When we tell people we build the majority of our brands with SEO, SEM and Affiliate Marketing, they have no clue what we are talking about. Working with some of the largest publishers and content experts is a secret weapon every brand needs to understand and deploy. In order to run a profitable and long term affiliate marketing campaign, you must know your numbers:
Affiliates are the #1 way to drive sales fast to your store
- Gross Profit Margin (Retail price – cost of good only)
- Net Profit Margin (Landed to customer)
- Net Net Margin (above – any marketing costs)
- CR – Conversion Rate %
- CAC – Average Customer Acquisition Cost (blended)
- CPA – Cost Per Customer Acquisition per channel
- Operations Cost at start up and at scale (% of revenue)
- AOV – Average order value (revenue per order)
- LTV – Lifetime Value per customer per channel. You should monitor LTV day 1, day 15, 30-60-90-180-365.
Relationships & KPI’s are all that matter in affiliate marketing
Over the last 20 years, our founder Josh has worked with tens of thousands of affiliates globally across multiple companies. Generating tens of millions in revenue and paying out millions in commissions. Most of these relationships have been long term and have been reused again and again on different brands because a trust has been built. This is the key to building a strong affiliate business.
Types of Affiliate Strategies
Finding affiliates can be tough. You just have to know where to look. We have relationships with some of the biggest publishers and affiliates in the world and can help you navigate this industry. Below are types of affiliate programs to look for and learn:
- Legacy Publishers
- Grassroots Bloggers
- Paid Media Buyers
- Listical Content
- “Best Of” Content
- Affiliate Networks – ClickBank, Outbrain, ShareASale
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