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
Brett Deister:

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

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pool that exists already that are

on the network and that you can

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reach out through their platform.

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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

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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

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because you're gonna find ways to make

more time for more interaction personally.

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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

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my programs and along with a community

of affiliate managers that are working

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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

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your knowledge on affiliate marketing.

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You got it.

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Take care, Brett, and thank you for

joining Digital Coffee Marketing Brew.

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As always, please subscribe to all

your favorite podcasting AMP for this

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:

podcast and subscribe on YouTube,

bramble and everywhere else that,

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:

that there is video to be had.

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:

And join us next month as we

talk to another great seller

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:

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.

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