5 software niche affiliate success stories
DESCRIPTION
Why do affiliates promoting digital goods are earning the most? The presentation will outline the traits and tactics best affiliates in the software industry use with specific case studies. Experience level: Beginner, Intermediate, Advanced Target audience: Affiliates/Publishers, Merchants/Advertisers Niche/vertical: Software Michael Ni, SVP, Marketing and Products, AvangateTRANSCRIPT
5 Software Niche Affiliate Success Stories
Michael Ni, CMO/SVP Marketing & Products
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5 Software Verticals Affiliate Success StoriesWhat Are Some of the Best Practices to Drive Conversion in a
Software World
The Software Vertical
Why It’s Good …
… and in which Sub-Categories
5 case studies in Software Affiliate Success
What’s Your Next Move
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Vendors
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Merchants
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Merchants
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Affiliates
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Affiliates
Affiliates
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The Software Market Worldwide is estimated at over $260 billion
SaaS is a $12 billion market (2011) growing to $21 billion in 2015 growing at over 15% a year
Year-over-year growth in other key software categories around 6-10%
Software is fundamentally shifting to being purchased online …
… with Affiliate sales contributing an additional 10-15% to software vendors’ online sales, with some contributing over 30%
The Software VerticalThe Market
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Software is included in several verticals - accounting for up to 20% of the affiliate preferences*
Affiliate Preferences to DateUp to 20% already choose software related categories
* According to the data in the AffStat Report 2010
Pets Real Estate Spiritual Sports & RecreationContests / Giveaways
Toys & Hobbies
Travel & Auto
Wedding
Apparel
Books, Movies & Music
Career / Business OppDating
Department StoresEvent Tickets
FinancialFlowers & Gifts
Food & EntertainingGift CertificatesGreen / EcoHealth & Beauty
Home & Garden
Insurance / Financial Services
Jewelry & Accessories
MagazinesMedical
Computers & Elec-tronics8.97%
Office & Business7.46% Outlet & Discount
3.73% Education0.4%Gaming
0.1%
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1. GREATER COMMISSIONS bigger affiliate margins (generally up to 85%) compared to physical products (generally up to 50%)
2. MORE CHANCES TO CONVERT VISITORS try before you buy, “Freemium”
3. EASIER TO SELL known need, does not have to be touched, immediate gratification, attractive prices for customers
4. EASIER TO HANDLE no hassles over delivery, time zones - as in some physical products
5. AN ANNUITY recurring revenues opportunities, upgrade, renewals focused, multiple modules and related add-on opportunities
Advantages of Promoting SoftwareFast Selling, Low Maintenance, Recurring Revenue
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Top Selling Software CategoriesConsumer Titles Comprise the Bulk of Affiliate SW Sales
Utilities/Security: est. $ 3 bln. market in 2011
Audio-Video Tools: est. $ 2.5 bln. in 2011
Productivity: est. $ 10 bln. in 2011
Games: est. $ 47.5 bln. in 2011
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ChallengesWhat Do Prospects Need to Get Past to Make a Decision
A considered purchasePrice point, Dependencies, Complexity
Fear, uncertainly, and doubtMalware, Security, Compatibility
Comparability … TrialPrice, Functionality, Reputation, Credibility, Vendor Longevity, Support
What are some of the best practices to helping prospects along …
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WHILE THERE’S NO RECIPE FOR
SUCCESS…
PROVEN IDEAS CAN ALWAYS HELP
5 examples in the Avangate Affiliate Network
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IncrediMailSoftware Vendors as Affiliates
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Freemium: IncrediMail Free
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Freemium: IncrediMail Plus, Toolbars
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Offers email customization tools & widgets “Leadership in trailing-edge technology”
Brings value into very commoditized market
Secrets to IncrediMail Success Feature-filled, functional Freemium version leads to Premium “IncrediMail Plus”
Add-ons accessorize Freemium & Premium versions to expand revenue flow from existing customers
Associates with other complementary vendors to cross-sell whenever possible
Uses social media to amplify their messages about “old-fashioned” communication tools. Use “Crowd-sourced” endorsements to drive popular accessories to the top
IncrediMail benefits Provides continuous added value to their customers
Generates additional interest on frequent return visits
Generates add-on sales with conversion rates of over 10%** Avangate Affiliates Network
IncrediMail
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Freesoft.tvbok.comOriginal Content
Freesoft.tvbok.com: Original Content
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FreeSoft.tvbok.com
Affiliate website for the Japanese audience
Offers “how to’s” for various software products & PC-related activities
Secrets to their success
As an affiliate, Freesoft.tvbok.com promotes video tools and uses tutorials and reviews as customer conversion pages.
The benefits
Provides added value to its website visitors (over 2 million page views monthly)
Generates affiliate sales with a conversion rate of over 0.8%*
Freesoft.tvbok.comUse original content to convert audience
* Avangate Affiliates Network
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BitsDuJour.comLeverage the power of the discount coupon
BitsDuJour: Power of Coupons
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BitsDuJour.comLeverage the power of the discount coupon
BitsDuJour: Widget
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* Avangate Affiliates Network
Power of CouponsBitsDuJour Offers heavily discounted software titles, each deal only for 24 hours
Leverages coupons and sense of urgency to reach/grow broad audience
Secrets to BitDuJour’s Success Promotes PC & Mac software titles with steep discounts (over 50%)
Community & crowd-sourced W.O.M. marketing
Work with multiple affiliate networks & with vendors directly.
» Affiliate cross-sell program (widget on other affiliate websites)
» Vendor program (get part of the affiliate commission back)
Seasonal & special campaigns – BitsDuJour Holiday Bundle
The Big benefit Discounted product offers generate a conversion rate of over 20%*
BitsDuJour.com
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Myce.comUser generated content & communities to deliver affiliate promotions
Myce.com: User Generated Content & Communities to Deliver Affiliate Promotions
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* Avangate Affiliates Network
Leverages the Shared Bond of Community Website targeted to consumer electronics, gadgets and technology community,
engaging members into reviews, discussions and forums
Secrets to Myce.com’s success Power of user generated content
Create a strong community around it, attracting traffic
Contextual advertising used to generate sales
Crowd-sourced promoted software in specialized sections and forums
The Big benefit Added value through reviews and social interaction on forums and discussions
Affiliate conversion rate of over 1.5%*
Myce.comUser Generated Content & Communities to Deliver Affiliate Promotions
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Product catalog with localized user experience
Siliconaction.com.br
SiliconAction: Extensive Catalog, Local User Experience
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Product catalog with localized user experience
Siliconaction.com.br
SiliconAction: Installment Plan
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Product catalog with localized user experience
Siliconaction.com.br
SiliconAction: Brand and Product-Specific Keywords on local markets
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* Avangate Affiliates Network
Product catalog with localized user experience Brazilian product catalog / e-tailer selling software online with over 1,400 titles
Secrets to SiliconAction’s success Localized buying experience (localized payment methods, installment plans, etc.)
Recognize their role in supporting local purchase user experience rather than deep investigation, comparison, consideration
Generate traffic via targeted PPC campaigns, newsletters and advertising serving as a regional conduit for latest software availability
Uses both the affiliate and reseller model being flexible to offer the largest selection
The Big benefit Generate sales as an affiliate with a conversion rate of ~20%*
Linked to from vendors to handle traffic from that region, trusted to use AdWords
Siliconaction.com.br
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Software is a rich vertical that has inherent advantages to be sold online … both standalone, as well added onto existing affiliate sites
Consumer focused software categories currently perform best …
… but growing opportunities in business, and SaaS solutions creating interesting niche possibilities in this huge market ($12 billion), not to mention, education
Get started - join a dedicated software affiliate network – let them handle tracking & payments and benefit from their advanced marketing features
PC business maybe declining, but in the post-PC era, the software business is more vital than ever
Finally …
Takeaways
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Find a parade and get in front of it!
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Want to Learn More?Take the road to Booth # 49
Avangate Inc.Redwood City CA., USATel: +1 650 249 5280
Avangate B.V.Amsterdam, The NetherlandsTel: +31 20 890 8080
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