5 Software Niche Affiliate Success Stories
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Transcript of 5 Software Niche Affiliate Success Stories
5 So%ware Niche Affiliate Success Stories
Michael Ni, CMO/SVP Marke<ng & Products
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Who are you? Affiliates, ISV’s, networks, vendors …
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5 So%ware Ver<cals Affiliate Success Stories What Are Some of the Best Prac<ces to Drive Conversion in a
So%ware World
! The So)ware Ver.cal
! Why It’s Good …
! … and in which Sub-‐Categories
! 5 case studies in So)ware Affiliate Success
! What’s Your Next Move
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Vendors
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Merchants
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Merchants
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Affiliates
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Affiliates
Affiliates
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! The So)ware Market Worldwide is es.mated at over $260 billion
! SaaS is a $12 billion market (2011) growing to $21 billion in 2015 growing at over 15% a year
! Year-‐over-‐year growth in other key so)ware categories around 6-‐10%
! So)ware is fundamentally purchased online …
! … with Affiliate sales contribu.ng an addi<onal 10-‐15% to so%ware vendors’ online sales, with some contribu.ng over 30%
The So%ware Ver<cal The Market
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! So%ware is included in several ver.cals -‐ accoun.ng for up to 20% of the affiliate preferences*
Affiliate Preferences to Date Up to 20% already choose so%ware related categories
* According to the data in the AffStat Report 2010
Pets Real Estate
Spiritual
Sports & Recrea.on
Contests / Giveaways
Toys & Hobbies
Travel & Auto
Wedding
Apparel
Books, Movies & Music
Career / Business Opp
Da.ng
Department Stores
Event Tickets
Financial
Flowers & Gi)s
Food & Entertaining
Gi) Cer.ficates
Green / Eco
Health & Beauty Home & Garden
Insurance / Financial Services
Jewelry & Accessories
Magazines
Medical
Computers & Electronics 8.97%
Office & Business 7.46%
Outlet & Discount 3.73%
Educa<on 0.4% Gaming
0.1%
So%ware related
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1. GREATER COMMISSIONS bigger affiliate margins (generally up to 85%) compared to physical products (generally up to 50%)
2. MORE CHANCES TO CONVERT VISITORS try before you buy, “Freemium”
3. EASIER TO SELL known need, does not have to be touched, immediate gra.fica.on, ahrac.ve prices for customers
4. EASIER TO HANDLE no hassles over delivery, .me zones -‐ as in some physical products
5. AN ANNUITY recurring revenues opportuni.es, upgrade, renewals focused, mul.ple modules and related add-‐on opportuni.es
Advantages of Promo<ng So%ware Fast Selling, Low Maintenance, Recurring Revenue
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Top Selling So%ware Categories Consumer Titles Comprise the Bulk of Affiliate SW Sales
! U<li<es/Security: est. $ 3 bln. market in 2011
! Audio-‐Video Tools: est. $ 2.5 bln. in 2011
! Produc<vity: est. $ 10 bln. in 2011
! Games: est. $ 47.5 bln. in 2011
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Challenges What Do Prospects Need to Get Past to Make a Decision
! A considered purchase Price point, Dependencies, Complexity
! Fear, uncertainly, and doubt Malware, Security, Compa.bility
! Comparability … Trial Price, Func.onality, Reputa.on, Credibility, Vendor Longevity, Support
What are some of the best prac.ces to helping prospects along …
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WHILE THERE’S NO RECIPE FOR
SUCCESS…
PROVEN IDEAS CAN ALWAYS HELP
5 examples in the Avangate Affiliate Network
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IncrediMail So%ware Vendors as Affiliates
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Freemium: IncrediMail Free
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Freemium: IncrediMail Plus, Toolbars
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! Offers email customiza<on tools & widgets “Leadership in trailing-‐edge technology”
Brings value into very commodi.zed market
! Secrets to IncrediMail Success Feature-‐filled, func.onal Freemium version leads to Premium “IncrediMail Plus”
Add-‐ons accessorize Freemium & Premium versions to expand revenue flow from exis.ng customers
Associates with other complementary vendors to cross-‐sell whenever possible
Uses social media to amplify their messages about “old-‐fashioned” communica.on tools. Use “Crowd-‐sourced” endorsements to drive popular accessories to the top
! IncrediMail benefits Provides con.nuous added value to their customers
Generates addi.onal interest on frequent return visits
Generates add-‐on sales with conversion rates of over 10%* * Avangate Affiliates Network
IncrediMail
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Freeso%.tvbok.com Original Content
Freeso%.tvbok.com: Original Content
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! FreeSo%.tvbok.com
Affiliate website for the Japanese audience
Offers “how to’s” for various so)ware products & PC-‐related ac.vi.es
! Secrets to their success As an affiliate, Freeso).tvbok.com promotes video tools and uses tutorials and reviews
as customer conversion pages.
! The benefits Provides added value to its website visitors (over 2 million page views monthly)
Generates affiliate sales with a conversion rate of over 0.8%*
Freeso%.tvbok.com Use original content to convert audience
* Avangate Affiliates Network
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BitsDuJour.com Leverage the power of the discount coupon
BitsDuJour: Power of Coupons
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BitsDuJour.com Leverage the power of the discount coupon
BitsDuJour: Widget
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* Avangate Affiliates Network
Power of Coupons ! BitsDuJour
Offers heavily discounted so)ware .tles, each deal only for 24 hours
Leverages coupons and sense of urgency to reach/grow broad audience
! Secrets to BitDuJour’s Success Promotes PC & Mac so)ware .tles with steep discounts (over 50%)
Community & crowd-‐sourced W.O.M. marke.ng
Work with mul.ple affiliate networks & with vendors directly.
» Affiliate cross-‐sell program (widget on other affiliate websites)
» Vendor program (get part of the affiliate commission back)
Seasonal & special campaigns – BitsDuJour Holiday Bundle
! The Big benefit Discounted product offers generate a conversion rate of over 20%*
BitsDuJour.com
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Myce.com User generated content & communi<es to deliver affiliate promo<ons
Myce.com: User Generated Content & Communi<es to Deliver Affiliate Promo<ons
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* Avangate Affiliates Network
! Leverages the Shared Bond of Community Website targeted to consumer electronics, gadgets and technology community, engaging
members into reviews, discussions and forums
! Secrets to Myce.com’s success Power of user generated content
Create a strong community around it, ahrac.ng traffic
Contextual adver.sing used to generate sales
Crowd-‐sourced promoted so)ware in specialized sec.ons and forums
! The Big benefit Added value through reviews and social interac.on on forums and discussions
Affiliate conversion rate of over 1.5%*
Myce.com User Generated Content & Communi<es to Deliver Affiliate Promo<ons
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Product catalog with localized user experience Siliconac<on.com.br
SiliconAc<on: Extensive Catalog, Local User Experience
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Product catalog with localized user experience Siliconac<on.com.br
SiliconAc<on: Installment Plan
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Product catalog with localized user experience Siliconac<on.com.br
SiliconAc<on: Brand and Product-‐Specific Keywords on local markets
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* Avangate Affiliates Network
! Product catalog with localized user experience Brazilian product catalog / e-‐tailer selling so)ware online with over 1,400 .tles
! Secrets to SiliconAc<on’s success Localized buying experience (localized payment methods, installment plans, etc.)
Recognize their role in suppor.ng local purchase user experience rather than deep inves.ga.on, comparison, considera.on
Generate traffic via targeted PPC campaigns, newslehers and adver.sing serving as a regional conduit for latest so)ware availability
Uses both the affiliate and reseller model being flexible to offer the largest selec.on
! The Big benefit Generate sales as an affiliate with a conversion rate of ~20%*
Linked to from vendors to handle traffic from that region, trusted to use AdWords
Siliconac<on.com.br
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! So)ware is a rich ver<cal that has inherent advantages to be sold online … both standalone, as well added onto exis.ng affiliate sites
! Consumer focused so)ware categories currently perform best …
! … but growing opportuni<es in business, and SaaS solu.ons crea.ng interes.ng niche possibili.es in this huge market ($12 billion), not to men.on, educa.on
! Get started -‐ join a dedicated so)ware affiliate network – let them handle tracking & payments and benefit from their advanced marke.ng features
! PC business maybe declining, but in the post-‐PC era, the so%ware business is more vital than ever
! Finally …
Takeaways
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Find a parade and get in front of it!
Avangate Inc. Redwood City CA., USA Tel: +1 650 249 5280
Avangate B.V. Amsterdam, The Netherlands Tel: +31 20 890 8080
[email protected] www.avangate.com
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