Top Three CPA Networks in the World

3) Neverblue. Clearly one of the contenders always for the #1 spot is Neverblue. With their own great tracking system, access to programs and offers you could never get anywhere else, they are always a highly recommended network. While their corporate executives are completely hidden from the rest of the community, Samantha Brachat has become the face of the company in many ways.  Additionally, twice a year they take their top affiliates somewhere around the world for a great vacation and get them really drunk. What else do you need to know?

2) Peerfly. Wowzers. As mentioned, Peerfly came out of nowhere this year, based on one thing: completely and total loyalty from their affiliates. Everyone at this company is really nice, and the company considers their employees and affiliates like family. What you get here is a company that makes it clear that they enjoy what they do, and respect their affiliates to the most and appreciate the opportunity to work with them.

1) ClickBooth.  Not even sure where to start with Clickbooth. Despite a creepy mascot in the form of Clicky, the androgynous orange dude with the deformed head, they have built an amazing brand. Their team is excellent from the ground up, with a kick ass affiliate management team, a drop dead gorgeous PR department, and leadership that has becoming highly respected in the industry over the last decade.  Plus, even though they have amazing growth each year, they are still growing and have their own campus and street named after them.

FREE TRAFFIC GENERATOR

Five Proven Banner Advertising Techniques in Media Buying

(Originally Written for ZacJohnson.com) After much thinking, I’ve decided to share some of the banner arbitrage techniques that allowed me to create some of the most successful performance based banner campaigns ever. For almost 60 weeks I had the same banners up on advertising networks, day after day making ridiculous amounts of money. During that period I bought probably over $24 million in banner campaigns in almost every single advertising network that exists with in many cases profit margin of anywhere between 40-50%. These campaigns consistently worked over and over again, while brand campaigns consistently cost me money when agencies didn’t pay their bills, paid late or underpaid. Here are how they worked, and how I believe they can continue to make anyone money for anyone involved in media buying.

1) Use as many creative versions possible.
Talking with many of the arbitragers out there, they tell me the same thing: they do really well at first and their profit margins drop extremely fast because their creative gets stale. Since they have found a “working” creative, they keep on using it over and over again – even after people steal it. This method of using the same exact creative causes faster and faster burn out and lowers your profit margin. Have many, many options, some of them with just slight changes. Move a graphic over, change the text color, use different photos.

2) Do heavy optimization based on numerous factors.
Each set of creative should be duplicated to optimize based on a variety of factors and be keyed to those factors. Of course you should optimize based on ROI, but you need also to target the banners to other things including geo-targeting, time of day, age groups and so on. The reasoning is that different people will be attracted to completely different creatives. If you are buying enough media, the ad networks will not charge you any more to do those targets than buying a general campaign that is RON, so this makes more sense and produces higher profits. Take a group of 100 creatives and set it to optimize for example only to people in NYC and you’ll find very fast which creatives have great response only to that region. Again, this technique produces higher profit because you are only serving to specific people, instead of just specific sites (which is the normal optimization procedure).

3) Do not be tempted to trade volume for profit.
Too many affiliates get greedy and want to make quick cash now, so they over-buy and lower their profit margins way too fast. Right now when I look over advertising networks, one thing I see is way too many campaigns that catch fire and a month later burn out. Networks that are experts at this game know that long term money is always a better friend.

4) Use “Video” Flash.
This is probably one of my most successful techniques and networks always asked me how I could afford to put video in my campaigns and pay the streaming charges. It was simple, I never actually used video but had very small clips compressed and actually placed into the flash file and repeated over and over again. For example, I would create a dating banner with a girl dancing in front of the camera, but it was only a few second clip repeated. You are looking for immediate reaction in a DR/Affiliate campaign, don’t forget. The user will see something and respond, so it doesn’t matter if it’s a real video, the perception that it’s a video is all that matters.

5) Change up the campaign/landing page you are sending the banner with unbranded creatives.
Some campaigns may not like this, but try to get permission from networks to not use their branded creatives and change where the banners are clicking to. The first reason behind this is that you will be able to find which campaign has a higher ROI and also as mentioned in #2 optimize even based on that. The other reason is to alleviate your risk. Many years ago I had a campaign with eAdvertising for a dating site that month after month they paid me on time, the dating client had no problem with the traffic – and suddenly I was stiffed for almost $200k because the client said the leads “weren’t converting.” We all know the issues. Luckily for me I was running that same campaign to the same advertiser on 4 other networks.

Remember, the idea in all the campaigns is to have as many people click on the banners as possible, get as many people to the landing pages of your advertisers. There are so many articles on landing pages optimization, so much on different tools to use but the easiest way to still make money is to get tons of people using these techniques to click on a banner, go to a website, fill out an offer, sign up for a product

Learn also about this Crazy Affiliate Marketing Technique

 

Pace Lattin

Affiliate PayPal Taxes & Asset Protection Strategies

As you may know, this year PayPal will start reporting the income received by many affiliates via the PayPal. While this is limited only to those who receive more than $20,000 in payment AND 200 transactions, it will affect many affiliates.  Please remember, however, while this law only requires that PayPal report these transactions, reporting all sources of income to the IRS is required by law.  This however raises a question about many affiliates method of both bookkeeping and reporting income, so I felt it was time to give some advice about bookkeeping techniques and more importantly how to save yourself a lot of money in taxes and work.

1)      Create a corporation. Seriously, if you are making more than a few dollars a month, you need to create a corporation.  I have used LegalZoom personally for all my corporations and highly recommend it. If you are going to do a corporation, the best State to incorporate in is Wyoming LLC (Limited Liability Corporation) . There are several reasons for this, but mainly because there is no state tax, no reporting requirements and even a foreign national (non US citizen) can own a Wyoming LLC.  If you set up a corporation, make sure you also get a EIN (Used for Tax reporting to the IRS) from LegalZoom.

2)      Get a bank account and do not use PayPal for receiving payments. One of the biggest issues with PayPal is that its costly for each transaction and it’s pain in the rear end to record each transaction and then the fee associated with the transaction.   The IRS will be getting a report on the total income you receive, so when you file taxes you will have to show the cost of the services.  Unless you account for each transaction and then the cost of the services in the transaction, you could be hit for additional taxes. Additionally, the more of a paper-trail that is required internally, the most risk of mistakes that will cost you money. Get people to wire or send you checks. It’s simple and you just record the payment in your books.

3)      Get QuickBooks for keeping all your books. It’s pretty simple for most affiliates, and if you use debit card for most transactions online and have a bank account, it will figure out most of your transactions, deductions and keep a great accounting. A little basic learning is required on how to use it, what categories are for what transactions and the such, but far worth your time if you don’t have a bookkeeper. If you are doing better, get a part-time bookkeeper to assist.

4)      Deduct anything you do for or related to business as a business expense. This will save you a lot of money, no doubt. This means that when you buy a computer, this is a cost directly associated with your business, as is all travel to conventions, supplies such as paper, software, you name it. Most importantly, if you are buying media, buying ads on Google this is an expense and you biggest expense (Cost of Goods Sold). You need to record everything that you do associated with your business, from lunches to travel.  A good credit card can help you keep track of this, but also so can a debit card.

While this is a short list, and definitely not all the advice that you need as an affiliate to make a business, it’s a good start. If you are making money, the worst thing you can do is to continue doing things the same way you were before making money. This is partially because the industry goes up and down – was just talking to an affiliate who now owns $2M in taxes to the IRS because he didn’t do things right.

Five Things that Brand Media can Learn from Affiliates

One thing hasn’t changed since I started working in this industry over a decade ago: brand marketers still often look at performance marketers as if they are a crazy step-brother, locked in the basement for fear that he will get out and eat small animals. Yes, there is that part of the performance marketing industry that is a bit unsavory, filled with the gurus and the acne-faced kids who pretend to be elite hacker-wannabes on black hat forums – but there is a lot being developed in the industry that everyone needs to pay attention to, especially brand media buyers. So, without waste of time or resources, here is my concise guide to what brand media buyers can learn from performance marketers.

  1. Provide hundreds of different versions of creatives. Yes, while Microsoft Word still doesn’t believe me that “creatives” are a word, you should be using tons of them. So many media buyers still rely on a few versions of the same creative for some reason, limiting their ability to optimize. Performance marketers have become experts at creative optimization, often making hundreds of versions with slight differences for their media buys. Network buys, placement, color coordination, and even time of the day all can make a difference on how a creative performs.
  2. Discover tools. Performance marketers are crazy about different tools for optimization, content creation, and development. One of the great things about the industry is that many of these tools are actually better than tools that cost 10 times as much made for brand media buyers. Some of these tools are actually free. An example is Tracking202, which is a free media buying PPC tool for affiliate marketers that tracks multiple media buys, multiple landing pages, and gives great reports.
  3. Get people to interact immediately. Performance marketing is all about performance, the ROI, but brand marketing needs to embrace this more and more as a metric. While it might not be a product buy, there are metrics that can easily be created on all media buys. Whether it’s a “learn more” newsletter sign-up button after a presentation or a search function for realtors that carries a product, brand marketers need to start always embracing performance. Interaction is part of the Internet, and it is proven over and over again that when someone does an action, any action, they are more likely to have positive feelings about a brand.
  4. Ignore the press about what is “cool.” I know that clients read everything about the industry, and hear that the newest cool social/mobile/video product is where it’s at. All of these products will promise results, but the cost per user on most new applications is expensive and has little history or real return on its value. Jumping on the bandwagon, wasting the budget, and ignoring solutions that can show a real result is a growing problem in our industry. Yeah, it’s cool now that people can post on their Facebook page that they just got a latte at Starbucks, but in a year when everyone is annoying each other and it’s considered nothing more than spam, how will your brand think about that?

6 Major Mistakes in Affiliate Email Marketing

You don’t want to lose out on a cheap and effective way to manage your affiliate marketing campaigns, right? Email marketing allows you to create messages for specific niches, track interest by looking at open and click rates, and build relationships with your subscribers. While it is effective, there are also common email marketing mistakes that you need to be aware of that could prevent you from reaping the benefits. Here’s a list of things to avoid from the Folks at AWEBER.

1. Do Not Purchase Email Lists.
Effective email marketing campaigns cater to specific demographics, tastes and interests, and aren’t just blasting emails out to random groups of people. When you buy an email list, there’s no way to guarantee that those people are really interested in your messages or the business you’re advertising for, so you must avoid purchased lists. Another thing to keep in mind is that most email marketing software providers prohibit the use of purchased lists.

2. Don’t Use a “From” Name or Subject Line They Won’t Recognize.
You want to make sure subscribers recognize who the emails are coming from. Be consistent, and make sure your email campaigns use information that matches what subscribers saw when they originally signed up. Make sure your subject line clearly explains the value of the message and that you deliver what’s promised. Transparency will give you more credibility, and people will be more likely to listen to what you’re saying.

3. Don’t Forget the CAN-SPAM Act.
The CAN-SPAM Act is a U.S. law requiring that all marketing emails contain the sender’s valid physical postal address. This might sound scary if you’re operating your affiliate marketing business from home, but a post office box will work just as well, so get one and use it as the postal address in your emails. You’ll be compliant with the law and subscribers will know there is a real person they can contact with any questions.

4. Don’t Send Irrelevant or Infrequent Emails.
You might have a number of affiliate campaigns you’re running, but make sure you’re only sending each subscriber information about all the campaigns and products they specifically requested. For example, subscribers who sign up for information on weight loss programs might not want to be added to a campaign that receives tips for cooking. Sending information on other irrelevant products or services can irritate subscribers and cause them to unsubscribe or mark your emails as spam.

Also remember to keep in contact with the subscribers you have. Revisit your landing page from time to time to assess your email content and make sure it matches up with your original offer. Set expectations so that subscribers know what you’ll be sending and when they’ll be receiving it.

5. Don’t Leave Out a Call To Action.
In order to get credit for your affiliate marketing, you’re going to need the subscriber to take action. This most likely involves purchasing something or at least visiting a particular website. Remember to answer the question “What do I do next?” for your subscribers and provide clear instructions.

6. Don’t Send Without Testing.
You don’t want to send your carefully planned message with affiliate links that aren’t working. This is why you need to test messages. Make sure links are working, images can be seen, and that the message is readable. You’ll want to test the message in different email clients such as Yahoo, Gmail, AOL, Outlook, etc. to ensure it’s consistent with all programs.

If you’re already using email with your affiliate marketing, be sure you aren’t making any of these mistakes. No email campaign is perfect, but avoiding these major mistakes will get you one step closer to that goal.

—–

As a member of AWeber’s Education Marketing team, Crystal Gouldey teaches marketers how to use email to increase sales and profits. See AWeber’s blog for more email marketing tips from Crystal.

Pace Lattin Interview

 

right?

 

Email marketing allows you to create messages for specific niches, track interest by looking at open and click rates, and build relationships with your subscribers.

 

While it is effective, there are also common email marketing mistakes that you need to be aware of that could prevent you from reaping the benefits. Here’s a list of things to avoid:

 

1. Do Not Purchase Email Lists.

 

Effective email marketing campaigns cater to specific demographics, tastes and interests, and aren’t just blasting emails out to random groups of people. When you buy an email list, there’s no way to guarantee that those people are really interested in your messages or the business you’re advertising for, so you must avoid purchased lists. Another thing to keep in mind is that most email marketing software providers prohibit the use of purchased lists.

 

2. Don’t Use a “From” Name or Subject Line They Won’t Recognize.

 

You want to make sure subscribers recognize who the emails are coming from. Be consistent, and make sure your email campaigns use information that matches what subscribers saw when they originally signed up. Make sure your subject line clearly explains the value of the message and that you deliver what’s promised. Transparency will give you more credibility, and people will be more likely to listen to what you’re saying.

 

3. Don’t Forget the CAN-SPAM Act.

 

The CAN-SPAM Act is a U.S. law requiring that all marketing emails contain the sender’s valid physical postal address. This might sound scary if you’re operating your affiliate marketing business from home, but a post office box will work just as well, so get one and use it as the postal address in your emails. You’ll be compliant with the law and subscribers will know there is a real person they can contact with any questions.

 

4. Don’t Send Irrelevant or Infrequent Emails.

 

You might have a number of affiliate campaigns you’re running, but make sure you’re only sending each subscriber information about all the campaigns and products they specifically requested. For example, subscribers who sign up for information on weight loss programs might not want to be added to a campaign that receives tips for cooking. Sending information on other irrelevant products or services can irritate subscribers and cause them to unsubscribe or mark your emails as spam.

 

Also remember to keep in contact with the subscribers you have. Revisit your landing page from time to time to assess your email content and make sure it matches up with your original offer. Set expectations so that subscribers know what you’ll be sending and when they’ll be receiving it.

 

5. Don’t Leave Out a Call To Action.

 

In order to get credit for your affiliate marketing, you’re going to need the subscriber to take action. This most likely involves purchasing something or at least visiting a particular website. Remember to answer the question “What do I do next?” for your subscribers and provide clear instructions.

 

6. Don’t Send Without Testing.

 

You don’t want to send your carefully planned message with affiliate links that aren’t working. This is why you need to test messages. Make sure links are working, images can be seen, and that the message is readable. You’ll want to test the message in different email clients such as Yahoo, Gmail, AOL, Outlook, etc. to ensure it’s consistent with all programs.

 

If you’re already using email with your affiliate marketing, be sure you aren’t making any of these mistakes. No email campaign is perfect, but avoiding these major mistakes will get you one step closer to that goal.

 

About the Author

 

As a member of AWeber’s Education Marketing team, Crystal Gouldey teaches marketers how to use email to increase sales and profits. See AWeber’s blog for more email marketing tips from Crystal

Lucas Brown is the Santa Claus of Affiliate Marketing. He Has Offers.

I have to be honest, before this interview I knew nothing about HasOffers whatsoever, except that anyone could make their own affiliate network using the system. I thought perhaps it was some low-level system that had some basic features and was nowhere a possible competition for the “major” players. After this interview and some education, it became very clear that HasOffers is a serious competitor in its own right and that Lucas Brown, the CEO of the company knows what he is doing.

What inspired you to make an affiliate tracking software?
In the fall of 2008, my twin brother and I recognized a huge need in performance marketing. Many affiliate programs and networks (including our own) were depending on legacy tracking software that was slow, unreliable and extremely costly to maintain. Since we spent the previous three years developing our own tracking technology for another company, we decided to empower others with our modern technology and make a real impact in the performance advertising industry.

Just as Salesforce.com brought about revolutionary change by providing their software as a service, we are moving the industry to a simpler, more scalable era. Traditionally, starting an affiliate network would require signing a minimum one-year contract, paying exorbitant setup fees, and then waiting for the expensive legacy solution to be installed or integrated. The alternative was to build your own solution from scratch. These very limited options prohibited many online marketers and direct advertisers from getting started with affiliate marketing and learning how to use utilize affiliates as an effective and extremely profitable advertising medium.

We realized we need to build an automated sign-up process that allows companies to create their own white-label affiliate network in minutes, with no contracts, pay-as-you-go. Shifting affiliate tracking to true software as a service vastly lowers the barrier to entry, making it easier than ever for any company to get started. As a result of fewer barriers to entry and lower levels of risk provided by HasOffers, affiliate marketing is growing explosively, increasing advertiser spend and disrupting old models of online advertising.

HasOffers has been criticized in the past for opening the floodgates so “anyone can make an affiliate program?” What do you have to say to those who think this is a bad idea?
There have always been people who were afraid to make technology and information available to the masses.  The argument is usually that some of those masses will use it for negative causes, but the real fear is that those with the illusion of power cannot hide behind expensive technology.

HasOffers is the center of innovation in an industry both run and plagued by old technology. A majority of brand advertising dollars still goes to search and display advertising. The Performance Marketing Association (PMA) suggests that a lack of transparency and education about affiliate marketing limits mainstream advertisers from participating with affiliate marketing. The only way to change this is through education and availability of proper technology for every business size.  I suppose we have a fundamental difference in ideology than most competitors.  It is that the more people involved in our industry, the more advertising spend comes in, and more benefit everyone will receive.

To those critics, I would say that this is an industry based on relationships and trust, and technology should be a standard, not a barrier.

As you know, a competitor was hit last year with the revelations that all the affiliate data of their affiliate networks were stolen and resold. What have you done to prevent this happening from you? Many companies who are now customers of HasOffers went through this stressful ordeal with DirectTrack.  It was certainly a very scary situation for all involved.  Our architecture and security programs are very different from our competitors, and though we cannot ethically discuss these on public record (in the interest of security), our dedicated system and network engineers are extremely protective of our infrastructure.  As HasOffers continues to grow, our larger clients demand extremely thorough security documentation including emergency plans, best practices, data loss prevention, and layered security models, which has also helped us develop an extremely air tight environment for our clients to do business.

What differentiates HasOffers from competitors?
HasOffers tracking technology is far more efficient than any competing platform. Proprietary ad serving and tracking technology allows a single HasOffers server to support over 2 billion requests per month. HasOffers’ efficient ad serving and tracking technology is built in C, enabling it to support 500 percent more requests per ad server than legacy technologies. Requests to ad servers built in PHP or ASP.NET require servers to load 15 MBs of data or more into memory in order to complete each request, while the HasOffers’ proprietary ad serving technology only requires 215 KBs per request. This increased capacity provides a strategic advantage, allowing HasOffers to provide the most affordable ad serving and tracking solution in the industry.  We urge anyone to test HasOffers along side any other system and let it speak for itself.

We are also the first company to provide complete fault tolerance by deploying clients’ ad servers on the Amazon Web Services’ EC2 cloud. We’ve combined this global deployment of the ad servers on the cloud with globally load-balanced DNS. This detects the location of the user making the request to the ad server and directs the user to the ad server in the facility that can respond the quickest.  A user clicking on a tracking link in Germany will be handled by an ad server in the Ireland facility or a user viewing a creative in New York will be handled by an ad server in the Virginia facility. Global deployments of the ad servers with globally load-balanced DNS, increases performance by handling a users request with ad servers that are located thousands of miles closer to them. By dramatically reducing this latency, our ad servers are also able to handle requests even faster than before.

Our team also uniquely understands the value of scalability. While competitors only power an estimated few hundred clients each, HasOffers’ scalable technology has enabled more than 7,000 companies to create and manage their own affiliate networks. Our competitors simply don’t have infrastructures to support this many clients effectively.

What are some of your most notable Customers? Do they tend to be networks or advertisers?
Zynga, AdSimilis, Living Social, Tapjoy, Flycell, Adperio, Palms, adperio, MarketHealth, and the list goes on.

In the beginning our primary customers were networks, within the past year more and more advertisers are adopting HasOffers to manage their in-house affiliate programs. About 55% of our clients are networks and 45% advertisers.

Do you recommend super affiliates to use HasOffers to track their deals?
We do have some super affiliates that user HasOffers to track their campaigns, but they are a minority. There are certainly many solutions focused on tracking the performance for affiliates across multiple networks. We find that super affiliates tend to start their own affiliate networks with us as that is often the next logical step for them.

There are a lot of mentions about your API, What makes your API unique?
Our API is the only complete two-way API, including over 400 API methods and 60 API data models. An API of this magnitude is completely unprecedented in affiliate tracking and is sure to open up vast opportunities for so many companies. The API makes it possible to develop customized applications that run on top of the HasOffers platform. No other affiliate network software has an API this powerful.

The API makes it possible for our clients to transform HasOffers to fit every possible need. Every feature in the HasOffers application is documented and available to use through the HasOffers API. Clients can build applications or customize their current HasOffers application software with the same access to integration for managing advertisers, offers, and affiliates. With the HasOffers API it is easy to create new affiliates, generate tracking codes for new affiliates, and generate any statistics and reports.

Some clients are creating a competitive advantage by implementing completely unique graphic interfaces for their HasOffers account using the API. Other clients are using the New API to build widgets that connect with CRMs and billing systems. A few clients are now building our affiliate tracking software into a gateway monetization system.

What fraud systems are built into the HasOffers System?
Our software gives our clients insight to identify and prevent fraudulent conversions. We classify fraud into two types. Affiliate profile fraud and activity fraud. Affiliate profile fraud analyzes whether the affiliate’s details are suspicious or linked to other fraudulent accounts. This allows our clients to identify potentially malicious affiliates before they are given access to offers. Activity fraud analyzes actual conversion data to identify fraudulent activity. This analyzes IP addresses, conversion times, referring domains, duplicate IPs, comparative EPCs, etc.

We’ve also spent a lot time ensuring our core tracking technology prevents fraudulent conversions. Referral domains can be enforced for conversion pixels and IP addresses enforced for server postback URLs. There are options to limit the number of conversions by IP address and date as well as identify conversions generated by proxies. Tracking links, conversions pixels and server postback URLs can be encrypted with unique hashes. The application also provides ample and filtered information in the reports to give our clients the power to investigate each conversion.

How easy would it be for a network to move to HasOffers?
HasOffers has spent a great deal of time perfecting the migration process for networks.  We realize this is the only real deterring factor for larger potential clients, especially depending on the current system they are using, so we have dedicated on-boarding specialists to help with the process. Most clients considering migrating to HasOffers reach out to us because they are already having tracking issues, frustrations with processes,  or difficulty managing affiliate data, and we realize each business model has unique struggles.  Our on-boarding specialists have not only developed smooth processes for migration across the most common platforms, but they are skilled in adapting to unique circumstances.  This should certainly not be a prohibiting factor in moving a business to a new level of technology and innovation.

Do you recommend that most people move to Server to Server Tracking and why? What are the advantages of this?
For our clients with the technical understanding, we certainly recommend implementing cookieless tracking. With HasOffers, cookieless tracking can also be implemented with iFrames or image pixels, providing a hybrid of client side and server side. This way affiliate third-party pixels can still piggy back on conversions as well. With only server to server pixels enabled affiliates have to implement a server to server pixel as well, which many affiliates don’t have the software or knowledge to accomplish.

If a user does not have cookies enabled on their browser, usually an iFrame/Image pixel will not record a conversion, but by implementing cookieless conversion tracking, users with cookies disabled will still be tracked. We do this by passing a transaction ID (tracking ID) to the advertiser’s landing page on click. Then the advertiser passes this transaction ID to the conversion pixel or server postback URL. Our ad servers look up the user’s tracking information by the transaction ID and record conversions accordingly. This is a great way to ensure conversion tracking accuracy.

What inspired your staff to get up in the morning?
Passion.  After participating in every piece and angle of online advertising, we realized that we should concentrate on the part that we really love, and believe it or not, that’s performance tracking technology.  So we surround ourselves with people who share our passion.  You might describe HasOffers as one big crazy brainstorm on the future of online advertising, and we think that’s the most exciting thing we could be doing.  You can really see the unity it brings our team.

What is your dream car?
I don’t have a dream car. Cars are not a big thing in Seattle. I’d prefer a mansion on Lake Washington.

Reddit, a Great Source for Traffic.

If you don’t know about Reddit, then you probably either work very hard during the day, or you don’t smile enough.  Forget Facebook, forget Digg, do yourself a favor, and visit Reddit.  Not only will you find some of the most interesting articles from across the web, you will find some of the most entertaining and insightful comments on those articles.  The phrase “there’s an app for that,” has been said many times, but “there’s a reddit for that” should be equally as popular, because there really is a reddit for everything.  Whether you’re into politics, science, pics of hot chicks or kittens, there’s a “sub” reddit where you can find information about the topic.

But enough about reddit, let’s talk about advertising:

The demo of reddit skews heavily male, and most of the posts tend to be satirical in nature.  So, when it came to advertising PetFlow.com on Reddit, we first tested a fairly “comedic” approach:

The above ad got us almost no sales, and while we found the ad to be quite funny, many “redditors” did not, and we got quite a few negative comments.

We tested a few more ads, and while the response was “okay,” we really weren’t getting the response we were hoping for, until we realized something.  Reddit is not just about advertising, it’s about spurring discussion, and running an ad for just a day or two, is not the way to get reddit to work.  So, we decided to just create an ad and let it run.

The above ad ran on reddit for over 30 days, and while it generated almost no sales in the first few days, we all of a sudden started seeing sales roll in.  And the more comments that were posted, and replied to by our company, the more likely people were to buy.  If you think about it, there really aren’t that many places on the internet where you can advertise, have people discuss your product or service, and then visit your site to buy from you – and reddit allows you to do this.

So, a few pointers about advertising on reddit:

1)      Have a compelling product or service to sell – and make sure it appeals to a broad market, but predominantly males.

2)      Don’t simply expect sales right away – let your ad run, for at least 7 days.  And make sure you respond to all of the questions/comments about the product/service.

Lastly, a note on how reddit self service advertising works: It’s a little different from other places where you might be able to buy media.  It’s not CPC, it’s not CPM, it’s not even CPA.  The way reddit works is they count up the amount of media spend dedicated for a particular day, figure out what percentage of that amount was contributed by each particular advertiser, and that is the percentage of impressions that the advertiser gets.  So, if you spend $1,000 and another advertiser spends $1,000, you each get 50% of the inventory.  If, the next day, you spend $1,000 and the other advertiser spends $50, you get 95% of the impressions.  It’s a bit of a crapshoot as you don’t know how much others are spending, but it’s worked for us.

Good luck!

Alex Zhardanovsky is co-Founder of Epic Advertising (fka AzoogleAds) and has been in the online advertising space since 1999. He recently co-founded PetFlow.com, an online retailer of pet food & accessories.

Is Facebook Social Marketing Really That Important?

Right now, perhaps the biggest “new job” in online media is the social media manager, and similarly the social media management company. Agencies all over are scrambling to create social media divisions and every major brand out there has been equally hurried to hire “experts” to assist them in this new empire of social media. All those “new media” and “affiliate marketing” experts have now become “social media” experts in order to get jobs. The pundits are constantly talking about how they engage users on Facebook, how to use it to engage clients and make new clients, how to get people to click on “like,” and so on. I honestly believe that most of this talk is not only self-serving nonsense that is created to fill the plethora of junk journals out there, but more importantly has no basis in reality. Most Facebook “social” marketing has little or no return on investment.

  1. Most people are using Facebook as a communications device between themselves, friends, colleagues, and family. Facebook works because it’s an easy way to get in touch with people you know. It’s great because you don’t have to remember someone’s e-mail address, you don’t have to remember someone’s birthday, and you don’t really have to care all that much for the people to show interest in them. People relate to others on Facebook at the most superficial levels, and that’s partially why people love Facebook.
  2. The actual engagement ratio is close to 0 percent. Here is non-scientific-based proof: I’m a member of the Starbucks group, as are 20 million other caffeine and scone addicts. On a daily basis, some 1,000 people leave short messages on Starbucks’ websites, with things like “I love you Starbucks” and “My Café Latte tasted like cat pee.” That’s approximately a .005 percent engagement ratio. The people who respond to these posts with “likes” and other actions are usually close to few or none. People aren’t involved with the Starbucks’ fan page, even though on a daily basis a large percent of them are involved with Starbucks. However, the “real” posts where there is actual feedback and involvement is close to zero.
  3. In the cases where there is engagement, there is no way to engage the users back. I’m one of the 9 million or so people who “like” the Britney Spears Facebook page. When Britney (I love you Britney!) or her manager uses Facebook to communicate, they receive at least one to two thousand responses back. There is no way they can process those comments in a way that is actually useful to them. It’s like monitoring teenage girls’ cell phone habits and trying to decode what they are saying. Half of it they’ll forget the next day, similar to comments on Facebook, so who really cares?
  4. There are too many groups on Facebook to be truly engaged. Facebook has become the flea market of online media. While everyone once in a while loves going to a flea market, no one would enjoy living in the middle of one. While in real life you can meet a group of friends, sit down for a drink, and talk about subjects that everyone likes, doing this on Facebook is like trying to have that same conversation in the middle of a rave. You’re going to try for a few minutes to have a real conversation until someone slaps you with a glow stick and gives you a hug (or “poke”). Everyone who joins Facebook at first joins the groups, “likes” all their favorite brands, and tries to engage, but eventually just starts to ignore the cornucopia of pages and groups.
  5. Facebook advertising, on the other hand, provides real and immediate results in comparison. If you want to spend money on Facebook, buy an advertisement. With the growing amount of targeting features, the enormous audience buying advertisements and sending to your own landing page seems like a much better spend. Instead of having to worry about all the management issues with having a fan page or group on Facebook, you can send people to a site that you control.

I’m not going to say that there’s no reason to have a page or group on Facebook – that recommendation would be silly indeed. It’s free advertising. However, I am saying that having a “social media” plan with a panel of experts advising you on what the page should look like, 10 full-time employees looking at the comments, and also paying some analytics company $250,000 to give you reporting on how many people responded to your “we are not open on President’s Day” message is just plain ridiculous. Please, I beg of you, don’t waste your money on these “experts” who have about as much experience in media as I have in swimsuit competitions. Most companies don’t pay people to monitor the graffiti in the boy’s bathroom, and much of Facebook is similar to that. It has little or no real-world impact on sales or brand perception. If you disagree with what I am saying, feel free to post it on your Facebook page, and I’ll “like” it.

Epic FKA Azoogle to Leave Affiliate Business

In the strangest news this year, Epic Advertising Announced that they were no longer going to be in the Affiliate and Performance Marketing space, instead focusing on new revenue model based completely on their new DailyDealSite called GroupLiving.com.  Epic, formerly known as AzoogleAds, (from the French, pronounced AzoooGleeehhh) was at one time seen as the top affiliate and CPA marketing company. However, in recent times, with the departure of the Founders Alex “Meow-Meow” Zhardanovsky and Joe “Spandex” Speiser, Azoogle has taken a totally new turn in its focus. Both Joe & Alex are still close, loving, partners, having started PetHo, a new pet-porn site that was reportedly growing in leaps and bounds.

When asked about why they were shutting down their affiliate and performance marketing division, Matthew Mirman, the Director of Clickable Solutions at Epic, told us that “the company has decided that cost per performance wasn’t working– agencies weren’t happy with this solution.” One insider in the company told us that this basically meant that agencies were more interested  in, “wasting their customers money, charging for banners and impressions instead of having to prove effectiveness.”   Mirman, denied this and responded that, “I have no idea who the hell you are, but you need to leave my house now, otherwise I’m calling the police, ok?”

The folks at Neverblue,  Epic’s nearest competitor were happy to hear this news. Samantha Brachat, the Vice President of Water-Scooters & Leisure Activities told us, “Damn skippy, bitches. Those guys have been throwing parties at the Playboy Mansion, totally ruining the vibe for our parties in the Caribbean.” Both companies, originally based in Canada have been in heavy competition for years, especially after when Epic moved their HQ to New York City and were immediately branded traitors in the Canadian Press.  Brachat commented on this, “We are Canadians and proud of our Heritage, and those traitors just got up and left to NYC..eh.., claiming there was better food, better entertainment,  better business opportunities and the such. We stayed here in Canada where there is better… umm… goose hunting.”

We’d love feedback on your opinions.

*Source: Google

 

Pace Lattin

Lessons Learned While Fighting the Affiliate Nexus Tax

Waging battles in the growing number of states proposing affiliate nexus bills that threaten affiliate marketers is a lot like the classic episode of “I Love Lucy” where Lucy and Ethel attempt to keep pace with the conveyor belt at the chocolate factory.

Staying on top of what is happening in each state is becoming more difficult yet even more critical. But as the PMA gains a deeper understanding of the affiliate nexus tax issue, its far-reaching impact and we get some hard-won political experience under our belt; many valuable lessons have been learned.

Given that three different sates (California, Connecticut and Texas) will all be holding hearings this week on proposed affiliate nexus tax bills in their respective states, we thought it might be useful to reiterate the importance of affiliate testimony.

Be Prepared
Several affiliates, who have testified in the past, emphasized that “no whining” and doing your homework to be armed with the facts is critical. Being prepared, calm, and polite goes a long way.

Get Personal
Putting a human face on small business is a great way to show lawmakers how real people and their families will be devastated by passing laws of this ilk. Affiliate marketers are a diverse group. There are stay-at-home moms, 1 to 2 person setups and larger affiliates that actually employ others. It seems to play well with lawmakers to be exposed to the wide range of affiliates. Regardless of which side the of the political fence politicians sit on, they don’t want to be seen as killing small businesses and hurting families. Tell your personal story.

Stick to the Basics
There are also arguments about fairness and the constitutionality of these bills. Cases can be made that this law unfairly single out affiliates from other forms of online advertising models. However, it’s just far too complicated to explain the nuisances of affiliate marketing and other forms of online marketing in just a few minutes of verbal testimony.

The most fundamental case to be made is that affiliates do not establish nexus for out-of- state merchants. Affiliates simply advertise offers for retailers on their website and are paid a commission if a consumer takes a specific action. But affiliates do not work for merchants. They are small businesses. They do not sell goods. They do not ship goods or handle the transaction.

These lawmakers are focused on raising additional revenue and often believe that out-of-state merchants are skirting the law and should be collecting these taxes, so getting into the nitty-gritty of affiliate marketing is not always the most productive path.

Know Your State
What may have worked as an argument in one state, may not work in another. In California, using the argument that such laws will devastate more than 25,000 affiliate businesses and affiliates will leave the state just seems to anger lawmakers. Businesses move out of California all the time. While in other states, such as Nevada, a rivalry with Utah over business development opportunities seemed to have some sway with lawmakers.

And in Illinois, legislators are very sensitive to the proximity to other states such as Michigan, Indiana and Wisconsin. In fact, those neighboring states often specifically target Illinois businesses with messages of being very business friendly. Initially the argument that affiliates will move and can easily relocate out of state seemed to resonate with lawmakers. But ultimately, the Illinois Governor signed the bill anyway, even as large affiliates threatened to move their substantial businesses out of state.

Be Consistent
It’s also important to have a consistent message from affiliates. Again, just tell your personal story. And while marketers are known to be bold and aggressive in their online efforts, taking the same tact for the affiliate nexus tax can backfire. More than a year ago, one affiliate (in a state where a nexus tax bill was proposed) put ads on his site saying something to the effect that “you don’t have to pay sales tax!” to entice consumers. Supporters of the affiliate nexus bill in that state got wind of that message before a hearing and attempted to paint affiliates as people skirting the tax laws. That was certainly not case, nor the intent of that affiliate. But now is not the time to go rogue.

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Lisa Picarille is an online content strategist. She develops online content strategies for businesses using unique and compelling written, video and audio content that is deployed across multiple platforms – including the social Web – to help businesses maximize their reach. She also consults on a variety of issues including online marketing, branding, and social media.

M’thinks that Chris Trayhorn Knows Performance

A few years ago someone told me that someone was making a print magazine for the performance marketing industry. I was pretty damn sure it would fail. While blogs weren’t all the rage as they are now, as an experienced online publishers, I was pretty sure no one would want to read something in print. Luckily I was wrong, and the folks at Revenue Magazine, now Revenue Performance were correct. They understood that in our industry, people really love to get attention and putting great photos of them in a glossy magazine would guarantee distribution. Now some 8 years later, Revenue Performance is the magazine that every major company has on their coffee tables and frames in their offices. I decided to sit down with Chris Trayhorn, the Publisher of Revenue Performance and see what was going on over there.

Is this the Affiliate Industry, or the Performance Marketing Industry? Is there a reason to use one term over another?
Performance marketing. Of course. Let’s think big. Chief Marketing Officers have the shortest job lifespan in the C-suite. They’re desperate for a way to prove that they can make a difference. Performance marketing can do that for them – but they need to understand how, so education is key. Essentially, we have outgrown the term “affiliate marketing”. Performance marketing is where the action is.

What positive changes do you see happening in the next few years for the industry?
Huge growth, so long as we focus on getting the message out about what we do. I find it crazy that often when I talk to senior marketers at big multinational companies they have no clue about what can be achieved with performance marketing. As an industry, we need to be taking a message to those people that we offer a real solution to their problems.

There is a plethora of Affiliate and CPA Networks. What do you think about the increasingly low entry requirements for a network now? Is this a good or bad thing?
It’s good that the industry is dynamic and attracts new entrants, but it concerns me that so few have much of what I’d say was necessary experience and /or knowledge. How many new networks CEOs know what GRC is, for example? Governance, risk management and compliance is a recognized and integrated discipline in large enterprises but I don’t think I’ve ever even seen it discussed anywhere in the performance marketing space. If networks understood GRC better, we wouldn’t see nearly as many flameouts as we do. And that’s just one example.

We’ve had conversations about gurus in the industry, many of them who have become regular speakers at the Affiliate Conferences. What do you see as the biggest threat from the gurus to our industry?
To grow as an industry we need more publishers to build more audiences and generate more traffic. So we need quality training that new publishers can trust at a price they can afford. So-called gurus aren’t the answer because they tend to promote get-rich-quick approaches which ultimately fail for most students.

But it’s not just affiliates and publishers who need training. Advertisers and merchants need education too. Someone in the network space told me the other day, “I have lots of potential new advertisers. I just can’t train them fast enough.”

That’s nuts. Quality training is key to the growth of the industry. We need to be doing more. You’re going to see Revenue Performance taking the initiative in this area in the near future. Watch this space.

What do you think about the growing flame-wars, blogger attacks on people’s personal lives in the industry?
It sucks, but people are people. That means many of them behave badly some of the time. What are you gonna do?

Do you believe that the average person can still get into the industry, and why?
Sure, but they need to work their asses off and be smart about it. But online is still in its infancy. Mobile is just getting started. There’s lots of opportunity.

What is the biggest threat to the industry right now and why?
Personally, I’m keeping an eye on Google. I’m not the paranoid type but it sure looks to me like they’re moving towards a model where they try to direct all shopping traffic to their own properties. They’re scraping content off other publishers’ websites and then finding ways to present it so the user doesn’t need to visit the original site at all. They promote their own properties in preferred positions. They’ve just bought an affiliate site and are playing with other ways to present content and offers. They’re massive in mobile and have their own operating system. And they’re working hard to make it all work together. Other current concerns like fraud and nexus taxation will work themselves out but I’m not sure who can slow down Google.

What is your history in the Performance Marketing Industry?
My company spent 10 years working with Accenture helping them to grow their CRM practice from $1 billion to $20 billion a year. We also worked with Microsoft to help them launch Microsoft Advertising and publish their original online marketing research. Half way through that time I thought there was room for a magazine with a  trusted voice in the performance marketing industry. That’s how Revenue Performance got started. It was a big risk to launch a print magazine for an online community, but once we got the first edition out, people loved it.

Revenue Performance presents itself as a “professional” magazine in contrast to all the blogs. Why do you see the need of there being a print magazine?
We started publishing the magazine eight years ago – I think that longevity implies that it’s our readers who think we’re needed. There will always be a demand for content that advertisers and publishers feel they can trust in a format that they find useful.

Do you feel that we need an organization like the Performance Marketing Association, and why (or why not)?
I think it’s useful that we  have someone fighting the fight on Internet nexus taxes, but it’s a tough gig: trying to stop legislators bringing in new taxes when state tax incomes are at record lows. I wish them well.

What is your dream car?
It’s a dream motorbike: a KTM 950 Adventure. It’s a huge, black beast of a thing designed for fast back-road riding combined with some off-road stuff too. And it’s sitting in my garage.

If you weren’t involved in the industry, what would you be doing?
Something in online education. The internet gives us the first chance in history to provide everyone on the planet with education and opportunity. I think that’s important.

Incentive and Content Unlocking Programs that Work

There has been a lot of negative press lately about incentivization and content programs in affiliate marketing. I’ve personally written a bunch of stuff in my blog at IndustryPace about content unlocking programs, the problems it’s caused in the industry. That being said, while there are more than a few bad players in the industry who are jumping around from network to network destroying offers, there are also some legit players who are doing it right, working with advertisers to create real products and providing value for both affiliates and the advertisers. So as part of my dedication to providing equal opportunity, it seems fair to mention and feature some of the companies in this part of the industry who are making money for affiliates.

AdscendMedia: Adscend basically re-invented the content unlocking system and has made a name as the legit source for content unlocking. They have taken a proactive stance against illegal or explicit material as a method to promote their programs. Because of this, they provide the highest payouts in content unlocking in the industry and feature advertisers that you cannot find anywhere else. If you are looking for a content unlocking system, check out Adscend.

SuperRewards:  A division of adknowledge, SuperRewards is the top virtual reward companies for games. If you are building a game or some system that needs to reward your users, this is the first company to go to create virtual gold opportunities. Plus, since its backed by Adknowledge, you know that you’re going to be working with a legit company.

EnvyusMedia. EnvyusMedia has a huge selection of unique and high converting programs that are worth checking out. EnvyusMedia came from nowhere last year to become one of the top new CPA Networks, partially because of bringing great new offers to the table. Check out their incent programs at OfferVault.

AxonMediaGroup. Another great network with a lot of incent programs, including legit form and lead generation that allows incent. It’s difficult to find incent programs that are lead based but AxonMedia Group has a bunch of insurance, medical, dental and investment offers that are all incent-allowable.

CPAWAY. Perhaps the largest selection of Programs in the industry, including tons of exclusive international offers. CPAWAY has become a “one-stop” source for all offers, ontime payments and now one of the king of incent offers. Check them out at OfferVault.

PointClickTrack: Huge network that specializes mainly in incentive based programs. Has many  tools such their own Content Unlocker / File Gateway, which also has a Donation Widget, and Virtual Currency Widget to help other websites monetize their traffic.  Check them out at OfferVault

What are some Incentive Based Content Unlocking Systems? (Special thanks for Adscend for the Ideas)
One) Create their own Windows themes and similar graphics and content lock them, some with high success w/ organic SEO traffic

Two) File conversion sites – like doc/docx to PDF.

Three) Indie bands/artist – Musicians to lock their content

Four) Ebooks – if you have rights to the ebook, you can show a few pages of the book and then lock for the rest of the access

Five) Instructional videos – e.g. guitar lessons

Six) Royalty free sound packs

Seven) Access to premium membership content. An example I ran into just yesterday was a website charging $1 USD for use of a special financial calculator online, they could use a content unlocker and generate around the same amount of revenues per use however would likely see more revenues because of the free option. There is a lot of room for monetizing small payment amounts on various sites.

Eight) Software! Our API allows full integration with software so developers can monetize their software any way they would like, this includes requiring a survey for unlocking certain features or requiring a survey with every use of the software.

Nine) Any movies, music, graphics, ebooks, etc. are fair game as long as the publisher owns rights to the copyrighted file. We have many publishers who create their own content

Check out these amazing affiliate tools here

New OfferVault

After many months of development, we have released the latest version of Offervault, which has been totally re-written from the ground up. Aside from several new features that you can take advantage of right now, the new system lays the groundwork for the rest of our planned upgrades throughout the rest of 2011.

The new ADVANCED SEARCH button provides new search capabilities including searches by NETWORK, CATEGORY, ALLOWED TRAFFIC TYPE, COUNTRY and PAYOUT RANGE.

The new SEARCH PREFERENCES button allows you to fully customize your search experience with settings tailored to the way you like to work. This includes an updated interface making email alerts
even easier to set up and use. Email alerts allow you to be notified automatically when new offers come out that match your pre-set
search criteria.

Look for the new STAR in the search box to show a drop down of your favorite searches, which you can save and recall with a simple click of the mouse.

Don’t forget to check the WEBINAR tab too. We have added new search capabilities so that you can more easily search among the 75+ archived webinars to find just the topics that you are looking
for, by both keyword and presenter.

http://offervault.com

In another big change, we have opened up the system to allow un-registered users to use the main search function. You still need to register and be logged in to take advantage of most of the more
advanced features, but since you are receiving this email, you are already registered.

We have included a new video tour that you can watch to get an overview of all the new features.

I hope you enjoy the new Offervault and all the new features that are now available to you. This is going to be a big year for Offervault, so keep a look out for more great features to come.

Please let us know what you think! Your feedback it very important to us.

Shane Graper Believes in Hybryd Marketing? Is He Going Green?

I’m not sure what is the water in Denver, but companies are sprouting up left and right here. Shane Graper, like George Avery of GetAds left his employer in the wake of the Facebook and Attorney General scandals that rocked the industry. From that he moved onto creating his own company, with its own way of doing business and more importantly with an focus on professionalism. From talking to him and the other folks at the company, HybrydAds is very focused on that professional experience and wants to make it clear that they are not like any other company in the industry.

When did you know that you “really liked” affiliate and performance based marketing? I really knew this was something I liked when I had a crash course at Video Professor in 2004. That is when the light bulbs began to turn on and a career was born.

What has HybrydAds done in regards to compliance that you feel is important? Hybryd has spent countless hours analyzing traffic. We have been able to tie many different bad sources of traffic together. This has allowed HybrydAds to actively seek cooperation between other networks to keep a running list of those bad sources. We can share info without giving away secrets.

What do you look for in affiliates that help you know they might be a good choice to approve? First and foremost, can their information be validated? Hybryd does communicate with every Affiliate so that we know how we can provide the best service. We have moved mostly to a referral-based process to make approvals less painful. We still do approve a limited amount of applications and always welcome referrals.

You used DirectTrack while at Affiliate.com, what made you guys go with LinkTrust instead of the platform you knew? I’ve worked with several tracking platforms in the past so when weighing the choices that were out there for Tracking we looked at four things: Accuracy in Tracking, Growth, Reporting, and Cost. Comparing these across the available platforms LinkTrust won hands down.

Do you see this industry as “affiliate marketing” or “performance marketing” and any reason? Looking at this industry as only affiliate marketing is too microscopic. This industry has evolved into performance marketing from affiliate marketing. The Performance model includes the diversity of marketing that is available across our industry. Others might say its just semantics though.

What do you think of the industry groups like the Performance Marketing Association? Is there a need for a representative group? The PMA is great for creating a collective voice in our industry. I do think that there needs to be a representative group but the trick is getting everyone in the industry involved and cooperating.

If you could pitch an airline to use performance based advertising, what would you do? Performance based advertising could help offer more value to their customers. An airline could for example monetize the viewing of in air TV and movies with products and services. Why not try to improve marketing to a captive audience with nowhere to go for the duration of a flight. I could go on about data monetization but I wont. They are doing a bit of performance based advertising already; I was on a flight recently that tried to sign passengers up for a credit card with miles as an incentive. The only issue is it wasn’t interactive and flight attendants aren’t always the best sales force.

What exclusive offers would you like to introduce to our readership? We have been working hard to develop our own Education portal, DegreeChemistry.com. In addition we are getting ready to launch our own insurance portal that you can get a sneak peak of at SelectMyInsurance.com.

What do you think of adware or contextual advertising? Like any other form of advertising it can be effective if used with in the correct guidelines. We all know how successful the Search engines have been at it.

What are the benefits and risks? The benefits are that it can be extremely targeted and valuable to the consumer. The only concern of course will be regarding privacy.

What are you planning to do for the next 6 months of 2011? Without giving away all network secrets we are focusing pretty heavily on technology.

The Denver area in the last few years has become a new mecca of major CPA Networks, from GetAds, Intela & AdPerio. What do you like about the area and what makes you stay here? There is only one thing that Colorado doesn’t offer and that’s an ocean. Other than that, there is nothing you can’t find or do here. You can drive an hour in any direction and find a different climate or landscape for any activity.

If you could move HybrydAds to any other place besides Denver, where would it be? I couldn’t imagine being anywhere else. If we did move it would either have to be a tropical island or a place that has a comparable climate with Denver.

What would be your dream car? My Dream Car would be a Truck. Fully loaded, Full Size, and good on gas. Is that too much to ask for?

Visit HybrydAds Affiliate Network here.
Check out all their offers on OfferVault