Do Jill Peterson And Kevin Heinz Deserve Some Chedda?

Posted by Ad Hustler | Posted in Doing Business | Posted on 31-07-2009

Content ownership and rights are a huge issue online.  The other day I spotlighted a video of a really unique entrance dance at a wedding.  Jill Peterson & Kevin Heinz decided to do this routine at their wedding.  Kevin’s father begged him to throw the video on to youtube so he could show some of his friends that weren’t at the wedding.  After that the rest is history and it became a viral phenomenon.

Google just did a blog post called “I Now Pronounce You Monetized: a YouTube Video Case Study.”  In the case study they highlight the use of their sophisticated content management tools to help rights holders control their content on Youtube.  I suppose a tool like this has a noble cause.  Since the wedding video used Cris Brown’s “Forever” youtube allowed the rights holder of the song to pop ads over the viral video to buy the single.  It was a huge success for Chris Browns team and rightfully so.  They created the song, they should get a cut of the proceeds.

The issue I have is that Jill & Kevin received nothing.  Of course, they don’t own the rights to the song, but they did create the video.  Uploading it to Youtube does forfeit a lot of your rights but I think that Chris Brown should do the right thing and give a cut of whatever is made off the video to Jill & Kevin.  Without them, the extra sales of the single would have never occurred.  Online rights is still a grey area but I think that this particular situation could set a precident for others.

What do you think?

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Case Study: Troubleshooting Erratic Conversion Rates

Posted by Ad Hustler | Posted in Affiliate Marketing, Case Studies | Posted on 27-07-2009

I run offers in a variety of niches.  Lately, one of the niches that i’ve been running took a serious decline in conversion rates.  This niche is a product sale requiring 2 pages of information.  Page 1 is contact information and page 2 is credit card information.  Offers that converted at 9-14% were all of a sudden converting at 2% if I was lucky.  Needless to say this irritated me.  I have a lot of contacts and reached out to quite a few to see if they were running this niche as well.  Some were and I heard mixed reviews about the kind of conversion rates they were still seeing.  Since some affiliates were claiming high conversion rates and some were claiming low conversion rates this exercise didn’t prove to be fruitful.  Here are a few thoughts/theorys that were going through my head at the time (here is a peak into the mind of Ad Hustler):

  • My traffic source was burning out, hence the lower conversion rates. However, this made no sense to me as the users were still clicking through the landing page to the offer.  There was really no decline in landing page to offer click through rate so this theory didn’t make a lot of sense to me.
  • Some of the other affiliates I spoke to were lying. In the affiliate industry, you really never know who is telling the truth and who is lying.  People sometimes have vested interests in leading you down a certain path so I don’t believe everything I hear.  One thing that stuck with me though is that certain people in this industry who I really trust, were telling me that there were still good conversion rates in this niche.
  • The advertisers are blindly scrubbing and shaving the offers. Since I saw such a rapid decrease in conversion rates I figured that the advertisers were scrubbing and shaving the profitability out of the offers.  This still didn’t exactly make sense to me as some people (that I trust) were still claiming high conversion rates.
  • The advertisers are targeting affiliate ID’s or refferer URL’s to shave/scrub CERTAIN affiliates. You see this in the email submit niche quite a bit, so I was thinking this could be possible as well.  It also could explain why some people say conversion rates are still strong and others say they are weak.

To start off, I tested the last theory (that scrubbing is occurring on the affiliate id/referrer level).  I put my landing page on a new domain and sent traffic to an offer that I knew converted a few days prior but at a fresh affiliate network.  This way, I knew that my affiliate id/referrer were not on record with the advertiser.  The results were no better then previously with the old referring URL/network/offer.  This helped me shy away from this theory being the cause of my problems.

———————————————————————

I then decided to use the You Can’t Hustle A Hustler – Testing Method.   I ripped the advertisers landing page and recreated the offer on a domain that I own and am in complete control of.  I took out the advertisers forms and replaced them with my own.  Here are 2 good form tools you can use to do the same and replicate any form:

Coffeecup Form Builder
Logiforms

Since I was down to a 2% conversion rate, I figured this would prove once and for all if I was being shaved/scrubbed by the advertisers.  If this test proved an insanely high conversion rate I would be relatively sure that the problem was not on my end, but rather on the advertisers end.  (Please Note: I know that there are variables unaccounted for here such as merchant account declines, prepaid credit cards and fraud prevention tactics.  That’s not the point.  The point is to get a baseline of how this offer converts when I control the page and the forms)

Next Step: Drive Traffic & See How It Converts

Some Stats

Landing Page —> “Offer” Clicks: 200
Completed “Sales”: 8
Conversion Rate: 4%

So, the conversion rate proved to be slightly higher when I owned all of the offer elements but still not a great conversion rate and fairly inconclusive due to the unaccounted for variables.

BUT WAIT…..THERE’S MORE!

I purposely left out a statistic above.  Since this offer is a Page 1/Page 2 offer aren’t you curious about how many people complete Page 1 vs. Page 2?  I was and this proved most interesting.

Landing Page —> “Offer” Clicks: 200
Page 1 Contact Info Leads: 55
Page 2 Completed “Sales”: 8
Page 1 Lead Conversion Rate: 27.5%
Page 2 Sale Conversion Rate: 4%

Do you notice a HUGE problem here?  I do and it caused me to take some action.

Only 14.5% of the users who filled out page 1 actually filled out page 2.  That’s pretty pathetic.  85% of the users are bailing on the conversion funnel on page 2 where they need to enter their credit card information.  In a live situation, the affiliate never controls the conversion/sales funnel so what’s a Hustler to do?

I decided to better presell the fact that after page 1, the user would be taken to a credit card form that accepts all major credit cards to pay.  It seems stupid to have to tell the people that to pay for the item, they will need to use a credit card but apparently spelling it out helped the conversion rate.  I made the changes and set them live on the real offer.  All of a sudden I was back to 8%-10% conversion rates.

This testing in no way figured out WHY my conversion rate decreased.  It did however provide me with information to get it back to where it needed to be.  With more tweaks/testing I expect to see even higher conversion rates.  Unfortunately affiliates are never provided with sales funnel information.  Without that information I would have never seen this problem and hence never realized how to fix it.

Case Study Testing Funds Contributed By Tatto Media

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When Ian Fernando Finds A Wife…

Posted by Ad Hustler | Posted in Big Pimpin' | Posted on 24-07-2009

The wedding will go down something like this:

Courtesy of TurboLapp

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The Importance Of Pricing Optimization

Posted by Ad Hustler | Posted in Doing Business | Posted on 21-07-2009

As affiliates we rarely have the opportunity to set pricing for the products we sell.  However, many affiliates have other businesses such as ecommerce sites or informational products.  One type of optimization I have made a lot of money with over time is pricing optimization, particularly using bulk pricing discounts.

Let’s say you are at a concert of your favorite band.  You go over to the merchandise area and see 2 shirts you really like.  They are priced at $25 per shirt.  Most people are going to decide on one shirt or the other.  If they buy, the merchandise booth will make $25.

Let’s re-set up the scenario.

Let’s say you are at a concert of your favorite band.  You go over to the merchandise area and see 2 shirts you really like.  There is a sign that says “All T-Shirts – 2 For $40.”  The average consumer will now think differently.  They may think, “I like 2 shirts and it’s only $40 bucks for 2 of them, I’ll get both!” or they may ask “How much is 1?”  Either way, a much larger percentage of the consumers are going to end up dropping $40 at this T-Shirt booth then they would have with the $25 per shirt pricing.  Trust me, i’ve tested this.

One little tweak in pricing can change something from profitable to super profitable.

The obvious question is how does this help online?

If you own a product and you control the pricing of it, I suggest trying 2 types of pricing structures:

  • 2 For $xx
  • Buy 2 Get 1 Free

These pricing structures work if product you are selling is a high margin/low cost item.

This one tweak can change your profit margins dramatically.  Have you tried this?

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eBay Partner Network Crackdown

Posted by Ad Hustler | Posted in Affiliate Marketing | Posted on 17-07-2009

I have always been a fan of the eBay affiliate program.  I liked it better when it was on CJ but over time I have made a lot of money with it.  I got an email from them today and it looks like they are laying the smack down.  Here are some new rules that all publishers must abide by.

Network Code of Conduct
Important updates to the Network Code of Conduct include the following:

  • eBay Partner Network does not compensate for sales that come from invalid click activity, which includes, but is not limited to the following:
    • clicks generated by a publisher clicking on their own ads
    • automated clicking tools/traffic sources/robots
    • activity generated by other deceptive software
  • Publishers may only place links and/or promotional content on sites they own. Affiliate links on third party sites such as Craigslist, MySpace, etc. are not allowed.
  • You will not redirect any traffic to middle servers for the sole purpose of masking your referring source of traffic. This includes the use of URL shortening services (including but not limited to tinyurl.com, short.to and cloakedlink.com).

To read more about these updates, please see the full version of the new Network Code of Conduct.

I see where their coming from with their restrictions but I think they are shooting themselves in the foot.  90% of the internet probably already knows who eBay is.  Their commission rates suck as it is and now they are laying on additional restrictions.  Over time and if they add even more restrictions going forward all they are going to accomplish is driving affiliates to alternate affiliate programs that pay more.  I think eBays affiliate program (and relevance on the net for that matter) is on the decline.

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