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March 25th, 2004 Edition

Search Engine Wars
Search engine marketing has often been ignored by some of the largest companies in the world, even the likes of Microsoft Corporation

Trends Report:  Relative Value and Customer Relationships in Affiliate Marketing
Optimization is the catchword of 2004 for the online direct response industry.  In that vein, a recent trend has been to gauge what the effects have been of affiliate marketing in an advertiser’s relationship to their customers.

Digital Thoughts:  Googling the CPA Model
When the question is asked, “So, what is the next big thing in online marketing?” chances are that search engine marketing still gets the overwhelming nod.

Finding Affiliates
One of the big questions for any business contemplating starting their own program is, where will I find my affiliates?

Top Offers From Top Networks
Top offerers form these top networks. R.O.Wise Networks, Adteractive, Digital Moses, eMarketMakers, LynxTrack, and Venture Direct Offers

Breaking News and Industry Headlines
 

Published every Thursday, Digital Moses Confidential is a content-driven newsletter serving the online marketing industry.

Please direct questions or comments to editor@digitalmoses.com

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Digital Thoughts:  Googling the CPA Model
By Sam Harrelson

When the question is asked, “So, what is the next big thing in online marketing?” chances are that search engine marketing still gets the overwhelming nod.  Email conversions have dropped off and even though reports indicate that the large players may come back to that sector, the immediate market looks gloom.  The pop market is faring even worse with Microsoft’s decision to can pop’s in its next update to the ubiquitous Internet Explorer.  Banners are still questionable areas to invest large sums of revenue, and their return, can sometimes come in the very long term rather than sooner.  Search marketing has arrived and the industry is still coming to grips with what that means for everyone involved.  Although there are other (profitable) search engines to be found such as Overture, Google has a hegemonic grasp on the industry at this point and has set the standard for advertisers and affiliates with its popular AdSense program.  With the combination of a trusted brand image, automation of sales and publisher relations, and high relevancy/intent targeting, have the results for the industry’s search to find a stable model and platform been answered with Google?  Does Google stand to replace the CPA model by its very popularity if that’s the case?

The popular American vernacular has already included “googling” into the everyday language as a term for searching on the internet for a specific person, place or thing.  Google’s place in the common language of online users will have a long life, irregardless of how it may fare in the coming months or year against some of its more aggressive competitors looking to stake their claim in the search engines world.  Not only that, but online marketers and affiliates have quickly incorporated Google and AdSense into their sites and campaign budgets.  It’s rare to see an affiliate site that doesn’t include AdSense banners somewhere.  No doubt that a great deal of revenue can be made per click on these, so it makes perfect sense for AdSense to have spread so quickly in the online marketing world. 

What is so unique about AdSense and the Google model is that the relationship between advertiser and publisher is, for the most part, automated and provides an element of stability to a relationship structure that previously was heavily reliant on trust, hope, and faith.  With the Google model, however, the playing field has been given the sort of parity that makes competition and market forces rule.  Both advertisers and publishers have been looking for this stability and automation that can encompass a large part of the industry.  With an automated “middle-man” this facet is accomplished.

The relevancy targeting provided by Google and AdSense is particularly interesting for parties involved.  The targeting provides the returns that the industry has been missing from other forms of media such as email.  With the positive outlook on the revenue generated by AdSense and SEM in general, both publishers and advertisers are quite happy with the return on investment provided.

However, these pro’s present some unforeseeable results for our industry.  If this trend of focusing on SEM’s tremendous growth and return continues, what does it mean for the CPA model in general?  And, in turn, what does this mean for affiliate marketing, an area that many advertisers are just now are beginning to explore?  The debate is certainly raging in some circles and chatboards throughout the industry.  However, the main issue to consider is just how the CPA  model will survive in a post-AdSense world?  Will advertisers be able to persuade publishers that the model has enough long term solubility to continue as an important revenue stream or will publishers be able to point to diminishing returns from their inventories and demand more investment in SEM from advertisers? 

Send your thoughts, ideas or forum threads on this important issue and we’ll continue the discussion in the Confidential.

Sam Harrelson is the Co-Editor of the Digital Moses Confidential.  Please send questions/comments/suggestions to sam@digitalmoses.com

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Search Engine Wars
by David Fishman

The US economy is currently experiencing the waves of three major changes that have begun to dramatically affect not only the fortune 500 companies that keep America’s brands world wide, but also the smaller private yet equally important firms that make the US national economy the strongest in the world. 

American businesses are experiencing:

1.  Search engine wars

2.  Outsourcing of jobs to India and Asia

3.  Major consumer and corporate debt problems with important finance issues

Over the next month we will explore questions like, how do these waves affect and change the way we do business on a daily basis and the long term? How will we as private companies often focused on internet advertising, decide where to spend our dollars? What brands or products will we promote or risk our resources on to build a stronger more secure company? This week lets discuss the background of search engine wars.

Search engine marketing has often been ignored by some of the largest companies in the world, even the likes of Microsoft Corporation. However, in recent years as the Google g-ds have been formed, it has become clear that search engine marketing is not only exceptionally relevant for every business and consumer it is also slowly becoming one of the only stable ways to market products and build brand. 

In an article in February 2004 found on ISEDB.com it is clear there is already a war between Google and MSN. Some even like to include Yahoo in this war. Yahoo has recently announced they will stop using Google as their engine that powers search results. There are literally countless search companies that use either MSN or Google to power their results. As more and more companies create search applications and tools to help large and small companies market, it will become ever more important to decide which type of back-end search technology will power those results. Google touts its success as creating technology based on human intellectual relevancy making the search more intuitive and the results more closely matched to desired answers.

Obviously MSN, Yahoo and Google are the three largest search engine companies in the world. It is only natural they will compete for the top spot. However, MSN the richest company in the world and Google, the most widely used search engine in the world will soon come head to head similar to the MSN Netscape war. That war ended in not only the debilitation of a powerful technology company (Netscape) but again proved that money and power will even win in court.  

Millions of people all over the world use search as a tool to find products. The company that wins this war will not only capitalize on the global consumer but will force companies small and large alike to tailor their marketing techniques to fit the technology built by the search king. The affect this has on the global market can already be seen. Any company in the US can find other partners over seas to work with and can reach consumers faster and more effectively by enticing them to purchase products they otherwise would not have know about.

Sources:
http://www.isedb.com/news/index.php?t=reviews&id=675
http://www.everythinghurts.com/blog/2004/02/google_vs_yahoo.html

 

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Trends Report:  Relative Value and Customer Relationships in Affiliate Marketing
by Sam Harrelson

Optimization is the catchword of 2004 for the online direct response industry.  In that vein, a recent trend has been to gauge what the effects have been of affiliate marketing in an advertiser’s relationship to their customers.  Whereas 2001-2003 saw the continuation of a bulk approach to marketing through affiliates and partnered publishers, it seems that 2004 is already headed in a different direction with advertisers stressing the need for affiliate programs that are brand sensitive and optimized for the best results through a more concentrated program.  The continuing call for streamlined campaigns has had a noticeable affect in the overall mood of the industry towards marketing through affiliates and partners.

In years past, bulk media buys were seen as a sure way to make profits for a campaign.  The mega-programs with affiliate numbers reaching well into the tens of thousands were seen as the most successful by default.  If a program was underperforming, the solution was to find more media or more partners to “push” the program in an attempt to make up for the slower gains up front. 

Although the playing field hasn’t completely changed (sometimes success is still measured in numbers of affiliates or campaigns), the relative value provided by affiliates in an advertiser’s relationship to their consumers is definitely undergoing a paradigm shift in the industry. 

With the focus now on media that is optimized and can perform at higher yields, the bulk aspect has quickly faded.  This is especially true in light of brand concerns and the CANSPAM legislation.  Reports show that consumers do value email marketing and data buys that are done with relevant content, reputable publishers and not in formats that are so frequent that they drive consumers away.  It seems that the market, and the publishers who are able to optimize their lists and media inventories, are moving towards a “pull” model that rewards those with the most long-term solubility.

The affiliate marketing component of this will be an interesting trend to observe over the course of 2004 as the market moves the industry.  As consolidation among the larger players continues, publishers who were once relatively small producers can still be valuable members of an advertiser’s affiliate network by focusing on optimizing their data in such a way to get the highest return yield.  So, even though it would seem that a smaller quantity of data would mean less to an advertiser, a publisher’s relative value to that advertiser can actually be extremely high if the publisher is savvy enough to have optimized their data in such a way to maximize the advertiser’s return.  As advertisers continue to re-examine their affiliate and partner relationships looking for the highest yielding and most brand conscious, relative value cannot be counted out as a meaningful quality to look for when doing business, especially in 2004.

Sam Harrelson is co-editor of the Digital Moses Confidential.  Please send any comments or questions to sam@digitalmoses.com  

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Banners of all sizes, mini-sites, pops, splash pages, email newsletters, animated interactive banners. 24 hour turn-around.

Contact Michael at mm@maridium.com AOL IM: maridium


Breaking News and Industry Headlines

Search Engine Marketing and Affiliate Marketing are two buzz-words in the current marketplace.  Searchenginewatch.com explores how the two can pair up to bring an advertiser stellar results or unforeseen potholes in the road to profits in this special report from the Search Engine Strategies 2003 Conference in Chicago...http://searchenginewatch.com/searchday/article.php/3324901

Here’s another report on the long-term benefits of doing email marketing in an optimized marketplace.  According to Jupiter Research, spending on email marketing will rise from 2.1 billion to 6.1 billion by 2008…http://biz.yahoo.com/bw/040318/185379_1.html

Search Engine Marketing is a beautiful thing if you know exactly what you’re doing.  However, many in the industry aren’t quite sure just how everything works in this sector.  Many companies have sprung up to offer their services to media buyers who are wet behind the ears but still looking to invest part of their budget in search.  Mediapost explores the issues that such media buyers face when deciding on how to best spend their SEM dollars…http://www.mediapost.com/dtls_dsp_news.cfm?newsId=242988

One of the most talked about stories in the industry over the past six months has been Microsoft’s on-again off-again default setting for its pop stopper software included in this summer’s updated service pack.  Over the last week, Microsoft has announced that the default will be set to “on” thus leaving many in the industry wondering what will ultimately become of this highly converting model…http://www.clickz.com/news/article.php/3328071

A serious security flaw has left Microsoft Hotmail and Yahoo webmail users at risk to a potentially dangerous code that can insert itself onto a users computer when the user opens the email.  It seems that web-based email users are the only ones at risk, however this is quite serious as the script can be masked quite deceptively.http://www.internetnews.com/dev-news/article.php/3329821

 

Top Offers Top Networks

BRAND NEW! ProDVDCopy -- #1 Banned Program!  Payout:  $14.00 CPA

Federal court bans DVD copying program, but you can own it before it's gone. Save $100.00! Back up all your DVDs -- Let your kids use your DVD copies and don't worry about breaking them -- Take your DVDs on trips without worry of loosing them!   Proven huge clicker is earning top ecpms, and averaging more than $.60 ecpc across the network.

 

BRAND NEW! Body by Jake! (FREE TRIAL)    Payout:  $10.00 CPA

Go ahead, have that slice of bread!   Jake’s new carb manager helps you burn your carbs so you can eat the foods you crave.   So new we’ve only tested internally – but so far it’s over $1.33 ecpc!!   Be the first to your subscribers with this great free trial offer!

 

National Auto Warranty   Payout:   $6.00 CPA

Steadiest performer on the network, always-consistent eCPC above $1.40!   National Auto Warranty is one of the leading online automotive plan programs available.   Very simple lead generation form, pays on gross leads, first page only! 

 

Stamps.com Free - $80 value includes $25 postage   Payout: $36 CPA

BRAND NEW CREATIVES!  This offer represents one of the best consumer/small business 'freebie' offers we've ever mailed.   With these new creatives, we've seen conversion rates jump as high as 8% and eCPCs over $3.50!  (eCPC range from $.81 to $3.69)

 

$20 Gift Card (Multiple Brands)   Payout $11.50 CPA 

Great conversions, high income can be yours! Our '$20 GiftCard' offers are hotter than ever, and converting like crazy. There's a unique offer for virtually every lifestyle, and every online consumer profile imaginable: JCPenney, Bath & Body Works, Applebee's, Bed Bath & Beyond, KB Toys, WalMart, Foot Locker and more! Combined conversions for these offers currently average around 1.3% off the click -- but they are HUGE clickers (depending on the list of course)! In fact, we've seen them click as high as 65% of opens! (Conversion range is .7% to 1.8% off the click, 30% to 65% click rate on opens.)

 

Contacts:
Doug Walker  310.861.8788 
doug@hydragroup.com   AIM: Camden110
Scott Steele  310.861.8788 
scott@hydragroup.com   AIM: Production71
Zac Brandenberg  310.861.8788 
zac@hydragroup.com   AIM: zzllbb

 

Fast payments, exceptional affiliate support, exclusive offers, and unique creative. We offer custom bounties for volume above our  published rates.  Contact an R.O.Wise rep to discuss all our offers.  Join our  rapidly expanding  network of web and email publishers today.

 

Home Academics Exclusive CPA: $12
Home Academics brings you the top degrees and certification classes from fully accredited online universities. You can choose from programs in: Business, Engineering, Healthcare, Finance, Marketing, Technology & More!  We are paying out $12 for a full university lead. 
 
Easy Auto Financing Exclusive CPA: $6.50 (increased bounty)
Easyautofinancing.com is the leader in providing finance solutions to individuals with any credit situation. Our application is short, free and takes only 1 minute to complete. $6.50 for 2 short pages
 
My Debt Helper CPA: $4 (increased bounty)
4 simple drop downs, ALL LEADS ACCEPTED AND PAID ON. Converting at over $1.00 CPC.  This debt offer pays on 4 simple dropdown fields, not the entire application.  Drop this offer and see for yourself!
 
My Mortgage Helper CPA: $7 (increased bounty)
The shortest form on the market, 5 easy drop down boxes and you get paid.  NO SCRUBS OR CHARGEBACKS, all applications accepted and paid.
Other mortgage offers may pay out more, but the conversions are lower as you need a completed application. This offer is converting at over a $2 CPM.
 
Fast Funds Online CPA: $8.50
Top Cash Advance Offer.  It is easy and simple. When people complete a 2 minute application, they will be eligible to receive up to $500 deposited into their checking account within the next 24 hours.  Payout: $8.50 with each submitted application
 
The Net Panel CPA:
$1 (New Creative, Great Converting Survey)
Complete our short online survey. Upon completion members will be entered to win a Plasma TV or $2500 cash. $1 per completed survey

 

 

eMarketMakers Top Offers:

GI Bill: Two offers in one!!!  Sign-up FREE to receive info on veteran education and loan benefits and info for those interested in the military.  Over 27 million US veterans - huge market.  $8 CPA on education, $7.50 on Loan for this quick, free reg. One of our best education offers yet! 

 

Passionate Personals: Our Brand New and eMarketMakers Exclusive Dating offer! You won't be able to find this one anywhere else, GUARANTEED! Pays on completion of free profile. Super easy registration form, mostly pull downs! You'll get $1.75 CPA for this winner!--> and no chargebacks like other dating offers!

 

CarsAmerica: 2 car Offers - Auto Loans and Auto Quotes.  Just in time for all those buying their 2004 cars, a brand new Auto Loan Offer/Car Quote Offer.  Both perform well to all lists, both converting at an average of 14% across the board.  We're paying a $4.80 CPA for this winner!

 

Choose a Degree: Great Educational Offer geared towards Criminal Justice and Paralegal degree seekers! Very good creative, will generate tons of conversions. Pays $11.50 CPA on a one-page request for FREE info! No Credit Required!

 

Weatherbug Incentivized CPC:  One of many incentivized and non-incentivized CPC’s available on eMarketMakers.  Also available as CPC Banners or Email: American Singles; Reunion.com; eLearners; Kennedy Western.  Inquire at info@eMarketMakers.com

Top Offers Fromm
Venture Direct Offers
:

The Venture Direct Affiliate network includes a wide variety of great offers with the highest payouts around.  Venture Direct guarantees payment on good leads.  Another great benefit to becoming a Venture Direct affiliate is the online reporting system.  Since 1983, Venture Direct Worldwide has produced extraordinary results for thousands of direct response marketers seeking to generate leads, acquire new customers, increase sales, drive web traffic, and create incremental revenue. 

DirectDegree.com CPA:      $10.00 - $20.00  
DirectDegree.com helps students, technical professionals and executives capitalize on the wealth of Internet learning opportunities and degree programs. Bring along your browser, ambition, and a curious mind and we'll help you enhance your user’s careers.  There are over 28 schools and 350-degree programs to promote.

Get Term Life Insurance! CPA:      $40.00
You will be paid on per lead basis for an exceptional offer. This website will allow the user to try the term insurance estimator to calculate insurance needs.  Get an instant quote from up to 17 highly rated term insurance providers. The user can get a personalized quote or be contacted by one of the term life insurance experts.

Great MortgageIT offer!  CPA:   $ 10. 00   
This is one of the largest private mortgage bankers in the U.S. with some of the lowest rates.  This is a fast, dependable service and typically generates a $1-$1.50 eCPM. 

ITT MBA Program!  CPA:     $17.00  
Utilize ITT-Tech’s well-known brand to generate qualified leads with ease. Core courses teach business principles, explore the globalization of business and how it can impact different aspects of the business cycle, and identify the challenges of business leadership in a world that demands swift adaptation and keen competition. 

Debt Excess!  CPA:      $ 11.00
One of the best converting debt offers out there, DebtXS requires a minimal amount of information from the user yielding consistent $1-2 eCPMs.  Debt Excess is an industry leader when it comes to reducing debt.  Reduce debt by 50%-75%.  Some focus points are late fees are waived; pay ZERO % interest and one simple, low, monthly payment.

Contacts:
Michael Derikrava Direct: (212) 655-5215mderikrava@ven.com 
Michael Pavez  Direct: (212) 655-5139 mpavez@ven.com www.DirectDegree.com www.VentureDirect.com

Adteractive, Inc. Top Offers:

 

New and Improved DirectEducation.net :   $15.00 CPA EDU lead!

- Action: Submit a Lead
- CPA: contact us
- Conversion:  7-11% from the click. ($1.00-$1.50+ EPC)
- Real-time reporting, no charge backs..

 

 

LowRateSource.com : $7.50 - 5 Drop Downs Mortgage Form!

- Action: 5 Drop Downs, Submit any Combination of Page 1!
- CPA:  Contact us
- Conversion:  20-30% from the click. ($1.50-$2.00+ EPC)
- Real-time reporting, no charge backs.

Note: Lowratesource offers the highest bounty and conversion for this type of mortgage offer.
Try the original 5 drop down only deal - great creative available..

 

 

AllianceWarranty.com : $6.00 -  Short form Auto Warranty!

Action: Submit Page 1!
- CPA:  $6.00
- Conversion:  20-30% from the click. ($1.00-$1.50+ EPC)
- Real-time reporting, no charge backs.

Note: This is the highest converting Debt deal available. Unlimited Inventory. Try it  - you will like it!

 

 

FastCashNet.com : $7 - One Page Cash Advance!

 - Action: Submit Page 1!!

- Conversion:  15-20% from the click. ($1.00-$1.50+ EPC)
- Real-time reporting, no charge backs.

Note: This is the highest converting Debt deal available. Unlimited Inventory. Try it  - you will like it!

 

 

Other clients include Columbia House, Universtiy of Phoenix,  iWon, AIU, Kennedy Western, Netflix, Chase, Discover, Ameriquest and more!   All at the guaranteed highest payouts around. Come join the original Ad network and make some cash today..

Contact: Diego Canoso, dcanoso@adteractive.com (415) 762-2266 x121 for additional information

DegreeMatch: $4.00 CPL: DM Exclusive, this campaign pays on the First Page, 7-8 fields, No Scrubs!
 
IwantFreeGifts:: $1.00 CPL: This offer has been converting at 10% (+).  Simple, fast registration.  Best of all, your users can get FREE GIFTS!  Fantastic creative. First Name, Email (confirmed), and Password!  No scrubs!
OnlineDegreeAdvisor: $4.00 CPL Another DM exclusive pays on first page.  If you have had success with online universities, this is a must.  Creatives are fresh, conversions are great, and the lead is very simple and quick for the end user.  No Scrubs!
 
BestDegreeGuide:  Banners  $0.30 CPL  DM exclusive Conversions off of the click are through the roof.  Great web campaign.  No Scrubs!
 
DriverLoans: $5.00 CPL Short Application, averaging $0.50 effective CPC from DM publishers this month.  No Scrubs!

Contact: Dave Paynter, dave@digitalmoses.com  201.394.6191 for additional information

 

 

 

Finding Affiliates
By
Ben Ellis

One of the big questions for any business contemplating starting their own program is, where will I find my affiliates? Even those affiliate managers that run a program within a network will soon find that out of the many hundreds and thousands of affiliates in the network, only a handful of them actually make any sales.

So what’s an affiliate manager to do?

If you want to find good affiliates for a new, or up-and-coming program then you have to get your hands dirty. You need to find sites yourself and contact them with a compelling offer to join your program.

Existing Links.

First of all, check out the sites that are already linking to you. This can be done by going to the following free sites, entering your url and then looking at the results;

From these results you now know who is linking to you, from what page, and in what manner e.g. are they being favourable to towards your company or not? They may have a text link on a links page so you can email them and ask them if they’d like to link to you by joining your affiliate program as they could earn some money if they refer sales.

Why ask sites to join your program if they're already linking to you? They could promote your site even more. They could add more links to their site if they know that they can actually earn money from them.

Link checking is a useful tool in finding sites that link to you, and a growing number of links is a good sign, but the actual figure should not be deeply analysed too much.

Finally, check that their links to you work and that they are not misspelt, or that they go to a page that does not exist.


Competitor Links.

That’s the friendly, technical term for copying. Carry out link popularity checks, as above, on your competition and find out who is linking to them. You will probably find sites linking to them that can also link to you as well. Let these sites know that you exist, that you are offering the same or a related service/product to your competitor and that they are invited to join your program too. I would not recommend that you contact a site and ask them to delete a link in favor of yours – that just isn’t cricket!


Piggy Back The Top Listings.

From your search engine keyphrase research you’ll have a list of phrases that you want to be found under. In the real world you’ll never rank number one for all these phrases in all the engines, but the sites that are stopping you from achieving SEO greatness can still help you. If you sell a particular comic, there’ll be sites that list comics, sell other comics, have information on comics, independent comic fan sites, etc. All these sites have the potential to carry your link, and if they are ranking number one for ‘comics’ then they’ll also have a lot of relevant traffic.

Check all the main search engines and directories to see what sites are ranking highly for keyphrases relating to your site and products.


Search For Your URL

Carry out a few searches in a few search engines for your name – ‘www.yoursite.com’, ‘yoursite.com’, ‘yoursite’, ‘your company name’ or even a product or service name. You’ll then find some sites that have listed your name but not in a hyperlink.

Directories.

Apart from searching for the sites with top rankings in directories, you should also examine all the sites listed in categories related to your site/business/products. They’ll be sites listed that won’t rank well but they could still be good affiliates.

Most subjects tend to have a niche directory or two. These will list good potential affiliates, as well as the niche directory itself that could be a good affiliate for your program.

PPC Listings.

Look at the sites that are listed within PPC results for competitor products and services – Overture.com, Google.com (AdWord listings), Espotting.com, FindWhat.com. Some of these sites will be affiliate sites worth contacting to persuade them to join your program too.

Submitting To Affiliate Directories.

You can submit your affiliate program to the affiliate directories below and try to gain more affiliates that way;

If you haven’t got the time to submit to a whole load of directories, you could always contract Neil Durrant and his team of little elf workers to do the submissions for you. Click here to learn more about Affiliate Announce.

Going Forward

These should be some good starting points to recruit some affiliates and get your program going. When contacting potential affiliates take the time to write a personal email letting them know that you’ve visited their site, you know what it’s about and that you think your program would be a good fit. Don’t send out a general email that only says ‘Join our program it’s great’ – remember the old Head & Shoulder’s advertisements – ‘You don’t get a second chance to make a first impression’.

Also, during your recruitment drive, be prepared to answer affiliates swiftly. There’s no greater turn off for an affiliate than being ignored by the merchant (apart from not getting paid!).

Good luck.

Ben Ellis
http://www.affiliate-net.net
Ben Ellis is the webmaster for Affiliate-Net.net, the affiliate program manager for the KowaBunga! affiliate program as well as performing other marketing related functions for KowaBunga! Technologies.  Ben is from the UK and has been working in internet marketing since 2000.

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