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RSS for marketers Guru, Rok Hrastnik… please pick up a blue courtesy phone (or better yet, fair reader, check out Rok’s ‘Unleash the Power of RSS’ book and encourage him to finish up his new book). RSS is frighteningly open-ended and innovation intense. The challenge is how to make it rapidly used by consumers! Then again, my mom, dad and I’ll bet your grandparents are using RSS today without knowing it. We all are!
Revtrax, formerly Oncard Marketing, is all about taking affiliate marketing to stores. That’s right, dirt world stores. They’re literally providing a means for advertisers to partner up with affiliates who have distribution outside of the Web – like stores or direct mail (think ad-stuffers that ride along with utility, credit card and other bills). Might you be able to tap into such distribution based on people you know at the local Rotary Club or business card exchange? I’ll bet you might! Talk about the Holy Grail of advertiser value!
Think also about successful CPA affiliate sites like Buzzilions.com – one of the first in our business to convince advertisers that wrapping customer-generated content (product reviews) around their products (distributed to them via affiliate networks and direct merchant relationships) was valuable. Was it new distribution for advertisers? You betcha it was.
Flexible, Performance-based Cost Models
Revtrax and other successful affiliate businesses – including those that remain family-run/owned like FatWallet.com or SheFinds.com – have one thing in common. That is, they’re diversifying themselves and, in fact, transforming from affiliate to publisher and finally to media company. This involves offering advertisers more than just commission-based placements. Look also to small business successes like Jellyfish.com who blend various performance payment models and customer-facing value. Don’t forget, the major comparison shopping engines all started as CPA only and migrated to CPC with some blending CPA+CPC today. Use your historical data with advertisers to your advantage. Negotiate other types of pricing based on effective CPA.
Of course, earning those CPM/fixed fee placement and/or cost-per-click (CPC) dollars isn’t easy. Doing so requires a high degree of professionalism and unique insight as to the demographic composition of your site visitors. It also requires a sales staff that can speak the language of other departments within marketers’ office… or interact with their external advertising agency. It often requires thinking and acting outside your comfort zone. Doing so is difficult but once you’ve overcome the fear, packaged yourself up and closed a few deals the fear goes away.
Denial is Not Just a River in Africa
Ever notice how things can smell like a skunk in affiliate marketing… but many pretend that everything is fine and rosy? Next think ya know, whammo. Affiliates get dished a raw deal… but ultimately they’re forced to swallow a bitter pill. Maybe an affiliate network stabs an affiliate in the back. Or maybe an affiliate turns around and bites the hand that’s fed it since childbirth. Other times affiliates themselves win the battle…but make no mistake, there IS a battle being waged. Let’s quit denying it and address the real issues. I’m not confident that affiliate networks are able to or actively addressing it on your behalf. Aaah, for the glory days of Commission Junction when it catered to affiliates first, advertisers second!
It’s sad but true: there are people who prefer to avoid talking about the fact that advertisers are asking for more. Are you one of them? I recommend getting off that train and now!
Although these battles create difficulty for affiliates they serve a purpose – to force change and create new opportunities. Will you be there “left holding an empty bag” or will you keep an “ear to the track” and listen to that train coming down the track before it pulls into the station? The choice is yours and in the end you need to take action that creates true value for your visitors first, advertisers second and, as a result, your business.
Jeff Molander is CEO of performance marketing consulting company, Molander & Associates Inc. where he provides executive-level guidance on digital marketing and media to multi-channel retailers, entrepreneurs and investment firms. He’s also a principal with The Partner Maker LLC, a new affiliate management system designed to drive increased revenue between affiliates and marketers. His background includes helping found digital marketing services company, Performics Inc.; today a division of Google. He can be reached at jeff*at*jeffmolander.com
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Affiliate Call to Arms: Add Value Now or Die!