and parent companies sharing the same display URL per search query.

As far as bidding on terms we are not bidding on, you are right. It would not raise our costs. However, MERCHANT has not given any affiliates permission to use the display URL www.MERCHANT.com so, for right now, that option is blacklisted. This is not to say that it won't change in the future. We're in the process of building a new affiliate/search policy to present to MERCHANT so this is something we will bring up with them.

[ME]
Yes, that is Google’s policy.  It is 100% correct that 2 ads can not show at the same time for the same keyword and using the same display URL. 

The issue is which one will get “knocked out.”   My point was that even if we had the same display URL AND the same keywords the chances that we would knock out MERCHANT are slim to none.  The merchant will typically always be bidding higher than an affiliate and that higher bid will knock the affiliate out, rather than the other way around.

It’s about gaining a volume of keywords.  I realize that you must adhere to their policy.  I just wanted to point out that they may be losing volume due to a lack of understanding of the process

Tony

PPC affiliates typically can not afford to bid high enough to trump the merchant’s ads.  There is also another key point in this correspondence.  Channel conflict with the affiliate program.  The affiliate channel is like hiring a commission only sales person, generating sales at a fixed cost per acquisition.

In my mind, placing an Internal Search Team in charge of creating the Search Policy is tantamount to having the fox guard the hen house.  Our industry has got to find a way to get our message up to the “C” level. 

Can you imagine a conversation with a company CFO about what we do?
“Wait, you are generating incremental sales, I don’t pay you unless you sell something AND each sale is at a fixed CPA.”

UPDATE:
As it turns out the Program Manager here works for an Agency not the merchant.  The Agency is apparently handling both the Internal Search AND the management of the Affiliate Program....now that REALLY is the fox guarding the hen house! 

Oct 05, 2007

Insider Affiliate Stock Trading

Affiliates aren't considered "insiders" as far as the SEC is concerned for the companies that they market, but a lot of time as affiliate marketers we get some visibility into the health of a company that others just don't see.  Is a company's website converting really well?  Better than their competitors?   Has a company's site conversion rate dropped significantly?  Has a company made some communications to their affiliate partners that might indicate future trouble for the company?  We see this information all the time!

Here is an example.  Like a lot of affiliates we have a relationship with Walmart.  In June of 2007 we got a notice that Walmart was cutting their commission rates due to budget issues and that all departments across the board were being asked to make cuts.  Take a look at Walmart's stock chart from June of 2007 until today:

Wmt

That's almost a 10 point slide!  Predictable?   Probably.   Shortly after that email came out they totally missed their quarterly numbers.

Here is a stock chart for a company we started marketing back in October of 2006.  The campaign shot through the roof from day one.  I didn't know much about the company, but had I purchased their stock based on the strong site conversions I was seeing, I could have made a pretty penny:

Stock

Maybe there is a business around using affiliate conversion data to predict stock market behavior?

What do you think?

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