Affiliate Marketing Blog by Shawn Collins

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From Affiliate Classroom Magazine, January 2006

What’s REALLY on the mind of today’s affiliate managers? And how do the issues that matter to merchants affect affiliates trying to get a foothold in the industry?

Now that Affiliate Summit West 2006 is over, we asked Anik Singal, CEO of Affiliate Classroom, what merchants were talking about at the Summit, and what he felt was in store for both sides of the affiliate marketing equation.

“One of the most exciting things about this year’s Summit was the level and scope of participation,” said Singal. “If your family and friends look puzzled when you try to explain what all this affiliate marketing stuff is about, remember that you’re part of an emerging industry filled with some of today’s most active entrepreneurs.”

BIG NUMBERS, GROWING INDUSTRY

There were 1250+ attendees registered for the Affiliate Summit conference, with more than 400 on a waiting list trying to get in at the last minute. “That really says something about the future of affiliate marketing - that it’s only going to get bigger,” said Singal. “If you go to www.AffiliateSummit.com, and look at the variety of merchants who participated, you’ll see an industry full of promise with almost limitless growth potential.”

Even more exciting was the record-high attendance at the Affiliate Manager’s Boot Camp, Singal’s four-hour workshop on how to recruit, motivate, manage, and get the most from affiliates. 95 affiliate managers attended, representing more than 70 different companies. That’s a sure sign that jobs in the management and administration of affiliate programs are poised to become viable career tracks for business professionals.

This surge in activity is also a hopeful sign for webmasters and blogmasters who are taking the plunge into affiliate marketing. According to Singal, affiliate programs are rapidly becoming part of mainstream marketing channels.

“Before I taught the Boot Camp, I spent several days talking with as many affiliate program managers and merchant representatives as I could,” said Singal, “including some of the biggest names in the business like eBay, American Express, DGM, and CafePress. It was clear from their interest in affiliate training that these companies, and many others, are taking this whole sales channel very seriously. They’re slowly investing resources and talent into starting or expanding their programs.”

EXPANSION GOOD FOR AFFILIATES & MERCHANTS ALIKE

What was the question asked most frequently by affiliate merchants? “Many companies are looking for fast track methods for recruiting plenty of affiliates quickly,” said Singal. “They seem very concerned about getting the most ROI from their affiliate marketing channel, so they were constantly asking questions about how to get affiliates up to speed and productive in record time.”

Is this good news for the average affiliate? “Yes and no,” said Singal. “Yes, because companies realize that they need to engage affiliates, communicate with them, and help them develop as a sales force. That will press the industry to develop better networks that support communication between merchant and affiliate.”

Singal also anticipates expansion in the field of affiliate program support services “Many companies need help getting their programs up and running - and they don’t want to make the mistakes that end up costing them. New specialized companies will fill these needs. That means a wider variety of program management firms, smaller and friendlier networks, more powerful tracking mechanisms with transparency and audits - even law and accounting firms specializing in affiliate marketing.”

INDUSTRY STALLED BY SUPER-AFFILIATE OBSESSION?

Yet Singal believes the management end of the industry still has much to learn. “Far too many companies are preoccupied with attracting super-affiliates away from competitors - as opposed to developing their new or average affiliates into top earners,” he said.

It’s not hard to understand why, since being an affiliate manager is not an easy job. “Lack of staffing is a big problem for affiliate managers - they are always being asked to do more with less. It’s a high turnover position. You cannot really blame companies that
tend to focus only on affiliates who are top producers - there are massive numbers of affiliates, thousands and thousands, but very few managers to get them all going.”

It’s no wonder that the questions Singal fielded throughout the Summit showed that many affiliate managers are still “stuck in the mindset that it’s better to get one affiliate who makes 1000 sales, than 10 affiliates who each get 100 sales. Because of the pressure affiliate managers face, it seems easier and more fruitful in the short term to attract and work with that one super affiliate,” he added.

FORWARD-LOOKING MERCHANTS SEE BIG ADVANTAGES IN PARTNER-IN-SALES VISION

Yet in spite of widespread “obsession” with the super-affiliate, Singal says there is good news. “I also found that forward-looking companies, with the most creative and business-oriented managers, are shifting away from the super-affiliate mindset.”

According to Singal, merchants are shifting away from the super-affiliate obsession for one important reason - business survival. “I strongly disagree with the notion that all you need is a few super-affiliates and your problems are solved. In fact, your problems are just beginning. This obsession with super-affiliates is ‘stalling’ the industry as a whole. Instead of building up a business team, with a literal army of productive affiliates working as a motivated sales force, you end up completely dependent on a few super-affiliates.”

And as Singal sees it, depending on super-affiliates creates the illusion that a program is strong - when in fact it’s vulnerable. Since he is also a merchant, Singal sees over-dependence on super-affiliates as a dangerous business philosophy.

“Excessive reliance on super-affiliates means that some affiliate programs are bound to collapse in the future,” he said. “Super-affiliates are very aggressive about their numbers, and are always looking to make a higher return on their traffic. If you don’t provide it, they’ll find a program that does. So what happens when your one ‘magic’ affiliate decides to drop your program and promote a competitor? You can go from thousands of sales to zero overnight.”

PROACTIVE MERCHANTS - GETTING IT RIGHT

This is why the most proactive companies are trying to build their program right. Summit traffic at the Affiliate Classroom booth was more than brisk, and the Boot Camp drew Fortune 500 companies as well as smaller merchants. According to Singal, managers seemed eager to refer new affiliates for training and to build the program on a solid infrastructure. Choosing good tracking scripts and hooking up with the right network were among the hottest topics on both the conference floor and at the Boot Camp.

“Managers really need objective guidance and reliable information about scripts, software, tracking technology, and how to build a partnership with their affiliates “said Singal. “In the end, affiliate managers have to keep learning and growing and communicating with their affiliates. That’s what will have the most impact on whether they’re going to be able to recruit new affiliates and keep their top producers promoting their program for years to come.”

ABOUT AFFILIATE CLASSROOM
The Affiliate Classroom provides an up-to-date training experience and materials for affiliate marketers to help them attract more traffic and convert higher. Anik Singal is the Founder and CEO of this premium virtual training center for affiliate marketers of all experience levels. Singal has been a highly trusted Internet marketing and affiliate program training consultant since 2003.

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