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  1. #1
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    How Much Is This Worth?
    Hello all.

    This is a question for affiliate marketers.

    Let's say that you come across a video news story from a network called the Consumer News Network. The newscast is obviously top quality -- excellent news anchor and reporters, million dollar sets, camera cranes -- the whole nine yards -- high-end network quality.

    You're excited to see that the news story makes your product (the product that you are an affiliate for) look like the greatest thing since sliced bread.

    You decide that you would like a copy of the video to play on your websites, blogs, and emails to your list. You don't know for sure, but you suspect that the video would do great things for you -- that if your site visitors and list saw the video, there would be excellent results.

    You contact the network, and ask if you can have a copy of the video, and permission to use it in the ways described above. They tell you yes, but there is a fee.

    Assuming that there is no way to grab the video for free, and that you don't want to be a thief even if you could, my question is, what is the no brainer price that you would pay -- the price that you would say, "What the heck, it's obviously worth a shot"?

    Please let me know what that "why not take a shot" fair price is to you.

    Thanks!

  2. #2
    ABW Ambassador 2busy's Avatar
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  3. #3
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    Thanks 2busy! I hope to hear from others, too.

  4. #4
    The "other" left wing davidh's Avatar
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    IANAL but it sounds to me like something that would fall into "fair use" territory, just as featuring your product as a subject matter for their program probably did for them.
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  5. #5
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    Quote Originally Posted by davidh View Post
    IANAL but it sounds to me like something that would fall into "fair use" territory, just as featuring your product as a subject matter for their program probably did for them.
    But let's say it's not, and you can't get it without them anyway.

    What would the fair price be that affiliates should pay, and what would they pay without thinking too much about it?

  6. #6
    The "other" left wing davidh's Avatar
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    It's worth what you're willing to pay for it, whether that be five dollars or five million dollars.
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  7. #7
    What's the word? Rhia7's Avatar
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    Often the Affiliate Management program will have a video that can be used by affiliates. I usually do not go to third parties who are unaffiliated with the Affiliate Management program I am using.
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  8. #8
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by davidh View Post
    It's worth what you're willing to pay for it, whether that be five dollars or five million dollars.
    Yes
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  9. #9
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    Quote Originally Posted by davidh View Post
    It's worth what you're willing to pay for it, whether that be five dollars or five million dollars.
    Thanks David. I know that, of course. I am looking for estimates of what that average, fair price would typically be, at which an affiliate would obviously be getting a good deal.

  10. #10
    The "other" left wing davidh's Avatar
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    Depends.
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  11. #11
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    Quote Originally Posted by Rhia7 View Post
    Yes
    And what would that price be between 5 and 5 million, based on the description in the first post, and taking into account that the company may be offering a video for free, but not this news video that the affiliate, as described in the first post, finds appealing?

  12. #12
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    Quote Originally Posted by davidh View Post
    Depends.
    Ah. Thank you.

  13. #13
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Tim Pipher View Post
    And what would that price be between 5 and 5 million, based on the description in the first post, and taking into account that the company may be offering a video for free, but not this news video that the affiliate, as described in the first post, finds appealing?
    I gotta agree with Davidh and say that it depends

    There are many variables to consider before I name a price.
    I am a Frugal affiliate.

    As I said earlier, as an affiliate I most likely would not seek a third party company/entity for a product video to display on my site[s]. I would prefer to use a video that an AM/OPM/Affiliate program is making available at no cost.

    There are some affiliates out there in affiliate land who share my views and others who don't.
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  14. #14
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    I would link to the video (in a new window)... for free...

    You can still write up a review of the video.. make it the talking point (ie. recent media coverage) without streaming it on your own site.

    (this is assuming the video would be online somewhere, of course)
    Last edited by teezone; October 19th, 2010 at 07:47 PM.

  15. #15
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    Thanks for the responses.

    To tell you the full story, I work for the studio. We are thinking about making these stories available to affiliate marketers because we think they can really benefit by using them, and want to price them at a level that:

    1. Is low enough that the affiliates who license the videos are almost guaranteed to make a profit from using them

    2. Is low enough that affiliates will just take a chance on them with little to lose, without belaboring the decision or analyzing every little nuance of the purchase, without having to clear it with his or her spouse etc. -- will just be so obviously a good value for a good product, that we won't have to do a lot of pushing.

    I wonder what the "no thought" price would be for a moderately successful affiliate marketing a moderately profitable product?

  16. #16
    ABW Ambassador meadowmufn's Avatar
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    I think a lot of it depends on the price point of the particular product and the commission the affiliate is getting. The more sales they have to make to pay for their investment in purchasing the video, the less likely they are to buy. Just something to consider.
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  17. #17
    The "other" left wing davidh's Avatar
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    If you are not the manufacturer of the products in question, have you given any thought or consideration to the legal ramifications of using another company's names and product names/likenesses for your own profit?

    If so, then the licensing fees would certainly have to figured into the price of your offerings.
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  18. #18
    What's the word? Rhia7's Avatar
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    Another consideration is that the video in question is most likely not exclusive to any one particular affiliate but would probably be made available to many affiliates provided they pay syndication fees.

    If you really want a "no thought" price for a video that will be replicated on other sites provided they pay a fee, have a syndication fee of one dollar -- that would be a "no thought" and you could make up for the low price in the volume of syndication fees you could get.
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  19. #19
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    Quote Originally Posted by Rhia7 View Post
    Another consideration is that the video in question is most likely not exclusive to any one particular affiliate but would probably be made available to many affiliates provided they pay syndication fees.

    If you really want a "no thought" price for a video that will be replicated on other sites provided they pay a fee, have a syndication fee of one dollar -- that would be a "no thought" and you could make up for the low price in the volume of syndication fees you could get.
    That is an interesting idea. I would have to license a ton of them if they were $1.

    How many active affiliates would the larger affiliate programs have, and what would be the best way to reach them?

  20. #20
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Tim Pipher View Post
    That is an interesting idea. I would have to license a ton of them if they were $1.

    How many active affiliates would the larger affiliate programs have, and what would be the best way to reach them?
    There are known large networks that are supposed to be the 3rd party accounting structures among the actual programs on a particular network and the affiliate programs that are related usually to a network in relation to affiliate performance. The networks usally "write the checks" or pay via Direct Deposit programs to affiliates. These networks are huge and have thousands of affiliates who use the networks to associate with particular merchant/affiliate programs.
    Networks that come to mind are Commission Junction, Shareasale, Google Affiliate, Linkshare and there are other networks out there but most affiliates here belong to the "Big 4."
    You could research what type of merchant programs are on an affiliate network and then work as an independent on a network in conjunction with a few programs.

    There are many affiliates and if you have a legitimate offer you could focus on a category or two or three -- or how many your company can handle and make a syndication video offer for a fee that would be optional for affiliates to opt into or not. Your offer could very well be very popular if it's legitimate and if you offer excellent video products that are not otherwise available to affiliates.

    You might want to specialize in a niche such as home improvement that could actually benefit from videos. All the networks have categories with multiple merchants that correspond to a particular category. Pick one and create syndicated videos for that category and advertise on ABW that a modest syndication fee for the video[s] could really expand possibilities for affiliates. You would get sign-ups.
    Last edited by Rhia7; October 19th, 2010 at 08:48 PM.
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  21. #21
    What's the word? Rhia7's Avatar
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    I have a suggestion that could be a paradigm model for the types of affiliate videos you could create and release on syndicated fees. Low syndication fees will attract the highest number of affiliates.

    There is a merchant who sells ceiling tiles. Your typical affiliate, even a "super affiliate" who can rake in the big bucks most likely is not a tiling expert for a ceiling and most likely will not come up with their own creatives for that niche.

    If you shot a video demonstrating how easy it is for a typical customer to beautify his/her home with ceiling tiles -- that type of video would be in demand among affiliates.

    You could set up an announcement/advertisement/sub-forum at ABW offering affiliates syndicated videos -- create a program for yourself based upon syndication -- affiliates would pay a modest syndication fee for such videos to display on their sites.
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  22. #22
    What's the word? Rhia7's Avatar
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    Don't pick a category on sheer number of affiliates enrolled in that category.
    Pick a category on a topic that is conducive to creating interesting videos that viewers will actually want to watch on an affiliate's web page/website.

    I'm sure that many affiliates promote Acai Berry dietary supplements and cleansers but videos about these won't be the type that affiliates rush to syndicate.

    No affiliate wants videos that will annoy their viewers/potential customers.
    The video should be attention grabbing and interesting throughout its length.
    Last edited by Rhia7; October 19th, 2010 at 09:34 PM.
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  23. #23
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    Quote Originally Posted by Rhia7 View Post
    I have a suggestion that could be a paradigm model for the types of affiliate videos you could create and release on syndicated fees. Low syndication fees will attract the highest number of affiliates.

    There is a merchant who sells ceiling tiles. Your typical affiliate, even a "super affiliate" who can rake in the big bucks most likely is not a tiling expert for a ceiling and most likely will not come up with their own creatives for that niche.

    If you shot a video demonstrating how easy it is for a typical customer to beautify his/her home with ceiling tiles -- that type of video would be in demand among affiliates.

    You could set up an announcement/advertisement/sub-forum at ABW offering affiliates syndicated videos -- create a program for yourself based upon syndication -- affiliates would pay a modest syndication fee for such videos to display on their sites.
    Thanks for the suggestion Rhia7!

    I would love to do that. I wonder if the forum would allow it.

    Most of the videos would be produced by our news department. I know it sounds crazy, but these videos are produced on million dollar network news sets as beautiful as NBC or ABC's best national sets with camera cranes, talented anchors and reporters -- it is the best of the best, so the quality would be superb. I'd love to show you the news-style videos we just produced for a big client -- I don't have permission to show them until they air -- but they are remarkable.

    My plan would be to sell them cheap -- and I am sure they would be enormously effective -- but I would have to hope that a lot of affiliates would buy them.

  24. #24
    What's the word? Rhia7's Avatar
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    I'm glad you like my suggestions.
    I am not a moderator here but you could discuss advertising with a moderator.
    Perhaps you could establish a sub forum here.

    If I were you/representing your company I wouldn't be too concerned about the volume of affiliates already established in a particular network/category.
    I think you should choose one based upon the angles of promotion that you could enhance with your videos. My ideas are areas of home improvement and I've noticed that there are companies that sell automobile parts -- those types can be very visual and instructional.
    Heck one of your videos could sell high quality yarn and you could have videos about knitting sweaters.
    I don't work for your company so it's not up to me to pick a niche for you.

    Pick something that you can give a creative angle to with your videos and even if you chose a category that could be considered an "underdog category" or "unexplored/unexploited niche" your videos might boost a merchant into amazing popularity. If you can tap something and make it lucrative that's what everyone is looking for
    Last edited by Rhia7; October 19th, 2010 at 09:59 PM.
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  25. #25
    What's the word? Rhia7's Avatar
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    Quote Originally Posted by Tim Pipher View Post
    Thanks for the suggestion Rhia7!
    My plan would be to sell them cheap -- and I am sure they would be enormously effective -- but I would have to hope that a lot of affiliates would buy them.
    One way to figure out if a category has many affiliates is to look at a category and count the number of actual merchant/affiliate programs under that category.

    If you create catchy videos/interesting videos and syndicate them to affiliates at a modest rate there are probably many affiliates who would be interested.
    Beware of areas of saturation.
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