Episode 8
Unveiling the Secrets of Affiliate Marketing with Expert Dustin
Summary
In this episode, Brett Deister interviews Dustin Howes, an expert in affiliate marketing. They discuss the impact of AI and the pandemic on affiliate marketing, the importance of creating a great affiliate program, and the role of personalized outreach in recruiting affiliates. They also explore old school ways of affiliate marketing, the use of AI in affiliate management, and the future of the industry. Dustin shares tips for maintaining an affiliate program and highlights the tools that can help manage it effectively. He also provides information on where to learn more about affiliate marketing.
Takeaways
- Affiliate marketing has experienced significant growth due to the pandemic and the rise of AI.
- Creating a great affiliate program requires careful planning, competitor analysis, and personalized outreach.
- Old school methods, such as manually identifying potential affiliates through keyword research, can still be effective.
- Maintaining an affiliate program involves nurturing relationships with top affiliates and providing personalized support.
- The future of affiliate marketing will likely involve a combination of AI and relationship management.
Chapters
00:00 Introduction to Affiliate Marketing
02:02 Impact of AI and the Pandemic on Affiliate Marketing
03:03 AI in Affiliate Marketing
04:38 Creating a Great Affiliate Program
07:13 Implementing AI in Affiliate Marketing
08:49 Old School Ways of Affiliate Marketing
11:02 Personalized Outreach in Affiliate Marketing
12:30 Maintaining an Affiliate Program
14:02 Promoting Affiliate Programs
16:15 Avoiding Pitfalls in Affiliate Marketing
17:57 Planning and Choosing the Right Tools for Affiliate Marketing
19:29 The Future of Affiliate Marketing
24:47 Tools for Managing Affiliate Programs
26:18 Combining AI and Relationship Management in Affiliate Marketing
27:20 Where to Find More Information
28:39 Conclusion
Transcript
Mm.
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:That's good.
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:And welcome to new episode of
Digital Car Coffee Marketing Brew,
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:and I'm your host, Brett Deister.
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:As always, if you do like this podcast,
just subscribe to all your favorite
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:podcasting apps and YouTube as well.
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:It always helps.
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:But this week we're gonna be
talking about affiliate marketing.
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:The favorite thing people don't really
wanna talk about, because it's sometimes.
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:Hard to do because you're relying on
normal people to help spread the word
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:most of the time, but not always.
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:But most of the time you're getting just
your regular customers to spread the word.
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:But I have Dustin here and
he is an expert in this.
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:He's been doing it for many years.
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:He's a nerd as he says himself about
this, and he just loves about this.
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:So I'm happy to have him on the show.
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:So welcome to the show, Dustin.
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:Duston Howes: Hey, appreciate
you having me, Brett.
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:Brett Deister: Yes.
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:And the first question I ask all my
guests is, are you a coffee or tea
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:Duston Howes: drinker?
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:Coffee, a hundred percent.
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:And cowboy coffee if, if it's available.
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:I, I actually enjoy adding
a little grit to my morning.
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:Like I'm straight black, I put nothing
in it, and I like the bitterness.
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:No.
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:So you just
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:Brett Deister: like to boil the
water with the coffee grounds
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:and be like, you know what?
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:We're just gonna have both of 'em
together to get as much caffeine
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:outta this thing as I can.
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:I chew
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:Duston Howes: it up as I drink it?
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:Yeah, it's great.
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:Brett Deister: No worries.
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:I gave a brief introduction to your
expertise, but can you give the listeners
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:a little bit more about what you do?
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:Duston Howes: Yeah, you got it, man.
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:13 years of affiliate marketing
and digital marketing experience.
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:I've, I've ran merchant programs and my
own agency over the last five, and I help
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:small companies, SMBs, especially in the
SaaS department, to grow and create an
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:affiliate program that actually works.
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:And that's, that's what
I'm passionate about.
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:I, I actually teach a course now that
teaches everything that I know and help
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:giving back to the community of affiliate
marketing as, as we know it today.
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:Brett Deister: All right.
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:And what has changed in affiliate
marketing since the explosion of
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:AI and the pandemic in general?
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:Because the pandemic has, has,
we've all said, changed everything.
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:Duston Howes: Sure thing.
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:The pandemic.
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:First of all, affiliate marketing was one
of those fields that actually blew up.
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:So in instead of being a detriment to most
of society, affiliate marketing actually
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:profited enormously over shooting their.
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:Expect stated growth in in affiliate just
because Covid brought everything online.
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:So much more and revenue was
generated online, significantly
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:increased for affiliate marketing.
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:So, and then I forgot the other
question, Brett, what was the other part
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:Brett Deister: of that?
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:AI as well.
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:So we had like the pandemic and then like
two years later it was a AI is everywhere.
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:Duston Howes: AI is everywhere, and
affiliate marketing is getting easier
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:because content can pre-produced
via AI significantly faster.
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:And there are quite a few programs out
there, chat, GPT, of course, and then
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:you've got things like Jasper AI and
some others that are just absolutely
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:killing it out there and helping affiliate
marketers produce content at a much faster
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:Brett Deister: click.
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:Got you.
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:And so do you have any like latest
stats, like just an overview stats
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:or just like affiliate market?
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:You said it blew up.
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:Is it still blowing up now as
we've seen it, or has it kind
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:of like plateaued a little bit?
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:Are we seeing that type of like slowdown?
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:I.
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:Duston Howes: There is, there is no
end in sight to its uptick in growth.
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:Companies every day are figuring out
the power of having a army of sales reps
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:that are paid on a commission basis.
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:'cause that's exactly what
affiliate marketing does.
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:And no, the, it continues to scale.
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:I wanna say 2023 is destined.
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:Some in saying number like
$12 billion coming through the
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:affiliate channel altogether.
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:And I like to say a, a good affiliate
program will cover an additional 20% of
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:your revenue that you have existing by
just adding in those kinds of partnerships
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:that are gonna be a good fit for your
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:Brett Deister: product.
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:Yes.
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:And that actually leads
into my next question.
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:How do PR pros and marketers create
a great affiliate programing?
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:'cause everybody can create one.
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:But not all of them are
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:Duston Howes: good.
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:Oh, absolutely.
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:And they're not all built the same.
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:There's 50 different softwares to
choose from the management aspect,
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:which is extraordinarily important.
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:There's this very odd thought process.
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:The industry that.
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:You can just go out and create
an affiliate program and all
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:these affiliates are gonna come
on in and join your program.
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:And that just couldn't be
further from the truth.
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:Like companies very quickly realize
that it doesn't matter how good
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:your offer is or how, how you think
partners are going to swarm on in.
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:You have to beat the streets
and get the word out about your
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:program and expand your brand.
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:And it's a lot of hard
work affiliate managers.
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:Affiliate management is a full-time job
if you're doing it right and you really
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:wanna expand with it because you can never
have enough recruitment to your program.
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:Brett Deister: So that, does that mean
for creating a great affiliate program
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:is to actually have like good incentives?
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:Is it good to have like a
great onboarding process like.
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:What other things should marketers know
if they're just trying to start at it out?
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:Duston Howes: Yeah, absolutely.
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:The all of the above.
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:To answer your question, yes, you
have to have an appealing offer.
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:You have to check your competitors.
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:You have to make sure
that your competitors, I.
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:Are not offering something well above
what you're offering to your partners.
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:And if they are beating you
out, you just can't handle those
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:margins, then you have to figure
out other ways to incentivize them.
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:Maybe that's free accounts, maybe
that's free products, maybe that's
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:an SEO link backlink to them.
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:Just whatever you have to utilize to
get them into your program rather than
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:sending traffic to your competitors.
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:It's what you're gonna have
to learn how to figure out.
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:So best, best case scenario is getting
help before you creating a program and
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:just try to make it happen on your own.
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:It's almost always a recipe for
disaster if you don't get some kind of
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:consultant in there to, to help you build
this thing out right the first time.
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:Brett Deister: And then, like you said
before, how AI has changed at all.
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:How can you, I, I guess,
implement AI into that?
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:Affiliate marketing where it actually is
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:Duston Howes: useful?
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:Yeah.
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:From the brand's perspective of
things using ai, it, it hasn't hit
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:the ground like it has for building
content on the publication side.
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:So the publishers are using AI
every single day to help them create
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:1500 word blog posts in a matter of
minutes rather than hours or days.
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:It has been in the past, but on
the affiliate management side,
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:most of the tools are from scraping
websites and contact information.
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:That's, that's probably best.
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:Where we're utilizing AI is building
lists a lot easier and building
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:lists to contact the right publishers
that are right for your program.
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:But nothing's, nothing's
perfect at this point.
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:You, you could, you could search by.
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:You know, keywords that might be
super relevant to your industry and
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:try to find a bunch of affiliates
that are ranking for those keywords.
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:But a lot of this is still some, some
manual processes that you're gonna
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:have to get into and, and you still
need a full-time affiliate manager to
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:handle all of that and make decisions.
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:So AI isn't perfect from this perspective
yet, but it is getting better every day.
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:Brett Deister: And then what are
some old school ways of actually
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:doing affiliate marketing?
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:So we talked about the new ways,
but I'm pretty sure there's a lot
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:of old school ways that actually
are really just as effective or
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:even more effective right now than
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:Duston Howes: ai.
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:No doubt.
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:Some of the best old school ways is
just simply take your biggest keyword.
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:That your brand wants to rank
for and type it into Google and
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:let's look at the search results.
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:Take the top 30 pages that are
ranking there today, and let's
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:figure out which each one of
those is actually an affiliate.
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:Or if they're a competitor, we're
not gonna have to worry about it.
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:But if they are affiliate, they
have affiliate links, they have
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:outbound links that might be organic.
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:These are all potential partners,
and you want that list of
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:30 and you're gonna have to.
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:Figure out who the right
contact is at each one of those.
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:So one of my favorite tactics is I build a
giant list first of, of all these keywords
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:and people that are ranking there.
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:And then I go to each
individual one and I use a.
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:Tool called hunter.io.
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:It's Chrome extension, and it will give
me a list of people that work at that
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:company and their email addresses and this
thing's free and it's super easy to use.
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:I copy that.
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:I, I go to LinkedIn and I figure out who
the right person is to contact at that
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:company, and then I go into emailing and
set them up with a drip campaign that.
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:It's gonna get their attention somehow.
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:So, but that's the old school way
and that's still the way I go about
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:doing a lot of my processes throughout
the day for the clients I work with.
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:And that I don't see that changing
in the, in the near future.
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:And, and automation is helping that
process get faster and cleaner.
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:But there's always gonna be something
to be said about, you know, manually
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:having that connection to the
person you're reaching out to.
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:And then when messaging
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:Brett Deister: those people, I've.
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:I know the easier way is to do like an
automated message, but a lot of people
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:can figure out that it's automated.
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:So how do you like try to message
as many people as you can without
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:feeling like you're a robot?
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:Duston Howes: Pitch question.
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:I don't have a great answer for it today.
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:It seems like the more I try to
shoot out that wide net approach,
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:the worse my results get.
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:If you have a wide net approach and are.
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:Batching and, and blasting
through your email service, expect
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:a 10% response rate or less.
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:That's, that's what you can expect.
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:Now, if you cater each one of those
messages, especially the first
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:message that you're reaching out with,
with something that is pertaining
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:to their LinkedIn profile or.
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:Their website that they are utilizing
or working at, whatever it may be.
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:If, if you do something just in one or
two sentences that shows them that you
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:took the time to care about them, your
response rate will dramatically go up into
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:that 30 and 40% if you're doing it right.
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:So that's something that you should be
always keeping in mind if, if you're
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:failing at recruiting affiliates
get more personalized and you're
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:gonna have a better success rate.
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:Brett Deister: So I mean, could it
be just like batching it down to like
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:maybe like 10 a day and then doing
some research and then that could
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:actually help because I feel like.
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:We always try to do a lot as PR
pros and marketers we're like, let's
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:gonna do a hundred a day, we're gonna
just like look like we're awesome.
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:And then it's like what you said,
10% or lower actual response rate.
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:So would it be just like niching it
down to be like, let's say we do 10
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:a day, let's say we do five a day and
then like really like customize that
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:Duston Howes: message.
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:Yeah, and I mean it's a little bit
different in the PR space because you're
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:giving a pitch and you've got, you
know, that two, three sentence pitch.
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:That you're always bringing
to their attention.
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:And it, and it's kind of similar in the
affiliate space as well, except your
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:pitch has to cater to giving them money
as commissions if for the sales that
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:they're bringing in rather than like a,
a flat fee that you're willing to pay.
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:So the message is definitely gonna
be a little bit I think you can get
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:away with it a little bit easier
in PR than you can with affiliate.
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:And the reason is it is more of a.
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:Like PR folks are more accustomed to
getting those kinds of requests where
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:affiliates, they get hundreds of them
each day from each from individual
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:brands, depends on how big they
are to go and promote new products.
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:So it can be a little testy, and I think
the response rate suppers because of that.
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:Brett Deister: And then like content-wise
to actually like advertise it.
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:Should they be using like podcasts?
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:Should they be using like
email newsletters to actually
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:like generate that stuff?
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:Besides just like using what you said,
should they be using the other stuff
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:to actually bring awareness to the
affiliate program at the same time?
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:Duston Howes: They can.
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:I haven't seen a huge uptick in
getting additional exposure on
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:joining an affiliate program.
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:The, the best affiliates are going to.
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:Figure out that there's a, a
vertical that they need to add to
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:their website or go and promote.
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:Maybe they're digital marketers or
media buyers that wanna get into a
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:specific niche, and then they're gonna
research those brands and whatever
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:comes up first as like the best
affiliate program for those verticals
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:is the list that you wanna be on.
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:So getting on some of those lists
could be helpful, but it, it hasn't
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:been a gigantic uptick in my opinion.
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:Now you might find some success in
like taking your vertical, let's say.
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:Let's say you sell mushrooms,
you know, whatever terrible
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:example, we'll stick with it.
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:Mushrooms, you just say mushroom affiliate
program and you bid on that campaign.
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:You know, maybe it's like a quarter 50
cents or something on Google, but people
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:that are trying to get into that space
might accidentally look that up and
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:click and go to your affiliate program.
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:That might be one successful
story, but really nothing beats.
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:Manual labor of going out and finding
the people that are actually ranking
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:on Google first and getting their
attention somehow, because the ones
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:that are just gonna come in off a whim,
few and far between, are they gonna
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:be really worth a lot as an affiliate?
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:And
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:Brett Deister: then what are some ways
of not doing to create a filler program?
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:Like I've, we've said like all
the great ways, but what are some
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:things just to avoid entirely
just so you don't waste your time.
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:I'd
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:Duston Howes: say the biggest pitfall
folks go through is not coming up
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:with a solid game plan to begin with.
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:So if they just create an affiliate
program and, and figure, like people
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:are just gonna sign up and give it a
ar arbitrary, like 10% I commission
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:rate without a plan of like looking
at their competitors first and seeing
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:what their competitors are often.
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:That program is much more likely to fail.
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:But if you go in, get a consultant,
like get, get fresh eyes on your brand
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:and make sure that they know what best
practices are for this industry and have
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:them come up with a plan to, you know get
the right affiliate manager in, in your,
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:in your system to be that representative.
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:Or just specifically which
platforms are gonna be the best.
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:For your product that's important.
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:Like there's 50 platforms
to choose from out there.
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:And if, and if you choose the wrong
one that isn't to your specifications
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:of what you need for last click
or la first click attribution,
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:you're gonna go down a a bad road.
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:So pre-planning is the most important
step of it all, and I can't emphasize
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:enough to get somebody who's a consultant
that's done it time after time again.
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:To help you in this journey Because if,
if you try to do this on your own, you're
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:gonna have it in your own brand lens
and it, it's gonna be an uphill battle.
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:So
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:Brett Deister: would you also say like,
going through the affiliate programs
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:that, that you may actually be doing
and seeing like what's difficult
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:to go through, how many clicks do
you go through and seeing like.
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:From your own personal experience, like
how people may drop off, because I feel
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:like a lot of times we just like set it up
and we don't actually test it ourselves,
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:and we're like, this is awesome, and then
you're like, why is nobody signing up?
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:Duston Howes: Yeah.
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:Yeah.
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:A test and retest is always important
in the affiliate channel to make
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:sure all the tracking is right.
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:Every platform out there is going to help
hold your hand during the situation, so
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:that shouldn't be that big of a problem.
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:You can get affiliate
program launched in a day.
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:I've done it before, but some, some
are a little bit more dynamic in
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:the tracking values and a little
more aggressive with commission rate
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:and adjustments to commission rate.
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:Like they might pay a
CPA and they might pay a.
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:A revenue share and it can get really
complicated and some programs have
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:taken two months for me to launch.
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:So it's a wide range.
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:It just depends on what you
need out of those partnerships.
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:I.
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:But again, that game plan, coming up with
your ideal magic wand scenario first, and
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:then getting somebody that can execute
and make that plan come, that vision
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:come to life is super necessary for the
success of an affiliate program early on.
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:Hmm.
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:And then for
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:Brett Deister: just maintaining it.
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:And what, what are some of the best
tips to maintain affiliate programs?
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:I feel like you could start it.
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:And then it's great and everything
and woo, we launched it.
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:But the maintaining part is probably
the hardest part because you want
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:this for like 10 years or longer?
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:I'm
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:Duston Howes: pretty sure.
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:Yes, for for sure.
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:Maintenance is a matter of taking your
top affiliates that are sales active and
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:making sure that they are taken care of.
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:Do not let these guys slip through
your fingers or go to a competitor.
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:Do whatever you have to, to take
your top 10 affiliates out there
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:and continue to work on them.
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:Ask them what they need from you.
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:Ask them what you guys can be doing
better if set up landing pages for them.
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:Give them more assets for marketing.
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:Give them email swipes so
that they can tap into their.
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:Audience of subscribers do whatever
you think the sales act of a affiliate
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:partners, especially early on, and
that's going to give you a better
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:vision of what new affiliates
are going to be looking for.
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:And that way you can automate those
things that they are looking for when
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:they come into the program and you get new
partners that could be difference makers.
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:So it's a continuation of.
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:You know, getting on monthly calls with
your top affiliates and just listening
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:to what their needs are can be super
beneficial to your program in the long
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:Brett Deister: run.
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:So yeah, almost like highlighting your
top sellers and making sure that they're
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:taken care of will actually help with
your affiliate marketing in the long run.
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:So would that be like, like
you said before, but also like.
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:Highlighting it through email newsletters
or something like that, your top sellers,
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:and like making them feel like special
because I'm pretty sure when you make
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:them feel special, they feel like they're
part of the process instead of like just
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:a number in the affiliate marketing cog.
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:Duston Howes: Absolutely.
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:The, the more personalized you can get.
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:Like for example, I take everybody
that's ever been affiliate, a
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:sales active affiliate in a program
that I've run, and I have them
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:in my personal CRM, so they, I.
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:I have notes in there about what verticals
they're interested in, and I have notes
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:about any kind of personal message
that we've had in the past, maybe when
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:he went out to dinner or had a drink.
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:I'm writing all those notes down for
the future so that I can go back to
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:that relationship and tap into it if I
have a new client that would be a fit
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:for them, or even for the client that
we're existing and working with, like.
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:I pass that off into the CRM for
the next affiliate manager that
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:takes over so that they have a good
understanding of where that relationship
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:left off when I left that company.
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:So CRMs are almost, are highly suggested,
even if you're using just an Excel
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:sheet, it, it is super important
to keep track of your partnerships
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:along with the your deals for the
people that are buying your product.
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:And if you can piggyback off of your
existing CRM that, that you're using,
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:whether it be a HubSpot or Salesforce,
if you can add the affiliate channel
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:and partnerships into that and just tag
it in a certain way, that'll, that'll
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:help ease the cost of, of not having
to bomb the affiliate program itself.
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:Brett Deister: And are there some
tools that could help manage this?
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:I know you said Hunter for like fining
people, but is there some tools just to
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:maintain the affiliate programming that
marketers and PR pros should know about?
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:Duston Howes: I, I'm
always a big of SEMrush.
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:SEMrush is almost always the
first tool that I use and for the
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:keyword research and the sites that
are ranking for those keywords.
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:That's how I build my biggest list is
using emr and then there are a few.
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:Tools out there that are super
helpful, pub recruiter.com is helpful.
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:Publisher discovery.com is super helpful.
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:I.
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:And within each affiliate network,
you're gonna have a large publisher
383
:pool that exists already that are
on the network and that you can
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:reach out through their platform.
385
:So when you go with an impact or
a share sale, you have a baked in
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:list of good affiliates that are in
the system that you can tap into.
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:But I would strongly advise and not
not trying to reach out to the masses.
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:Find the ones that are gonna be
relevant to your vertical and niche
389
:that are in the platform itself.
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:So those are, those are some of
the tools that I use every time I
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:start, go recruiting for a program.
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:I.
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:Brett Deister: And what is your
prediction for the future of affiliate
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:marketing in the next five years?
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:Duston Howes: Solid question.
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:I believe it's going to get
even more relationship based as
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:AI starts taking over a lot of
capabilities of, of what publishers
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:and affiliate managers are doing.
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:I think the.
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:Relationship portion of affiliate
management is going to actually grow
401
:because you're gonna find ways to make
more time for more interaction personally.
402
:And so those websites that might
not be getting the most love right
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:now because you just don't have
time as an affiliate manager.
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:Now, that time that you've been
absorbed creating, creating reports for
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:executives or, or doing your daily report
evaluations, a lot of that time is going
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:to be caught up and you'll be able to
have more phone calls with partners.
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:So don't think that affiliate
management is going away.
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:It's gonna be a, a long time
coming 'cause people are going to
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:continue to crave that kind of.
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:Personal relationship with the brands
that they're working with, and I
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:think it's gonna be even stronger,
and the demand for affiliate managers
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:is just gonna continue to grow.
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:Brett Deister: So, I mean, it's
almost like affiliate managers should
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:understand how to use AI because AI
could be just their little assistant
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:doing most of the backend work.
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:I.
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:While they do most of the
relationship management work,
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:Duston Howes: keep that in mind.
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:Virtual assistants are also super
beneficial if, if you are getting paid
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:full-time as an affiliate manager,
you should consider looking into a VA
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:to do the work that you really don't
wanna do all that often, and AI is
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:going to help with this in the future.
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:But virtual assistants can get
that done, job done today for you.
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:If you train them well, if you
find a good one, don't let 'em go.
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:Just, you know, keep 'em on board for 10
hours a week to recruit on a bigger basis
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:or do the things that, tedious processes
that you don't wanna do, and that's
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:gonna be a great time saver for you as
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:Brett Deister: well.
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:All right.
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:Where can people find
you online to learn more
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:Duston Howes: about this?
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:My online course is performance
marketing manager com.
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:It is a.
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:It is everything I know about affiliate
marketing smooshed into eight hours of
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:video training with all the templates
that I, I utilize on a daily basis for
436
:my programs and along with a community
of affiliate managers that are working
437
:together to help pass each other good
leads on affiliates and, you know,
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:sharing their industry knowledge.
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:So it's a great community to be a part of.
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:And then for, for me personally,
if you want 15 minutes of my
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:time, I'd give it away for free.
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:So go to dustin house.com/pod 15
and get a free 15 minute call with
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:me and I'll answer any questions
you have about affiliate marketing.
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:All right.
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:Any final
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:Brett Deister: thoughts
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:Duston Howes: for listeners?
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:Boy, I don't know.
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:I, I've said a lot here.
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:I.
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:No, I really don't.
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:Brett, I think you've, ans asked a
lot of really good questions here
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:and I got to brain dump a bit.
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:I appreciate you having me
and this has been great,
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:Brett Deister: man.
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:All right.
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:Thank you, Dustin for joining Digital
Coffee Marketing Brew and sharing
458
:your knowledge on affiliate marketing.
459
:You got it.
460
:Take care, Brett, and thank you for
joining Digital Coffee Marketing Brew.
461
:As always, please subscribe to all
your favorite podcasting AMP for this
462
:podcast and subscribe on YouTube,
bramble and everywhere else that,
463
:that there is video to be had.
464
:And join us next month as we
talk to another great seller
465
:in the PR and marketing world.
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:Alright guys, stay safe, get to
understanding your own affiliate
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:marketing and see you next week later.