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#335 - Affiliate Marketing 2.0: Trends, Tools, and Tactics for E-commerce Success
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#335 - Affiliate Marketing 2.0: Trends, Tools, and Tactics for E-commerce Success

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Blaine Bolus

NT

Speaker

Noah Tucker

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00:00 Affiliate meaning has evolved in e-commerce. 03:43 Influencer partnerships now focus on affiliate revenue.

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Highlights

“This is a space exclusively for D two C founders and operators to connect, share ideas, ask questions and support each other. You'll be able to engage with the best minds and operators and consumer and currently we're on a waitlist and it will open up the community once we reach 150 members.”
β€” Blaine Bolus
“'And if you're looking to increase revenue, grow faster, build more pipeline and close more deals, check out the all new sales hub from HubSpot. You'll be able to manage your whole sales process. Plus my favorite part, the reporting. It's super intuitive, powerful and customizable. Plus the whole thing is powered by AI, so your teams can spend less time on tedious, time consuming stuff and more time on developing relationships.'”
β€” Blaine Bolus
“Brands used to partner with influencers because they wanted content and they maybe wanted to build brand awareness. But those were really the only two goals of the partnership with an influencer. And then today, since paid ads are just becoming more expensive, less reliable brands are turning to find, are looking to find other uh, acquisition channels.”
β€” Noah Tucker
“And you can keep creating these tiers so that affiliates can stay engaged in the program in the long term. Because the worst thing that can happen, I mean, not the worst thing that can happen, but a problem that often happens is an affiliate posts, once drives however much revenue it drives, gets their commission, and then they're getting hit up by another 20 brands in the next month, and maybe they forget about it. But if they have these milestones to work towards, one, it's just a way to keep them motivated, and two, it's also a great way to communicate to them as well.”
β€” Noah Tucker
“What it really comes down to is finding the right influencer to be an affiliate. And there's things that you need to look for to find the right influencer, because you could find an influencer that has a really good engagement rate, the perfect aesthetic, that matches the vibe of your brand. But the truth is, a lot of influencers don't drive revenue. And obviously, like, the whole point of this affiliate partnership is you want them to be driving revenue. The most important thing I would look for is are they actively tagging or posting affiliate links of other brands consistently.”
β€” Noah Tucker

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Blaine Bolus

Hey everyone, we're super excited to announce the launch of our slack community for D two C pod. This is a space exclusively for D two C founders and operators to connect, share ideas, ask questions and support each other. You'll be able to engage with the best minds and operators and consumer and currently we're on a waitlist and it will open up the community once we reach 150 members. So apply using the link in the description and we hope to see you on slack. So before we kick off today's recording, I've got one more for you. Keeping up your momentum this year starts.

Blaine Bolus

With the right selling tools.

Blaine Bolus

And if you're looking to increase revenue, grow faster, build more pipeline and close more deals, check out the all new sales hub from HubSpot. You'll be able to manage your whole sales process. Plus my favorite part, the reporting. It's super intuitive, powerful and customizable. Plus the whole thing is powered by AI, so your teams can spend less time on tedious, time consuming stuff and more time on developing relationships. Also, no one likes a clunky platform that takes months to onboard onto, but getting set up on Saleshub is really quick and easy. It's free to get started. The pricing will scale with your business, and with more than 1300 integrations and add ons, you can tune it to your exact needs.

Blaine Bolus

Visit HubSpot.com sales to start selling with sales hub.

Blaine Bolus

What is going on? DTC pod? Today we are joined by Noah Tucker, who is the founder of Social Snowball. Um, we're really excited for this episode because, uh, affiliate influencer creator sort of marketing is, plays a really big component in growth for all sort of consumer brands and it's been a really hot topic recently. And not only that, um, social snowball is definitely, uh, one of the tools that we've seen a lot of brands who are scaling really fast and doing really well on consumer social, um, killing it. So I guess without further ado, uh, let's just go ahead and kick it off. So, no, why don't you give us a little bit background about yourself, social snowball, and then we can kind of just jump into the broader landscape of affiliate and commerce.

Noah Tucker

Sure. Yeah. Well, thanks for that intro. I'm super pumped to be here. Yeah. So like you said, I'm the founder of Social Snowball, which is an affiliate platform for e commerce brands. You know, the quick version of what makes us different is we help brands partner with what we like to call the modern affiliate, meaning like influencers, creators, ambassadors, instead of what we call the Legacy affiliate meaning like publishers list to go review site affiliates. We've been around for about four years.

Noah Tucker

We have about 2200 brands using the platform. And before that I was on the brand side of the ecommerce world using other affiliate and influencer solutions. And that's how the idea for this all started.

Blaine Bolus

Yeah, and I think that's actually a great place to start. I'd love if you could maybe let's just break down the landscape of affiliate. Why was there a need to build in this space? What sort of changed when we moved from legacy affiliate into traditional and the evolving sort of uh, affiliate landscape that we're seeing?

Noah Tucker

Yeah, for sure. Um, it's funny because like now if you say the word affiliate to anyone in like our e commerce space, it can mean so many different things. Like you have to be, you have to be more specific because like ten years ago if you were to say the word affiliate, it had a totally different meaning than what a lot of people think about today. Like the word affiliate in the e commerce world. Ten years ago exclusively meant what we call now the Legacy affiliate, meaning publishers list of goals, review sites, bloggers, there's media buyer affiliates. I put those all under the umbrella of legacy affiliate. And although I'm using the word legacy to describe them, I still think they're a really important affiliate that brands should be partnering with. It's just very different and undeniably very, very different than what I call the modern affiliate, which is a newer type of affiliate partner that brands are prioritizing.

Noah Tucker

And it's under that umbrella we have influencers, creators, ambassadors, and even a brand's own customers can be affiliates. That's kind of like the macro shift in the affiliate landscape. And then I think on the influencer side, more specifically, brands used to partner with influencers because they wanted content and they maybe wanted to build brand awareness. But those were really the only two goals of the partnership with an influencer. And then today, since paid ads are just becoming more expensive, less reliable brands are turning to find, are looking to find other uh, acquisition channels. And of course influencer is a great one. But influencer partnerships historically have been so focused on content and awareness that the tech platforms that existed to power these partnerships revolved around like those goals because that's what brands used to carry care about. So we're also kind of the first influencer platform that is just kind of focused on affiliate and attributable revenue from the partnership.

Noah Tucker

Not just like how many views did this get or how many content deliverables did we get from this influencer. So that's kind of like the shift in the landscape that we've noticed. And that's kind of why I, you know, had the idea for social snowball, because these two shifts are happening simultaneously and there's nothing really that existed in that overlap area between an influencer management platform and an affiliate platform. So that's, that's kind of how the idea started.

Blaine Bolus

Yeah. And I'd love to like dig a little deeper there in terms of like, what are the challenges that a brand has when running? Call it like a modern creator, affiliate influencer sort of program.

Noah Tucker

Right.

Blaine Bolus

So say you're, you've kind of tapped out. Um, you know, say your cpas are going up on Facebook and you're on meta and you're like, you know, I want to get more involved in creator, but like attributions are scaling hard. Like, what are some of the challenges that brands face if they're trying to like run these sort of programs?

Noah Tucker

Yeah, I think they're overall, like, there's usually a lot of friction in these programs, which it causes a lot of problems. Like the whole sign up process for someone to join the program is like a lot of steps and it's like confusing UI and is just not intuitive. And like an influencer is like a consumer, you have to treat them the same way. They need a really smooth experience. If you expect to get a lot of activation out of, you know, whether these are bigger influencers or even your customers joining an ambassador program, everything needs to be very smooth. So that's one big issue. I noticed another one is just a lack of communication with their affiliates. People will onboard, whether it's customers or influencers into their affiliate program and then they won't have an activation flow set up to welcome them to the program.

Noah Tucker

Explain how it works, give them examples of content, inspire them with other affiliates who have done well in the past. Those kinds of things go a really long way. And just from those two things, if you were to just reduce friction and sign up and payouts, because also there's a lot of friction and payouts. Traditionally, if you're able to reduce friction inside of a payout and have a really strong email sequence for your affiliates after they join, after they make a few referrals, just keeping them nurtured and engaged, those two things alone go a really long way. And I think a lot of these legacy affiliate platforms weren't really built for influencers that they don't, intuitively they don't have great features for this, but those two things alone go a really long way for sure.

Blaine Bolus

So I think this is really important because brands that are working with partners, a lot of times you'll see people being like, oh, I've grown so much. And it's through affiliates and, like, they're, you know, making up a third of my revenue. But like you were saying, behind the scenes, there are things that are happening in order to drive that growth. So, for example, you just mentioned I being able to, like, manage the life cycle of these sort of partners. So what does it look like for, like, let's just dig in right there, right? Like, what are the brands that are, like, really killing it? Like, what do those sequences look like? What are the types of communications? Like? How do they set it up? You know, is it a simple, like, for email sequence, or is there, are they building in conditions? Like, what are the brands that are, like, really doing the best? Like, how are they gamifying this whole ecosystem for, like, partners and creators who are really killing it for them?

Noah Tucker

Really good question. Really good question. So I would say so everything happens for the most part in Klaviyo. Like, we integrate everything with Klaviyo. Like, social snowbot's a platform because it's. We have these brands building our really complex flows. So that's the first thing I'll say. Everything exists in Klaviyo for the most part, or other esps, as far as the sequences themselves.

Noah Tucker

So we talked a little bit about, like, a welcome flow for new affiliates. The point of this is to educate them. There's really three things, like educate, inspire, and then just straight up remind them. So you want to educate them how the program works. When do they receive payouts? You know, just the simple terms of the program. What's their commission rate? What discount can they share to their audience? Does it ever change other tiers in the program? Then you want to inspire them. So, like, kind of like the example I used before, showcasing other affiliates that have done well and then just remind them. So you wanted to send strategic reminders so that they stay engaged.

Noah Tucker

That's like, the most basic thing you have to do. By not doing that. It's so simple to build something like that out, and you're leaving a lot on the table as far as affiliate retention by not doing that. The second thing that I would say really goes a long way. And definitely all of our highest performing brands are doing this is creating tiers. So essentially you can create these performance milestones and tie rewards to them so that affiliates have and a new goal that's always, like, kind of just out of reach. And as soon as they unlock one, then there's another one to work towards. And so for an example, you could build something out where it's like, after you refer something easy, like five referrals or ten referrals, you unlock a 5% higher commission.

Noah Tucker

So it goes from like 20% to 25%, let's say. Then after you refer 30 sales, you unlock a new gift. So maybe you were gifted immediately, but now when you get 30 sales, you could redeem another gift. And then when you hit 50 sales, you unlock an even higher commission than 100 sales and even higher value gift than a higher commission. And you can keep creating these tiers so that affiliates can stay engaged in the program in the long term. Because the worst thing that can happen, I mean, not the worst thing that can happen, but a problem that often happens is an affiliate posts, once drives however much revenue it drives, gets their commission, and then they're getting hit up by another 20 brands in the next month, and maybe they forget about it. But if they have these milestones to work towards, one, it's just a way to keep them motivated, and two, it's also a great way to communicate to them as well. So, like, we always help brands build out flows that revolve around these tiers.

Noah Tucker

So in the welcome flow, you have something that just explains the tiers. Like, here's tier one through five, here's the milestone you need to hit to unlock each, and here's the reward you get at each, whether that's like a higher commission, a free gift, a higher discount to share with their audience, and then as they're getting closer to another tier, you'll send a reminder email being like, hey, you're only five referrals away from unlocking this gift. Things like that get them to keep posting. Like, they'll just be like, oh, yeah, only five referrals. I'll put up another Instagram story. Like that's, you know, that's more content than you're getting and more revenue from the partnership. And then, of course, when they hit a tier, you'll be like, congrats. You just unlocked, you know, tier three, which gives you a new gift.

Noah Tucker

You could pick from any of these. And, you know, higher commission moving forward. The communication with those tiers is obviously super important. If you build out a great tier structure and the affiliates don't know about it, then it's useless. So, yeah, between a really good engagement flow and then building out this tier structure and having strong communication around the triggers of the tier when someone's getting closer to the next level and locking the next level that is night and day with affiliate retention and just keeping them engaged in the long run. So those would be the two biggest ones. Other things I've seen brands do is, you know, with our clay integration they'll have like a flow for affiliates who haven't made a referral in the past 30 days to like reactivate them or maybe like give them some incentive to continue sharing. Excuse me.

Noah Tucker

Um, so, you know, those are the things that I would say. I've seen brands do that, that really work.

Blaine Bolus

Awesome. Um, the next question I have for you is what do you see that tends to get affiliates excited? Right? Is it the offer? So is it like, you know, the price point of the product and the amount of commission that a brand can offer? Is it, you know, the product is just like affiliates just want to share stuff that they think is cool. Like I don't know if you could speak to a couple examples of maybe like brands that are like really crushing it, what their typical, you know, maybe the cost of goods is maybe what like categories they're in and then what like the actual affiliate structure sort of looks like that's like getting these affiliates interested.

Noah Tucker

Yeah. So for, for one, I would say like high ticket products are usually able to offer more generous commissions. Um, and that goes a long way. So like some of our highest performing brands are like cold plunge or like sauna companies because they could give hundreds of dollars per referral and that really motivates people. Like that makes a huge difference whether that's an influencer or a customer. Everyone wants a couple hundred dollars for a referral. Um, but, but the thing is, like we have like that, although those brands tend to always do well, we have so many brands that are lower ticket that just consistently crush and I do think that kind of comes back to the product. Um, for example, we have this hair care brand called Diddy and it's just a product that people get excited about.

Noah Tucker

I think it's like celebrity or influencer own. So it's like there's just like hype around it and um, like, like they do influencer outreach and they manage all their influencers on social snowball and they get like the craziest response rate from the influencers they reach out to. Everyone wants to partner with them. I think it maybe matters a little bit. It still matters, but the commission maybe matters a little bit less when it's a brand that just people are excited about. Maybe they've seen it on TikTok, they've seen other influencers post about it. They want to be part of the program. Of course, the commission still matters a lot.

Noah Tucker

And I think a mistake brands make in general is giving too low of a commission. I think brands are like, oh, wow, we could choose our own CAC here. Like, okay, 5%, let's go. But the truth is, like, you want to give a more generous commission. Of course you still want to acquire customers profitably, but you don't want to be too stingy with the commission because the difference of a program generating 1% of your GMV, but it's a ten x ROI because you give a really low commission, is way less like a program like that is way less valuable than a program that's generating 15% of your GMV at a 2.8 x ROI because that's 15% of your GMV. And let's say you're paid ads, Roas is like a 2.3. So. And you could acquire customers at a 2.8 through affiliate and that's 15% of your GMB.

Noah Tucker

Like, that's doing real good things to your blended CAC and just like, healthy for your business overall. Whereas a ten x roi, ten x roas equivalent program that generates 1% of your gmv, that's cool. And. But it's, it's, it's more of a gimmick than anything else. Like, that's not actually doing anything to your blended CAC. So that's usually how I like to approach it. Like the commission. I would say, like, benchmark it against your paid ads, target CPA.

Noah Tucker

Like, if there's a number that you're aiming for with your paid ads, that's maybe a little better than what you're doing now, but also realistic. That's usually a good starting point for your commission. And, yeah, I mean, you have to think, like, influencers getting, are getting hit up all the time. Not every influencer is always going to be down for an affiliate partnership. But if you're giving a more generous commission and they like the product, then that's how you win.

Blaine Bolus

And typically, what do you see that just in? I know it's like a bit of a blanket, sort of, uh, of save and. But like, roughly, like, generally, like, what range do you see commissions going in terms of just pure percentages that brands are succeeding with?

Noah Tucker

Ten to 30 is like the most popular range and sometimes that's paid out as a percentage, or sometimes that's just like a flat dollar amount because they know, they're aov and they don't have, like, any super low ticket products that could, like, put them at risk of getting a flat fee commission or they just exclude those products from program eligibility. But, yeah, between ten and 30%.

Blaine Bolus

Sweet. Moving forward, I want to cover one of the other really important parts. I know we jumped right into how to activate affiliate partners and how to pay them and how to incentivize them, but how do we get them? So why don't you talk through what does it look like if I'm a brand, I'm starting out, or maybe I'm scaling and I'm just looking to scale the side of the program. Where do I go to find these creators affiliates? How do I activate them? How do I recruit them? How do I get them into my.

Noah Tucker

Program to begin with? Yeah, it's a great question. So we do have our own influencer matchmaking tool in the works right now. But I would say just in general, what it really comes down to is finding the right influencer to be an affiliate. And there's things that you need to look for to find the right influencer, because you could find an influencer that has a really good engagement rate, the perfect aesthetic, you know, that matches the vibe of your brand. But the truth is, a lot of influencers don't drive revenue. And obviously, like, the whole point of this affiliate partnership is you want them to be driving revenue. Um, so I'd say, like, if you're looking on Instagram, and we'll start with Instagram, let's say you're just like, looking through Instagram's platform directly, not even like a third party tool. Um, to find influencers, the most important thing I would look for is are they actively tagging or posting affiliate links of other brands consistently.

Noah Tucker

So if you click through their story highlights, right, like, their highlighted stories on their profile, if you could click through, like, five of those and you haven't seen a tagged brand or an affiliate link, that's probably an indicator that they're not a good fit. Um, the influencers that can drive revenue, they're actively partnering with brands, they're actively tagging with the brands, they're actively posting affiliate links. And because of that, their followers are accustomed to trusting them for buying advice. And their followers aren't annoyed that they've been posting other brands. And, like, it's not like a saturated audience, it's an audience that follows this individual because they want to learn what to buy, they want to, they look up to this person's lifestyle to an extent. And they want to, they're curious to what they're buying and they're curious to what products they're sharing. Those influencers that are just frequently posting affiliate links and they drive lots of revenue. So that would be like the most important thing I would look for.

Noah Tucker

And then, yeah, I would say, yeah, I would say that that's the most important thing when evaluating because, like, first, specifically an affiliate partner to be or, yeah, like an affiliate enjoys it.

Blaine Bolus

We are really excited to announce that DTC Pod is officially part of the HubSpot podcast network. The HubSpot podcast network is the audio destination for business professionals. And we're really excited about being part of the network because we're going to be able to keep growing the show, bringing you guys amazing guests, and obviously helping you guys learn from the best founders, marketers and builders of the most successful consumer brands. So anyway, keep listening to DTC pod and more shows like us on the HubSpot podcast network@HubSpot.com.

Blaine Bolus

Podcastnetwork. Yeah, and I think that's so spot on because we've worked with affiliates and I've seen, you know, sometimes smaller affiliates, like, drive way more actual conversion than like, you know, bigger people who are just like posting about things. And I hadn't even really like, thought of that on, in terms of like, as a way to identify who's, like, good and who's not. It's like the people who are posting a lot of affiliate links because their audience actually trusts them for buying advice. Or like, where should I go? As opposed to a random, like, lifestyle, lifestyle creator that like, you know, people are just kind of looking at and aren't like, oh, this isn't someone I trust on buying decisions. It's just someone who, you know, I like looking at for random reasons. So I think that's a, that's really solid advice. Um, my next question was going to be more on the discovery side.

Blaine Bolus

How, like, what strategies have you seen brands using to, like, find and recruit? I know we mentioned, like, there's other, like, platform tools. I know you guys are potentially, like, building something out in social snowball. Like, what else is it, like going to a brand's Instagram page and like finding who's collaborated and like, who they're following? Or like, what are the ways that you've seen brands really scale the way that they're able to find good affiliate partners?

Noah Tucker

Yeah, I mean, so honestly, we have a ton of brands in the beta for our influencer Discovery platform, and that's done well beyond that, I don't think there's a silver bullet for it. I think it's about finding the right partners more than just sheer volume. It is a volume game as well. But you want to make sure that the influencers you're reaching out to are ones that you actually want to work with enough to, that you'd want to gift them a product. So I mean, there's tons of free ones, right? There's like the TikTok creator marketplace and yeah, there's plenty of free places where you could search and discover influencers. Um, but the most important thing for sure is that you want them to be like an eligible affiliate partner. Um, another way though that we've helped brands is, and I think a lot of brands should be doing this, is looking through the customers to be affiliates. Actually, customers can be really powerful affiliates.

Noah Tucker

And I think a lot of brands are not activating their customer base into their affiliate program. Or if they are, it's just like some loyalty refer friend program that doesn't get a lot of activation. So what we've helped brands do is basically instead of making customers jump through the same application form hoops that we maybe expect like a bigger affiliate to jump through, um, essentially like what we can set up for a brand is every time a new customer purchases from their store, before that customer even gets to the order confirmation page, we could take their order data from Shopify checkout and use that to automatically generate them an affiliate account, automatically generate them a custom tracking link or discount code with their name in it, and then give all that information to them natively on the thank you page as soon as they complete their purchase. So without any pop up or signup form or click here to get your code or anything, all their affiliate info is generated given to them on the thank you page. And then of course you'll have follow up touch points in the post purchase journey through Klaviyo or whatever email and sms tool you're using. But essentially this is kind of like pouring rocket fuel on more legacy Gibfi get five refer friend program and actually treating customers as affiliates, allowing them to enter the same tier structure that we talked about, redeem rewards in cash and just having it be as frictionless of a sign of process as possible. And I mean, we have some brands that are generating 10% plus of gmv just for their customers, which is like customers making referrals, which is crazy. And of course some of these customers have social media, they're posing, but some are just also just sharing with friends with literal, you know, spoken word of mouth, like a good, good old fashioned word of mouth.

Noah Tucker

And, yeah, so customers could also be great affiliates. That's another way that we help brands recruit new affiliates.

Blaine Bolus

Yeah, I think that part is what you mentioned about, like, the friction is so important. I remember when we were setting up our affiliate program for like a SaaS that I run, one of the big sticking points was like, sure, we can send them to this page to sign up as an affiliate, but by just doing that, you're creating friction. If you can just give them an auto, generate the code like you're saying, and give it to them where they need it, they've already got it. They don't have to be like, oh, do I want to be an affiliate or do I not? Is this something that I want to invest time into? It's like there. It's like, you got the code. If you want to use it, go for it. So I think that's a really, really good component. Um, just backtracking a second.

Blaine Bolus

Um, I'm curious, like, if you guys have any insights into, like, typically how big these affiliate programs are.

Noah Tucker

Right?

Blaine Bolus

Because, like, you guys are obviously, like, you know, you're saying, like, you know, we can create, uh, affiliate sort of codes and links for any customer. You can invite as many people as you want, but typically for brands that you see are doing well, like, how big is an affiliate program? Like, how many people are in there?

Noah Tucker

Well, I mean, the way that we usually measure, like, the size of it is not necessarily the members, because some brands are definitely turning all of their customers into affiliates, and a lot of them are active in sharing, but of course, not all of them are. Um, and, you know, that's the scholars, the way it goes. I'd say, like, the North Star metric that we're usually using to measure the success of these programs is, like, affiliate revenue as percentage of GMV. Like, how much of your total revenue is this program driving? And hopefully that, you know, if you set it up right, like, it should always be at a lower calc than your paid ads. Um, so that's more. And what are.

Blaine Bolus

Yeah, and what are you, what are you guys seeing? Like, how much, like, brands that are, like, really going hard on affiliate, like, how much of GMB are they able to drive through affiliates?

Noah Tucker

Yeah, so, so brands that are just doing customer affiliate, I would say the average is more like the four to 6% and the highest performers are like 10%. Um, and, you know, there's some that are a bit bigger, but those are definitely, like, the most passionate customer bases ever. I don't think everyone could replicate that. Um, then there's the brands that are also doing influencer, and this is tough because there's the, I mean, I've seen it be over 50% because there's some brands that can't run paid ads because they're like, you know, selling cannabis or whatever it is. And, you know, their affiliate programs are the majority of their GMB. But I would say for most brands that are maybe in a more in a product category that can run ads and they launch a customer affiliate program at an influencer affiliate program, it's probably more like the 20% of GMB.

Blaine Bolus

Sweet. Okay. Moving forward, one thing that I think would be awesome for you to kind of like clear the air out is why don't you paint a picture of like this whole affiliate landscape? Right? Like we've got TikTok shop where like brands can go and like recruit, recruit creators through there. You've got, you know, being able to like turn your customers into affiliates and also recruit affiliates through you. So if you could just like paint a landscape of like, how everything plays together and how you see like the landscape evolving, how would you paint that picture?

Noah Tucker

Yeah, so, I mean, you know, you mentioned TikTok Shop. I think that was like the biggest disruption to the space, like, probably ever in like the influencer and affiliate marketing world. There are a lot of different programs surround where we talked about customer affiliates. There's influencers that you're reaching out to or coming inbound and you're seeding product to, and then that's a whole separate program for them. Then there's the tiers from both the customers and the influencers and then there's stuff like TikTok Shop. I think we have lots of brands that are using all of those and I think there's no right or wrong. I think some of them take a lot more work than others. And so if youre a brand that is fully dependent on paid for acquisition right now and you want to branch into these influencer affiliate channels, you should, but you dont need to do all of them.

Noah Tucker

Day one, I think the lowest hanging fruit would probably be turning customers into affiliates because its a lot of just setting up these automations, the thank you page emails and then its pretty much runs on its own. If you were to do an outbound program doing manual outreach to influencers at scale and then gifting them, that takes a little bit more work. It still can be a lot of, it can be automated with software, but there's still some manual parts to it. Another thing that would be low hanging through is an inbound program. So just having an application form on your website so that influencers could apply if you like them, you could trigger a gift to be sent, create their affiliate link, they could start sharing, enroll them in an activation flow if you don't like them. You could reject them if you like them, but you're kind of on the fence. You can enroll them into a different program that doesn't incorporate a gift. So they could still have affiliate link and share.

Noah Tucker

You don't have any out of pocket costs by gifting them. And the worst they could do is not drive revenue. So there's kind of, like, no harm for you. Um, and then 100%, I think TikTok shop is incredible. Um, I think it really proved that the future of influencer marketing is affiliate. I think before that, you know, it was kind of just social snowball and maybe a couple other platforms that, you know, had this idea that influencers can be affiliates and that that's where the, the direction of this landscape is headed. And then a lot of brands hopped on that. A lot of influencers were on board with that.

Noah Tucker

And now with TikTok shop kind of taking over, that's undeniably where the landscape is heading. And I was just talking to one of our agency partners yesterday that does influencer marketing, and she was telling me all the brands she speaks to, even a year ago, not even that long ago, the only thing they would ask about for reporting and the performance of the programs was EMV. Just like impressions, like, just awareness or end content deliverables, like, how many pieces of content did we generate? Let's repurpose that for ads. And then she said in the past year, like, not every brand, but a lot more brands, to the point where this has been, like, a big talking point in their agency, is asking about ROI and attributable revenue and new customers acquire. And that's a little bit more of the focus now. And I think TikTok shop kind of pushed the industry in that direction. And it's awesome for us because, you know, this is kind of what we bet on with building social snowball, that the future of influencer would be affiliate. And it's definitely headed in that direction because now you also have YouTube shopping that just launched.

Noah Tucker

Right. And I think we all are on the same page that Instagram is going to come out with something similar, even though they haven't announced it yet. I think we just, it's just very very, very likely at this point. And now all of these social media platforms are coming out with like their, their own affiliate products, affiliate enablement, even like having their own checkout. So it's really interesting to see the landscape moving that direction. But I would say to kind of circle back to your question, there's a lot of different types of programs you could run, and it just comes out to resources that if you want to launch like a more manual, tons of outreach influencer program where you're gifting and having all these tiers, you know, there's plenty of agencies that can take that off your plate if you don't have the bandwidth to do it in house. But yeah, I mean they're all, they're all really great and have their own differences.

Blaine Bolus

The last thing I wanted to talk about is, and you kind of brought it up, was attribution, right? So when, if I'm using social snowball, what does attribution look like? What is like an influencer creator partner get? Are they getting a link? Are they getting a code? Like how are you guys able to attribute the sale that they're driving and be able to reconcile that with the brand for sure?

Noah Tucker

So we have a lot of different optionality here. We of course have codes, so code usage at checkout can track a sale. We have UTM links and cookies, so you can choose an attribution window for the duration of a cookie. To live on a browser, we could use a link that auto applies a code, so you could have kind of a little bit of a wider net with the code and the like. But we have also something that's unique that I think is like really important, called safe links, which is essentially a way to combat codes linking to a coupon site. So basically one of the biggest issues that we've seen with affiliate programs pre social snowball was that affiliates would post, they would share codes. Codes are great because they're the only activation method that jumps from device to device. Because if someone sees an ad on Instagram with an affiliate and then buys on their computer, they'll take the code with them because they want the discount, which is like, you know, a pretty crazy concept.

Noah Tucker

But then the problem is, honey, capital one shopping retail, me, not all these websites picking up, or maybe some, you know, sometimes people might leak it intentionally, but regardless, it gets onto a coupon site and then there's an attribution disaster because all these sales are coming through the affiliates code, which media affiliate gets attribution for those? And then not only are you giving out a discount to customers who weren't supposed to be getting a discount, but you're probably paying a commission to an affiliate that didn't refer their sales. And then when you realize you overpaid the affiliate, there's no way to figure out exactly how much you overpaid and it could damage the relationship with the affiliate. It's just like this domino effect of disaster every time a code leaks. So anyway, at socials Noble, we have this tool called safe links, which is essentially the whole point of it is to allow affiliates to share a discount with their audience without the possibility of a code ending up on a coupon site. So a safe link itself is essentially like a coupon code alternative, like a replacement to coupon code. So wherever an affiliate would have been sharing a code, they wouldn't be sharing this link instead. So instead of using this code, we're trying to push it off. It's like click my link for 20% off and the link itself just looks like a normal affiliate link.

Noah Tucker

You customize it and shorten it. But the way it works is whenever a shopper clicks on that safe link and gets taken to the brand storefront in real time, a unique single use discount code will be generated from the brand shopify and given to the shopper to use during their shopping session. So if I'm an influencer and I post use my link for a discount and ten different people click on my link, ten different single use codes will be generated, one for each shopper, and the shoppers can go ahead and use the discount. So every shopper still gets the same discount. Me as the influencer, I'm still giving a mechanism that allows me to share a discount at scale to my audience. But if honey or any of those coupon sites were to pick up one of those codes, it just wouldn't matter because they're valueless to these coupon sites, they're all single use codes. So that's been a really great attribution tool that we've came up with because not only does it track sales with the link, click with a cookie, but it also tracks sales with the code usage. So if someone clicks a link on their phone, generates that single use code which can be shown to them in like a pop up we can build, and then they decide to buy later on their laptop.

Noah Tucker

They could still take that single use code, use it on the laptop. So it still has like the benefits of, you know, how codes can jump from device to device per attribution, but without the risk of a code leak happening. So that's been, like, definitely our most popular attribution tool.

Blaine Bolus

That's really cool.

Noah Tucker

Yeah.

Blaine Bolus

Because I know, and this is kind of something that we were talking about, but if you, if you just even think about SEO and, like, a branded search, like, number one will be the brand and number two will be, like, brand and discount for the product. Right. So being able to prevent those code leaks is absolutely massive. Now, as we wrap up here, the last question that I have for you is you guys have, like, clearly, like, built so much, you know, really exciting space to be building in. What are you guys focused on? Like, what are some of, like, the key initiatives that you guys are, like, doubling down on and scaling and building in to, like, prepare for the, you know, affiliate ecosystem and creator ecosystem that continues to grow?

Noah Tucker

Yeah. So, I mean, you know, we started our products being really focused around just, like, the core of affiliate, and that's, like, I think we've built for sure the best product on the market for affiliate, for influencers, creators and ambassadors. But to have a successful partnership, there's more pieces of the puzzle than just affiliate. I do think affiliate is the most important now because brands care about your global revenue. But there's. There's other pieces of that puzzle right there. Like we mentioned earlier, there's finding and discovering new influence areas to partner with that scale. So that's something that we're working on building.

Noah Tucker

There is the content side of it. Right. Even though content doesn't have to be the main focus of a partnership anymore, it's still important to be collecting the content. You still want to repurpose the ads. You want to know when you get tagged. So there's these other pieces of the puzzle that we're kind of bringing into social snowball, so that it's the all in one solution for everything you need for all of your influencer and creative partnerships. So that's definitely the biggest focus on the biggest thing that we're focusing on right now.

Blaine Bolus

Sweet. And last question for you. If we're looking to connect with you, like, where do we find you? Why don't you shout out your socials? Are you guys on LinkedIn, Twitter website? Where do we find and connect with you and social? So well, yeah, well, I'm on LinkedIn.

Noah Tucker

And Twitter all day. If you search Noah Tucker, you'll find me on LinkedIn. And my Twitter is oatuk. N o a t u c k. So I love chatting about this stuff. Definitely feel free to message me. And if you wanted to check out social snowball, our website is social the world IO sweet.

Blaine Bolus

Thanks for coming on the pod.

Noah Tucker

Appreciate you having me.

Blaine Bolus

If you enjoyed the show, we'd love your support. A rating and review would go a long way as we continue to host the best builders in DTC and beyond. Follow and subscribe to the show and make sure to check out our show notes where you can find our socials and weekly newsletter. Visit us on dtcpod.com to join our founder community and access resources from every episode. We'll see you on the next pod.

Also generated

More from this recording

DTC Pod Linkedin

@Noah Tucker, founder of @Social Snowball, joins @blaine on this week's episode of DTC Pod to discuss the evolving landscape of affiliate marketing and how brands can effectively leverage influencers and customer affiliates to drive revenue growth.
Noah shares insights on reducing friction in the affiliate signup process, implementing strong email sequences to keep affiliates engaged, and using platforms like Klaviyo and Social Snowball to manage the lifecycle of partners.
We also dive into the importance of generous commissions, influencer outreach, and creating excitement among affiliates to boost affiliate program performance.
Full episode here: [Spotify Link]
#dtcpod #affiliatemarketing #influencermarketing #ecommerce #revenuegeneration #customerreferrals #brandpartnerships

1️⃣ One Sentence Summary

Activating customers as affiliates boosts referral revenue for brands.

Interview Breakdown

In today's episode, Noah Tucker, founder of Social Snowball, shares his insights on the evolving landscape of affiliate marketing and how brands can effectively leverage customer affiliates and influencers. He discusses strategies for reducing friction, engaging partners, and driving revenue through modern affiliate programs.

Today, we'll cover:

  • The shift from legacy to modern affiliates and the challenges brands face

  • The importance of reducing friction in sign-up and payouts for affiliates

  • Effective communication and engagement strategies to keep affiliates motivated

  • How high-performing brands approach influencer outreach and commission rates

  • Focusing on profitable customer acquisition through affiliate marketing

πŸ”‘ 7 Key Themes

Here are 7 key themes discussed in the episode, with each theme summarized in 7 words or less:

  1. Activating customers as affiliates drives revenue.

  2. Frictionless affiliate signup process is crucial.

  3. Affiliate success measured by revenue percentage.

  4. Influencer marketing shifting towards affiliate model.

  5. Attribution tools combat code leaks, track sales.

  6. Affiliate commissions range from 10% to 30%.

  7. Effective communication and engagement retain affiliates.

πŸ’¬ Keywords

Here are 30 topical keywords covered in the text, separated by commas:

affiliate marketing, customer affiliates, revenue generation, affiliate activation, automated affiliate accounts, custom tracking links, discount codes, thank you page, frictionless process, affiliate revenue percentage, GMV, influencer marketing, TikTok Shop, ROI, attributable revenue, new customer acquisition, social media platforms, affiliate products, checkout options, attribution tools, codes, UTM links, cookies, safe links, code leaks, influencer partnerships, all-in-one solution, creator partnerships, ROAS, blended CAC, commission rates, average order value

πŸ“š Timestamped overview

00:00 Affiliate term has evolved in e-commerce. Legacy and modern affiliates differ.

03:43 Shift to affiliate marketing focus from influencer partnerships due to rising ad costs.

09:32 Affiliate program incentivizes sales with tiered rewards to maintain engagement.

11:00 Affiliate engagement and communication key for retention. Use tier structure and incentives.

16:00 Finding the right influencer is crucial for affiliate program success. Look for engagement and consistent posting of affiliate links.

16:51 Influencers' fit based on brand partnerships and affiliate links.

20:35 Brands can activate customers into affiliate programs by automatically generating affiliate accounts and custom tracking links at checkout. This approach has effectively increased customer referrals and sales for some brands.

25:51 Day one: Turning customers into affiliates, automations for thank you page emails. Outbound program, manual outreach to influencers. Inbound program, application form triggers gift.

27:09 Influencer marketing shifting towards ROI and TikTok and YouTube shopping on the rise.

30:18 Challenges with leaked coupon codes, solution: Safe Links by Socials Noble.

33:25 Started with affiliate focus, expanded to partnerships with influencers and creators for global revenue. Working on discovering new opportunities.

πŸ“š Timestamped overview

00:00 Affiliate meaning has evolved in e-commerce.

03:43 Influencer partnerships now focus on affiliate revenue.

09:32 Affiliate program establishes sales milestones for rewards.

11:00 Affiliate engagement, tier structure, and communication essential.

16:00 Choosing the right influencer for affiliate partnership.

16:51 Influencers drive revenue through brand partnerships, links.

20:35 Simplified customer activation in affiliate programs.

25:51 Turn customers into affiliates for automation efficiency.

27:09 Influencer marketing shifting focus to ROI, revenue.

30:18 Tool prevents coupon code leaks, helps attribution.

33:25 Top product for affiliate, influencers, creators, and ambassadors.

❇️ Key topics and bullets

Here is a comprehensive sequence of topics covered in the text, with sub-topic bullets:

  1. Activating customer base into affiliate programs

    • Automating the process of generating affiliate accounts for new customers

    • Creating custom tracking links or discount codes with customer's name

    • Displaying affiliate information on the thank you page

    • Making the process frictionless and treating customers as affiliates

  2. Measuring success of affiliate programs

    • Percentage of revenue driven by affiliate programs

    • Average affiliate revenue as a percentage of GMV for customer affiliates

    • High performers generating up to 10% of revenue from customer referrals

  3. Landscape of affiliate marketing

    • Various elements: influencers, customer affiliates, tiers, and new platforms

    • Future of influencer marketing heading towards the affiliate model

    • Social media platforms incorporating affiliate products and checkout options

  4. Attribution tools offered by Social Snowball

    • Codes, UTM links, cookies, and safe links

    • Combating code leaks and tracking sales driven by influencers

    • Preventing attribution disasters using safe links

  5. Social Snowball's all-in-one solution for influencer and creator partnerships

    • Discovering new influencers

    • Managing content

    • Driving affiliate revenue

  6. Connecting with Noah Tucker

    • Finding him on LinkedIn and Twitter (handle: oatuk)

    • Discussing related topics

    • Company website: socialtheworld.io

  7. Supporting the DTC POD show

    • Giving ratings and reviews

    • Following and subscribing to the show's socials and newsletter

    • Accessing resources and community through the website

  8. Evaluating effectiveness of affiliate partnerships

    • Considering return on ad spend (ROAS) and blended customer acquisition cost (CAC)

    • Benchmarking commission against paid ads target CPA

  9. Affiliate program commissions

    • Ranges from 10% to 30%

    • Paid out as a percentage or flat dollar amount

    • Tailored based on average order value (AOV) and product eligibility

  10. Recruiting the right affiliates

    • Finding influencers who actively post affiliate links and drive revenue

    • Checking influencers' Instagram profiles for consistent affiliate link postings

    • Focusing on quality partners over sheer volume

    • Utilizing social media platforms and customer affiliates as recruitment sources

  11. DTC founders and operators Slack community

    • Connecting, sharing ideas, asking questions, and supporting each other

    • Currently on a waitlist, opening up once 150 members are reached

  12. HubSpot's Sales Hub promotion

    • Tool for managing sales process, reporting, and AI-powered operations

  13. Social Snowball's affiliate platform for e-commerce brands

    • Targeting modern affiliates like influencers and creators

    • Addressing challenges in running modern creator, affiliate, and influencer programs

  14. Strategies for affiliate retention and motivation

    • Reducing friction in sign-up and payouts

    • Implementing strong email sequences to keep affiliates engaged

    • Using platforms like Klaviyo and Social Snowball to create complex flows

    • Offering generous commissions and engaging in influencer outreach

    • Focusing on driving profitable customer acquisition through affiliate marketing

✏️ Custom Newsletter

Subject: New DTC POD Episode Alert: Unlocking the Power of Affiliate Marketing with Noah Tucker

Hey there, DTC enthusiasts!

We've got a brand new episode of the DTC POD ready for your listening pleasure. In this episode, host Blaine Bolus sits down with Noah Tucker, the founder of Social Snowball, to discuss the ins and outs of modern affiliate marketing for e-commerce brands.

Here are the 5 key takeaways you'll learn from this episode:

  1. How to effectively activate your customer base into your affiliate program

  2. The importance of reducing friction in the affiliate sign-up and payout process

  3. Strategies for keeping affiliates engaged and motivated through communication and tiered structures

  4. The shift in the affiliate landscape from legacy to modern affiliates like influencers and creators

  5. Benchmarking commission rates against paid ads target CPA for a realistic starting point

Fun fact: Did you know that some high-performing brands generate up to 10% of their revenue from customer referrals alone? That's the power of a well-executed affiliate program!

So, what are you waiting for? Grab your favorite beverage, pop in those earbuds, and get ready to learn how to take your affiliate marketing game to the next level.

Once you've finished listening, we'd love to hear your thoughts! Leave us a rating and review, and don't forget to follow and subscribe to the show. If you're a DTC founder or operator looking to connect with like-minded individuals, join our waitlist for the upcoming DTC POD Slack community.

Happy listening!

The DTC POD Team

P.S. Shoutout to our friends at HubSpot for their amazing Sales Hub tool. If you're looking to streamline your sales process and harness the power of AI, definitely check them out!

🐦 Business Lesson Tweet Thread

here's my attempt at a 7 tweet narrative thread focusing on the key ideas from the podcast discussion:

Putting customers to work for you πŸ€”

What if every time someone bought from your store, they instantly became your top salesperson?

It's possible.

The most innovative DTC brands are flipping the script on affiliate marketing.

When a customer completes their purchase, these brands automatically generate a custom referral link and discount code with the customer's name.

It's all displayed right on the thank you page. Zero friction.

Customers are treated like affiliates from day 1. And it works.

High-performing brands are driving 10%+ of total revenue from their own customers spreading the word.

Affiliate-powered growth is the future. Empower your customers.

πŸŽ“ Lessons Learned

Here are 10 key lessons from the podcast episode, with concise titles and descriptions for each:

  1. Title: Convert Customers to Affiliates
    Description: Automatically generate affiliate accounts for new customers before purchase completion to drive referral revenue.

  2. Title: Frictionless Affiliate Onboarding Process
    Description: Create custom tracking links and display all information on the thank you page for seamless activation.

  3. Title: Measure Affiliate Program Success
    Description: Track the percentage of revenue driven by affiliates, aiming for 4-6% or higher.

  4. Title: Evolving Influencer Marketing Landscape
    Description: Shift towards ROI focus, attributable revenue, and affiliate model integration on social platforms.

  5. Title: Leverage Attribution Tools
    Description: Use codes, UTM links, cookies, and safe links to track influencer-driven sales and prevent attribution issues.

  6. Title: All-in-One Influencer Partnership Solution
    Description: Streamline influencer discovery, content management, and affiliate revenue generation through comprehensive platforms.

  7. Title: Consider ROAS and CAC
    Description: Evaluate affiliate partnership effectiveness by benchmarking commissions against paid ads target CPA.

  8. Title: Find Right-Fit Affiliates
    Description: Recruit influencers who actively post affiliate links and have engaged followers for optimal performance.

  9. Title: Reduce Friction in Payouts
    Description: Implement smooth payout processes and strong email sequences to keep affiliates engaged and motivated.

  10. Title: Offer Competitive Commission Rates
    Description: Avoid being stingy with commissions; focus on driving profitable customer acquisition through affiliate marketing.

πŸ’Ž Maxims

Here is a list of maxims based on the key concepts discussed in the episode:

  1. Treat your customers as affiliates from the start to maximize referral revenue potential.

  2. Make the affiliate sign-up process as frictionless as possible to encourage participation.

  3. Aim to generate at least 4-6% of revenue from customer referrals, with 10%+ being the goal for high performers.

  4. Adapt to the shifting influencer marketing landscape by focusing on attributable revenue and ROI.

  5. Leverage emerging social commerce features on platforms like TikTok and YouTube to drive affiliate sales.

  6. Utilize attribution tools like safe links and custom discount codes to accurately track influencer-driven sales.

  7. Consider ROAS and blended CAC when setting affiliate commission rates, using your CPA target as a benchmark.

  8. Prioritize finding the right influencer partners who consistently drive revenue over simply amassing a large affiliate base.

  9. Leverage your engaged customers and relevant influencers as powerful sources for recruiting new affiliates.

  10. Reduce friction in affiliate sign-up and payout processes to attract and retain top partners.

  11. Implement strong email sequences to onboard, engage and motivate affiliates throughout their lifecycle.

  12. Offer competitive commission rates that allow for profitable customer acquisition via affiliate channels.

  13. Excite affiliates with your brand story and products to foster organic promotion and advocacy.

  14. Continuously optimize your affiliate strategy based on performance data and industry benchmarks.

  15. Embrace affiliate marketing as a core growth channel deserving of dedicated resources and innovation.

🌟 3 Fun Facts
  1. Some brands are generating 10% or more of their total revenue from customer referrals through affiliate programs.

  2. Social media platforms like TikTok and YouTube are incorporating affiliate products and checkout options, pushing towards influencer affiliate marketing.

  3. Commissions for affiliate programs typically range from 10% to 30% and can be tailored based on average order value and product eligibility.

πŸ““ Blog Post

Title: Unlocking the Power of Customer Affiliates and Modern Influencer Marketing

Subheader: Discover how innovative strategies and platforms are revolutionizing the affiliate marketing landscape for e-commerce brands.

Introduction:
In the ever-evolving world of e-commerce, brands are constantly seeking new ways to drive revenue and acquire customers. One powerful strategy that has emerged in recent years is the effective use of customer affiliates and modern influencer marketing. By harnessing the potential of these approaches, brands can significantly boost their revenue and foster long-lasting relationships with their audience.

Activating Your Customer Base as Affiliates:
Many brands are missing out on a significant opportunity by failing to effectively activate their customer base into their affiliate programs. Noah Tucker, founder of Social Snowball, has helped brands overcome this challenge by setting up an automated process that generates affiliate accounts for new customers before they complete their purchase. This innovative approach includes creating custom tracking links or discount codes with the customer's name and displaying all the relevant information on the thank you page. By making the process as frictionless as possible and treating customers as affiliates from the start, brands can witness a substantial increase in revenue from customer referrals.

Measuring the Success of Affiliate Programs:
The success of affiliate programs is often measured by the percentage of revenue they drive. High-performing brands can generate 10% or more of their total revenue from customer referrals alone. On average, the affiliate revenue as a percentage of Gross Merchandise Value (GMV) for customer affiliates ranges from 4-6%, with top performers reaching up to 10%. These figures demonstrate the immense potential of well-executed affiliate programs in driving meaningful results for e-commerce brands.

The Shifting Landscape of Affiliate Marketing:
The affiliate marketing landscape is undergoing a significant shift, with various elements such as influencers, customer affiliates, tiered structures, and emerging platforms like TikTok Shop coming into play. The future of influencer marketing is increasingly heading towards the affiliate model, focusing on measurable ROI and attributable revenue. Brands are now asking influencers about their ability to acquire new customers, rather than solely focusing on impressions and content deliverables. As social media platforms like TikTok, YouTube, and potentially Instagram incorporate affiliate products and checkout options, the push towards influencer affiliate marketing is becoming more evident.

Overcoming Attribution Challenges:
One of the key challenges in influencer affiliate marketing is accurate attribution. Social Snowball offers a range of attribution tools, including codes, UTM links, cookies, and safe links, to combat code leaks and track sales driven by influencers effectively. The use of safe links is particularly important, as it allows influencers to share discounts with their audience without the risk of codes ending up on coupon sites, which can lead to attribution disasters. By leveraging these tools, brands can ensure that they are accurately measuring the impact of their influencer partnerships and optimizing their affiliate programs accordingly.

The Future of Influencer and Creator Partnerships:
As the industry evolves, platforms like Social Snowball are aiming to provide an all-in-one solution for influencer and creator partnerships. This encompasses various aspects, such as discovering new influencers, managing content, and driving affiliate revenue. By streamlining these processes and offering comprehensive tools, brands can effectively scale their influencer marketing efforts and maximize the value of these partnerships.

Conclusion:
The power of customer affiliates and modern influencer marketing cannot be underestimated in today's e-commerce landscape. By implementing innovative strategies, such as activating customers as affiliates and leveraging attribution tools, brands can unlock significant revenue potential and foster deeper connections with their audience. As the affiliate marketing landscape continues to evolve, embracing these approaches and staying ahead of the curve will be crucial for brands looking to thrive in the competitive world of online commerce.

🎀 Voiceover Script

Want to increase revenue through affiliate marketing but not sure where to start? You're in luck! In this episode, we talk to Noah Tucker, founder of Social Snowball, an affiliate platform for ecommerce brands.

Noah shares his expertise on modern affiliate marketing, revealing:

-How to activate your customer base as affiliates.
-Strategies for recruiting the right influencer partners.
-Email flows and communication tips to keep affiliates engaged.
-Benchmarks for commissions and affiliate revenue as a percentage of sales.

Listen in to learn how to drive profitable customer acquisition through affiliate marketing, without breaking the bank.

πŸ”˜ Best Practices Guide

Best Practices for Effective Affiliate Marketing

  1. Activate your customer base as affiliates by automating the process of generating affiliate accounts before purchase completion.

  2. Create a frictionless experience for affiliates by providing custom tracking links, discount codes, and displaying information on the thank you page.

  3. Measure success by tracking the percentage of revenue driven by affiliates, aiming for 4-6% or higher.

  4. Leverage various attribution tools like codes, UTM links, cookies, and safe links to track sales and prevent code leaks.

  5. Focus on finding the right influencers who actively post affiliate links and have an engaged following.

  6. Offer competitive commission rates (10-30%) based on average order value and product eligibility.

  7. Utilize email sequences and platforms like Klaviyo to keep affiliates engaged and motivated throughout their lifecycle.

  8. Prioritize communication, engagement strategies, and generous commissions to drive profitable customer acquisition through affiliate marketing.

πŸŽ† Social Carousel: Do's/Don'ts

Here is a 10-slide LinkedIn carousel based on the key points from the Noah Tucker episode of the DTC POD:

Cover Slide:
10 Affiliate Marketing Mistakes to Avoid

Slide 1:
Don't Limit Affiliates
Treat all customers as potential affiliates. Create custom links and codes to maximize referrals.

Slide 2:
Forget Incentives
Offer 10-30% commissions to motivate affiliates. Benchmark against paid ad CPA.

Slide 3:
Ignore Engagement
Recruit influencers who actively post affiliate links and have an engaged following.

Slide 4:
Prioritize Quantity
Focus on finding the right affiliate partners over sheer volume.

Slide 5:
Overlook Customers
Leverage your customer base as a powerful affiliate recruitment source.

Slide 6:
Complicate Sign-up
Reduce friction in the affiliate sign-up process. Make it quick and easy.

Slide 7:
Neglect Communication
Implement strong email sequences to keep affiliates engaged and informed.

Slide 8:
Ignore Payouts
Streamline the payout process. Pay affiliates promptly to maintain motivation.

Slide 9:
Be Stingy
Offer generous commissions to drive profitable customer acquisition through affiliates.

Slide 10:
Wing It
Use platforms like Klaviyo and Social Snowball to manage complex affiliate flows effectively.

🎠 Social Carousel

DTC Affiliate Marketing Tips

  1. Automatic Affiliate Accounts
    Generate affiliate accounts for new customers pre-purchase to boost referrals.

  2. Frictionless Process
    Make becoming an affiliate easy with custom links and codes on thank-you pages.

  3. Measure Success
    Track affiliate-driven revenue percentage. Aim for 4-6% of GMV, up to 10%.

  4. ROI Focus
    Shift influencer partnerships to prioritize attributable revenue and new customer acquisition.

  5. Social Commerce
    Leverage TikTok, YouTube, and Instagram's affiliate product and checkout features.

  6. Attribution Tools
    Use codes, UTM links, cookies, and safe links to prevent leaks and track sales.

  7. All-in-One Solution
    Streamline influencer discovery, content management, and affiliate revenue with platforms like Social Snowball.

  8. Commission Benchmarks
    Set commissions at 10-30% based on paid ads CPA, AOV, and product eligibility.

  9. Recruit Selectively
    Find engaged influencers who consistently post affiliate links and drive revenue.

  10. Engage Partners
    Reduce friction, communicate effectively, and motivate affiliates with flows, tiers, and reminders.

Get DTC affiliate marketing right. Connect with Noah Tucker and Social Snowball to optimize your strategy.

One Off Tweets
  1. Brands are leaving money on the table by not activating their customer base as affiliates. Make it frictionless and watch referral revenue soar.

  2. The future of influencer marketing is all about ROI and attributable revenue. Impressions and content deliverables are no longer enough.

  3. Social media platforms are pushing towards influencer affiliate marketing with integrated products and checkout options. The landscape is shifting.

  4. Protect your affiliate program from attribution disasters. Implement safe links to prevent codes from ending up on coupon sites.

  5. When recruiting affiliates, focus on finding the right partners who actively post links and drive revenue. Quality over quantity.

  6. Running a successful affiliate program requires reducing friction in sign-up and payouts. Don't let unnecessary hurdles hold you back.

  7. Keep your affiliates engaged and motivated with strategic communication flows. Welcome them, establish tiers, and send timely reminders.

  8. High-performing brands in affiliate marketing offer generous commissions, conduct influencer outreach, and have exciting products that affiliates love to promote.

  9. Don't be stingy with affiliate commissions. Focus on driving profitable customer acquisition and the revenue will follow.

  10. Benchmark your affiliate commissions against your paid ads target CPA. A realistic starting point ensures a profitable partnership.

Twitter Post 1

Here's a fun fact from the episode in a similar style and format:

Brands can 4-6X their revenue from customer referrals.
Activate customers as affiliates.
Make it frictionless with auto-generated links on thank you pages.

Mindsets

Here are 3 mindset shifts listeners can make based on the discussion about affiliate marketing in the podcast episode:

πŸ’­ Start treating your customers as potential affiliates from day one. By making it easy for them to sign up and giving them the tools to refer others, you tap into a powerful source of revenue and advocacy. Your customers can become your best marketers.

πŸ’­ Focus on building real partnerships with affiliates, not just transactional relationships. Invest time in onboarding, communicating regularly, and offering support. The more you engage and motivate your affiliates, the more they'll drive profitable customer acquisition for your brand.

πŸ’­ Embrace the shift towards modern influencer affiliates. While legacy coupon and deal sites still have a place, partnering with micro-influencers and content creators opens up new opportunities. Find alignedaligned partners, make their experience frictionless, and track the impact on your bottom line.

By adopting these mindset shifts, e-commerce brands can unlock the full potential of affiliate marketing as a scalable and cost-effective growth channel. For more insights, check out the full episode with Noah Tucker, founder of Social Snowball, an affiliate platform designed for the creator economy.

Tactics

πŸŽ™οΈ 5 Tactics to Boost Your Affiliate Marketing Strategy πŸš€

If you're looking to take your affiliate marketing game to the next level, here are some specific strategies you can implement based on insights from Noah Tucker's interview on the DTC POD:

1️⃣ Automate affiliate account creation for customers
Set up a process that automatically generates affiliate accounts for new customers before they complete their purchase. Display custom tracking links or discount codes with the customer's name on the thank you page to make the process as frictionless as possible. Treating customers as affiliates can significantly increase revenue from referrals.

2️⃣ Benchmark commissions against paid ads target CPA
When determining commission rates for your affiliate program, consider your return on ad spend (ROAS) and blended customer acquisition cost (CAC). Use your paid ads target CPA as a realistic starting point for commissions, which typically range from 10% to 30%. Tailor the commission structure based on your average order value (AOV) and product eligibility.

3️⃣ Recruit affiliates who actively post links
Focus on finding the right influencers who consistently share affiliate links and drive revenue from their engaged followers. Check potential affiliates' Instagram profiles for regular affiliate link postings to gauge their fit for your program. Prioritize quality partnerships over sheer volume when recruiting affiliates.

4️⃣ Leverage email sequences to keep affiliates engaged
Implement a strong email sequence using platforms like Klaviyo to manage the life cycle of your affiliates. Create welcome flows, tier structures, and strategic reminders to keep affiliates motivated and informed. Effective communication and engagement strategies are crucial for affiliate retention and success.

5️⃣ Offer generous commissions and exciting products
High-performing brands often provide attractive commission rates and engage in proactive influencer outreach. Focus on creating products that generate excitement among affiliates and drive profitable customer acquisition through your affiliate marketing efforts. Don't be too stingy with commissions; instead, find the right balance that incentivizes affiliates while maintaining profitability.

Implement these tactics to elevate your affiliate marketing strategy and unlock new growth opportunities for your business! πŸ“ˆ

In Depth Thread

Overrated: Asking customers to sign up for your affiliate program separately.

People hate extra steps and friction in their shopping experience.

Underrated: Treating every customer like an affiliate from the start.

I've helped top brands generate 10%+ of revenue through customer referrals using this exact process:
Frictionless Signup

Automatically generate affiliate accounts for new customers before they complete checkout.

Create custom tracking links or discount codes with their name.

Display it all on the thank you page. Make it stupid simple for them to share.
Key Metrics

Track the success of your affiliate program by focusing on:

  1. % of revenue driven by customer referrals

  2. Average affiliate revenue as % of GMV

  3. % of customers acting as affiliates

  4. New customers acquired via referrals

  5. Influencer affiliate performance
    Affiliate Landscape

The world of affiliate marketing is evolving:

  • Influencers becoming key affiliates

  • Platforms like TikTok Shop emerging

  • Focus shifting to ROI vs just content

  • Social commerce enabling frictionless buying

Position your brand to capitalize on these trends.
Attribution Mastery

Use every tool to properly track referrals:

  • Custom discount codes

  • UTM parameters

  • Cookies

  • "Safe links" to prevent code leaks

Know exactly which affiliates are driving sales and reward them accordingly.
Influencer Vetting

When recruiting influencer affiliates, look for:

  • Consistent affiliate link posting

  • Highly engaged audience

  • Authentic connection to your brand

  • Ability to create quality content

Quality over quantity is key. A small group of committed affiliates beats a large group of randoms.
Commission Strategy

Benchmark your affiliate commissions against your target CPA for paid ads.

10-30% is the typical range, tailored to your AOV.

Be generous enough to motivate affiliates while ensuring profitability.

Use tiered rewards to incentivize top performers.
Affiliate Experience

Treat your affiliates like valued partners:

  • Smooth frictionless payouts

  • Regular communication & newsletters

  • Exclusive perks and discounts

  • Recognition for top performers

Happy, motivated affiliates will go above and beyond to promote your brand.
All-In-One Solution

Use a tool like Social Snowball to manage your entire affiliate operation:

  • Influencer discovery

  • Content collaboration

  • Link tracking & attribution

  • Payouts & 1099s

  • Analytics & optimization

An integrated tech stack is essential for affiliate success at scale.

If you implement this playbook, you'll turn your best customers into your most effective salespeople.

Your acquisition costs will plummet as your reach expands exponentially.

This is the future of ecommerce growth. Embrace it or get left behind.

New Idea

Idea #1: Automate Affiliate Activation for Customers

Treat your customers like affiliates from the start by automating the process of generating affiliate accounts:

  1. Custom Tracking Links: Create personalized tracking links or discount codes for each customer, incorporating their name. This makes the process feel tailored to them and encourages sharing.

  2. Frictionless Signup: Automatically generate affiliate accounts for customers before they complete their purchase. Remove any extra steps or barriers to make it as easy as possible for them to start promoting your brand.

  3. Prominent Placement: Display the customer's unique affiliate link and all the necessary information prominently on the thank you page after their purchase. Putting it front and center increases the likelihood they will notice and use it.

Tweet thread on learnings

Here's a tweet thread that captures one key takeaway from the podcast episode and expands on the learnings, matching the tone, style, and format of the provided example:

Tweet 1:
πŸŽ™οΈ Just listened to an insightful episode of the DTC POD with guest @oatuk, founder of Social Snowball.

Noah shared some game-changing strategies for e-commerce brands to maximize their affiliate programs. πŸ›οΈπŸ’°

My biggest takeaways from the episode: πŸ‘‡

Tweet 2:

  1. Activate Your Customer Base as Affiliates 🀝

Many brands are missing out on a huge opportunity by not effectively turning their customers into affiliates.

By automating the process and making it frictionless, you can unlock a significant revenue stream. πŸ“ˆ

Tweet 3:

  1. Create Custom Affiliate Links and Codes πŸ”—

Generate personalized tracking links or discount codes for each customer before they complete their purchase.

Display this information prominently on the thank you page to encourage them to share and refer others. πŸ˜„

Tweet 4:

  1. Measure Success by Revenue Percentage πŸ“Š

The true success of an affiliate program lies in the percentage of revenue it drives.

Top-performing brands can generate 10% or more of their total revenue from customer referrals alone. 🎯

Tweet 5:

  1. Benchmark Commissions Against Paid Ads πŸ“‰

When setting affiliate commissions, consider your return on ad spend (ROAS) and blended customer acquisition cost (CAC).

Use your paid ads target CPA as a realistic starting point for commissions, typically ranging from 10% to 30%. πŸ’Έ

Tweet 6:

  1. Find the Right Influencer Partners 🌟

Focus on recruiting influencers who actively post affiliate links and drive revenue from their engaged followers.

Check their Instagram profiles for consistent affiliate link postings to gauge their fit for your program. πŸ”

Tweet 7:

  1. Reduce Friction in Sign-up and Payouts πŸŽ‰

Make the affiliate sign-up process as smooth as possible and ensure timely payouts.

Implement a strong email sequence using platforms like Klaviyo to keep affiliates engaged and motivated. πŸ“§

Tweet 8:

  1. Offer Generous Commissions and Exciting Products 🎁

High-performing affiliate programs often provide attractive commission rates and feature products that create buzz among affiliates.

Don't be too stingy with commissions; focus on driving profitable customer acquisition through your partners. πŸ€‘

Tweet 9:
By implementing these strategies shared by @oatuk, e-commerce brands can revolutionize their affiliate programs and tap into a powerful revenue stream. πŸš€

Catch the full episode on the DTC POD for more insights on modern affiliate marketing! 🎧

#DTCPod #AffiliateMarketing #Ecommerce

Future State, 6 reasons post

In 12 months, brands that effectively activate their customers into their affiliate programs will see a 10% increase in revenue driven by customer referrals. As an e-commerce expert, I've seen the power of treating customers as affiliates. But many brands are missing a HUGE opportunity. Here are 6 recommendations that if applied, can unlock significant revenue growth from customer affiliates:

BACKGROUND:

Forget traditional affiliate programs, the future belongs to CAA (Customer As Affiliate).

Your customers are your best marketers and salespeople.

If brands pay attention, they can transform their customers into a powerful revenue-generating engine that not only drives referrals but also creates loyal brand advocates.

Old Affiliate Programs:

  • Difficult sign-up process

  • Limited communication with affiliates

  • Delayed or manual payouts

  • Low engagement and motivation

New Affiliate Programs:

  • Frictionless affiliate account creation

  • Automated email flows to engage affiliates

  • Instant and automated payouts

  • Gamified tier structures to motivate affiliates

At Social Snowball, we are helping brands generate up to 10% of their revenue from customer affiliates, without investing in complex sign-up forms or manual payout processes. It's hard to replicate this success with legacy affiliate programs.

HOWEVER...

Many brands are not effectively enrolling and engaging their customers as affiliates. E-commerce leaders should consider adding a few key elements to their affiliate programs to deliver on the promise of CAA.

Here are my 6 recommendations:

  1. Automate affiliate account creation for customers pre-purchase. Enroll every customer as an affiliate by default before they complete their purchase.

  2. Display custom tracking links and discount codes with the customer's name on the order confirmation page. Make it easy for them to start sharing right away.

  3. Implement a strong email sequence using platforms like Klaviyo to keep customer affiliates engaged. Send a welcome series, product updates, and performance reports.

  4. Offer generous commission rates, don't be stingy. Focus on driving profitable customer acquisition through affiliate, not penny-pinching on commissions.

  5. Create a tiered program structure to motivate affiliates. Reward your top performers with higher commission rates, exclusive perks, and shoutouts.

  6. Provide instant or weekly payouts. Don't make affiliates wait 30-60 days for their commissions. The faster they get paid, the more motivated they are to keep promoting.

I believe the brands that figure out how to convert customers into motivated, engaged affiliates will have a significant competitive advantage.

CAA has the potential to be one of the most effective and profitable acquisition channels, but it requires a shift in mindset and the right tech to make it happen.

P.S.

How are you activating your customers as affiliates?

What's working well and where are you still experiencing friction in your program?

About the Episode

In this episode of the DTC POD, Noah Tucker, the founder of Social Snowball, shares powerful strategies for brands to supercharge their affiliate programs and drive significant revenue growth. One key approach he highlights is the seamless integration of customer affiliates, where brands automatically generate affiliate accounts for new customers before they complete their purchase. By creating custom tracking links or discount codes with the customer's name and displaying all the information on the thank you page, brands can effortlessly turn their customers into active promoters, resulting in a substantial increase in revenue from customer referrals.

Noah also emphasizes the importance of effective communication and engagement with affiliates to maximize their potential. He suggests implementing a strong email sequence, such as welcome flows, tier structures, and strategic reminders, to keep affiliates motivated and informed. By nurturing these relationships and providing generous commissions, brands can foster a thriving affiliate community that consistently drives profitable customer acquisition.

Furthermore, Noah discusses the shifting landscape of influencer marketing and the growing focus on ROI and attributable revenue. He explains how Social Snowball's platform offers various attribution tools, such as codes, UTM links, cookies, and safe links, to combat code leaks and accurately track sales driven by influencers. By leveraging these tools and partnering with the right influencers who actively post affiliate links and have engaged followers, brands can tap into the power of influencer affiliate marketing and achieve significant growth in their affiliate revenue.

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