Special Report: Affiliate Marketing
This sample partner mails 12 million catalogs per year, with average revenue of $1.50 per book for its 72-page catalog.
The on-page program would add $225,000 to this company’s bottom line.
15-minute Interview: Tiered Incentives Drive Avon’s Affiliate Marketing Program
While catalogers were among the early adopters of affiliate marketing, few people may realize how long ago the channel got its start. Multichannel beauty products merchant Avon, for example, has been involved in the affiliate space for nearly eight years and currently manages a stable of more than 3,000 affiliates.
Pattiann McAdams, Avon’s executive director of e-commerce for North America, shared with Matt Griffin, associate editor of Catalog Success, her experiences managing an affiliate marketing program.
Catalog Success: Why did Avon start an affiliate program?
Pattiann McAdams: We have an established brand, and we saw it complementing our online presence as well as providing a way to reach new customers online.
CS: What criteria do you use when choosing affiliates?
McAdams: They need a certain amount of visits to their sites; they have to follow rules we set forth; and they must be established within the affiliate network for a set period of time.
CS: How do you determine how much to pay new affiliates?
McAdams: We offer a flat fee for every sale an affiliate drives to our site. Additionally, we give an incentive if they can drive more than a preset amount of sales in their first month. We like to kick-start each new affiliate who comes on board. It all comes back to how many sales the affiliate can drive for us. We don’t compensate the affiliates differently based on whether they send new customers or returning customers to us, but we do compensate more based on milestones we set forth. We put different incentive plans in place depending on where the affiliate falls within our tiers.