Study Results Revealed:

Shawn Collins

AffiliateFORCE/2003 April 24 - 28, 2003 in Miami / Key West / Cozumel

AffStat 2003 Report Questions and Answers

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• Who: Over 100 affiliate managers

AffStat 2003 Report Overview

• When: Q4 2002

• How: Questionnaires via the Internet

• Why: We need affiliate marketing benchmarks

• What: 20 questions on a variety of topics

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Shawn Collins

• ClubMom Director of Affiliate Marketing• Author of “Successful Affiliate Marketing

for Merchants”• President of iAfma.org U.S. Chapters• Publisher of AffiliateManager.net• An affiliate since 1997

Behind the AffStat 2003 Report

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What was covered in the report?

• The Basic Stats

• Affiliate Traffic

• Money Matters

• Affiliate Management

• Affiliate Solutions

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Who Wants to Win a Copy of the AffStat 2003 Report?

Your Host: Meredith Vieira

Co-founder of ClubMom, and host of the syndicated version of Who Wants To Be A Millionaire.

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The Basics

What is the most common method of determining affiliate program commissions?

Which is the most common number of affiliates in an affiliate program?

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What is the most common method of determining affiliate program commissions?

Pay per sale

Pay per click

Pay per lead

Flat fee

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What is the most common method of determining affiliate program commissions?

A: Pay per sale(85% of affiliate programs are pay per sale)

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Which is the most common number of affiliates in an affiliate program?

Less than 1,000

5,000 to 10,000

1,000 to 5,000

More than 10,000

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Which is the most common number of affiliates in an affiliate program?

A: Less than 1,00053% of affiliate programs have 1,000 or less affiliates

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Affiliate Traffic

How many affiliates are “active” in a typical affiliate program?

Which is the most common volume of clicks per month for an affiliate program?

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How many affiliates are “active” in a typical affiliate program?

Less than 2%

6% to 10%

2% to 5%

More than 10%

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How many affiliates are “active” in a typical affiliate program?

D: More than 10%44% of affiliate programs have >10% active affiliates

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Which is the most common volume of clicks per month for an affiliate program?

50k to 100k

500k to 1M

100k to 500k

>1M

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Which is the most common volume of clicks per month for an affiliate program?

B: 100k to 500k19% of programs receive 100k to 500k clicks per month

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Money Matters

Which salary bracket is most common among affiliate managers?

How many programs paid commissions to more than 10% of affiliates last month?

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Which salary bracket is most common among affiliate managers?

$50k to $60k

$90k to $100k

$70k to $80k

More than $120k

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Which salary bracket is most common among affiliate managers?

D: More than $120k13% of affiliate managers earn $120k or more

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How many programs paid commissions to more than 10% of affiliates last month?

3%

16%

9%

22%

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How many programs paid commissions to more than 10% of affiliates last month?

C: 16%16% of programs paid >10% of their affiliates last month

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Affiliate Management

How many affiliate programs have a dedicated affiliate manager?

What percent of affiliate programs approve affiliates manually?

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How many affiliate programs have a dedicated affiliate manager?

18%

47%

33%

64%

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How many affiliate programs have a dedicated affiliate manager?

B: 33%One third of affiliate programs have a dedicated manager.

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What percent of affiliate programs approve affiliates manually?

64%

81%

77%

86%

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What percent of affiliate programs approve affiliates manually?

A: 64%64% of affiliate programs manually approve their affiliates

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Affiliate Solutions

What percent of affiliate programs use an in-house technology?

How many affiliate programs are using the “Big Four” solution providers?

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What percent of affiliate programs use an in-house technology?

8%

24%

17%

36%

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What percent of affiliate programs use an in-house technology?

C: 24%24% of affiliate programs have built their own technology

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How many affiliate programs are using the “Big Four” solution providers?

30%

65%

48%

73%

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How many affiliate programs are using the “Big Four” solution providers?

B: 48%48% of programs use Be Free, CJ, LinkShare & Performics

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• Affiliate programs are getting smaller• More than half of affiliate programs have less than 1,000 affiliates• One quarter of affiliate managers have downsized their affiliates in

the last year• More than half of affiliate programs recruit <50 affiliates per

month

• Affiliate managers are earning more• 13% are earning more than $120k annually• In Dec. 2000, 4% were earning more than $100k (Affiliate Metrix)

AffStat 2003 Report Conclusions

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Best Practices

in Affiliate Management

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• Commission Checks• Payment threshold of $25 (or less)• Issue checks monthly• Pay competitive, but not more than you can afford

• Communication• Touch base (at least ) 1x month• Make real contact info readily available• Respond within one business day to queries

• Solution Providers• Do your homework – pick a long term solution

Best Practices

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SegmentingYour

Affiliates

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• New Affiliates• Joined program within past 30 days

• Active Affiliates• Generated at least one click in past 30 days

• High Performing Affiliates• Earn enough annually ($600) to need a 1099

• Dead Affiliates• Have not generated at least one click in past 30 days

Segmenting Your Affiliates

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Fighting Affiliate

Fraud

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• Know Your Affiliates

• IP Addresses Can Help, but…

• Daily Inspections

• Work Together

• Manually Approve Your Affiliates

• Build Probability Models

Fighting Affiliate Fraud

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Now available:

AffStat 2003 Report

$129.99 only at

www.affstat.com

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Study Results Revealed:

Shawn Collins

AffiliateFORCE/2003 April 24 - 28, 2003 in Miami / Key West / Cozumel

AffStat 2003 Report Questions and Answers