Business-to-Business Internet Marketing, Fourth Edition - Lifecycle ...

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258 BUSINESS-TO-BUSINESS INTERNET MARKETING LinkShare (www.linkshare.com) LinkShare was one of the early providers of affiliate marketing programs. Launched in 1997, LinkShare was in 1999 granted a U.S. patent for the tracking technology behind its affiliate programs. In 2000, LinkShare launched a b-to-b network. LinkShare’s 400 participating merchants include AT&T, BizTravel, Dell Computer, Delta Airlines, Handspring, McAfee.com, Priceline, and Verio. Performics (www.performics.com) Performics, formerly Dynamic Trade, positions itself as a full-service pay-for-performance vendor of online marketing tactics, including search engine optimization, partner, and e-mail marketing channels. Clients of Performics include Bose, Discover, and Eddie Bauer. Each of these service providers offer start-to-finish services in terms of setting up and managing affiliate programs. In return, they typically collect 20 to 30% commission. This may seem like a lot, but it would be very difficult to set up your own affiliate program and manage the high level of affiliate interaction that is necessary for success. If your affiliate program had thousands or even hundreds of affiliates, you would need a specialized system to run the program. Construct an Affiliate Program That Benefits Everyone As the affiliate program sponsor, your primary objectives are probably to extend your own company’s awareness and reach, and increase your revenue. But you have a business obligation to construct a program that also benefits your primary customers (your affiliates) and your secondary customers (your affiliates’ customers). Your affiliate program should be easy and uncomplicated for an affiliate to implement. Although you could charge an affiliate for participating in your program, most affiliate programs are free to the affiliate, so you may be less competitive if participation in your program costs money. Structure your compensation plan fairly so that the affiliate benefits from your sales success. Typically, companies offer affiliates anywhere from 5 to 15% of the selling price of a product or service. Some programs may offer as high as 20 to 30%, but these higher amounts are usually doled out as special incentives or bonuses. Although many affiliate programs are based on flat commissions, there is some evidence that sliding scale commissions
Developing Internet Partnerships 259 are being adopted by merchants with products of varying value. A sliding scale may be appropriate if you want to reward affiliates for selling higher-priced products, and it could also differentiate your affiliate program from others. Remember, affiliates are really resellers who can contribute significant incremental sales at little cost to you, so make it worth their while to participate. Some companies have entered the b-to-b affiliate market with collaboration products and services designed to help you create and run inhouse affiliate and partnering programs. iChannel from iMediation (www.imediation.com) is a software platform that helps companies support multiple sales models while accelerating business partner recruitment. This collaborative sales solution is in use by more than 70 companies, including the American Management Association, Hewlett-Packard, and Philips. WebCollage (www.webcollage.com) offers interactive Web service syndication, which allows e-businesses to syndicate complete, interactive Web applications and share them directly through partner sites. Work Out All the Details There are numerous operational details you will need to think about. For example, you could offer an affiliate program that has branding options. You may feel strongly about maintaining your identity on the affiliate program (as does Amazon.com), or you may want to allow affiliates the flexibility to co-brand or private-label your program. Under the private-label scenario, an affiliate could basically take your program and put its name on it. You could decide to implement a graduated revenue-sharing arrangement, whereby affiliates who sell more get a higher share of revenue. You need to determine what kinds of linking to your site you will allow, provide artwork and instructions, and set up a system that tracks affiliate activity. These are the kinds of details you will need to work out in advance, and each detail will have technical implications behind it. Protect Yourself with a Legal Agreement One of the advantages of affiliate programs is that you can grow a network of affiliates very rapidly via the Internet. If hundreds or thousands
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BUSINESS-TO-BUSINESS INTERNET MARKE
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BUSINESS-TO-BUSINESS INTERNET MARKE
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Publisher: Jim Hoskins Manager of F
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Acknowledgments For helping me crea
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Table of Contents Table of Contents
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Table of Contents xi Automated E-ma
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Table of Contents xiii Real Estate
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Table of Contents xv Maintaining On
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Table of Contents xvii Office.com (
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Table of Contents xix DellHost ....
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About This Book About This Book xxi
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Introduction The original edition o
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sively. Large businesses are moving
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101 Ways to Promote Your Web Site,
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