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I turned on my computer yesterday and there was a sale for a personalized penguin Christmas ornament. The next email was from ShareASale: “An affiliate transaction has taken place”.

I wondered if it could be from that person with an obsession for tuxedoed birds, and sure enough: “The affiliate who referred this transaction: Jennifer Goode”.

Jen is a respected peer, friend, as well as owner of a little plushie traveling penguin that has become semi-famous. SAS emails give you the option to “Click to Send Affiliate a Bonus for this Transaction”, but I opted to log into Yahoo Chat to bust her chops… er… congratulate her… instead!

As we were chatting, another penguin sale came in – accompanied with another SAS email. Yep! It was Jen again! Amazingly, a third penguin sale and a third SAS email came as we were chatting. And defying all odds, it was another Jen referral!

In the course of an hour, I made money. Jen, who is the owner of Jen Goode Designs and My Penguin Travels (above me and the penguin in question), made money. My outsourced program manager (OPM), TeamLoxly made money. ShareASale made money. My merchant bank and three customer credit cards made money.

I thought about the events that led up to these sales, and if it weren’t for networking, none of them would have occurred. While this article is not a discussion on “the art of networking”, it is a discussion on the importance of networking.

From Networking to Friendships

Four years ago I was posting on ABestWeb (ABW), which is technically networking. At that time I knew Deborah Carney, Owner of TeamLoxly, as a regular poster, but nothing more.

That fall I attended an online convention called eComExpo, for the purpose of, you guessed it, networking. I joined a private chat in a merchant’s booth that happened to include Debbie and a few others. When the merchant left the virtual booth at 5pm, we “trashed the booth” through the middle of the night! Debbie and I became fast friends that day, exchanging IMs, and networking on a daily basis.

The following year Debbie took over the CafePress affiliate program. She brought up a particular CafePress shopkeeper, Jen Goode, frequently. I became familiar with Jen’s work – very talented – but I considered CP shopkeepers artists, not fellow marketers. In an effort to be helpful, an important part of networking, I occasionally gave her marketing advice, and we too became friends.

When Jen first developed her now iconic penguin character, it blew me away! We brainstormed all kinds of different ideas which ranged from the typical to the outright crazy.

The winter of 2006, I finally got to meet Jen in person at Affiliate Summit, which we both attended in order to network (I bet you’re seeing a trend here). I was impressed not only by her artistic talents, but by her passion and intelligence.

My niche is personalized gifts. While the penguins were only “quasi-personalized”, since users could request penguins for all occasions but not necessarily for specific occasions, I told Jen I would add them to my sites where applicable. For example, I have listed her Fishing Penguin in my personalized fishing gifts category.

(Pictured to the left Deborah Carney and Jen Goode at Affiliate Summit West 2009.)

Collaborating with Friends

In the meantime, I had been networking with Loxly, and she had got to know my personalized gift site intimately. As the CafePress affiliate manager, she  knew a lot of shopkeepers whose sites could offer my products. One day she called and asked if I would be willing to develop a merchant site in order to launch an affiliate program. She felt there were affiliates that were a perfect fit for the kind of niche products I had become an expert  at. And we could leverage our mutual contacts from our networking efforts to make it the kind of program we had been  talking about on the forums.

The goal was not to create a Top 10 merchant but rather to create a safe, parasite free, no problem program that could remain on good terms with affiliates in a niche we knew well. I agreed, and we launched the Engraved Crystal Shoppe program.

I hired a second OPM and we all met at Jen’s house in Colorado last June. As happens with creative types, occasionally drama does ensue. What happened with the other OPM has been embarrassingly well documented elsewhere. What I learned is that the ability to meet in person and hash out ideas is an important facet of networking and relationship building often forgot by many online professionals. Why? Well, because they are too busy being online.

Fast forward to last month’s Think Tank in Newport Beach, which was an intimate and intense networking opportunity hosted by ShareASale.

At the event I happened to mention to Jen that I actually carry two personalized penguin items on my merchant site. What I didn’t know is that she had started a site Nothing But Penguins which featured non-Goode original penguin products. But apparently, communicating with Jen paid off and she added my two penguin products to her site, and as I stated above, a lot of people got rich as a direct result (Ok I maybe overexagerating on the rich part – but sales did indeed happen – and without proof to the contrary, I’ll take full credit for their success!).

Moral of the story? Get out there! Network! Mingle! Talk! Good things happen from interacting with your peers.

Read the rest here:
Importance of Networking to Your Bottom Line

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Unless you have been living under a rock, you are aware of California (and other) states efforts to copy New York and collect sales tax on affiliate initiated transactions. Collection of sales tax is important, and states are right to be concerned about taxes that are owed to them and not being collected.  But this is the wrong way to go about collecting this money and can easily cause more harm than good.

The California bill is Assembly Bill 178 sponsored by Assembly Member Nancy Skinner. The hearing date on Bill 178 has been scheduled for April 13, 2009.

We all learned a hard lesson in New York.  Luckily that lesson is being applied right now in California.  Action needs to be taken now while the bill is still in committee.

The PMA’s Stance

The Performance Marketing Alliance has formed a committee led by the experienced Beth Kirsch who has done lobbying at the federal level.  She has been working with a coalition led by the Chamber of Commence and the California Taxpayer’s Association that includes the big players in the Tech space. This coalition has had success with similar bills in the past. With companies like Google, Yahoo, eBay, and CJ all based here, there are a lot of big companies with vested interests that are taking actions either as part of this coalition or on their own.

The PMA is a valuable addition to this coalition because we can put a face on the issue.  We can get real people with real stories to talk about what this bill can do to them.  As such, the PMA is leading a grass-roots effort to spread the word about this to as many people in this industry as possible.  They have more in the works as well, with details coming out as they develop.  There are some more meetings today, and strategizing over the weekend.  After that, I expect to see plan laid out.

Likely there will be a need for people who can go to Sacramento, people to make appointments for in-person visits with their own representative, letter writers, and press outreach. If you can help with any of that, please contact the PMA to see how you can help.

Other Resources to Help Combat the Bill

There are other resources to check out as well. CAaffiliates.com is an ABestWeb forum for the discussion of the bill. Both Mark Welch and Scott Jangro have written excellent letter’s on the matter (Mark’s letter (pdf) and Scott’s letter) which I encourage you to read.

How Can You Help?

Discuss the bill with people. Let them know why it’s a bad idea, inform them. If you have a blog, make a post.  If you are on Twitter, Facebook, LinkedIn, etc. use them to spread the word and link to places where this is being talked about. Create discussion and make your voice be heard.

Read the original:
Affiliate Taxation – Time to Fight Back

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“You can’t put the genie back into the bottle” or so says the idiom. The issues surrounding adware have certainly been a “genie” for affiliate marketing.  We may have the opportunity to see if that genie really can be put back into the bottle, at least for a sub-set of adware applications, toolbars.

Yesterday Brian Littleton, CEO of ShareASale, announced a Toolbar Roundtable Discussion for next Tuesday.  The purpose is to receive input from the community for establishing guidelines for toolbar behavior within the ShareASale network.  This is a shift from the historical policy of ShareASale which has not allowed software in the network. Not unexpectedly, there is some heated discussion around the announcement in the ShareASale Forum on ABestWeb.com.

Many people mistakenly think that I am opposed to adware. This isn’t the case. Adware is just technology, which isn’t inherently good or bad. It’s just technology…ultimately a bunch of 1’s and 0’s strung together to elicit preplanned behavior from the computer of the end user.

What I have opposed over the years is the manner in which many adware applications generate revenue in the affiliate marketing channel.
I have been exceedingly frustrated at times by technology being abused to the point of causing schisms within our industry and stigmatizing the technology itself which, in reality, could have been positive for the affiliates, merchants, networks and consumers it was meant to serve.  On more than one occasion I have stated that adware does not have to be an issue within affiliate marketing.  For years now I have worked outline a model for adware behavior. Not once have I been asked the details of that model, at least until now.

My view is broader than just toolbars. I personally feel that it is possible for any adware application to be respectful of the rights of other internet businesses, benefit the consumer, and generate legitimate revenue, directly and/or indirectly, in the affiliate marketing channel. I now have the opportunity to share some of my views and thoughts on how this can be achieved.

There is a glaring reality that we cannot afford to overlook: the technology is here and it’s not going to suddenly go away. The genie isn’t going to just disappear. My contentions have been with the policy, both written and how acted upon in reality, for how adware is allowed to behave in the affiliate marketing channel. My mantra is behavior, behavior, behavior (to the point I get tired of hearing it myself!) not toolbar, widget or desktop app. I don’t have a problem with Google’s toolbar, but I do have a problem with most software generating revenue through the affiliate channel.

To this point, there has been two primary types of policy by networks and merchants regarding how affiliates can use software in the affiliate channel: not allowed at all (the parasite-free policy) or allowed under a set of conditions that are far less restrictive for affiliates than marketing through other means (the COC/Addendum policy). I have always been opposed to the COC/Addendum policy because I feel it allowed revenue generation that facilitated unfair competition and diminished the overall value of the affiliate channel. I have longed for a working policy (policy that is actually being used) that would address how software can be legitimately used within the affiliate channel sans all the controversy. Indeed, I strongly believe it is critical that our industry be able to produce such a working policy.

Why? So we can demonstrate our ability to self-regulate and foster the healthy growth of our industry. All established industries need to demonstrate this ability for long-term success. To this point, I don’t think we have been able to demonstrate an ability to effectively self-regulate the very technologies our industry depends upon. Affiliate marketing is a technology business after all.

There are currently various technologies used by affiliates in their marketing efforts.  Web sites, email, video, widgets and many other forms of technology are common.  Guidelines for acceptable use have been established for promotion though most of these technologies. Granted, there may be an occasional debate regarding a new way these technologies are used, but none have been as problematic as downloaded software. Nor has a policy of all or nothing been applied to defining their use by affiliates.

Any and all of the technologies used by affiliates can be potentially abused. Questionable revenue generation tactics as well as more malicious behavior can occur through any promotional method. We certainly don’t say that affiliates cannot use web sites, email, and video or social media technology as promotion mechanisms because the technology can, and at times is, abused. Of course we don’t! We set guidelines and then we work towards enforcing those guidelines.

Enforcing a policy for toolbars will not be without its own challenges. But all monitoring of promotion comes with unique challenges. There are millions of web pages, owned by the affiliate or by someone else, where bad behavior can occur. However, once policy is established for promotion through a web site, protocols for monitoring are developed.

While practices may not always be policed by some companies to the degree some desire, we all understand that ultimately it’s a matter of survival for our livelihoods to have a certain degree of self-regulation within these technologies.

The landscape has changed dramatically since 2002 when the COC/Addendum policy was released by the major networks of the time. There is no longer a huge cost barrier for any affiliate having downloadable software and there are several sources for acquiring your own toolbar for free or at a very low cost. Distribution channels are available that do not require bundling, especially for toolbars. This has resulted in literally tens of thousands of toolbars available for download.

Of course, not all of these operate within the affiliate channel, but there is an increasing number which do. Toolbars can engage in a very wide range of behaviors. I don’t feel that a global policy of   “X is not allowed” to be an adequate manner with which to address issues facing our industry in regards to a technology that is not going away.

Brian Littleton has outlined a starting point  on the ShareASale blog for this policy discussion. As someone who has always focused on how adware can behave with regards to revenue generation, I am intrigued by his initial points. He appears to be envisioning toolbar technology used as a marketing vehicle versus a customer service vehicle. Marketing practices would use the toolbar for direct revenue generation, which is the most common use seen to date. Customer service would involve behaviors focused on the consumer experience, thus building branding, loyalty, and visitor retention for the affiliate’s own business. This form is a more passive marketing of the affiliate’s own business and does not tie the toolbar directly to  the affiliate link for tracking a commissionable sale. While I still believe software can behave “nicely” and be used for more direct revenue generation, I find Brian’s outside of the box thinking on this issue very interesting.

We need to show that we are up to the challenges of regulating the very technologies used to enhance and bring value to the affiliate channel. I’m excited to see a company with a track record and reputation as established as ShareASale’s stepping up to the plate to undertake the task of presenting meaningful policy in regards to toolbars. I look forward to having a policy in use that I can point to as an example of how software technology can be used in a harmonious and productive manner.

Will ShareASale be able to put the genie back into the bottle? I don’t think the technology can go back into the bottle. But can we have the benevolent genie? I think so. The real challenge will be whether or not ShareASale can overcome the stigma that has become attached with downloaded software, turning what has been somewhat of a black eye for affiliate marketing into a positive.

I will definitely be at this Roundtable that Brian has facilitated. I encourage any and all who care about the policies driving our industry to attend as well. I’m hoping to see as many merchants as affiliates in attendance as this is not an affiliate issue but an industry issue which impacts all parties in the equation.

Read more from the original source:
Putting the Genie Back Into the Bottle

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Logging on to ABW this afternoon I was greated by a thread that burst into life and racked up a mass of interest in the blink of an eye. The attention grabbing thread had the title “ShareASale and Toolbars / Call for Participation on Guidelines” . Yes Oh My indeed, the bastion of BHO free marketing is considering its’ stance.

I highly recommend reading the thread and joining the discussion.

My thoughts :

A major concern I have with this idea, is that, all “BHO affiliate” tool bars, at the end of the day, do far more than just influence/decide which “BHO affiliate” gets the sale. They also canabilize merchants other sales channels, especially the ones based on loyalty, organic (direct to site/seo) and PPC. The bigger the brand the greater the the impact.

When I talk to merchants about tool bars I usually discuss the effect on the affiliate channel along side the impact to the above channels, large brand merchants (the ones that toolbars target) tend to get the majority of their traffic through the above (Toolbar targeted) channels, which ads no value and simply steals sales from the merchant.

How does SAS plan / propose to prevent toolbars that they allow on to Shareasale from cannabilizing a merchants other sales channels? If their plan is not all encompassing then they will simply be enabling tool bars to go to town on Shareasale merchants just like they do on LS, CJ and so forth, adding no value, but certainly adding to the BHO Affiliates revenue.

Here is the original:
Lions Tigers and BHOs. Oh My!

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Sometimes it takes a small dedicated group to successfully take the initiative when large corporations have failed to do so. The Affiliates of New York are proof of what small groups can accomplish. In the face of what has come to be known as the Amazon Tax, a rather short sighted law instituted by New York state, and the combined lack of guidance from many of the networks and merchants in the industry, this group has put together an excellent set of recommendations.

These recommendations provide a) merchants with additional sample language to add to their terms and conditions and b) a way for compliance to be tracked and measured. Additionally, they have provided detailed documents posted on Google Docs entitled “Merchant’s Two Steps to Comply with NY Internet Tax Law” and “Detailed Information on How to Comply with Tax Law” to help provide sample guidance to industry merchants.

I think this group has done a phenomenal job putting these resources together. For more information see their blog on NYAffiliateVoice, or their forum provided by ABW under NYAffiliates.com

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New York Affiliates Provide Guidance on Compliance with Amazon Tax

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Affiliate Summit East is only a week away and the conference has grown quite a bit. Before you get lost in the conference chaos and inevitable Boston pub crawls, I thought I should give my top five picks for sessions you can’t afford to miss:

1) NY Tax Laws – Issues and Solutions

The so called Amazon Tax has set the industry abuzz since it ambushed everyone in May. Since then several legal challenges have been launched against the law with Amazon itself weighing in. On a more grass roots basis, New York affiliates have come together to try to provide mutual support and discuss strategies to overcome the impact of the law. Whether you are a New York affiliate or an affiliate in another state the fallout from this ruling is bound to impact you. Same goes for merchants, especially since states like Texas are considering similar laws. I also have to wonder about merchants who are using one of the dozens of CPA networks in conjunction with the more traditional affiliate channel and how this tax might impact them.

The session should be quite informative with Google Affiliate Network, a lawyer specializing in internet law and NY Affiliate Voice all participating.

Panelists include:

-Melaine Seery, Affiliate from NY Affiliate Voice
-Chris Henger , Group Product Manager, Google Affiliate Network
-Clarke D. Walton, Internet Lawyer, Walton Law Firm, P.C.
-Kim Rodgers, Affiliate Manager, 4Checks.com
-Adam Riemer, Director of Marketing and Client Relations, Downtown Ecommerce Partners

2) Ethical Issues in Affiliate Marketing

If it wasn’t for the timeliness of the Amazon Tax, this session would have been my number 1 pick. It almost feels like a heavy weight fight. Very few in our industry don’t have an opinion about this topic and many have made it out to be a good v. evil contest between the vocal constituency at ABestWeb.com versus the aggressive sales tactics of certain affiliates.

Despite the billing I don’t see things as black and white. Personally, rather than this falling into a session of verbal fireworks, I would like to see an in depth discussion of the issues at hand. I think few are more qualified than this panel to delve into topics beyond the emotional response in order to get to the heart of the matter. Whatever your opinion, be it laissez-faire or the ethical high road, this is not a session to miss.

Panelists include:

-Haiko de Poel Jr, Owner, ABestWeb
-Paul Nichols, Director of Sales, Ebates
-Brian Littleton, President/CEO, ShareASale
-Michel Jones, COO, Pepperjam
-Connie Berg, CEO, FlamingoWorld
-Chuck Hamrick, Affiliate Manager, AffiliateCREW

3) Performance Marketing Alliance Q&A

In many ways my number 3 pick can be seen as logical fallout from my first two picks. The Performance Marketing Alliance was born out of a long standing need for an industry association and the catalyst of the Amazon Tax. Since its birth some very public and bitter fights have broken out on various forums, including ABW, about the purpose of such an agency. Factions seemed to pop everywhere, egos were bruised, and very unprofessional attitudes were displayed. Of course, the ubiquitous conspiracy theories regarding the “true” purpose of such an association followed.

At the center of that storm has been Rebecca Madigan, who has taken on the administrative tasks of putting such an organization together. Hopefully this session will provide a productive forum to discuss concerns and clarify the purpose of the association.

Panelist:

-Rebecca Madigan, Performance Marketing Alliance

4) How Social Media is Changing Affiliate Marketing

Well, my first three picks were kind of heavy however, this one is focused on what I believe will drive a lot of growth in our industry. I think you would be hard pressed to pick a group more in tuned to what’s hot, and more importantly what works, in the social media space than this panel. They are a bit of a dream team: Chris Brogan or Stephanie Agresta could hold a session all by themselves; the fact that Rob Key and Ted Murphy are in the mix just makes it that much more relevant for merchants.

If you are a merchant planning to launch a social media campaign or an affiliate planning to employ social media tactics then this is a session not to miss.

Panelist include:

-Chris Brogan, VP Strategy & Technology, CrossTech Media
-Rob Key, CEO, Converseon
-Stephanie Agresta, Owner, Internet Geek Girl
-Ted Murphy, Founder / CEO, IZEA

5) State of the Ad Networks

There are plenty of changes in the options and tactics merchants can employ in online advertising. One of the biggest has been the slow transition of display inventory moving from the traditional CPM model to a CPA or CPV model. Much of this change was driven by the success of companies like DrivePM. Ad networks have plenty of new opportunities, publishers and merchants alike. The fact that Todd Crawford is moderating this session just means that it will be insightful and filled with some razor sharp wit.

Panelists include:

-Todd Crawford, Owner, ToddTalks
-Aleck Schleider, VP of Marketing, AOL’s Platform-A Division
-Bob King, CEO, ClickBank
-Don Mathis, President, Epic Advertising
-Michael Jenkins, CEO/Founder, MarketLeverage

That’s the rundown of my picks for Affiliate Summit East in Boston. What sessions are you looking forward to?

Excerpted from:
Top 5 Must See Sessions at Affiliate Summit

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Read more from the original source:
Affiliate Summit Wrap-Up: Day 2

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