Traveling and Treasure Hunting

Every time you go on the road, you should position yourself to market like a guerrilla and earn money like a king named Midas.

Keep in mind that the road leads in both directions. You can promote your site when you’re away from your town and you can promote it to travelers who come to your town. It’s a double-edged golden opportunity.

When you’re a traveler, don’t forget that the copy shops of the world are the allies of affiliates. Taking a trip to Houston? Print up your marketing weapons before you leave, then take them to the closest copy shop to your hotel in Houston.

Ask them to print a quantity of circulars, posters, stickers, mini-brochures, gift certificates, coupons and/or postcards, then distribute them at hotels, airports, trade shows, ballgames, concerts and bulletin boards. For example, there are 800 free community bulletin boards in the San Francisco Bay Area, and there are hundreds of others in most major cities. Post your flier on any or all of them. And you thought that visibility and awareness cost a lot of money? Wrong!

Whatever you print, copy, post or distribute, be sure it is exceptionally easy to read and lists your Web site. That, too, should be a paragon of clarity.

You’ve heard of viral marketing. It only happens if people want to talk about your product, service or marketing. If you’ve got the goods, your marketing weapons can be your virus. Word-of-mouth advertising is often generated by a “blitz” or “total immersion campaign” such as this. Your job is to overcome inertia and create momentum. Using a combination of guerrilla marketing tools does this.

You’re not going anywhere? No problem. Canny affiliates also use this kind of 360 degree marketing at home. They generously distribute their marketing materials in venues visited by travelers. We’re talking restaurants, hotels, convention halls, theaters, night clubs, sporting events, concerts, tourist attractions, train stations and all the rest that draw crowds of tourists.

Give those people a dose of your marketing message coupled with information that will help them while they’re in town. Some of those folks will actually take that information home with them, possibly use it on their sites, and if you’ve done a good job of marketing, evangelize about your “biz” to their friends and co-workers. Don’t laugh. It happens all the time.

It’s always a good idea to see if any trade shows are being held where you’re visiting. You don’t have to exhibit at a trade show to earn a lot of money. At any show, you can learn, you can make contacts and you can get good ideas. Your take-homes from a show should be new relationships and profit-producing ideas. Fill your suitcase.

If I had to pick a list of things all traveling affiliates should do while they’re accomplishing the primary mission of the trip, they would be these seven guerrilla marketing tactics:

1. Start viral marketing. It’s still the most power-packed method of marketing because people trust their friends as credible sources. You get it when you are a first-rate listener, when you ask questions and when you pay attention to the details spoken by the person to whom you’re listening. You also get it in spades when you follow up by phone, email or surface mail. And you can speed it up when you institute a power-packed referral plan, tapping current customers and prospects for the names of prospective customers.

2. Influence people who can influence other people. That’s exactly what Nike is doing when it gives free shoes to athletes and coaches. You may meet some serious movers and shakers while you’re away from home. Some of them can motivate hundreds of others to do things you want them to do. As all customers are not created equal, all prospects are just as unequal. Your “A” list may be worth more to you than your “B” through “Z” list combined. The road is a great place to meet the influencers.

3. Focus on what’s most important to your target audience. After all, they don’t pay attention to marketing, but they pay rapt attention to whatever interests them, and that can be marketing. They pay especially rapt attention to people who pay attention to them, who use their names, who look them directly in the eye and who smile. When you’re a traveling guerrilla, often your handshake is a more important marketing weapon than your computer.

4. Expand your potential for getting free publicity. You can do it by making it a point to develop at least one new media contact each time you visit a city. Whether you have a meeting, a lunch, a conversation or a cocktail with them, media contacts are your key to dynamite public relations. There is no substitute for knowing a media contact on a first name basis. Guerrillas never assume that PR kits and press releases can do the job. No way. Media contacts do the job.

5. Enrich your travels with brochures and newsletters. These make exceptional conversation starters, serve as potent follow-up weapons and allow you to intensify your relationships. They also allow you to prove your expertise, to help your prospects and customers and to sell the dickens out of your offering. No longer are they expensive to produce. You can offer your free brochure or no-cost newsletter to all the prospects you meet while traveling and while at your destination. You can and should even offer them at home, sweet home.

6. Utilize guerrilla media. By the time consumers figure out that the message you’ve stenciled in chalk on the sidewalk is actually an ad, you’ve already hit home with them. Look into all sign-posting opportunities. They are all over the place. You’ll learn to love them. Become aware of the countless opportunities to run free and low-cost classified ads prior to your trip.

7. Make yourself the recognized expert by speaking before groups while your travel. If you offer to speak for free, you’ll be dazzling at the speaking invitations you’ll get. You should speak for about 30 minutes and provide information of worth and value, delivered with passion and insight. At the end, it’s cool to distribute brochures or give your elevator pitch (that means you should be able to describe your business in the amount of time it takes to ride an elevator).

You do have an elevator pitch, don’t you? As a strong recommendation to travelers, I caution you, as Karl Malden did a couple of decades ago, “Don’t leave home without it.”

Jay Conrad Levinson is the author of the Guerrilla Marketing series of books, the most popular marketing series in history with 14 million sold in 39 languages. He also publishes the Web site GuerrillaMarketingAssociation.com.

The Best Paid Places

If you currently have a Web site, then I’m sure you are inundated with spam offering “guaranteed placement on more than 5,000 search engines.”

Before we go any further, let me just make something very clear. Yes, there may be 5,000 search engines out there – heck, at this point there may be as many as 50,000 – but there are only four that really matter. If you have your Web site listed highly on Google, Yahoo, MSN and AOL, then you have pretty much covered most of the search engine marketing you will ever need, because those four engines account for 90 percent of all daily searches.

Your first job as a Web site marketer is to get the best placement you can on the Big Four, and the only way to benefit from these listings is to rank highly. If you are listed in the top three pages on these search engines you will definitely get a lot of traffic. Recent studies have shown that 80 percent of Web users don’t search beyond the first three pages on most engines.

But what if you can’t optimize your site well enough to rank highly? Maybe you don’t have the time or don’t know how to create pages that are attractive to search engine spiders. Or maybe your industry is just too competitive. Don’t worry. You can still grab your share of search engine traffic by paying for placement.

Paid placement is generally divided into fixed placement and pay-for-placement (P4P), which sound alike but are actually a bit different from one another. With both of these methods you choose keywords you wish to target and the maximum price you are willing to pay, and then you submit your listings and wait for them to go live. The biggest difference between the two products is the length of placement and ranking control. With fixed placement, your listing will stay in the position for the price per keyword you choose, but with P4P you are part of a dynamic auction bidding system that will only guarantee your placement until someone outbids you. Fixed placement is currently available on only a few engines. However, pay-for-placement listings are available on all of the major engines listed above. So, depending on your budget, you too can buy your way to the top of these search engines.

In fixed placement, the price may be set on a cost-per-click (CPC), cost-per-impression (CPM) or cost-per-action (CPA) basis depending on the deal you are able to strike with the search engine. These listings generally guarantee you a ranking at the top of the search results page either as a “featured site” (on MSN) or a “recommended site” (on AOL). This is very attractive to larger advertisers as the campaign is fairly easy to manage, but requires a large budget commitment up front before you can even tell what your results might be from that particular engine.

Test the Waters

An easier way to test the waters before committing to a large fixed placement campaign is to pay for placement using one of the many CPC opportunities currently available. By listing your site on Google’s Adwords program, or Overture through Precision Match, you will gain top placement on Google and AOL (through Adwords) and MSN and Yahoo (through Precision Match).

With these programs, you choose the keywords you want to submit, write your ad copy (title and description) and submit it to the search engines using their submission forms. If you are struggling to write the copy, you can use Overture’s Fast Track program, where for $199 a member of the Overture team will select keywords and write the listings for you. Your placement on Google is determined by a combination of the amount you are willing to pay-per-keyword (maximum bid) and your ad’s clickthrough rate. With Overture your placement is determined by your maximum bid. Both of these campaigns will place you within the “Sponsored Listings” section of results on the larger search engines, and both require your listing to comply with their editorial guidelines.

There’s a few more things you need to know about buying listings. Before determining how much you can pay per click you need to figure out your marketing plan. Set your maximum bids based on your profit margin, the return on investment you seek, and the maximum CPA you can afford. An easy way to kill your business is to assume that because your competitor can afford a certain maximum bid you can too. The leaders in paid placement marketing set their bids based on their own metrics, not their competitors’.

Tracking your results helps you determine where the qualified buyers are coming from. At the very least, use the free tools offered by Overture and Google when setting up P4P campaigns to track conversions from these engines. And if you plan to make paid placement a long-term part of your marketing strategy, buy a good tracking solution. Add tracking URLs to every paid search campaign you run, and religiously review the reports generated by the tracking software, adjusting your bids based on your results (for a quick tutorial on tracking URLs, check out the Overture advertiser center).

The way you write your copy for your paid search listings can have a huge impact on the success of your campaign. The most effective way to write your listings is to keep in mind the following:

  • 1. Appeal to your customers;
  • 2. State your value proposition;
  • 3. Use a “call to action”; and
  • 4. Include your keywords.
  • If you keep these basic rules in mind, you too can get your business top ranking on the engines without all the time-consuming tactics that search engine optimization requires. There are other ways in which you can buy placement that we will cover in future columns, and we’ll also dive into the tactics that can give you a competitive edge in search engine marketing. See you at the top!

    MARY O’BRIEN is a partner at Traffic Mentor.net. She has worked in Internet marketing for the past five years and was formerly senior director of sales at Overture.com.

    Online Travel Takes Off

    Schlepping his burgundy leather briefcase and navy canvas travel bag through the Portland airport, George Bragg doesn’t care as much about how he gets his ticket as how soon he’ll get home to Dallas. He’d happily buy tickets from affiliates, discounters, travel agents or airlines.

    With travel representing the single largest source of Internet commerce, travelers like Bragg have so many options "it’s hard to keep up with them any more," drawled the weary business traveler with five frequent-flyer cards in his wallet. Airlines and hotels sell directly from their own sites. Discounters offer an array of fares. Travel agencies – hit hard when airlines stopped paying commissions – offer online fares and more. That leaves affiliates with a hearty marketing challenge: reaching consumers and agents already bombarded by messages from the big brands and the discounters that resell the brands. But there’s hope in the numbers: "Close to 100 million people have purchased travel online at some point over the last year," said Melissa Derry, a spokeswoman for Expedia. "While there are 20 million people coming to Expedia’s site each month, there is still a huge number of people who are out there looking for a place online to get these services."

    Though higher fuel prices may put a crimp in auto or jet travel, industry watchers still predict record years. Online bookings have never been more popular. Out of all flight and hotel reservations, 30 percent come from online bookings, reports travel researcher PhoCusWright. By 2005, it predicts half of all flight and hotel reservations will be made online. "It just continues to grow," said Bill McGee, a consultant who watches the sector for Consumer WebWatch. "A few years ago, it was mostly business travelers, but now it’s really across the board. It’s used by leisure travelers, by families, by just about everybody."

    Airlines, hotels, cruise lines, rental car companies and travel discounters see this huge market, and know their marketing can’t capture it all. So they turn to affiliates. "We think of them as an extended sales force," said Blagica Stefanovski, online marketing and affiliate manager at Orbitz.com. Nearly any site can sell flight, hotel or rental car bookings, whether it’s a sophisticated rewards site or a simple Web page put up by a neighborhood association to fund speed bumps or stop signs. "There are so many opportunities for travel on the local level," said Jason Price, vice president of marketing at Hospitality eBusiness, an Internet consultancy for hotels. "You can post local news or sports information, and provide a travel link to help fund the site. Maybe some kid in his basement wants to talk about high school sports in the area – why not have a Marriott button there for the hotel around the corner?"

    Whatever the site, now is the best time for sales. "We’re [in] our best seasonality – the peak summer travel season – so it’s a great time for affiliates of travel merchants to promote their travel options and improve their placement or for new affiliates to give it a try," said Veronica Young, affiliate marketing manager at Hotwire.com. "The winter holidays are another big travel season: Thanksgiving, Christmas, New Year’s."

    Travel is perhaps the easiest entry for new affiliates. They are credited for sales up to 30 days after customers click through their links, even if customers don’t go through the affiliate when they actually buy. New banner and link codes are sent within emails so affiliates don’t have to log into an interface. Many travel affiliates don’t even update their codes anymore. Their merchants do it for them using dynamic rich media. Travel merchants often have teams of "program managers," rather than one affiliate manager, to give personalized service to affiliates. "It’s certainly an ongoing challenge to stay on top of all the changes," said Michael Bauer, senior vice president of affiliate marketing for Hotels.com, which offers an online "university" for new affiliates. "What we offer affiliates is we are the eyes and ears of our industry. If there’s a swing, we identify it."

    Travel merchants also actively help affiliates convert the curious into buyers. Interactive banners, for instance, are the hottest buzz in this industry and are offered by most travel merchants: Customers input their destination and dates at the affiliate’s site first, moving them further into the search and committal process.

    Since the peak summer travel season is in full throttle and holiday travel is just around the corner, these perks should prove beneficial to affiliates trying their hand at the high-flying online travel industry.

    Hotels

    So what’s the hottest-selling travel product now? Hotels top the list. Eighty percent of active business travelers and 73 percent of active leisure travelers went online for hotel reservations in the past 12 months, according to the 2004 National Travel Monitor (NTM).

    Affiliates could work directly with the brands, but few offer affiliate programs. "Only two or three brands have actually launched an affiliate program – only in the past two or three years and with moderate success," said Price, who cites Accor Hotel’s worldwide affiliate program with 3,700 hotels. "The rest of the brands have not embraced the affiliate market. As soon as these early adopters come out with performance, the others will jump on." Individual hotel properties may be willing to negotiate with affiliates who can give them Web bookings. Try it.

    Affiliates can work with discount sites that show fares for dozens of hotel partners, ranked by price or brand. They can work with "opaque" sites like Priceline and Hotwire, which rank unbooked hotel rooms – along with excess airline seats, car rentals, vacation packages and cruises. Both pay 2 percent commissions to affiliates. "We’re kind of the Costco of the online travel industry," Young said. "Any affiliate that has a site where customers are going to be looking for cheap prices is a great fit for our program: a travel site, a discount site, a coupon site."

    Affiliates also can work with affiliate-only networks like World Choice Travel. World Choice offers fully branded travel search pages, with an underlying software that combs the Web for lowest fares. World Choice pays 5 to 10 percent on hotel bookings, plus half of any transaction fee.

    Flights

    Nearly 75 percent of consumers who researched travel online bought their airline tickets online in 2003, reports NTM. The incentive for online bookings is there: Internet fares are now, for the first time, the cheapest way to buy airline tickets, according to Consumer WebWatch.

    Affiliates can sign up with specific airlines like Alaska Airlines/Horizon Air, which pays $2 for every ticket booked. Affiliates can sign up with discount sites that rank searches by price, flight times or airline. The largest are Expedia, Orbitz, Travelocity, CheapTickets, OneTravel and TravelNow. Consumer WebWatch found that Expedia leads in the greatest number of lowest fares but Travelocity, which has the best booking tools, has the largest array of flight times and low fares.

    There’s also World Choice’s branded program, which searches anywhere in the US, Canada, UK or Europe for the lowest prices from about 30 airline and booking sites. Affiliates earn 5 percent on online sales and 3 percent on call center sales.

    Car Rentals

    Forty-five percent of active business travelers and 32 percent of active leisure travelers went online to rent a car during the past 12 months, reports NTM. Those numbers should only grow, as insiders predict that more than 20 percent of all car rental bookings will be made over the Internet this year. Alamo’s program pays 3 percent of time and mileage, with checks mailed monthly (no minimums). Expedia and Travelocity pay 2 percent commissions, and Orbitz pays a flat $2 per rental. World Choice Travel searches 28 worldwide car rental companies for best fares and pays 5 percent on any of those booking. Plus affiliates can split the optional $2.99 to $6.99 transaction fee.

    Cruises

    In the first quarter of 2003, more than 2.2 million travelers worldwide took a vacation with major cruise lines – a whopping 23 percent increase over 2002, reports the Cruise Lines International Assoc. (CLIA). "As the cruise industry has grown and as more people take cruises and become confident with the components of the cruise, they’re becoming more confident with booking online," said Brian Major at CLIA. "A lot" of affiliates, he said, have benefited as a result – most notably CruiseCritic.com with 110,000 registered members, as well as affiliates CruiseMates.com and Cruise Addicts.com.

    Packages

    Packaged travel is emerging as a solid moneymaker. More than 68 percent of online travel buyers buy more than one component, reports PhoCusWright. Among active leisure travelers during the previous 12 months, 20 percent went online to book a complete vacation package with flight, hotel and often car rentals in one transaction. "If you look at the online travel space, 2003 was the year of the package," said Joel Frey, a spokesman for Travelocity. Sites like Expedia have even added theater reservations, sports tickets and transportation to and from the airport. Flights are now "like the milk at the back of the store," said Derry at Expedia.com. "By packaging options together we can afford customers better pricing and affiliates better commissions." Now affiliates can get paid for the whole trip and not just one flight.

    Affiliate Options

    Affiliates have a number of ways to get into the travel industry.

    Link or banner: You don’t have to be a travel site to make use of affiliate links. Webmasters with sites touting everything from book reviews to financial advice have travel banners on their home pages, suggesting that the appearance of having advertising support from a big travel provider has its benefits.

    Powered by: More travel-specific sites often go with co-branded versions of the merchant’s site. Visitors make their reservations on a page of the affiliate site that is "powered by" a merchant. After typing in their destination and time frame, their travel options are displayed on the merchant’s site.

    Private label: With this option, affiliates can carry their own site design onto every one of the travel reservation pages. And affiliates can offer personalized call center services to buyers. Options are either a generic toll-free number, where the call center asks for the discount code or special Internet code from the affiliate’s site, or a dedicated private toll-free number answered on behalf of the affiliate and its brand. "We are usually the ones that come to the affiliate and say, ÔI think it’s a good time to offer this customized toll-free number,’ which doesn’t cost any additional dollars," said Bauer from Hotels.com. World Choice Travel’s private label program even puts the affiliate site’s name on consumer credit card statements.

    Trends

    The implementation of account management teams is enabling more personalized services for new and existing travel affiliates. "There’s a lot of competition, so merchants have to differentiate themselves from the competition," said Young of Hotwire. "Part of that is how they treat their affiliates."

    Globalization is another big trend. The Internet has no borders, so these days an affiliate in Europe can be a merchant’s top producer of US travel bookings and an affiliate in the US can produce great bookings for an Italian air travel site. "We encourage our affiliates to think outside of their boundaries," Bauer said. "No matter where they are in the world it’s up to them what region they want to target." Hotels.com supports five different languages and 13 different currencies through its US, European and Asia/Pacific affiliate networks.

    Meanwhile, last-minute bookings are moving online. Several integrated sites like Travelocity offer cheap rates up to three days prior to a trip.

    Bus and train bookings online are still in their infancy in the US. In Europe, Euro Railways is ahead of the game, offering 5 percent affiliate commissions on discount rail passes.

    "For me," said businessman Bragg, ready to board a flight to Dallas for the 12th time this year, "it’s all about price and convenience and the simplicity of the site." Affiliates or not, sites offering those features have the potential to get him, and 100 million others, on board.

    JENNIFER MEACHAM is a freelance writer who has worked for The Seattle Times, The Columbian, Vancouver Business Journal and Emerging Business magazine.

    Searching for Your Site

    Unfortunately, many folks create a Web site and then sit back and wait for the orders to start pouring in. That strategy doesn’t work in the field of Internet marketing any more than it does in the offline world. With millions of new Web sites being added to the Internet every month, the old days of hanging out your shingle and waiting for customers to beat a path to your door are long gone.

    Effective search engine marketing (SEM) is what separates winners from losers in the world of Internet marketing. And when it comes to SEM you have two choices. The first option is to optimize your site so that search engines find you easily and give you good ranking in their index. The second choice is to buy higher placement on search engines using paid inclusion or pay-per-click (PPC). In other words, you can pray for clicks or pay for clicks, the choice is yours.

    Praying for clicks is better known as Web site optimization. When taking this approach, it helps if you offer the search engine gods a peace offering by making it easy for their spiders to find and index you. (Spiders are programs that crawl all over the Web searching for pages.) Whether you choose to optimize your site yourself or pay a search engine marketing firm to do it for you the same strategy will apply, and you should be involved in every step of the process.

    Keyword Selection

    Choosing the right keywords and phrases for optimization is crucial. If you choose keywords that few people search for, then you can achieve a lot of top search engine rankings, but won’t get any customers. If you choose keywords that are too competitive you’ll find the competition won’t allow you to achieve any decent rank. You should also choose keywords that are attractive to your customer demographic; otherwise visitors will arrive at your site but never make a purchase. Simply make a list of relevant keywords that balance both popularity and competition. Use a keyword research tool like Word Tracker or Overture’s Search Term Suggestion feature to do this quickly and easily.

    Measure Your Rankings

    Before you can improve your position, you must know where you rank for the keywords and phrases that relate to your business’s products and services. If you did a good job in picking keywords, you should now have a list of highly relevant words and phrases that your customers are using. Use a tool like Web Position Gold, or my company’s free tools at TrafficMentorSEO.com/tools .html to determine where you rank for your targeted keywords on the major search engines.

    Page Content

    One of the easiest ways to attract both search engine spiders and qualified traffic to your Web site is to create Web pages that are appealing both to the user and to the spider. Spiders like to see short pages with lots of text and few graphics. People probably like to see more pictures. After all, any picture is worth a thousand words, just not to spiders. Balance is what counts. Creating pages that are attractive to users and spiders and free of annoying distractions like flash and frames is the name of the game. Try to create one page for each keyword or phrase you are targeting, and develop quality content that will bring users back to your site again and again.

    Optimization

    This is the main focus of search engine marketing and the piece that makes all the difference in your Web site’s ability to compete effectively. Simply stated, your goal is to give the search engine spider fodder. The easiest way to determine what it wants is to study pages already ranking in the top 10 and to emulate key aspects of those pages on your own site. Don’t copy your competitors’ source code and content line for line, just learn from their example. Study the basic statistical elements of the page such as meta tags, keyword counts, link popularity, word counts, etc. A good free tool to keep you on track and ensure that your page is spider-worthy can be found at InstantPosition.com.

    Submitting

    Don’t try to use a submission service to submit your pages to thousands of search engines and directories. These services are a complete ripoff. There are only a few search engines that count in terms of traffic, and you are better off submitting to them manually or using a tool like Web Position. Once you develop some third-party links to your Web site, most engines like Google will re-spider your pages regularly without the need to re-submit.

    Traffic and Revenue Tracking

    Ultimately, it isn’t just top rankings you want, but more targeted traffic and sales. This is where your investment in search engine optimization really pays off. Once you get your traffic-building pages set up, the pay-off comes in consistently. Utilize one of the many good tools out there for tracking visitors and revenues. You can use these solutions to track both PPC campaigns and organic visitors and you will learn a lot in the process about your site’s usability and its ability to convert visitors into customers.

    Follow Up

    While some pages may rank well for a long time without changes, most pages will require fine-tuning as the search engines change their ranking algorithms, and index new pages. It’s important to measure your rankings at least monthly. Re-optimize any pages that drop in rank and then resubmit or wait for the engine to revisit the page.

    The search engine marketplace can be daunting as things are constantly changing. In order to keep up your top rankings you need to stay informed. Read as much as you can. Sign up for the many search engine newsletters and forums and apply the tips in them religiously.

    After that, just sit back and smile as you watch all the visitors coming to your Web site. The best part is that all that traffic is free, and highly targeted. Yes, sometimes even the gods can be friendly.

    MARY O’BRIEN is a partner at Traffic- Mentor.net. She has worked in Internet marketing for the past five years and was formerly senior director of sales at Overture.com.

    The Pay Per Click Dance

    A few years ago, if your site wasn’t listed in Yahoo you might as well have given up. Yahoo was practically the only game in town, being the search engine of choice 75 percent of the time. There were all sorts of secret ways to get a better listing, and you had to know these and implement them or your site was invisible. Then, along came a little company called GoTo.com with its cheeky idea to let sites bid on better positioning in search results. A revolution was started.

    GoTo.com morphed into the king of pay-per-click search engine marketing, Overture.com., which was just purchased by Yahoo. When you couple that with the near-psychic accuracy of search results returned by Google through its Google Ad Words, you had better know how to tame these behemoths or once again you’ll be invisible. Once you have mastered the strategies, your top-placed search results will send anxious buyers streaming to your site. Within 48 hours, your return on investment on specific keywords can be analyzed, judged and tweaked to improve your bottom line.

    This is where affiliate marketing gets interesting. For as long as people have been commissioned to sell other people’s products, cleverness and innovation have produced the top sellers. I remember years ago a charismatic salesman came to my family’s house with an array of shiny new pots and pans. He proceeded to make a delicious meal, accompanied by never-ending sales patter. Before he left that night my dad had parted with a significant portion of his hard-earned cash for these magical pots. A very clever marketing tactic indeed.

    Affiliates have grasped this concept from the get-go. These days, good money can be made by going beyond banners and cleverly investing in and managing a pay-per-click search strategy. But what if both the merchant and the affiliates are both doing PPC marketing? That’s the big question every company that operates an affiliate program ought to be asking itself these days. In fact, good affiliates do use PPC and in many cases they’re doing it better than the merchants.

    So, how does that affect your business model and what kinds of policies should you establish around this issue? Well, it depends on what your marketing strengths and weaknesses are and it depends on how well you have analyzed your own marketing dollars’ ROI. To simplify it, there are basically three different ways to approach this issue: 1) Let your affiliates do anything they want with PPC search engines, 2) Prohibit affiliates from doing any PPC marketing, or 3) Compromise, and develop a strategy that allows you and your affiliates to divvy up the PPC traffic.

    Let’s look at the pros and cons of each of these models.

    1. Anything Goes

    If you let your affiliates do anything they want, you’ll get the same results as if you have NO policy. Good affiliates will research low-cost, high-traffic keywords relating to your site and products and will actively manage these bids to leverage what they pay for the words against what you pay them for the sale or lead. The “pro” is that the affiliates are bearing the cost of this marketing strategy. The “con” is that you are possibly paying more for that sale than you have to.

    2. Nothing Goes

    The second option is to prohibit affiliates from doing PPC marketing. Why? Because the knee-jerk reaction to No. 1 is, “Well now, wait a second, I could be getting all that traffic instead of them and paying less for it.” So you decide to pour your marketing dollars into PPC traffic on not only your brand name but on all your products and every keyword imaginable to “corner the market.”

    But the “con” of this approach is that your spending will go up dramatically, your management resources will go up dramatically to stay on top of thousands of words daily (sometimes hourly) and, worst of all, good affiliates who are good at this kind of marketing will drop out of your program.

    3. Compromise

    Finally, there’s the idea of compromising on a strategy that allows both sides to engage in PPC marketing. Helping affiliates make money will help you make money in the long run. How do you develop a good plan? You simply have to evaluate what you can manage and pay for effectively and what affiliates could do better and more profitably.

    For example, let’s say you have tested and done well in Overture with 300 top keywords and trademark names relating to your business. You’ve analyzed the stats and you’ve proved that staying in the top position for most of those returns a healthy margin between bid price and sales/lead volume. But you’re maxed out in terms of marketing budget or marketing staff to double or triple your buys.

    This is where your affiliates come in handy. Provide them with proven keywords and let them “have at it” on Google Adwords or any of the other PPC engines, like Findwhat or Kanoodle. Also, in order to keep competition between you and your affiliates to a minimum, ask that they not outbid you on Overture and police this aggressively. Take space No. 1 and No. 2 and let your affiliates take bids that place them at Nos. 3, 4, 5 and so on, and you have effectively shut out your competition on valued keywords and phrases.

    The main thing is to evaluate and then articulate a well-thought-out policy for you and your affiliates. Decide on the best use of your resources and budget, and then help your affiliates use this powerful sales channel to their best advantage. It will benefit you both.

    LINDA WOODS helps companies start and manage affiliate programs. Long known as the Affiliate Goddess, her new company, PartnerCentric.com, offers strategy consulting, training and outsourced program management services.

    First Impressions and Beyond

    What’s worse than a poor shopping experience? Rank it down there next to a really bad haircut, or waiting in line at the bank on Saturday morning. It’s not fun.

    Affiliates and merchants should take note. Just because you have a Web site instead of a retail storefront, doesn’t mean that you have it easy. In fact, some would argue it’s more difficult to sell online than offline. Unlike a physical store at your local mall, your Web site is one among millions. An offline merchant knows his customers might have to drive across town to find a competitor. Your myriad competitors are just a click away.

    In the online world, the first impression that you communicate through your design means everything. It’s how your customer decides if you’re what they want, or if you’re just another speck of sand in the great cyber desert. Once they’re convinced you have what they need, you can concentrate on fulfilling your promise to deliver it. It’s getting past that first hurdle that stops most sites from experiencing great sales.

    Here are some ways to help your site stand out from others in the increasingly crowded online community:

    Gone In 8 Seconds

    As soon as your Web site begins to download onto your potential customer’s screen, the “shopping clock” begins to tick. Typically, you have about 7 to 8 seconds to convince them you have what they need. If you can’t convince them in that short time span, they will most likely be off to the next site on the list, which could be your competitor. So what are they looking for?

    Unique Value Proposition

    You must always assume that no visitor knows your brand. This is especially true for affiliates who focus on building niche sites that have little or no brand preparation or recognition. Therefore, you need to successfully introduce your unique value proposition (UVP). A clear UVP is essential. It should answer the one question that all online shoppers want to know: “Does this site have what I want? Because if it doesn’t, I’m outta here.”

    Here’s a poor UVP for a fake company called ABC Co., and a preferred proposition that offers a bit more:

    Poor UVP Statement: The ABC Co., a New York-based business established in 1908 and traded on the NASDAQ stock market, builds, distributes and ships widgets and widget-related products in the US and around the globe.

    Preferred UVP Statement: ABCCo.com offers secure online shopping for widgets and accessories with international shipping.

    Did you notice the differences? The biggest is that the poor statement is too long and focuses on too many topics, such as the company’s history and its stock. Customers want to know how the site is going to help them right at that instant. The other information can be provided later in the sales process.

    The poor statement also incorrectly focuses on what the overall company does rather than what the Web site does. The preferred statement removes all mentions of anything except what the Web site can do.

    Having a powerful UVP isn’t only for affiliates and small niche Web sites. Merchants must also be attentive to this, even if they have a well-established brand. Even large companies frequently review their UVP to make sure it is easily understood.

    Logo

    How you present your logo and tagline is also important to a customer’s first impression. Don’t get caught assuming that your logo or tagline effectively mimics your UVP. Logos are window dressing, and only truly effective in branding of your Web site over the long term. They are not a viable method of displaying your UVP. Lastly, to be truly thorough, try to keep your UVP message on every page of your site for visitors who may have followed a deep link into your site, or for visitors who are referred via an email link.

    Home Page Makeover

    What your site says isn’t the only thing to worry about when making a good first impression. What it looks like is equally if not more important. Don’t worry though; you can make huge adjustments with some tiny fixes. Let’s get started.

    Speed It Up

    Sure, more people now have high-speed Internet connections, but at the same time, those people now expect super-fast performance because of it. To give them anything less creates a poor first impression. Action: Optimize all home page images.

    Focus and Display

    You need a focal point upon which your customers’ eyes will naturally settle. Typically, online readers focus on the middle of a page first, and then move to the left side, then to the top and on to the right. Remember, it’s your job to guide them to your information, not their job to have to find it. Action: Learn from the successes of others. Look at sites like Amazon.com and notice how they focus their customers’ eyes into strategic points on each page.

    Call To Action

    Effective call-to-action statements should prompt your customer into taking an action. Whether it’s clicking through to your hottest specials of the day or signing up for your newsletter, it’s the best way to get your customer to see that you are trying to get their attention. Action: Use the main middle area of your page to create your most powerful call to action statement. Make sure that it provides some sort of value to the customer, or why would they bother to pay attention to it?

    Heading Home

    So now your customer believes you have what they need and have extended their “shopping clock” by another minute or so. Congratulations, you’ve gotten to second base. You’ve won the first impression battle that most Web sites strike out at. Now you need to concentrate on rounding the bases and getting back home with a sale. But do it quickly, because the clock is still ticking.

    JIM F. KUKRAL serves as brand manager and director of e-marketing for KowaBunga Technologies, which makes My Affiliate Program tracking software.

    Affiliates, Start Your Engines

    Unless you’ve been living in a cave for the last year or so, you probably realize by now that in order to get customers to your affiliate site you have to market it on search engines. Even if you haven’t realized this, your competitors certainly have, and if you don’t take advantage of what the search engines have to offer, your Web site is likely to go the way of many other dot-com dodos.

    Over the last few years search engines have emerged as the most viable option for reaching many users on the Web. As an Internet marketer, your success online may be determined by how well you learn how to play the search engine marketing game.

    In recent studies, search engines emerged as the number one way people find products or services on the Web, with about half of all Internet users utilizing search engines to find you.

    Searching for what you need using search engines has become so ingrained in the Internet psyche that people even go to a particular engine like Overture, and type searches like www.Yahoo.com in the search box, instead of typing that URL into the address bar. Some of the top searches on many of the search engines come from people using the search engine to find other search engines.

    As you may also have noticed, search engines are in the news lately. Google is always grabbing headlines, and the industry has consolidated, with many of the larger companies gobbling up the smaller folks in a race for Internet dominance. First, Overture bought Alta Vista, Fast and AlltheWeb; FindWhat merged with Espotting; and now Overture is hand-in-hand with Yahoo, which already purchased Inktomi.

    MSN is beefing up its own search services in order to compete, and is rumored to be eyeing Looksmart and Ask Jeeves as potential purchases. So a realistic scenario in the next few years will be that three major engines will control over 80 percent of all U.S. searches on the Web, and the balance of searches will be performed between hundreds of smaller engines.

    How can affiliates take advantage of that information?

    Think of some keywords that represent your business. There are hundreds of Web sites competing with you for placement in millions of searches per month. Competition will only get worse as more businesses start to get their Internet act together. You can’t ignore search engines in your marketing efforts if you want to succeed. And, after all, search engines do have many advantages:

    Affordability: The cost of a lead gained from a search engine marketing campaign is currently averaging about 29 cents. That’s a significant savings from the next least expensive Internet marketing vehicle, which is email at 50 cents per lead, according to a study conducted by Jack Myers LLC and presented at a Direct Marketing Association conference last March.

    Equality: The Internet is still the great equalizer when it comes to marketing. Any affiliate marketer or small business with a Web site can utilize smart search engine marketing practices and to compete with their larger and better-known competitors. Even though you may not have the money to launch a large search engine marketing campaign, with a little knowledge, you can do most of the work yourself and still compete with the big boys. Many small businesses have built a decent living just using the power of search.

    Flexibility: There are very few other venues where you can control so many aspects of the marketing campaign and stick a toe in the water for very little money. Search engine marketing allows you to test copy, placement, budget, messages and offers, on the fly, in real time. You don’t have to commit to a long-term contract or a minimum buy. You control the amount you spend, the cost per lead and the duration of the campaign.

    Accountability: If you set up your tracking correctly, you can easily and quickly establish the return on investment (ROI) for your campaign. This will allow you to correct as you go, redesign your Web site, change your product offering and make adjustments based on your profit margin. Never start a search engine marketing campaign without the proper tracking in place. You can learn so much from the insight you receive that you may have to rethink your whole business model.

    Accessibility: You can reach more targeted users utilizing search engine marketing than with any other marketing vehicle. You can target your campaign locally if your business is constricted by geography, or internationally if the world is your marketplace. Either way, Internet use is only going to grow in the next few years, so don’t let this opportunity pass you by.

    In light of all this, it seems obvious that the more you can learn about search engine marketing, the more successful your Internet business will be. You don’t have to do it all yourself, but you should certainly know how it’s done. That way you can decide whether to keep search engine marketing in-house or hire someone else to do it. Either approach will yield good results.

    In future columns I’ll discuss the different forms of search engine marketing and provide you with plenty of tips and tricks to ensure that you get your fair share of Internet customers. We’ll delve into all those acronyms you may have heard bandied about but never knew the definition of. Yes – the joys of SEO, WSO, PPC, CPC, SEM, PI and others, lie ahead. (Somebody stop me!)

    MARY O’BRIEN is a partner at Traffic Mentor.net. She has worked in Internet marketing for the past five years and was formerly senior director of sales at Overture.com.

    Bringing E-commerce Back Home

    Jeannie Otero wanted to change her life. A single mom with two young daughters, she hated the three-hour round-trip commute to her job in Miami, time she would rather spend with her girls. She dreamed about starting her own business, thought about investing in real estate. But she had the age-old problem: You have to have money to make money.

    Then, she heard that a good way to make money was to build a Web site that connected shoppers with online merchants. “I put up this funky little site called PartyClowns.com,” Otero laughed. “I didn’t know what I was doing at all. It had a bunch of links to coupons, and it didn’t actually have anything about party clowns.” But it was the first step in her road back home.

    Otero had entered the world of affiliate marketing, a sort of parallel economy in which anyone at all can become an online retailer with almost no investment or experience. Two years later, she’s generating a good supplemental income and looking forward to quitting her day job. She’s discovered that all an affiliate needs is a combination of some smarts, some personality, some common sense and a ton of ambition.

    Affiliate marketing has quietly become a booming industry, involving thousands of U.S. corporations, millions of affiliates and hundreds of millions of dollars in transactions. If you haven’t heard of it, here’s the deal: You sign on as a commission-only salesperson for an Internet retailer. You use all the creativity, intelligence and perspiration you can muster to get customers for that merchant – customers it might not find on its own. For every customer you refer to the merchant, whether it’s for a paid purchase, a new subscription or a name for its email-marketing list, you get a commission. Because merchants pay only for results, they consider affiliate programs a form of advertising called pay-for-performance.

    Affiliates have the whole world of commerce at their fingertips. They can put together an array of products from global selection of retailers and offer them to their own customers. They typically build one or more Web sites that mix content with links to products on merchants’ e-commerce sites, and sometimes feature products in email newsletters or place ads on others’ sites. They never see or touch the merchandise themselves; the merchant handles all aspects of payment, warehousing and shipping. They get paid once a month, or whenever their commissions reach a pre-determined threshold.

    Sounds easy, doesn’t it? It’s not. While just about anyone can sign up for an affiliate program and put up a site, earning those nice commission checks is another story. While figures are sparse, the Internet Affiliate Marketing Association estimates that fewer than 5 percent of Internet affiliates have revenue of over $100 a month. That’s because affiliates face some of the same challenges as any other entrepreneur. Inexperience and a lack of basic business skills short-circuit some people’s attempts. Others don’t have the drive to persevere without a boss standing over them.

    According to AffTrack, a service provider that aggregates statistics about the industry, 2 percent of affiliates make 98 percent of the commissions. “Affiliation is so easy to get into, that you might only have 10 percent of people who sign up actively promoting merchants, and a smaller amount still might be making any real money,” said AffTrack CEO Scott McNulty.

    Like any other frontier, the affiliate world is rambunctious and confusing. There’s more than a whiff of the old envelope-stuffing scam to this industry, where you’ll find site after site promising that you can earn thousands of dollars working at home a few hours a day. It’s also gotten a bad rap from unethical affiliates, who bear some guilt for contributing to the spam deluge. When evaluating affiliate programs, don’t forget to apply the rule that if something sounds too good to be true, it probably isn’t true.

    Retailers know affiliates can drive sales and keep customers coming back, but they give most of their attention to the top producers. “Retailers have begun to think about the way affiliate programs will work for them in a more efficient way in terms of driving quality traffic and repeat traffic,” said Carrie Johnson, senior analyst with Forrester Research.

    This doesn’t mean that there’s less opportunity for you as an affiliate. But it does mean that you’ll have to work smarter and better to be part of that successful 2 percent. Like everyone else in this tight-fisted era, online retailers expect more for their money.

    While there’s more competition, there is still plenty of opportunity. Affiliate marketing is the second wave of transformation in the global marketplace. The first wave, the rise of the commercial Internet, put the power of information in the hands of consumers, letting them compare prices among merchants anywhere in the world. This second wave has leveled the playing field between huge conglomerates and individuals who represent online merchants.

    Raison d’Etre

    Sending traffic to merchants’ sites is the affiliate’s major goal. While you’ll find plenty of affiliate sites that are just lists of links, many experts say that it’s unique content that draws visitors and keeps them there long enough to get interested in your merchant’s offerings. “Your site has to have a reason to exist,” said Brad Waller, vice president of affiliate and business development for EPage, a content syndicator. “It’s rare that someone can create a site and make money from affiliation without doing anything himself. No one will look at it because it’s not original.”

    This doesn’t mean that you have to be a professional Web designer or an experienced writer. Most affiliate sites are highly personal; like Otero’s, they’re often sparked by a personal interest in a particular subject.

    “The personal touch makes a big difference,” Otero said. For example, she created a special Web page with a rave review of one baby item, just because she thought it was so neat. “I had eight visitors and made $20,” she said. Now, she writes introductions and personal notes for most of her Web pages and plans to write a personal review for the best product in each category for her BabyShoppingGuide.com site.

    A smart way to decide what your first site should be about is to choose an audience, according to Robert Bennett, an affiliate with eight years’ experience who also runs affiliate programs for several ISPs owned by his company, Archieboy Holdings. “Do you have any connections in any industry, or any opportunity to market to a certain group that other individuals don’t?” he asked. “Identify the market you’ll target, then figure out what products they might be interested in.” For example, if you lead a youth organization, you could look for products related to school or sports, then build your site content around those products. Ideally, the products become part of the content.

    Creating your site is a lot like merchandising a store. You could go broad or deep. For example, you might spend time finding absolutely everything anyone could ever want for camping and put it all in one place. From freeze-dried food to sleeping bags to flashlights to first aid kits, you’ve got links to it. On the other hand, like Jeannie Otero did, you could identify a niche, and then scour the Web for every baby Halloween costume available. In either case, the work you do to find and maintain fresh, working links and to gather or create interesting content is the value you add – and the way you make money.

    It’s easy to find affiliate programs:

    Just search for the merchant’s name plus “affiliate.” Many programs are completely automatic. “Just grab any banner, fill out the form, add the code to your

    Web site, and you’re done!” one vitamin retailer promises.

    If you’re working with many different merchants, maintaining one-to-one relationships with them all could get hairy. You’ll need to check that the merchandise you feature is still available, and then keep track of what they owe you and when they pay. While most merchants are honest, the message boards are rife with complaints and feuds about payments and other problems.

    For more hand-holding and help, you could join an affiliate network. Networks are services that help affiliates and merchants find each other. Then, what’s more important, they manage the process of keeping track of commissions and paying the affiliate. There are several advantages to joining a network:

    • You can get organized and comparative information about a number of merchants without having to search through individual e-commerce sites;
    • In some cases, the network will act as a matchmaker, suggesting partnerships or products that make sense;
    • Some offer support, productivity tools and forums to help newbies learn;
    • They may offer reporting tools that let you analyze your various relationships and see how much income they produce; and
    • They back up your bookkeeping. Instead of keeping track of commissions and payments from multiple merchants, you get a single check each month from the network.

    There are many different networks, and affiliates tend to choose them based on the merchants in the network; many work with multiple networks in order to get the range of products they want. Despite the growing interest in the

    business and concomitant number of affiliates, “Good affiliates are always in demand,” said Hayley Silver, director of affiliate development for LinkShare, a network that offers tools and services for merchants and affiliates. “[For merchants], they’re your salespeople. No one is ever going to turn down a strong salesperson.”

    Content Connection

    Once you have an array of products and services to sell and an audience to address, it’s time to flesh out your Web site to make it a true destination. While everything on your site could be considered content, most of it will be in the form of text. That includes your original writing, articles that you reprint, classified ads and user-generated content in the way of forums and message boards. You can arrange to receive automatic updates of syndicated articles and news feeds, either free or for a charge. There are even content sites that offer affiliate programs. They provide free content and, if a visitor to your site clicks back to their site and pays to subscribe or read premium content, you get a little lagniappe.

    According to affiliate marketing guru Ken Evoy, your site must satisfy the needs of visitors, the search engines and the merchants; if you serve visitors well, you’ll go a long way toward satisfying the other two players. Site visitors want outstanding information and interesting, highly relevant links. Lots of fresh, relevant content encourages visitors to bookmark the site, come back, and tell their friends.

    After all, people who want a book on a particular subject or a recipe could go directly to an online bookseller and search its inventory. They also could plow through literally thousands of entries returned by a search engine. “If someone was searching for information and finds your editorial [content], that person feels smart for having found you, and you become a trusted source of reference,” said Evoy. “By the time that person arrives at the site of a merchant you recommend, she is presold.”

    That doesn’t mean your content should consist of plugs for products. Quite the contrary. If your content simply hypes products, your readers won’t trust you. If you write a book review, for example, tell your readers what you really think of the book – good or bad. You’ll earn their respect with your honesty. Then they can decide whether to click on the link you provide to an online bookseller. If all your reviews are positive, your visitors will probably end up looking for a more objective Web site.

    High-Traffic Destination

    The most authoritative site on the Web is wasted if no one sees it. So, your next task is to lure visitors. If you’ve started with a pre-existing audience or circle of influence, provide them with valuable information and your traffic will grow by word of mouth. Others will find you through search engines.

    There are two approaches to increasing your site traffic via search. Some people focus on optimizing pages for the different search engines, while others approach their Web sites as writers and editors, assuming that if the site seems relevant, search engines will find it without extra effort.

    Optimizers geek out over page statistics and the workings of various search engines. They analyze how many times key words appear in each page and use them over and over to get a higher ranking for the page. They religiously check how high their pages rank in searches, then tweak pages in order to get them higher still. There are lots of software applications that help automate this process. Optimizers often engage in arcane practices such as “cloaking” or coding phantom pages that exist only to fool search engines. In order to play these games well, you’ll need to know HTML and even some programming languages like PERL.

    Experts, on the other hand, focus on becoming the go-to resource for people interested in something specific. This approach requires a passion for the topic; a smidgen of previous experience won’t hurt, either. Instead of trying to trick the search engines, they create focused pages and pack them with information that “appeals to humans, not search engines,” as Evoy said. Because search engines are designed to help people find what they’re looking for, this method can create pages that rank high in search results with much less work.

    But successful affiliates say you should never sit back and wait for traffic to find you. Be prepared to constantly expand your customer base with shrewd marketing. “There are lots of different tactics and techniques,” said Hollis Thomases, president of Internet marketing services company WebAdvantage. Affiliates can place banner ads on other Web sites, buy keywords on search sites, exchange links with appropriate sites, send emails to existing customers or contact the media and try to get press. Some affiliates spread their content around the Web by writing articles for other Web sites, making sure to include a link to their own sites. “All publishers tend to try all of them at one time or another, refining and tweaking to see what works best,” Thomases said. “That’s where the art comes in.”

    Now, can you sit back and watch the checks roll in? Uh uh. Prepare for steady work to make your site better. Whether you go the optimization route and spend your work time fiddling with keywords and links to improve your ranking in the search engines or take the expert approach and create a series of new pages, treat your Web site as a living thing. Nurture it and the fruit of your labor will be financial success and the pride of owning your own thriving business. And, maybe, spending more time with your kids.

    Susan Kuchinskas, managing editor of Revenue, has covered online marketing and e-commerce for more than a decade. She is also the co-author of Going Mobile: Building the Real-time Enterprise with Mobile Applications that Work.