The decision for a company to build out an affiliate platform. This presentation covers the pros and cons of an in house affiliate platform vs a third party affiliate platform. We go over affiliate networks that are designed to help companies market physical product inventory through their existing shopping cart platform. Affiliates can drive traffic to small businesses who sell physical or digital products, much the same way a partner would help drive referrals and sales. You can use companies like Linkshare, ShareASale, and Commission Junction for physical products. You may also choose to go with iDev affiliate for an in house solution. It's important to have an affiliate manager who will handle the affiliates if you choose to go in house. It's extremely important for the success of the program that the manager builds a relationship with the potential affiliates to create a win-win solution for both the company and the affiliate. There is no easy way about this. On the other hand, a third party integration can help you solve this issue because the company you would be working with should have managers on staff. This helps you by not having to work with the affiliates directly. Now, this poses its own set of issues because now you don't have a direct partnership/relationship with the affiliate and it would be hard to know who is promoting your products and services and where. This sacrifices control for less headache. This presentation will go over all the options and pros and cons of each choice. Contact info@lodoweb.com if you are interested in establishing an affiliate platform, both internal and third party, for your SMB. Contact info@lodoweb.com for more details on how we can help you implement this.

1. Affiliate Platform
The decision to plunge into the Affiliate
Marketing industry

2. The Bad News
 Affiliate Marketing does NOT work for
all verticals
 Your success depends on how many
affiliates are interested and recruited
to market your brand
 This is going to open new issues with
technology so identifying a marketable
site or Landing Page is essential

3. The Good News
 We can significantly boost online sales
 Working with affiliates is relatively
easy
 Managing will not be difficult
 Operates while we sleep
 Not necessary for huge technological
leaps with the usage of third party
integration

4. Decisions
 Creative Development
 In house or Outsourced program
 Precise metric tracking
 Must be attractive and competitive
 A standing program only stands.

5. Our Options
 Product Marketing
◦ Classic % Commission for each sale
generated
 Warm Lead Generation
◦ For the sales team
◦ Opt In Email leads
 Giveaway CPA style offer
◦ For lead generation purposes

6. Product Marketing
 Start with a single, profitable online
product
◦ How many sales are generated online from
this product?
◦ What is maximum % commission we can
offer?
 Easy to integrate
 Not very attractive for higher volume
affiliates
◦ Geared towards blogs, existing retailers,
small media buys

7. CPA
 Excellent for Leads
◦ Generate email opt ins
◦ Generate warm leads that are already pre sold
 Can Get costly
◦ Email Leads: $.60-$1.50/lead
◦ Warm Leads: $4.00-$25.00/Lead
 Depends on how “warm” they are
 Traffic quantity and fraud are higher with CPA
style traffic
◦ Limit payouts to Net60 to prevent fraud
 Can generate 1k leads/day
◦ Can we handle the volume?

8. The Networks
 iDev Affiliate
◦ In house platform already integrated on
nonslipnonskid.com
 ShareASale
 Commission Junction
 Rakutan Linkshare

9. iDev Affiliate
Pros Cons
In House Not managed
Already purchased and
integrated
We are responsible for technical
issues
Easy backend No fraud prevention measures
Full management of affiliates No access to affiliates
Keep all affiliates in house No internal marketing program
Develop relationship with
affiliates, not third party
We track metrics, can be slippery
slope
We create our own terms Limited to the functionality of the
software
We don’t need Escrow payment Affiliates may not believe in our
payment
Cost effective Difficult to attract affiliates

10. Third Party Solutions
Pros Cons
Fully Managed Up Front Fees and % Charge on
every conversion
Not responsible for technical
difficulties
Limited to the functionality of the
software
Fraud Prevention Backend will take getting used to
Access to Thousands of
Publishers
We are bound by program terms
Internal Marketing Available We track metrics, can be slippery
slope
Metrics tracked for us Can be lengthy setup
Upgrades are not our
responsibility
ESCROW required
Higher level of Trust with
Affiliates
We don’t “own” the Affiliates
Can be costly
Must be willing to float capital

11. Service Comparison
Up Front
Fee
Annual
Fee Exclusivity % per Sale
Setup
Time
Creative
Reqs
Tracking
Pixel
# of
Publishers
Outsource
d Affiliate
Managem
ent
Minimum
Deposit
Monthly
Minimum
CJ 3000 500
3% of the
sale
amount 2-3 weeks
5-15
Creatives to
start
Multiple
Formats
65000
Active Yes 3000
50 0 less
difference
ShareASale 550 None
No and no
contract
20% of the
affiliate
earning.
Essentially
12% (10%
+ 2%) In House None
Multiple
Formats
750000
Registered
- 10-15%
active None 100
$25.00
less
difference
LinkShare Pending Pending Pending Pending Pending Pending Pending Pending Pending Pending Pending

12. My Suggestion for TPI
 ShareASale involves the lowest cost,
yet still offers the same scalability as
larger competitors
 This will give us a pilot to develop the
affiliate program.