Affiliate marketing programs for travel

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Affiliate marketing programs for travel

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I. Affiliate marketing guides

Several weeks ago, a couple of longtime readers came to me with some intriguing questions covering all

aspects of affiliate marketing in the travel industry. While my personal experience with the affiliate

world is admittedly limited, the quickly changing landscape of search and social media marketing (SMM)

will undoubtedly have an impact on travel affiliates.

But as the travel segment gets increasing crowded, and the major online travel agencies (OTAs) continue

to build brand identity, the race to leverage new opportunities in search and social media is most

definitely on for smaller players. Other questions about the economy also hover like a dark cloud over

the travel industry, but all the recent stats about online travel point to growth in 2008.

To sustain this level of growth, the questions are plentiful: will OTAs become increasingly more

dependent on their affiliates and aggregators to generate valuable customers? With shrinking

commissions and lower margins, how can those affiliates increase their own revenue share? How are

they going to separate themselves from the masses, when travel affiliate content is inherently similar?

And perhaps the most important question, just how important are affiliates to the online travel

industry?

How Big is the Travel Affiliate Space?

Unfortunately, collective data about the overall contribution of travel affiliates is sparse. Diane Clarkson,

analyst for Jupiter Research, concedes that even they haven't looked specifically at the potential for this

vertical. However, a recent retail report they published in May "indicates that US online marketers will

spend $2.1 billion on affiliate marketing fees in 2008, an increase of 15 percent over the previous year.

Between 2007 and 2012, online affiliate marketing spending will grow at a CAGR (Compound Annual

Growth Rate) of nearly 13 percent to reach $3.3 billion."


While online retailers and financial services account for approximately one-half of the affiliate spending,

they're followed closely by education, auto, travel, and then all other sectors. So a significant slice of

$1.65 billion puts affiliates in the U.S. travel industry in a reasonably comfortable place.

In the UK, where retail, travel, and financial services are the bread and butter of affiliate marketing, M-

travel reported that affiliates drove more than £3 billion in sales in 2007.

According to research by E-Consultancy's Affiliate Marketing Networks Buyer's Guide, the £3.13 billion

total for 2007, compared to £2.16 billion in 2006, illustrates the healthy state of this digital sector which

will continue to grow strongly during 2008...Commissions and fees paid out to affiliate networks

(covering payments for both networks and affiliates) amounted to £186 million in 2007, up 40% from

£133 million in 2006 (and compared to £83 million in 2005).

How is the Travel Affiliate Landscape Changing?

The biggest change over the last several years has been the effort to reduce cannibalization by affiliates,

with the OTAs and direct travel suppliers beginning to enforce restrictions with regards to SEM and

keyword bidding strategies to maintain trademarked terms and related search traffic.

In 2007, we started to see the effects of this impact the affiliate space, according to David Ranby,

Superbreak's Internet marketing manager.

"Maturity has been forced on the affiliate market by changes in PPC policies, increased adoption of

direct marketing, and by the aggressive commercial models increasingly being adopted by the mass

portals that used to think big visitor numbers were all that matters, and instead now have to pay

dividends to new owners," Ranby said in another report on M-Travel. "The 'hobby' affiliate is squeezed

out and only specialists or professionals can survive."

So in 2008, the new trend is affiliate and aggregator based mass portals, who are taking their SEO and

SEM efforts well above the hobby level by adding layers of valuable, expert content or specializing in

niche segments to win the game. This doesn't mean smaller players won't be able to earn revenue on

travel affiliates, but it does mean they will need at least two things:

An intense focus on their specialties and unique offerings (experience in planning extensive and

complicated tours in remote areas, for example).

Resources and the means to integrate new technology into their marketing strategies. This will go

beyond XML integration of feed-based data and dynamic packaging, extending to their use of dynamic

ad serving, tools, and widgets applicable to social media platforms.

II. Affiliate marketingstrategies


Affiliate marketing is a low-cost

way for merchants to build

awareness and showcase their

products and services. The model

is simple; it works as a

commission-based referral

system. A partner or affiliate

markets a merchant's products

for a "piece of the pie."

Affiliate marketing experts often make an income that can tally over five figures

per month, however only 1 to 5% of thousands of marketers achieve this level.

When an affiliate reaches this elite level they are often referred to as a "super"

affiliate.

How does one become a super affiliate? Can anyone do it? Super affiliates have

common tactics that they embrace and put into place. Anyone can become a

super affiliate, but it will not come without blood, sweat, and a hefty time

commitment. The typical super affiliate possesses the following traits:

Persistence

Patience

Thirst for Knowledge

These three traits combined with the following strategy gives you the formula for

the makings of a "super" affiliate.

1. Find a Unique Niche

The mistake that many affiliate marketing hopefuls have in common is that they

try to offer everything under the sun rather than focusing on a specific niche

market. Do not scatter your efforts, focus on your niche, promote it, and sell it

well.

2. Search Engine Marketing


Once you've built your affiliate storehouse you will need to promote it. Many

affiliates use pay-per-click engines. I suggest that you learn how to achieve organic

search results or hire a search engine marketing company. This will save you from

spending all your profits on pay-per-click engines. Only use pay-per-click engines

if you know what you are doing, otherwise all your profits may end in the hands of

Google Adwords or Overture.

3. Know Your Product, Know Your Audience

Create a resource. By taking the time to learn about the products and/or services

that you are offering you can create information that builds your credibility. That

credibility builds trust. If your viewers do not have trust in you more than likely

they will not purchase from your storehouse. If you want more information on the

psychological process that an online buyer goes through I suggest that you read

my article on the Five Levels of Internet Marketing and the Sales Process. This will

help you in creating a web site that converts well, which in return will increase

your cash flow.

4. Don't Put All Your Eggs in One Basket

Promote products from different merchants. This way if you have a problem with

receiving payment from a merchant, or their products do not convert well the

effects on your business will be minimal. Watch out for exclusivity agreements;

remember this is your business. Protect yourself and diversify so that you do not

feel the famine effect if something goes wrong. There is absolutely nothing wrong

with promoting niche products from different merchants.

5. Seek Knowledge and Embrace Change

If you are familiar with Internet marketing at all you know that what worked three

months ago may not work today. Stay on top of the trends. Seek knowledge, start

by learning something new about affiliate marketing daily. For example remember

those marketing tools called "banner" that use to drive sales at an astronomical

rate a few years ago? Well those banners developed a term called "banner

blindness." That means most online viewers will not click on banners even if they


do pertain to what they are looking for. To be a "super" affiliate you must always

spend time reading, learning, and embracing the changes in Internet marketing.

6. Don't Give Up

It's hard to do, and most of the time those dabbling in affiliate marketing give up

way too soon. Monitor your statistics, watch to see what is working and what is

not. Make changes when necessary. Do one thing daily to promote your storehouse

and be patient. Before you know it you will start getting payments.

Remember that it will not happen overnight. Encompass and develop the

persistence, patience, and knowledge. Then follow the tactics I've mentioned

above and you are on your way to becoming a "super" affiliate.

Education

Affiliate marketing programs for travel