Posts Tagged ‘affiliate’

Going Exclusive with your Affiliate Advertiser

Tuesday, August 31st, 2010

Please, please, please tell me that you are not doing this. If the company you are working for is asking for an exclusive… they are scared you are going to leave because they don’t have best pricing. They want to limit your ability to shop… because they know you will find better.

It’s not like a relationship… in a relationship you ask for security because you want commitment to start a family… you want commitment so that you don’t catch an STD… or, maybe because you love them and they love you and that is a great way to show it!

Unless you are some perverse person- you are not going to start a family w/ your affiliate program, you certainly aren’t going to sleep with it (unless you find yourself with an attractive account manager at 4:00am at a conference in Vegas drunk as a skunk), and if you are in love with your affiliate program then you need a life.

Ever since I have been in this industry- even when I knew I had the best payouts by a long stretch I have always encouraged affiliates to continually test at least 5% of their traffic somewhere else. Why? If your affiliate program cares about you they would want you to have your eggs in a few baskets. What if their servers go down- who do you switch to on a dime? If someone acquires them and squeezes your margin you need an out… where do you turn? If they care about you they won’t lock you in to something that doesn’t make sense for you.

Look at it this way… let’s say Nike comes out with an awesome shoe. You freaking love it!! However, in order to get the shoe you have to promise to buy Nike’s for the rest of your life. Would you do it? Nike now has the power to get lazy, produce a terrible product- and you will be stuck with it. It creates inefficiencies in the marketplace- and the person getting the short end of the stick is you.

Just be careful- going exclusive gives the advertiser all the power, and allows laziness to creep in. You are at your best, and have the best opportunity if you can continually hold your program accountable. Have a great day!

The end of first generation insurance lead gen

Tuesday, August 17th, 2010

I don’t know about you- but I thought the apocalypse would be a lot different… I thought there would be balls of fire showering the earth- I thought stars in the sky would be exploding- I thought the world would spin on it’s axis 10 times faster… nope… nothing like that… the only byproduct is that online insurance will never be the same.

What a summer- and, my friends, the chaos is not over yet. It’s actually all very exciting and I hope that the result is a better consumer experience- and a better affiliate marketplace. Traditionally I write about universal topics that most in the industry can relate to. This time- I am going to focus on the industry that is near and dear to my heart- insurance. Why- because this summer has been freaking exciting.

So, now let’s do some gossip… NetQuote is the largest lead generator on the block… and they were rocking. Insureme was the second largest with a pure lead generator model. Insureme was acquired by BankRate who was acquired by Apax. Then, NetQuote was also acquired by BankRate… they wanted to grow and they wanted to grow fast!! Holy hundreds of millions of dollars changing hands Batman.

Concurrently- Insurance.com- en route $100MM annual revenues in 2008 made a series of strategic mistakes and started into a death spiral which came to a head this summer when they had to fire sale to QuinStreet and WhiteMountain. Not quite hundreds of millions of dollars- but not too shabby of a deal for a fire sale.

Aside from the obvious- that NQ and I.com were the two powerhouses in the Insurance vertical outside of carriers- these two companies primary revenues were made up by you Mr and Mrs affiliate. You hold a lot of power- and what you do makes others a lot of money! Make sure you are getting your share!!

Now, after these types of large acquisitions there is are some inevitable changes. For earn out purposes- margin goals tend to be high- and so sometimes payouts shrink… watch this carefully. Philosophy shifts are common- so reach out to your new account manager and make sure you understand where the new company stands. It’s a great time to refresh the relationship with your account manager- and see what is new- and what you can do to get fee increases, and drive more quality traffic. Personnel changes happen- so make sure you know who your account manager is and not a casualty of the exchange.

Anyhow, congratulations affiliates- for building up very strong companies that looked exceptionally lucrative in the purchaser’s eyes. You should commend yourself for a job well done. Hip Hip Huzzah.

Moss Affiliate March Madness

Tuesday, April 6th, 2010

With all eyes on Indianapolis, the championship game came down to a perennial powerhouse playing the role of villain against this year’s hometown “Cinderella” team. And after the dust settled and the confetti dropped, Duke emerged as the new national champion.

With the raising of Duke’s national championship trophy, it signaled the close of the first annual Moss Affiliate Marketing March Madness Bracket Challenge. With one of the most unpredictable tournaments in recent memory, while all the brackets faced adversity at some point in the tournament, the standings were not decided until the final game. The MAM team wants to congratulate:

1st Place - Patrick D. – 72 points
2nd Place - Daniela S. – 70 points and won tiebreaker
3rd Place - Dan W. – 70 points

The complete standings can be found below. We appreciate everyone who took time to complete a bracket and look forward to challenging you in future contests. If you have any ideas for future challenges, please contact your account managers.

Rank Team Name Score Correct Champion
1 Patrick D 72 35 Michigan St. (138)
2 Daniela S 70 36 Kansas (128)
2 Dan W 70 36 Kansas (0)
4 KJ W 68 41 Syracuse (162)
5 Allen B 65 36 Kansas (107)
6 Aric L 64 39 Kansas (137)
6 Top Ten 64 39 Kansas (0)
8 Susan W. 61 33 Kansas St. (146)
8 Wendy B 61 32 Syracuse (8)
10 Brandon R 59 35 Kansas (127)
11 Jack C 58 34 Kansas (136)
12 Adam T 54 36 Kentucky (140)
12 Jenn C 54 32 California (201)
14 Dave K 53 34 Syracuse (166)
14 Steve C 53 33 Texas A&M (145)
16 Patrick P 49 32 Syracuse (107)

The MAM Team New Year’s Resolutions

Thursday, January 14th, 2010

With the New Year come resolutions! Below are our resolutions for 2010, share yours with us too!

Brandon Roush - Account Manager
1. Make my own wine
2. Learn how to hit my driver
3. Spend more time reading

Kate Budd - VP Marketing
1. Have the will power to resist the cupcake, piece of chocolate or any other chocolate item in my vicinity calling my name while I am working (then hating myself when I cave in and eat it).
2. Accept technology for what it is and don’t let it get me so mad when it creates extra work (especially when it means my computer may be in danger of being thrown out the window or run over by my car thus costing me money).
3. Resolve to live in the moment (well, not when technology is totally pissing me off – that I need to get over!)

Jenn Cmich - Account Manager
1. Learn how to use my iphone for more then calls, emails and Facebook – get my money’s worth out of it, embrace it’s capabilities and start using some cool apps.
2. Remember to use all of my gift cards before the expire.

Paul Moss - CEO
1. I resolve to make all the active affiliates in our program millionaires within 5 years!

LeadsCon Golf Tournament Feb 22, 2010

Friday, January 8th, 2010

It’s that time of year again!! Can you believe it!?! I hope that everyone had a wonderful holiday season.

LeadsCon is approaching- so I thought I should start thinking about the annual golf tournament again. This year the venue will be http://www.royallinksgolfclub.com/ which we have negotiated a price of $129 per round. Format would be shotgun, 4-man best ball scramble.

We would hold the event the day before Leadscon (Monday, Feb 22nd around 12:30 in the afternoon). East and west coasters should be able to fly in Monday morning. Transportation to and from the conference hotel will be provided. After the tourney we will head to dinner at Texas De Brazil for any that were interested. Even if you can’t golf- feel free to join us for the incredible dinner!!!

Last year we had around 45 people- and had a blast. I think this year will be a few more- so please guarantee your spot soon- because there is limited space- and LeadsCon plans to advertise it this year. I will do my best to balance teams against handicaps and keep like executive levels on the same teams. If you have special requests on partnerships for business reasons- let me know I will work to make that happen.

1. Please let me know asap if you plan on attending (only golf/only dinner/ or both) First 72 for golf are in. Dinner is open to all RSVPs.
2. How many from your company to you intend to bring along and names and position
3. The approx handicap of every member of your group (terrible(+30)/ bad(+20)/ so-so(+15) /good(+5) /scratch(0) categories will work)
4. Any special requests for partnering (not guaranteed- but I will work to accommodate)
5. If you haven’t signed up for Leadscon yet- here is a link for $170 off the current pricing and $400 off what you would pay at the door:
https://www.regonline.com?eventID=768466&rTypeID=312445 *

Have a great day.
Paul Moss | Owner | Moss Affiliate Marketing

*Discount rate good on new registrations only. Credits or refunds cannot be issued on previous registrations. Discount rate good through February 6, 2010, prevailing rate applies after that. You can ONLY get this special price through the link you are providing and they cannot access it from the LeadsCon website.

Ahhh… Momentum- it’s a funny thing- ya know?

Friday, January 8th, 2010

Hi All!

Sorry for the break- I started a master’s program and all my writing has been applied to my course work… but that is no excuse. I resolve to keep up with blogging in 2010!

I hope that everyone had a great holiday season. Of course I mean with your families and friends… but it wouldn’t be terrible if you had great months of profit as well! ;)

Lately I have been getting a lot of requests to discuss starting an affiliate program, gaining and sustaining momentum, and people who have needed some motivation. If you need motivation- you might be in the wrong business- we are talking about an industry that is well into the billions only a few years in… and we’re not seeing any signs of slowing down! So, with that in mind- how do you get your piece of the pie?

You want to know the secret? It’s HARD WORK! That’s right- nothing that your great-grandfather didn’t tell you when you were knee high to a grass hopper. I have met thousands of affiliates over the years- and the fact of the matter is that there are a lot of wusses out there. They take a hit- or something doesn’t make them a million within weeks- and they bow out- or shift their focus to… ‘Oh Look a Deer’… where was I?

In all seriousness- I call these people the ADHD affiliates. And, quite frankly they are the ones I don’t want my team focusing their effort on. Unfortunately they require 90% of the work if you let them. You see we live in an instant gratification society and affiliates want to be instantly gratified.

It can work that way- but it is the exception and not the rule. Almost every affiliate that has been successful has taken at least 6 months to get any momentum whatsoever! However, the payoff long term is $50-$400K ‘paychecks’ each month. Successful affiliates traditionally take time to set up multiple marketing tests, finite tracking, and sometimes even take a loss in the beginning.

Then- once they start to make money the voraciously tweak, update, evolve and then bite, scratch, and claw to maintain their momentum. The result? Unlimited travel, mobile workplace, ample time with the family, cars, new friends, and most importantly- security that they can take care of themselves and their families for the rest of their life.

Everyone- there is no silver bullet. I wish there was- it would make my job easier. This business isn’t for the weak. It takes some serious flex- but comes with some serious rewards.

I told Jenn that my New Year’s Resolution was to turn all existing active affiliates who are making an effort into millionaires within 5 years. It doesn’t matter where in the process they are (just starting or 3 year veteran) we will get them there if they try.

Quit making excuses. The market is always going to be dynamic. The free ride is over- it’s time to buck up little camper- and time to start kicking ass… well- the kicking ass might start six month from now- but you get the point! :)

Lessons From Eastern Europe- We Could All Learn A Lot!

Wednesday, October 28th, 2009

So I had the distinct pleasure to visit Eastern Europe in early October. Having grown up in an American classroom- I have heard lots of stories about WWII, Hitler, Poland, Germany merged into one country and Czechoslovakia split into two countries as I grew. However, everything I knew was from the mouths of American teachers and textbooks. I have an insatiable curiosity to discover things for myself and not take things at face value.

I learned so much. I was able to talk to several East Germans who were alive during the Second World War. The East Germans are a proud people- and not ones to share too much emotion- but they told me of their hate for Nazi’s and of not being able to speak their mind. They spoke of neighbors being shot on the spot for having different ideals than the regime. I was able to go to an 80 year old man’s birthday party where they heartily sang songs (in German of course) of the freedoms in America. There was a song about marching – and sure enough several gentlemen got up and started marching to the beat. And, yes, the beer, wines, etc were flowing just as fervently as the music. These are a people who’s opinions and actions have been oppressed for almost their entire life- and they found their joy in the simplest of things like the company they kept, song, and drink.

Unfortunately for America and for them- I was the first American they had ever met. They were shocked I was familiar with a Russian folk dance. By the end of the night- despite the fact we didn’t speak the same language we were, and I quote, “best friends” and we had a mutual understanding and respect for each other.

On the drive to that party I saw the location General Patton met up with the Russians to combine efforts to eliminate they tyranny. So much history- and a history littered with chaos, abstract, destruction, genocide, and while there were some bad people there were a lot of really, really good ones.

I visited Dresden, Berlin, Poland, and several towns that had been destroyed in between. These towns are alive and well, and quite frankly- beautiful. In Dresden there is a well known church that was bombed to oblivion. And today it stands, rebuilt, as one of the most beautiful buildings I have ever seen in my entire life. In Berlin I went to a shopping area where I was aghast at the prices of the goods- yet the cash registers were ringing. While these area may have looked a lot different 65 years ago- they are alive and thriving today.

Over the course of the trip I tied this back to affiliate marketing several times. Affiliate marketing history has been littered with rogue behavior, frauders, market dynamic changes that have eliminated thousands of affiliates at a time, and while some bad people there were/are a lot of really, really good ones.

So, yeah affiliates- we have taken our lumps, our bruises, we have seen the worst of affiliate marketing. Now, it’s time for all the really, really good people in the industry to rise up and turn this industry into one that we can all be proud to be affiliated with.

I get calls every week for companies asking me how they get into this affiliate business; what does it entail; or my favorite- “I have been given a budget of $X to explore affiliate marketing- how should I spend it.”

What does this mean? Despite pressures from Google, despite a spotted past- we are relevant. Companies feel this is the wave of the future as a viable distribution channel. I had no doubt this would happen- as I stated a company built around affiliates- but I thought the stage would take years to get to. I remember less than a year ago- everyone who asked me what I do- I would have to go into great detail explaining exactly what it was. Now, I can say affiliate marketing and sometimes people have actually heard of it! These are little things- but huge steps for our business. Ladies and gentlemen- let the games begin and the cream rise to the top. There is nothing that can stop us now- but ourselves.

Treat the industry respect- and compete like hell- ethically. Recognize poor behavior and reach out to the reckless affiliate who is damaging our opportunity to make money.

You see- the money has come, and will continue to come in far greater droves than today. The key to recognizing greater revenue sooner is having a vast majority of exposure to the industry be positive. Those who are doing it right- keep it up and encourage others to do the same. Those who are doing it wrong- quit being jerks!

Don’t be the affiliate Warren Buffet believes will fail- it’s time to work harder!!

Wednesday, October 7th, 2009

If you have read any of my blog by now you know I always compare the online world to the brick and mortar world. There are very fundamental, established, and sustainable concepts/commerce in brick and mortar. When trying to understand what is real and what is a trend in the online sector- I often go back to the basics.

Warren Buffet says he will not invest in technology. I think in his entire portfolio he has two stocks in technology… and this comes from a man who is best friends with Bill Gates. The example he often uses is the emergence of commercial airlines in 1953. He knew that commercial airlines were the wave of the future and not going away any time soon. He wouldn’t invest in them because it was a new business and he couldn’t decipher between the 200+ airlines that quickly arose which one to invest in. As it turns out- he played the odds right. Only two of the original commercial airline companies exist today. He had less than a 1 percent chance of picking the correct one.

Now, take all the technology/innovation that has transpired since he started investing- and he has not invested in a single tech stock until he felt the industry had stabilized… and- as a result he was the wealthiest man in the world. Sure, there were a few people who invested in the correct airline stock and got lucky- but none of them were the richest man in the world.

Now- let’s tie this back to us. A version of affiliate marketing is very prevalent in brick and mortar commerce. Almost every single product (Nike, Kimberly Clark, Pfizer) has a distribution channel that includes using middlemen to get their goods in the hands of the consumer. Despite Google Slaps, Email regulations, CPM disappearance- online affiliate marketing is not going away because it is an established commerce and one that is very needed. The online world is currently working counter intuitively against affiliates- and it is up to you, the affiliate, to right the ship. The time to complain about the market changes is over- and now you need to adapt- so that you can be the one who sustains time.

While all of your competitors are giving up, crying in their soup, moving on to different pastures- this is your opportunity to kick ass. Warren Buffet won’t bet on new technology because he anticipates market changes, external occurrences are going to eliminate most companies… and his predictions are usually right and he has made a fortune that way. However, just like airplanes- affiliate marketing is here to stay and there will be companies who sustain and dominate. I challenge you to be that affiliate and not give up and take the easier path.

Affiliates- this is nothing new to you. You are pioneers. You adjust to the market dynamics. You are your own boss. This online commerce didn’t even exist prominently more than 10 years ago- you can’t be too stuck in your ways. Despite everything that is happening in the market- it is your time to rise to the top.

If you create value- the consumers will find you. There will be a way to market the goods you represent. You work in technology- you have to expect that you are going to need to make changes on a regular basis. Friends- the day is today.

Take care. Good luck, Paul Moss

WWF Smackdown- Only 30 years later it Google applying it to Affiliates… What to do?

Thursday, September 24th, 2009

Ahh- memory road… Rowdy Roddy Piper and JunkYard Dog going at it! Or who can forget Andre the Giant vs. Hulk Hogan. WWF in it’s glory days. As a child I loved this stuff! Maybe I knew it was fake- maybe I didn’t- but I remember it fondly. And, every Saturday morning amongst the Smurfs, Voltron, Speed Racer, Fraggle Rock, there was the wonderful “WWF Superstars” cartoon- that I wholly enjoyed.

I am not a fan of violence and have since fallen off the wrestling band wagon and have never been into those cage matches. However, if that’s how people get their jollies beating each other- more power to them If they can get people to pay to watch them bash their heads in- god bless America. In these scenarios you have willing participants and everyone knows the rules and what’s expected… even if does end ugly.

I think it is sad – and ultimately far more violent what Google is doing to affiliates. Google is laying the smack down on affiliates without much notice- nary any instructions that don’t include a lot of ambiguity. Unlike the WWF- this isn’t fake. It’s affecting people’s lives and our economy and to the degree it is happening is a genocide of affiliate marketing. Google doesn’t see this clearly- and while they may do a lot of things right- and will make a lot more money than I ever will- they are in the wrong on this one.

I understand Google trying to keep their product as clean as possible. So they throw out arbitrary instructions that don’t really make sense and are contrary to the history of commerce. The reality is there are a lot of stores, products in the brick and mortar world that are crap! It is ultimately up to the consumer to choose the path they want to acquire their knowledge or products. Online, if they don’t like what they see it takes .000045 milliseconds to get to the next offering. If a website isn’t providing value- it ultimately will not make money and get weeded out. Just like a restaurant that has terrible food- might do well on opening day- but one month later will likely be empty.

Some of you may know what I am talking about and some may not. Google is evaluating sites and banishing them from Pay Per Click marketing if, in their opinion mind you, they feel a website’s primary purpose is to redirect a person to another website.

Now, some of this clean up could be good- if a website is misleading or lying to the consumer- that should be removed. Ie- if someone is shopping for Barbies and they click on a link that takes them to a marijuana paraphernalia website they can’t back click on- that needs to be removed.

However, if someone is shopping for auto insurance- per se- and they end up on an affiliate site that takes them to an insurance carrier- then so be it… at the end of the day- the value to the consumer is getting to an insurance product- protecting themselves and their family- and potentially saving money. If the consumer happened to take a path through the affiliate- that was how they preferred to shop… or research information, or whatever it was that appealed the consumer to that store front. What is wrong w/ that? Who is Google to shut this down? Just a big bully flexing their muscles irresponsibly- and it will eventually catch up to them. They are cheating both the consumer and the affiliate and ultimately themselves. While they are an incredible company- they could be soooo much better… like by having account managers for paying customers!

I have two examples that are counter intuitive and highlight why this is wrong and the policy needs to be revised.

One- I had an affiliate for 5 plus years. He doesn’t have his own insurance product- but arbitrages his traffic to a few different partners based on filter questions. His site has thousands of articles on Auto insurance- and even a free ‘ebook’. Google came by and shut his account down overnight. I used to provide his insurance product fulfillment- and he sold no fewer than 20,000 policies over 5 years. That is 20K people who have peace of mind when they get in an auto accident, or when an uninsured drive hits them, and probably saved money along the way. This doesn’t even account for all the people that found more information through his articles.

My second example is the real kicker- same thing… arbitrages the physical product- but also has tons and tons of valuable information on his website. Google’s organic algorithm has him listed #1 or #2 is several of the top keywords for top industry terms. Yet he can’t buy clicks on the same keywords. So, according to Google’s own algorithmic evaluation that focuses on consumer behavior- he has an exceptionally valuable site- he is top of the charts. Yet, when it comes to their arbitrary, opinion-based algorithm for AdWords- he is left in the dust.

Google- leave commerce to supply and demand and natural marketplaces. If something doesn’t have value to the consumer people will not buy a product and it will not be able to fund itself (case in point- the housing market). Stick to what you are good at- or have you forgotten what that is at this point. Kinda like actors/actresses and political outbursts- we don’t’ want to hear what you have to say- we just want to utilize your product.

Affiliates- it is a good idea to provide value so consumers will want to come back… and good luck fighting a bully who doesn’t abide by their own rules and logic.

PS. Bing and Yahoo- pay attention to this misstep- it is your opportunity to eventually surpass the industry giant.

Who is behaving w/ Rogue behavior? It’s not always the affiliate!

Thursday, September 10th, 2009

I have seen a lot of things in affiliate marketing. One of the things I hear over and over again is that the affiliate is the one who behaves rogue… well I have news for you- they aren’t alone.

Affiliates- I know that you feel beholden to your current affiliate network/program. And I understand this- they have provided you with wealth, food on the table, the ability to start your own business… so it is hard to view them objectively… but you must.

Sometime affiliate programs are just plain wrong- and you are responsible for holding them accountable. The other day I heard about one of the premiere affiliate programs pulling scare tactics and ultimatums on their top affiliates. Threatening this and threatening that… all of which were falsehoods- and none of which benefitted the affiliate- only the network.

This program went out and told the affiliates that they had to do X, Y, and Z to sustain their payouts… because they weren’t profitable with the existing traffic. Now, I also happen to know their CEO and several executives at this company very well- and they have been telling me for months they are more profitable than ever and driving higher margins than ever in the history of their business.

They were strong-arming the affiliates to drain more and more and more profit out of the affiliates. Affiliates- you are in the marketplace- you know how hard it is to make a buck as it is- without your affiliate network getting overly selfish.

Affiliates when you get a message that doesn’t feel right- go w/ your instinct/intuition- it is probably not right. There are always other alternatives out there- you may just have to do your research to find them. And don’t settle for Commission Junction to answer your questions- you need to get closer to the real revenue source. If you don’t know what I mean- contact me and I will help you.