Weekly Intel Report

We are starting a new weekly series to our advertiser and publisher readers. This is intended as informal research we come across during the week that we think might be of value. Any comments are welcome, so post them below. With that short introduction, here are a couple things we came across that we think you’ll find of interest:

Advertiser Research:

Headline: Mortgage rates are climbing so look for consumers to jump in on refis before the rates get too high.

Details: “But mortgage rates have climbed in recent weeks, pushed by rising government bond yields. Investors are concerned about inflation because of increased spending in Washington meant to pull the economy out of recession. Freddie Mac data showed the average on a 30-year mortgage loan was 5.59% last week — 73 basis points higher than the average four weeks earlier of 4.86%, an advance that could hurt demand for houses” – Wall Street Journal

Publisher Research:

Headline: Affiliates need to diversify thier portfolio of offers to make sure they aren’t too exposed to a single category in this economy. To thrive affiliates should focus in the below areas

Details: Good categories in this downturn are: Job Search, Resume Prep services, EDUs, BizOpps, Tax Prep and filing Services, Budgeting and Debt Reduction Services, Entertainment and vices. More details at Revenue Today.

Relevantly Speaking – July 1, 2009

This week we bring you our exclusive interview that we shot in Tel Aviv Israel with the CEO of El Al Airlines, Haim Romano. I’ll grant you, this is not your typical performance marketing fare, but I thought it was interesting to see how a major airline thinks about their business in the context of globalization and online marketing.

Download or watch using Quicktime: iPod | Hi-Definition

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Do You Tweet Performance Marketing?

Unless you’ve been living under a rock for the last year, anyone in online marketing knows about Twitter. However, even with the variety of tools and websites to enhance our Twitter experience, there is still some frustration lingering amongst users like me. As a new user how do you decide who to follow? Where can I find people in the industry with compelling content and a fresh, honest voice?

I have compiled a list of my top 10 Twitter-ers in the performance marketing space who I deem truthful, informative, engaging, and worth a follow:

1. http://twitter.com/leeodden 

Lee Odden is the CEO of TopRankBlog.com. He is a great source of all things social media. For any newbies just starting out in this space, his twitter is a great starting place for connecting and learning.

2. http://twitter.com/econsultancy 

Based out of London, Econsultancy compiles information surrounding the digital marketer’s world in one place. In order to be frequently updated to what goes on concerning online marketing, Econsutancy is a key to follow. They also have a live Twitter feed on their homepage as well as a growing community of contributors.

3. http://twitter.com/affbuzz

Recently launched, affbuzz.com gathers well-known industry contact’s blog RSS feeds into one website and all updates are automatically updated on their Twitter account. It’s a great resource to know what industry leaders are blogging about and how it affects you as a company.

4. http://twitter.com/sugarrae 

Connecting with Rae Hoffman on Twitter an achievement, as she doesn’t follow many, but she knows what is going on in the industry. CEO of her own Internet marketing agency and owner of MFE Interactive and Outspoken Media, she is an avid Twitter-er and speaks at many affiliate conventions.

5. http://twitter.com/stephagresta 

Stephanie Agresta is EVP, Global Director of Digital Strategy/Social Media at Porter Novelli, blogs at InternetGeekGirl.com and Co-founded TechSet. She has a huge readership base and engages her followers in conversation. Connecting with people is something she’s good at and you can definitely learn from her expertise.

6. http://twitter.com/affiliatetip 

If you’re in the performance industry, you know the name Shawn Collins. Co-founder of Affiliate Summit, FeedFront magazine editor and GeekCast.fm podcaster, Shawn is an icon in this space. Aside from adding a personal touch to his Twitter, Shawn is the most helpful resource to have. Ask him anything, and he’ll have the answer.

7. http://twitter.com/thedukeofseo 

If you want to know anything about SEO, this Twitter is a great resource from SEO land. What I like about this Twitter is it connects search and social media in the best and most literal form.

8. http://twitter.com/andybeal 

Andy Beal is the founder of Trackur.com, author of Radically Transparent, editor of MarketingPilgrim.com and a marketing consultant. He’s a great resource to have on Twitter because of his experience and his engagement. He’s honest, entertaining, and well respected in this industry.

9. http://twitter.com/murraynewlands 

Murray is a Green Online Marketing Specialist and a blogger. He uses Twitter to drive traffic to his compelling blog and posts educational links. A leader in the online space, Murray RT more than others and gives credit to those who deserve it.

10. http://twitter.com/quityourdayjob 

Jeremy Palmer is a well-known super affiliate and he teaches others how to follow in his footsteps. Owner of Quityourdayjob.com, Jeremy uses Twitter effectively because he adds more to the conversation. His Tweets are informative and current with what’s going on in the industry.

If you think I missed someone important in this list, like yourself, please feel free to leave a comment with their Twitter and why you think they should be added.

Relevantly Speaking – The State of the Union

If you attended Affiliate Convention in Denver and saw Peter Bordes’ keynote presentation, you’ve already seen this video. It was put together to lay some groundwork for the concepts that Peter would later be speaking about, first on his own, then with his panel. We thought it had lots of great data in it and that our audience would find some value in it.

This data came from a 2008 IAB online revenue report and a survey that Econsultancy did with U.S. affiliates. Whether you’re brand new to performance marketing or you’re a veteran in the space, this data really paints a detailed picture of both sides of the industry and hopefully gives us all something to act on for the remainder of 2009.

You can view Peter’s presentation slide deck HERE. We shot Peter’s presentation in HD video and will be putting that up in the coming weeks.

Download or watch using Quicktime: iPod | Hi-Definition

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Affiliate Convention Wrap-Up

We’re just back from Denver where we attended the inaugural Affiliate Convention show. The success of the show was relatively unknown as it was the first time the producers put on the event, however, we were pleasantly surprised!

The show producers estimated they had about 1,200 attendees, the majority of which were affiliates as they were invited to attend for free. They were only anticipating 500 or so, so they well exceeded attendance expectations.

Of the 15 or so exhibitors, there was a mix of networks like ClickBooth, NeverBlue and Hydra alongside publishers and advertisers. A good mix of industry leaders appeared on panels over the two days. The panels seemed to be very well attended.

One of the show organizer’s, Webmaster Radio streamed MediaTrust’s CEO, Peter Bordes keynote “Conversations on Affiliate Performance Marketing.” Webmaster Radio streamed it live and you can listen to it HERE. The keynote was a a ’state of the industry’ conversation between MediaTrust, CEO, Peter Bordes, eBay’s Steve Hartman, Steve Schaffer, CEO of Vertive, and Wes Mahler of Prosper202. 

 

Jivan Manhas, MediaTrust’s Head of Sales also participated on a panel, “Lead Generation Strategies,” which was a how-to for affiliates interested in learning more about lead generation.

On a programming note, we captured both Peter and Jivan’s presentations in HD video. We’ll be posting them in the next few weeks right here on the blog.

The show producers are already planning the follow-up show, which is tentatively scheduled for December in Los Angeles and we’ll be anxiously awaiting details. Thanks to Aunesty Janssen of AffSpot, Jim Hedger of Webmaster Radio and Ticonderoga Ventures for the unfettered access that our crew got to cover the event. Their tech team earned their pay with all the landmines they had to navigate around the technology that we needed to properly do our jobs. We look forward to the next event!

Relevantly Speaking – June 17, 2009

This week we’re covering Affiliate Convention in Denver. It’s a first-time event for the organizers so it will be interesting to see how they do pulling it off.

There are lots of great industry leaders attending the event and tons of great sessions. Two events we’re really excited about is the keynote presentation by Peter Bordes called “Conversations on Affiliate Performance Marketing.” In addition to Peter, this talk will feature Steve Hartman of Ebay, Steve Schaffer of Vertive, Rebecca Madigan of the PMA and Wes Mahler of Prosper202. The session is at 9:00 AM on Friday, June 19th in Super Affiliate Room I.

The second event we’re excited about is a session called “Lead Generation Strategies” with our own Jivan Manhas. He’ll be covering ways to get better leads as an affiliate marketer. That session is at 11:30 AM June 19th also in Super Affiliate Room I.

We’ve also got some news from outside Denver. Microsoft’s new search engine, Bing is getting amassive ad push and the IAB Europe has released their 2008 report.

Download or watch using Quicktime: iPod | Hi-Definition

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More Props to Performance Marketing from ad:tech Attendees

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In research posted after the ad:tech San Francisco show wrapped up, a couple nice meaty data points surfaced. The research polled attendees of the show about some of their planned behaviors. Two of them stand out for our readers:

  • 89% of show attendees are interested in buying performance marketing
  • 24% plan to buy performance marketing

Most of us knew that this trend to performance was alive and well, but these stats coming from a show of online advertisers of all sizes bear out the fact that online media will soon mean online performance media. Advertisers are looking for results and they are flocking to the performance model. Of course, all of us here at MediaTrust welcome this continued movement.  Its great to see the data point out that almost a quarter of the online media sector’s prime movers are planning on buying performance based media.

So the pressure on delivering results with smaller budgets has shifted the focus on our industry segment. Now the door of opportunity is open further for the industry to  deliver for our advertisers by making the process easier and safer for advertisers of all sizes.

So the next question is this: After learning to leverage pay-for-results advertising, do these same advertisers go back to spending a lot on impression-based media once we return to more robust budgets?

I tend to think not…once advertisers taste the sweet honey of paying for results, they’ll have a hard time going back to the old ways of backing into their effective CPAs using complex excel worksheets.

What do you think?

Relevantly Speaking – June 10, 2009

We’re back in the comfort of our California studio this week after an excellent trip to Israel for Affilicon. Another big thank you to Itay Paz for bringing me over to cover the event.

This week, we begin showing some of the interviews we gathered at Affilicon. The first is from the CEO of Unique Leads, Shai Pritz. We talked about what makes Unique Leads different from other networks and the growing problem of fraud in our industry.

Download or watch using Quicktime: iPod | Hi-Definition

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Are You Going to Affiliate Convention?

If you answered “no,” why not? 

First off, affiliates get to attend for free. So, grab a cheap plane ticket – or if you’re close enough, drive to the event – and get your friends together and pile into a hotel room. Then spend the next few days learning how to improve your business.

Second, look at the list of speakers! Keynotes from our very own CEO, Peter Bordes as well as Kris Jones from Pepperjam. Additionally there will be people from Ebay, Vertive, Clickbooth and Yahoo. Not enough you say? How about industry legends like Jeremy Schoemaker, Hamlet Batista, Heather Paulson and our own Jivan Manhas? There is definitely no shortage of talent at this event.

Third, you can’t forget the social aspects of a conference. These are usually the best opportunities to shake hands, have a drink and spend a little more time talking with potential partners. Affiliate Convention will have ample opprtunity for these types of interactions including a golf tournament, a pre-party hosted by the likes of Shoemoney and WickedFire, an “Affiliate Bash” hosted by Webmaster Radio and a closing day-two party.

Finally, we’ll be there covering the event for our blog and Relevantly Speaking. If you are a regular reader here, you know we’re always searching for interviews with the best and the brightest in the online marketing industry to share their wisdom. If you’d like to be a guest on Relevantly Speaking and you’ll be in Denver, please email me at sparentATmediatrustDOTcom.

UPDATE 6/11/09: Read our press release on Econsultancy.

$10k a Day Promoting CPA Offers with SEO

Can you make $10k a day promoting CPA offers with SEO?

In my last post I received a lot of feedback about the value of SEO versus PPC. After seeing how heavily the “gurus” push PPC, I did not expect many people to agree with my point. But apparently, a large percentage see SEO as an excellent complement to PPC for driving traffic to affiliate offers. It is evident that those of us who are SEOs are less vocal than our PPC-only counterparts. Thanks for your feedback.

One of the comments that caught my attention was that of “nickycakes” where he implies that only with PPC can you make a substantial income, because he has only heard PPC super affiliates are earning over US $10k a day.

NickyCakes:

Sorry, but quick results is not the only reason why PPC is better. SEO can’t even come close to the scale that PPC can. It’s nearly impossible to scale SEO no matter how long you wait for your pathetic results. I’ve only ever heard of one person who made more than 10k a day on SEO and that was if you averaged out the sale of his giant financial affiliate site. I know dozens of people who make well over 10k a day with PPC who used to do SEO and gave up because it’s simply not even close to as profitable.

- Mar 24th, 2009

At first I was going to respond in his and other similar comments, but I felt that a proper response would require a separate blog post. So here it is.

First of all, I think I asked the wrong question in the title of this post. The right question should have been: “Can you make $100k a day promoting CPA offers with SEO?” What???? Yes, that is the right question. Let me tell you why.

Organic search listings can get as much as ten times the attention (and clicks) than paid listings.

According to Enquiro’s eye tracking study, organic search gets the lion’s share of the attention of searchers. Jim Boykin of WeBuildPages studied the data from AOL’s leaked search query logs and came to the conclusion that the #1 listing can get as much as 42% of the total clicks in the search engine result page. Compare this to best case scenario of 5% of clicks on the right hand side where the bulk of paid ads are displayed.

In theory, this means that if you can make $10k a day placing ads on the paid search network, you could potential make $100k by ranking for the exact same keywords in the organic results. Now, of course, this is much easier to say than to do, so I will give you a concrete example. But first …

As you probably noticed, I said “search network”. It is not surprising that few affiliates making a significant amount of money rely on ranking for the first few paid search ad spots given how expensive they are. Most successful affiliates spend their time more productively and cost-effectively fishing for inexpensive keywords in the content network or by seeking out the often overlooked, but highly converting keyword phrases.

Another thing to consider is the fact that many of the less successful affiliates like to boast about how much they make and tend to exaggerate because they are not able to prove their claims convincingly (for competitive reasons obviously ☺). The truth is that most successful Affiliates and merchants who are making obscene amounts of money don’t see the benefit they get from bragging about their results. The ones who are quiet about their results are usually the ones who are making the most money and don’t want to drive unnecessary attention and competition to their ventures. Just ask Matt Inman!

I’ve made $10k per day as an affiliate doing just SEO

Now, let’s move from theory to practice. Not to brag, but I can say with the confidence of personal experience that you can net more than $10k a day as an affiliate. I did just that a few years ago with a single web site, when I was ranking #1 for “phentermine” in Google and Yahoo. This has been confirmed by a respected third party. I prefer not to comment about how much I’ve made since then or how much I make now that I am both an affiliate and merchant. I can tell you, that when you scale your affiliate efforts and become a successful merchant, you multiply your profits. The development of my product, RankSense, cost me a few million dollars and all the funds came from my affiliate marketing ventures.

You can do this too!

There are several ways you can do this, however I will focus on explaining how I did it personally and how you can too, by following the methods I used and modeling it for your own efforts.

How was I able to make so much money from obscure keyword such as that? Why didn’t I try to rank for a keyword that had significant more searches like “weight loss”? Would I have been more successful if I had taken that approach? The short answer is a big “NO”.

Tip #1: Brand search keywords are the most profitable keywords—period!

When somebody is searching for a specific brand of product, they’re the closest you can get to buying such product. They already know their problem and think that the searched product is the solution to their problem. Most of the time, they are only looking for the cheapest price. You don’t need to do any selling. You simply need to convince them that you are getting them the best deal.

The worst conversion rate I got was 15% and could easily convert at 28-30% by simply displaying price comparison tables.

Now, combine those insights with a very hot niche like weight loss, a product with high demand such as Phentermine, crazy payouts with lifetime refill commissions and you have a golden opportunity. Unfortunately, the product is not longer available for sale on the Internet without a personal visit to the doctor. As I mentioned in my previous article, all opportunities have a small window where you can make the most money. Savvy affiliates study trends and try to seize opportunities as they appear.

Unfortunately, some merchants won’t let you bid on their brand terms in paid search, but there is not much they can do if you try to rank for their brand on the organic results. I’ve seen a few merchants who follow back all your links and request the web site owners to remove their brands from their page, but that is the exception. Most merchants are not that smart ☺

Tip #2: The most competitive markets are where most of the money is!

Many “gurus” recommend that you go to the obscure niches that few people care about because you will see results faster. Then in order to scale this, you need to find more obscure niches and do the same. You find dozens and hundreds of such niches and your profits will add up. This approach makes a lot of sense until you actually try to put it to practice. You will soon realize that each small niche is like starting all over again from scratch. The market research part of affiliate marketing is the most difficult part and it takes effort to get it right. Get it wrong and you will lose a lot of money.

What I prefer to do is to target a big profitable niche, a niche where there are a lot of people spending gobs of money to solve a perpetual problem like weight loss and then I divide the niche in sub-niches and work on the sub-niches, one at a time. I take this approach even when I have identified a single product I want to promote. I first go after the less competitive keywords, “cheap phentermine” instead of the more highly sought after keyword “phentermine”.

Tip #3: The brand hijacker technique!

Now, let’s say that you are trying to promote a really good offer like “PureCleanse Detox (#2117)”, with a awesome payout, great conversion rate and high demand niche, but the brand searches do not generate enough traffic. Here is what I do.

Have you ever seen the product pages in Amazon, where they recommend related books and some of those books get as many sales as the original item on the page? Why? Well using my technique you can do the same.

You can search for competing products on the same and similar categories that have more searches per month, then create affiliate pages for those products and add a section to your landing pages where you recommend the alternative or complimentary solution; which is in fact the one you ultimately want them to take. I recorded a Webinar last year where I explain this technique in more detail. You might want to check it out. You can access a recording of the live event here on my blog, HamletBatista.com

Conclusion

You can make a lot more money with SEO than you can from PPC, if you know what you are doing and you are targeting the most profitable opportunities. Do that and your profits will soar! Let me know what you think in the comments.

PS: If you want to learn more about my techniques, I will be sharing more super affiliate tips and specifically how I got to the first page of Google for “Viagra” and kept it there for couple of years, at the new must-attend Affiliate conference; Affiliate Convention, June 18 & 19 in Denver, Colorado. Put it on your calendar and make sure you do not miss it.