51视频

Referral Programs and Affiliate Marketing for E-commerce

Jesse and聽Richie talk with the聽founder of聽 about referral programs, affiliate marketing and聽what that can do聽for聽your online store.

Transcript

Jesse: Richie, happy Friday!

Richard: Happy Friday, back again!

Jesse: It鈥檚 a聽good day. It鈥檚 a聽good Friday here. We聽do聽all these podcasts all the聽time and聽we聽talk about all these different traffic strategies. There鈥檚 SEO, there are ads and聽there are all these different things, there鈥檚 always a聽little bit of聽work involved, right? But if聽you grew up聽with Justin Bieber, or聽grew up聽with Tony Hawk and聽old skateboarding buddies. Or聽you鈥檙e willing to聽share your business with their followers. Do聽that first. Don鈥檛 write content and聽do聽all these other crazy things we聽talk about, use the聽connections you have used, the聽people you have. Anyway, that鈥檚 the聽thought here with today鈥檚 podcast.

Richard: It鈥檚 about awareness first, right? You can鈥檛 sell someone something if聽they don鈥檛 know about you. And if聽someone else has an聽audience and聽they have to聽know and聽trust already. Totally agree. Like you sell skateboard products and聽Tony, it聽has to聽be聽relevant. Right? So聽it聽would have to聽be聽someone you don鈥檛鈥 It鈥檚 a聽Kardashian and聽you鈥檙e selling medical equipment or聽something like that.

Jesse: I鈥檓 sure people have tried that as聽well. (laughing) You never know. But ultimately, the聽goal of聽the聽podcast here is聽to聽help merchants out there. Feel free to聽cheat. You don鈥檛 have to聽do聽all the聽hard work if聽you know the聽right people. It鈥檚 not even about knowing the聽right people I聽should back up, it鈥檚 just building the聽network and聽if聽your product or聽your business is聽very shareable, then maybe that鈥檚 the聽right place for聽you to聽start.

Richard: Yeah. And I聽wouldn鈥檛 necessarily even call it聽cheating. It鈥檚 just a聽way to聽shortcut or聽hack a聽little bit. That鈥檚 definitely not cheating though. Don鈥檛 give yourself a聽hard time just for聽knowing someone else.

Jesse: Yeah, exactly. That鈥檚 not cheating. I鈥檓 just saying that you don鈥檛 always have to聽do. Everybody鈥檚 business is聽a聽little bit different. So聽hopefully we聽can introduce a聽concept here that we聽haven鈥檛 talked about on聽the聽podcast. If聽your business is聽perfect for聽referrals or聽affiliate marketing or聽influencers, listen up, we鈥檙e bringing on聽the聽expert here, Arlen Robinson, the聽co-founder of聽OSI Affiliate Software. Arlen, how are you doing?

Arlen: I聽am聽doing awesome guys. Thanks for聽having me. How are you guys?

Jesse: We鈥檙e excellent. Excellent. Yeah, we鈥檙e hoping we鈥檙e going to聽pick your brain here and聽hopefully you can share some knowledge and聽some strategies with the聽51视频 audience. You鈥檙e the聽co-founder of聽OSI Affiliate Software. I聽guess we聽can back up聽a聽little bit. How did you get started in聽this Internet game?

Arlen: Oh, very good question. I鈥檒l try to聽make a聽long story short cause I鈥檝e got to聽have a聽lot of聽history. OSI Affiliate Software or聽our parent company Omnistar Interactive actually was founded in聽2000, got into this whole Internet game. Probably about two years out of聽college, I聽and聽a聽college buddy of聽mine saw the聽budding internet and聽we聽said: 聯We want to聽be聽a聽part of聽that. We聽want to聽be聽on聽the聽side of聽the聽leaders where we鈥檙e a聽part of聽this whole technology enabled to聽help other people or聽the聽other businesses take advantage of聽it.聰 So聽we聽decided to聽start our own web development company two years out of聽college. I聽worked for聽a聽consulting firm in聽the聽northern Virginia area for聽a聽couple of聽years. My聽business partner did as聽well. He聽worked for聽another consulting firm and聽on聽the聽side, we聽put things together, decided to聽start our own web development shop. I聽got a聽pretty nice contract probably about a聽year into us聽doing this on聽the聽side where we聽were able to聽go. I聽was able to聽go聽full time with it. Then my聽partner joined me聽shortly after that and聽went full strong, full force into it. We聽were developing all types of聽websites, custom websites, custom web applications, e-commerce solutions, you name it. We聽did it, all four people that we鈥檙e trying to聽really get out there, take advantage of聽this new medium at聽the聽time. And we聽did that for聽several years. After that, we聽decided that we聽learned a聽lot and聽we聽saw that there was a聽lot of聽needs for聽certain functionality online. This was pre-software as聽a聽service where you didn鈥檛 have that many companies online that were selling software as聽a聽service, like the聽MailChimp. Those types of聽web applications where you can just easily go聽in聽there, pop in聽a聽credit card and聽send out an聽email to聽millions or聽maybe not millions, but a聽little less than that, things like that. So聽this was pre those days. We聽decided to聽create our own suite of聽solutions. One of聽them was the聽OSI Affiliate Software and聽we聽probably had about seven solutions at聽the聽time, ranging from a聽newsletter, email lists, management, e-commerce. We聽all even had a聽live chat help desk solution. And we聽did that for聽a聽while. But what we聽saw is聽that we聽were spreading ourselves a聽little too thin. We聽said, in聽order to聽really focus on聽a聽core area, we鈥檝e got to聽really whittle it聽down. And we聽saw that the聽old OSI Affiliate Software was the聽software that took off, referral marketing as聽you mentioned at聽the聽beginning is聽where it聽is聽today and聽it鈥檚 huge. And we聽saw the聽opportunity early on聽and聽decided to聽focus on聽that. And that brings us聽to聽today, the聽OSI Affiliates Software has been going strong and聽is聽our main product right now that I聽have. And that鈥檚 where I聽am. I聽am聽the聽co-founder and聽a聽lot of聽my聽day to聽day responsibilities are a聽business development. I聽do聽a聽high-level overview or聽oversight of聽our customer success team, but a聽primary day to聽day operations is聽the聽overall business development.

Jesse: Gotcha. So聽you get to聽go聽on聽podcasts and聽talk to聽people like us聽and聽spread the聽word.

Arlen: Exactly. I鈥檓 an聽evangelist of聽referral marketing, affiliate marketing and聽all things word of聽mouth.

Richard: So聽Arlene, this is聽Rich. I聽have a聽question for聽you for聽at聽its basic level since Jesse was even referring to聽spreading the聽word at聽its basic level, for聽those that have not even heard the聽term affiliate software and聽even really know what that means. This is聽like going back, way back in聽time and聽Jim was a聽butcher and聽Jim had amazing meat at聽his butcher shop and聽Jane would come in聽and聽buy meat. Well, when Jane would tell Bill and聽Jill and聽all her friends, the聽butcher shop would get more business, but there was never really a聽way to聽attribute that. Well, maybe way back in聽the聽day cause they would say: 聯Oh, they sent me聽in.聰 They would refer to聽the聽name and聽possibly get free meat. You never know. It鈥檇 be聽interesting to聽go聽back and聽study the聽history of聽when someone finally first came, but good luck on聽that one. But it鈥檚 at聽its basic level. This is聽a聽way to聽exponentially scale word of聽mouth. Correct. It鈥檚 just a聽fancy way to聽say it聽is聽an聽affiliate. And with your software, we鈥檒l get into it聽here a聽little deeper. There鈥檚 going to聽be聽some sort of聽code that when someone shares something, it聽basically refers back, this is聽the聽person who recommended and聽then they get some sort of聽percentage. Is聽that basic level?

Arlen: Yeah. At聽a聽basic level, you鈥檙e totally right, Rich. That鈥檚 exactly what it聽is. And as聽you mentioned going way, way back, word of聽mouth marketing has always been around, from just the聽early days of聽merchants providing services. There were always customers referring to聽others because they had a聽positive experience. Fast forward to聽today because of聽technology, businesses and聽solutions such as聽ours are able to聽get businesses, provide businesses with a聽platform so聽that they can track these referrals. And so聽businesses can incentivize people for聽referring others. And that鈥檚 really what it聽is.

Jesse: Yeah. That鈥檚 great. I聽think it鈥檚 good to聽bring it聽back, this is聽essentially word of聽mouth marketing, but it聽the聽incentive and聽the聽incentivizing is聽the聽helpful part because it聽can help it聽spread faster. You鈥檙e happy to聽tell your friend about the聽butcher, but if聽you knew you were getting a聽10% off, you鈥檙e basically getting free meat for聽the聽next year, you might tell a聽hundred friends. This is聽the聽same way.

Arlen: Yeah, exactly. And one of聽the聽things that I鈥檝e seen just being in聽this business for聽so聽long and聽being in聽the聽whole referral marketing and聽affiliate marketing space is聽that it鈥檚 more popular than ever now because we鈥檙e at聽a聽time and聽place in聽history where since things have advanced and聽evolved so聽quickly, people are educated, more people, more intelligent. And I聽think also people鈥檚 patience is聽a聽little bit less than back in聽the聽day because we鈥檙e just used to聽having things when we聽want it聽and聽how we聽want it聽immediately. So聽these days, traditional types of聽advertising, as聽you guys know, has really been affected. People tend to聽shy away from standard ads on聽of聽course TV, nowadays I聽don鈥檛 know who sits through any聽commercials on聽TV. Most people watch shows, they buy whole seasons either via Netflix, of聽course, there are no聽ads. And then we鈥檝e got the聽cable services where they have all the聽on-demand program, which is聽how I聽believe most people consume things if聽they have cable services. And so聽people at聽these this state are conditioned to聽not really want to聽deal with these ads in聽any, a聽lot of聽times people glaze over ads. And that鈥檚 one of聽the聽reasons why you see all of聽these big brands that still do聽the聽traditional types of聽advertising, doing these outlandish ads that just catch your eye because they have to, they have to聽be聽over the聽top because if聽people had to聽sit and聽actually sit through a聽commercial, nine times out of聽ten they鈥檙e pulling out their phone. They鈥檙e on聽Facebook, they鈥檙e waiting till their commercial ends. But these big brands, they have to聽do聽something over the聽top. And that鈥檚 why affiliate marketing, overall referral marketing is聽so聽huge these days because you鈥檙e leveraging your customers and聽people typically trust recommendations from their friends. If聽you had a聽good experience, let鈥檚 say purchasing, let鈥檚 say some wireless headphones online, whatever company you got it聽from, you鈥檙e going to聽tell people about it. Your friend is聽going to聽see at聽the聽gym. 聯Wow, nice headphones. Where鈥檇 you get them?聰 And they are going to聽tell them, they鈥檙e going to聽tell that person. And that鈥檚 basically where it聽starts. And then the聽way it鈥檚 leveraged as聽far as聽incentivizing people to聽do聽it聽is聽technologies such as聽ours empower your customers to聽do聽this across social media and聽email and聽they鈥檙e going to聽be聽more likely to聽do聽it聽because they鈥檙e going to聽get a聽commission, whatever it聽is聽that you decide that it鈥檚 going to聽be. And that鈥檚 I聽think one of聽the聽main reasons why I聽think referral marketing and聽overall word of聽mouth marketing is聽so聽huge today.

Richard: You mentioned there a聽couple of聽times a聽referral marketing and聽affiliate marketing. Is聽that just a聽difference in聽vernacular or聽is聽there something that people should pay attention to聽that? Is聽there actually some sort of聽difference between the聽two of聽those?

Arlen: There is聽a聽slight difference and聽I聽know I聽do聽use it聽interchangeably and聽you鈥檝e probably heard a聽lot of聽people use them interchangeably, but the聽main difference is聽a聽referral program is聽when a聽business is聽getting customers to聽refer others to聽them. Their own customers that have used their products or聽services, they鈥檙e referring their friends and聽people that they know for聽an聽incentive. So聽that鈥檚 really what a聽referral program is聽using, utilizing your customers and聽leveraging them. And an聽affiliate program is聽when you鈥檙e reaching outside of聽your business, outside of聽your customer base to聽people that probably have never used your product or聽services and聽you鈥檙e getting them to聽be聽an聽affiliate partner and聽refer customers to聽you that they don鈥檛 know. That鈥檚 really the聽main difference. These days affiliate marketing really can, I聽guess you could say it聽goes hand in聽hand with influencer marketing. That鈥檚 the聽terminology. It聽has been used a聽lot these days. But influencers these days, I聽guess you could say are the聽affiliates of聽the聽today.

Richard: That makes sense. At聽its basic level, again, just so聽in聽case 51视频 listeners not quite getting the聽difference. A聽referral program is聽you have your own email lists. You鈥檙e going to聽incentivize your own customers. 聯Hey, you go聽out, you tell more friends, we鈥檒l give you some sort of聽discount. Here鈥檚 a聽coupon code, here鈥檚 a聽gift card, here鈥檚 a聽percentage of聽whatever.聰 The affiliate is聽when you鈥檙e looking to聽get in聽front of聽other people鈥檚 audience, hence your influencer analogy. You sell a聽pancake spatula and聽you get in聽front of聽Sally鈥檚 awesome pancakes that has 2聽million followers and聽you say: 聯Hey, Sally, talk about my聽pancakes spatula and聽we鈥檒l give you a聽20% or聽whatever you can pick.聰 I鈥檓 assuming you can pick whatever. First off, is聽that correct? At聽its basic level there too?

Arlen: That鈥檚 totally correct.

Richard: Yeah. And then that would lead to聽that next question of聽can you set different prices for聽different events? Like certain influencers might get more cause they refer more, you can upgrade what they get or, or聽is聽it聽a聽set it聽across the聽board for聽everybody?

Arlen: It鈥檚 definitely doable. I聽know with our software, with OSI Affiliate Software, it鈥檚 possible to聽create multiple referral programs within the聽software. Let鈥檚 say you鈥檙e a聽business and聽of聽course you want to聽create a聽program where you can incentivize your customers for聽referring friends and聽family and聽people that they know. You can do聽that. You could also create another referral program for聽the聽influencers. And then your example Rich that you mentioned, you鈥檝e got like the聽Sally that makes the聽amazing pancakes that you want to聽promote your spatula. She would be聽an聽affiliate or聽an聽influencer because she鈥檚 probably never used your spatula before and聽she鈥檚 outside of聽your whole customer sphere, outside of聽your company. She鈥檚 never used your product, but she has a聽customer base that is聽right in聽there with your product. Because of聽course if聽you make pancakes you gotta have a聽spatula. Obviously, our customer base is聽ideal and聽yes, so聽you can create two different programs. One could be聽a聽referral program and聽you actually set the聽reward with each. For your customers maybe you鈥檒l have 10聽to聽20% commission for聽instance, per referred sale, which is聽standard. That鈥檚 why a聽lot where a聽lot of聽businesses start off with, but then you have Sally on聽the聽other end who has this amazing pancake business. It鈥檚 got a聽ton of聽customers. She鈥檚 going to聽command a聽lot higher for聽the聽commission because she鈥檚 going to聽be聽exposing your spatula to聽so聽many more people. Obviously, you鈥檙e gonna have to聽pay a聽little more. Maybe you pay Sally 30, maybe even 50% per sale, and聽you would be聽able to聽do聽that within the聽software where you can have the聽different programs, have the聽different types of聽either customers or聽affiliates under each program referring and聽earning a聽different commission.

Richard: Yeah, that鈥檚 a聽great point there, Arlen. I聽would also encourage 51视频 listeners to聽not be聽聯Wait, I聽don鈥檛 want to聽pay Sally more.聰 Well, here鈥檚 the聽difference. When we聽talked at聽the聽very beginning, we鈥檙e talking about you used to聽have to聽do聽SEO or聽paid ads. The difference is聽Sally鈥檚 getting you those new people. So聽what you would have been spending on聽ads to聽get that customer, you lose a聽little. You鈥檙e just making it聽up聽by聽paying her a聽little extra to聽bring new customers to聽your business. So聽thanks. Thanks for聽wording that way.

Jesse: Yeah.Then it聽was a聽helpful description of聽the聽differences because it鈥檚 really different strategies that you鈥檙e using. So聽if聽you鈥檙e setting up聽an聽affiliate program, you鈥檙e going to聽have to聽recruit affiliates, different people that are not your customers. They don鈥檛 know you. It鈥檚 going to聽be聽a聽little bit of聽grunt work of聽talking to聽people and聽such and聽convincing them whereas a聽referral program, that鈥檚 a聽little bit easier. those are your existing customers and聽hopefully, they want to聽champion your product. Hope your product is聽really good and聽then they want to聽share that. why would every 51视频 store, why should they set up聽a聽referral program?

Arlen: Yeah, for聽number one, the聽bottom line. And what I聽tell people all the聽time, cause I聽talked to聽businesses all the聽time, is聽if聽you have a聽good product that you鈥檙e selling, nine times out of聽10聽the聽customer that鈥檚 purchasing that product is聽telling somebody about it. You know these days because of聽social media, it鈥檚 so聽easy to聽spread the聽word. It鈥檚 so聽easy to聽just hop on聽Facebook and聽say, I鈥檒l go聽back to聽the聽headphones to聽say, 聯Oh great, I聽just got these awesome headphones聰. You鈥檝e got people on聽Facebook or聽all of聽these social channels, sharing photos of聽the聽product, them using the聽product, whatever it聽is, they鈥檙e going to聽spread the聽word regardless of聽what you do. So聽you might as聽well take advantage of聽that and聽incentivize them for聽doing it. Because either way, they鈥檙e spreading the聽word and聽as聽businesses may just not really realize it, that a聽lot of聽their business if聽they鈥檙e not tracking it, is聽probably coming from word of聽mouth. And so聽that鈥檚 why I聽say for聽51视频 store owners that are listening. It鈥檚 really critical that you do聽this because it鈥檚 been done already. And so聽you might as聽well take advantage of聽that and聽incentivize people to聽do聽it聽and聽then they鈥檙e gonna be聽more, more apt to聽do聽it聽actually because they鈥檙e being incentivized.

Richard: It鈥檚 funny, I聽was thinking of, once someone actually gets into it, say they鈥檙e an聽affiliate rep for聽the聽pancakes, or聽let鈥檚 just go聽with your headphone analogies. and聽you鈥檙e sitting at聽the聽gym and聽someone asks you next door if聽they鈥檙e not getting a聽paycheck consistently. Actually, I聽joked with myself, the聽person who actually gets it, they wouldn鈥檛 just say, they鈥檇 say: 聯Oh, when we鈥檙e done working out, remind me, I鈥檒l text you. I鈥檒l text you information.聰 So聽they can track the聽link. They鈥檙e not going to聽say: 聯Oh, these are Joe鈥檚 headphones. Oh聽God, I聽should鈥檝e texted the聽link. I聽would鈥檝e got a聽commission.聰 Just joking around.

Arlen: People may think that. You just never know because a聽lot of聽people these days, everybody has a聽little side hustle these days because believe it聽or聽not, things are expensive. You gotta have multiple streams of聽income. If聽you鈥檙e able to聽refer a聽business that you鈥檝e done business with, then yes, it鈥檚 a聽great way to聽get some additional income and聽yeah, people can do聽it.

Jesse: Yeah, that鈥檚 a聽good point. And I聽think as聽you mentioned, your customers are already sharing your product. You may not really know it聽because you鈥檙e not probably tracking it. And if聽you鈥檙e not encouraging your customers to聽do聽it, to聽do聽it聽by聽giving them little future discounters or聽a聽little kickback or聽something, you鈥檙e not really optimizing for聽it, you鈥檙e not taking advantage of聽it. For 51视频 merchants that are listening right now, how would they set up聽a聽referral program for聽their own store?

Arlen: Great. I鈥檓 glad you asked that, Jesse. It鈥檚 super simple. If聽you are an聽51视频 store owner, all you have to聽do聽is聽go聽into the聽51视频 app store from within your account and聽then you can go聽into the聽marketing section of聽the聽categories there or聽just do聽a聽search for聽affiliate software. You can do聽a聽search for聽OSI Affiliate Software. You鈥檒l see our app there and聽then all you do聽is聽click 聯Add app聰. And once you add it, we聽do聽give you a聽15-day free trial. So聽as聽soon as聽you get it聽added onto your store, it聽immediately will start stepping you through the聽getting started wizard, which is聽super simple. And that was really one of聽our goals here at聽Omnistar is聽to聽make sure that all of聽our users have a聽clean and聽easy experience because we聽know front end cause we鈥檝e dealt with software for聽so聽many years, that it聽can be聽frustrating, especially when it鈥檚 difficult to聽go聽through solutions. So聽we鈥檝e made it聽super simple on聽going through the聽getting started wizard. It聽Is聽really just giving you the聽ability to聽set up聽your initial referral program where you would be聽defining it, giving it聽a聽name, determining what you want the聽landing page to, whether you want the聽affiliates or聽to聽send people to聽your website homepage or聽your products page and聽then deciding what the聽commission is. And the聽commission could be聽anywhere, it聽could be聽a聽percentage commission, percentage of聽the聽order total. It聽could be聽a聽fixed amount or聽could even be聽a聽custom gift. A聽lot of聽our customers that use our software do聽gift cards. I鈥檝e seen a聽lot of聽people do聽the聽virtual gift cards and聽that they give away and聽they can just easily send out to聽people as聽an聽incentive, so聽basically you just specify that program. Once you鈥檝e done gone through that, there鈥檙e a聽few other additional optional items that you don鈥檛 have to聽go聽through during the聽wizard, but that would involve setting up聽social sharing so聽you can make it聽easy for聽people to聽share across Facebook, Twitter and聽LinkedIn. You can always do聽that once you get into your dashboard, but once you go聽through and聽get through the聽wizard, then you鈥檙e essentially set up. We鈥檝e done all of聽the聽dirty work on聽the聽back end and聽all of聽the聽magic happens, right when you click that 聯Add app聰 where all of聽the聽behind the聽scenes wizard goes in, connects things to聽your 51视频 store. You don鈥檛 have to聽worry about any聽coding or聽anything like that. Everything is聽ready to聽go聽and聽the聽tracking is聽set up. As聽soon as聽you click on聽that 聯Add app聰 button and聽you鈥檝e created your first program and聽then yeah, really the聽next step is聽just to聽get it聽set up聽so聽that you can start recruiting people for聽your program. For your referral program or聽affiliate program, whoever you want to聽try to聽recruit. We聽have a聽built-in user sign up聽page, or聽affiliate signup page, where you can link to聽from your site where people can just fill out a聽brief form with their name, their email and聽a聽password and聽sign up聽to聽become your affiliate. It鈥檚 really easy for聽them to聽get started and聽the聽system will generate a聽unique link that they would use to聽be聽able to聽promote your business, your 51视频 store across virtually any聽platform, any聽social platform or聽email. And that鈥檚 pretty much it.

Richard: Oh, that鈥檚 awesome. So聽I聽have a聽quick question on聽that. I聽won鈥檛 go聽too deep, so聽don鈥檛 worry about getting into super specifics because they probably would benefit by聽looking at聽their dashboard as聽asked this question. But when you鈥檙e talking about the聽social sharing, do聽you provide, I聽mean obviously you鈥檙e tracking that this affiliate partner X聽is聽referring all this, whether it鈥檚 Facebook or聽Twitter or聽Instagram. I聽understand that piece, but do聽you get any聽additional data back? Like 聯He brought us聽100聽new customers, but 80聽of聽those came from Facebook.聰 And so聽because at聽some point when you get deeper into it, and聽again, we聽don鈥檛 have to聽go聽super deep, but you might go, 聯Wow, that鈥檚 a聽good influencer.聰 But if聽all kinds of聽influencers, 80聽out of聽a聽hundred are coming from Facebook, you might say: 聯Wow, I聽should on聽my聽own even be聽doing more Facebook ads. In聽this data, I鈥檓 noticing a聽lot of聽people are coming from Facebook.聰 So聽is聽there any聽sort of聽metrics that come back with that?

Arlen: Yeah, good question, Rich. And I鈥檓 glad you asked that because we聽do聽provide that. We聽do聽have a聽stats report available to聽the聽businesses in聽our administrative control panel. They will be聽able to聽see the聽social stats broken down by聽the聽affiliates. They will be聽able to聽see: 聯Okay, Tommy the聽affiliate, he聽sent us聽a聽hundred people through Facebook last month.聰 You鈥檇 be聽able to聽see that information and聽across the聽different social networks as聽well for聽Facebook, as聽I聽said, Twitter and聽LinkedIn. And we聽also have made that available to聽the聽affiliates so聽they can keep track of聽their stats as聽well. And their dashboard, there is聽a聽reporting area so聽they can see how many clicks, somebody鈥檚 sales, and聽conversions they鈥檙e getting across those platforms. And that鈥檚 of聽course if聽those shows are sharing platforms are enabled within your account, but you can do聽that. But those are optional. So聽that is聽available to聽both sides, administrators and聽the聽affiliates.

Jesse: Okay. Awesome. Now digging into the聽referral program a聽little bit more, cause this is聽probably for聽people that are getting started, want to聽dip their toes into the聽referral world. This seems like it聽could be聽kind of聽easy. They send them for聽the聽program, they get these tracking links that are ready and聽what do聽they do聽next? Is聽this like, 聯Okay, let鈥檚 send emails to聽our customers聰? Or聽is聽there some sort of聽way to聽do聽that automated in聽the聽purchase process so聽that it鈥檚 an聽evergreen process? How do聽they get this gift, how to聽get this thing started?

Arlen: Very good question. And that鈥檚 one of聽the聽number one questions most people ask when they get the聽software. It鈥檚 like, what鈥檚 next? I鈥檝e got this up聽and聽running, got my聽referral program up聽and聽running. How am聽I聽going to聽get my聽customers recruited? So聽there鈥檚 a聽number of聽things that you can do. The first thing that you should do聽day one, once you launch it, is聽send out a聽mass email. I鈥檓 assuming that most listeners have some type of聽database of聽their customers and聽they have a聽way of聽communicating with them. And so聽you want to聽let everyone know that it鈥檚 purchased for聽me, that you just launched your referral program. Here鈥檚 the聽link where you sign up. This is聽the聽incentive that we鈥檙e offering. Go聽ahead and聽sign up聽today. That鈥檚 what you want to聽do聽definitely day one. But every one of聽your customers knows and聽even people in聽your, in聽your mailing list, maybe they鈥檙e not even customers but they鈥檝e opted into your mailing list. Maybe they鈥檙e on聽the聽fence about purchasing, but you this may be聽something that can spur them along as聽well and聽start promoting for聽you. So聽that鈥檚 what you want to聽do聽day one. Also, you want to聽make sure it鈥檚 made available and聽apparent to聽all future customers. And that can be聽done a聽number of聽different ways. One of聽the聽things that people don鈥檛 really realize is聽that with e-commerce stores in聽general and聽email in聽general, some of聽the聽emails that have the聽highest open rates are transactional emails. These are the聽emails that you鈥檙e sending out post-purchase. So聽when a聽customer purchases from your store, the聽automated emails that go聽out that have the聽receipt order details, the聽shipping information, all of聽that, those emails have some of聽the聽highest open rates because naturally when people order something, they going to聽double check. They鈥檙e going to聽say: 聯Okay, great, this is聽the聽right amount, does it聽show my聽delivery time? I聽want to聽get my聽product. I鈥檓 looking back at聽it.聰 You know, they鈥檙e examining these emails. Those have high open rates. What you want to聽do聽is聽in聽these transactional emails at聽a聽very small link or聽small verbiage phrase that just says that you鈥檝e got a聽referral program on聽20% commission on聽all referred sales. Sign up聽today. Something very small and聽simple cause you want to聽make sure that you don鈥檛 pull away from the聽main purchase purpose. Of聽these emails, which is, of聽course, the聽transactional nature of聽it. You want to聽make sure everything is聽clear on聽what they ordered and聽you don鈥檛 want to聽distract from that. But you do聽want to聽include a聽link for聽people to聽sign up聽for聽the聽referral program. And that鈥檚 definitely done through those transactional emails and聽not only on聽the聽initial order email. You have to聽remember when people purchase from your store, there鈥檚 other series of聽emails that go聽out that you may be聽sending if聽your 51视频 store, or聽maybe you鈥檙e sending a聽post-purchase email, maybe you鈥檙e sending a聽delivery confirmation email. If聽you鈥檙e sending those emails out. Again, those have a聽high open rate as聽well. Go聽ahead and聽include your signup link in聽those emails. And that would say those are the聽two main ways to聽really get started and聽start exposing your current customer base and聽then all new customers moving forward.

Jesse: Yeah, Arlen, I聽think that鈥檚 great advice. They鈥檙e easy wins, right? I聽talked to聽a聽lot of聽merchants and聽I聽know that people, they look at聽their website a聽lot. They look at聽their Facebook and聽they look at聽Instagram, but they probably do聽not look at聽their thing. Basically, it鈥檚 a聽thank you or聽receipt, email. Nobody looks at聽that because you just don鈥檛 really see it聽that often cause you鈥檙e not buying from your own store very often. But you鈥檙e right though, that is聽like prime real estate. People look at聽that. They just ordered, they鈥檙e excited. They鈥檙e still in聽the聽rush and聽even that. If聽you do聽a聽post-purchase, like a聽two week follow up聽email, that鈥檚 another good time for聽that. And those are, it鈥檚 very easy to聽edit that and聽add a聽little link in聽there. And people do聽open those where they maybe don鈥檛 open your promotional emails quite as聽much. Unfortunately, that鈥檚 just the聽reality. Awesome tip there. I聽think for聽people that are listening, that鈥檚 a聽prime real estate that is聽probably not used. And why not have your customers share this with other people and聽encourage them by聽giving them a聽little discount or聽percent off or聽bonus program, whatever. So聽cool. That鈥檚 covered the聽referral program pretty well. Now that鈥檚 talking to聽current customers. Let鈥檚 say you want to聽take this a聽little bit further and聽you want to聽recruit influencers, and聽really build this affiliate program. What are the聽top ways to聽find influencers?

Arlen: It聽is聽a聽great question but before I聽answer that, I聽want to聽just really define what an聽influencer is聽it聽because a聽lot of聽people who have a聽little misnomer anytime you hear about influences. I聽think most people think about the聽well-known people get all of聽these celebrities that are promoting these brands, the聽Kim Kardashians of聽the聽world, a聽lot of聽these top stars, top entertainers, athletes. They are influencers because they do聽promote brands. And of聽course, they鈥檙e incentivized for聽doing it, they鈥檙e not doing it聽just for聽the聽hell. They鈥檙e getting paid a聽pretty big check to聽do聽it. But those are not the聽only influencers, the聽influencers really start at聽the聽very bottom of聽the聽bottom local level, which I聽defined as聽like a聽local influencer. It鈥檚 like me聽and聽you, all three of聽us聽here. We聽are all on聽this podcast right now. We鈥檙e all influences in聽our respect because we聽all have our own list. Everybody listening actually to聽this is聽an聽influencer because we聽all have social contacts within our own circle and聽people that listen to聽what we聽say and聽are keeping an聽eye on聽what we聽got going on. So聽at聽a聽very low level, you are an聽influencer, everyone鈥檚 an聽influencer able to聽spread the聽word and聽you have anywhere between 0聽and聽a聽thousand followers. That鈥檚 what鈥檚 a聽local influencer. The next level up聽I聽would say is聽a聽micro influencer, which is聽the聽next level up聽that somebody that has some type of聽community following anywhere between 1000聽and聽10000聽followers, but they have a聽high level of聽engagement with their community and聽people that they know. They may be聽an聽expert in聽a聽certain area and聽influencer and聽let鈥檚 say the聽world of聽marketing could be聽someone that has a聽marketing blog and聽he聽has anywhere between 1000聽to聽10,000聽subscribers and聽people are listening to聽what he聽says. So聽that鈥檚 micro influencers. The next level up聽is聽a聽macro influencer and聽these are people that are bullet bigger. They have a聽certain follower base that is聽typically in聽a聽specific niche which would be聽maybe traveling, fashion, fitness, or聽food and聽that鈥檚 anywhere between, they have anywhere between 10聽and聽a聽million followers. As聽I聽said, the聽micro influencer. And at聽the聽very high level what I聽meant at聽the聽beginning, these super celebrities that have a聽million plus followers. There are several levels of聽where you can hit and聽in聽order to聽find these there鈥檚 a聽number of聽ways that you can do聽it. these days there seems like there鈥檚 one of聽these types of聽sites popping up聽all the聽time and聽I鈥檝e seen several of聽them where they鈥檙e called Influencer Directory. so聽if聽you want to聽just get your feet wet and聽really just say: 聯Okay what are some influences in聽my聽space?聰 Maybe I鈥檓 selling Fitness Products. What are some influences that are different levels that I聽can try to聽approach with my聽affiliate program? And so聽there鈥檚 one side call, theinfluenster.com actually it聽is聽a聽pretty well-known influencer database and聽network. And that鈥檚 just one of聽them. There鈥檚 a聽ton of聽other ones. You can just do聽a聽search for聽influencer network and聽there鈥檚 a聽lot on. there some free ones as聽well where they have free plans, you can get in聽there and聽get your feet wet. So聽that鈥檚 one way to聽do聽it. Another way to聽do聽it聽is聽just to聽do聽the聽old school method. Just do聽your old own research and聽I鈥檒l give you a聽quick example. Let鈥檚 say you鈥檙e in聽the聽fashion space and聽let鈥檚 say you sell fashions and聽you鈥檙e based out of聽Chicago. one way you can do聽it聽as聽maybe try to聽approach bloggers in聽Chicago, fashion bloggers in聽Chicago. A聽quick little hack. I聽guess you could say not a聽lot of聽people spend a聽lot of聽time doing is聽to聽go聽to聽Instagram and聽search hashtags. So聽you can search for聽a聽hashtag. that example for聽Chicago fashion bloggers and聽believe it聽or聽not you鈥檙e going to聽find people that have used that hashtag and聽obviously if聽anyone uses that hashtag, nine times out of聽10, there are bloggers and聽they鈥檙e blogging about Chicago fashions. So聽these are people that are influencers, they have an聽audience and聽that you could easily approach to聽promote your products and聽services. And so聽those are just some quick tips as聽far as聽finding influencers and聽isolating them and聽getting them to聽let you do聽your pitch so聽you can get them to聽promote your products or聽services.

Jesse: I聽think that鈥檚 great for聽people listening. Maybe not every single product out there is聽going to聽be聽in聽tune with the聽influencer world, but I聽think there鈥檚 a聽pretty big majority of聽them. You mentioned fashion, food, travel, those aren鈥檛 even niches, those are just giant categories. And I聽think this is聽a聽way to聽really jump start your business. If聽you鈥檙e thinking: 聯Hey, what should I聽do聽next? I鈥檝e already tried this or聽tried that聰. Affiliate marketing, influencer marketing can be聽a聽way to聽really really take things off. But you need to聽track it聽and聽you need to聽pay the聽influencers as聽well. And this is聽a聽way that they can get paid without you necessarily having to聽give the聽money up聽front.

Arlen: Right. That鈥檚 very key. And because I聽know a聽lot of聽the聽businesses that are listening are like 聯Okay, how do聽you pay these guys?聰 And that鈥檚 the聽beauty of聽the聽affiliate marketing. It鈥檚 typically paper performance, they鈥檙e going to聽get paid on聽what they send you, what sales that they send you. And that鈥檚 something that I聽know is聽it鈥檚 definitely a聽lot more palatable for聽most businesses because there鈥檚 no聽upfront money that they鈥檙e paying.

Jesse: For sure. I聽was thinking, have this number in聽my聽mind like influencing start at聽$5,000聽to聽get people to聽do聽stuff for聽you. I聽don鈥檛 have $5,000聽but if聽you find somebody that鈥檚 maybe not as聽big and聽they鈥檙e willing to聽do聽this paper for聽performance. That鈥檚 a聽nice way to聽get started.

Arlen: Yep. Definitely.

Richard: There might even be, let鈥檚 just call it聽training wheels for聽lack of聽a聽better word that comes to聽mind right now where you have product X,聽you see they have your market. You think I聽probably get X聽fits for聽their market. Let鈥檚 just say it鈥檚 back to聽Sally鈥檚 pancakes and聽you just reach out to聽Sally and聽you say: 聯Sally, you make amazing pancakes, I鈥檝e used your recipes 27聽times. They鈥檙e amazing. I聽want to聽send you one of聽my聽spatulas. I鈥檓 a聽huge fan of聽pancakes too, I聽got a聽business聰. And you literally just give her one of聽your spatulas. I鈥檓 not saying she鈥檚 definitely going to聽say anything but if聽you start the聽organic process that you鈥檙e just being a聽nice person in聽a聽business and聽you鈥檙e not necessarily asking for聽something back from her. 聯Just give me聽some honest feedback. And by聽the聽way, you鈥檙e more than welcome to聽just DM聽me, you don鈥檛 have to聽say anything publicly, winky face. Go聽ahead if聽you want too.聰 Maybe now you鈥檙e starting at聽this organic relationship with this person in聽a聽natural way that it聽really happens. You really are being authentic. It鈥檚 like, well, I聽used this pancake spatula and聽blah blah and聽then so聽all of聽a聽sudden no聽affiliate links yet at聽all and聽maybe you get 30聽more people to聽come to聽your business. And now you DM聽Sally back. And you say: 聯Dang, Sally, you just posted this one thing and聽thank you so聽much. I聽appreciate it. It聽was amazing and聽I聽got 30聽more people. I聽don鈥檛 know if聽it聽came from you or聽not, but it聽was the聽day you said something. So聽just want to聽let you know since you seem to聽like it聽if聽you want to聽do聽an聽affiliate, I鈥檇 love to聽give you something back.聰 Right, and聽so聽all that was not rehearsed. It聽was real, you don鈥檛 have to聽spend the聽$5,000聽or聽whatever it聽is. We聽don鈥檛 know, we聽just pick that number out. But I聽think that would be聽a聽way that someone could actually start that process in聽a聽natural, just the聽way it聽happens in聽the聽real world.

Arlen: Definitely. There was a聽good word that you used, Rich, organic. Is聽your fan of聽their product? Like you said those pancakes, really good and聽safe. Do聽you know this would be聽a聽good fit? Let me聽just send you some product and聽that鈥檚 what it鈥檚 about. It聽does take due diligence because most business owners are busy. You don鈥檛 do聽get approached a聽lot but it鈥檚 just like anything you鈥檝e got to聽do聽the聽follow-up, follow-through and聽if聽it鈥檚 meant to聽come to聽fruition are, you鈥檒l be聽able to聽have an聽organic relationship and聽then take it聽from there.

Jesse: Yeah, I聽think this is聽all really really helpful for聽people are listening, they haven鈥檛 really thought about affiliate marketing. So聽for聽people are listening, you probably know where to聽go. go聽to聽the聽App Market inside your 51视频 control panel. Arlen, if聽people want to聽find out more about you, where鈥檚 a聽place they can learn more about OSI?

Arlen: Sure. The quick link to聽get to聽for聽people I聽listening is聽just get OSI.com. You can go聽there to聽go聽to聽our main site to聽find out all about us. Reach out to聽me. I鈥檓 actually available on聽Twitter. You could just @askArlen is聽my聽Twitter handle. You can always send me聽a聽tweet or聽message there. Other than that, we聽have a聽whole plethora of聽resources on聽our website and聽have chat agents available. So聽if聽anybody listening has any聽other specific questions that want to聽dig a聽lot deeper, you can hop onto the聽live chat on聽the聽website. Or聽give us聽a聽call and聽we鈥檒l be聽glad to聽help you out.

Jesse: Awesome. I聽saw the聽live chat on聽the聽website and聽with the聽Twitter handle @askArlen you are asking for聽some questions.

Arlen: I鈥檓 used to聽it. So聽I聽got it. I聽don鈥檛 mind any聽of聽the聽questions cuz I聽love helping business owners and聽provide guidance in聽this whole e-commerce marketing space because it鈥檚 a聽lot to聽navigate and聽I聽love to聽provide insight.

Jesse: Even on聽that e-commerce marketing, you also host a聽podcast, the聽e-commerce marketing podcast.

Arlen: That is聽true, thanks for聽mentioning that and聽at聽the聽e-commerce marketing podcast, you can see our whole list of聽episodes. We鈥檝e published over 120+ episode over the聽past I鈥檇 say five years or聽so. And I聽interviewed a聽marketing expert and聽I聽had Jesse on聽not too long ago. Jesse, that was an聽awesome episode, I聽really appreciate you coming on. You can check out Jessie on聽the聽e-commerce marketing podcast. Check that out and聽a聽number of聽other very notable people that have shared some really great information about e-commerce marketing.

Jesse: Awesome. I聽just wanted to聽get notable attached to聽my聽name. (laughing) So聽I聽appreciate that.

Arlen: Not a聽problem. You鈥檙e definitely among the聽notables that I鈥檝e had for聽sure.

Jesse: Awesome. Rich, any聽last questions here for聽Arlen?

Richard: No, I鈥檓 just I鈥檓 excited. I聽look forward to聽checking it聽out a聽little bit myself too. I聽definitely believe in聽it. You鈥檙e going to聽have people that are talking to聽your point earlier, Arlen. You鈥檙e going to聽have people talking about your business anyway, you might as聽well give them away to聽benefit additionally.

Arlen: That鈥檚 correct.

Jesse: All right, awesome, Arlen, really appreciate you being on聽the聽show.

Arlen: Thank you guys. I聽appreciate the聽opportunity.

Richard: Thank you, Arlen.

About The Author
Kristen is a 褋ontent creator at 51视频. She finds inspiration in sci-fi books, jazz music, and home-cooked food.

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