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November 26th, 2013, 11:06 AM #1Need some forum feedback!
I am part of an advertising network that has a self serve platform.
We are debating starting an internal monetization team to work on segments that are undervalued. This being said, the "floor prices", which are based on fair market value, will be raised due to our work which is great for our inventory partners.
Wanted to hear any opinions on affiliate backlash!?
We ARE making it harder for them but at the same token, need to make sure there is a fair market value for the inventory to keep the traffic flowing.
Should we go forth with this initiative or should we focus our efforts on getting more affiliates in the door and providing support!?
November 26th, 2013, 11:17 AM #2
I have always found without fail that internal segmentation fails spectacularly to deliver because those you employ are just "doing their job" and are not interested in making a success.
I will give you one example of a global multi-billion dollar company I do a lot of marketing for.
In the UK I manage their entire digital online activity, providing a range of segments, working with other divisions within the company, across broadcasting, web, media, email, search, social, tele-ordering. The UK market is 1/6 of the potential US market, yet all my segments outperform the US segments by on average 200%.
So why such success. Well it's simple. I am results driven and profit by performance. The more you earn the more I earn.
Now compare that to the US market where all segments without fail are internally driven. They significantly underperform and in fact my UK segments are an example of how to do things right, that all those employed in the US segments copy my (and my company's) activities slavishly, albeit without as much professionalism.
November 26th, 2013, 12:04 PM #3
Thanks for the feedback!
Morale of the story? Focus on getting more affiliates in the door or change compensation structure for "employees"?
November 26th, 2013, 12:19 PM #4
I am naturally biased as my company that I own makes money (and my income) from being a provider of outsourced services.
If you are going to do the whole internal metric thing then let's shake things up and get your Board to have realistic expectations.
If you want the best then recruit the best and PAY the best. Yes have segmentation targets but again, be realistic and research the crap out of each segment before introducing an arbitrary we want X% increase this quarter/bi-annual/annual.
Pay some performance related pay, perhaps in stock.
You want to know the real secret of success? Forget the books and study a retailer in the UK called John Lewis. Now ever since they were formed, all employees get a slice of profit related pay on top of salary and the entire workforce works damn hard to maximise profit because it's in everyone's interest. The result is a typical store clerk will get a bonus once a year equal to an entire years salary! This applies to all staff employed.
So don't be shy in rewarding success. Recruit the best you can with an attractive salary and benefit in the workplace plus a performance bonus structure that will make their earnings rock. Make the working environment the best. Notice how many media companies for example have relaxation and de-stress areas like games rooms, soft walls and lounge about areas to network and team build? Make the staff feel part of a team and not have to worry about Friday afternoons (the UK doesn't fire on the day) and pamper them a bit. You can demand higher standards and profits and get better performance if the staff realise you care, that they can earn more and that it's rewarding working for you.
November 26th, 2013, 12:21 PM #5
To answer the first bit, have better strategic partnerships with affiliates. For that you need outsourced experts because we know more about the industry and who to work with than any employee just hired will ever know.
November 26th, 2013, 01:27 PM #6
Sounds like an interesting take on the matter.
I am also guessing that by implementing this type of strategy, you must implement a high firing rate as it should be a coveted position that people need to fight to keep.
What would be the best way to go about finding professionals to take a position like this?
November 26th, 2013, 02:18 PM #7
There's no need for a high firing rate because you work as a "team" with a handful of people co-ordinating the strategic thinking. As I said it's not a case of setting a target but rather one of research and adjustment and being pro-active.
As for finding people of a suitable calibre you can employ direct, you have to remember that the best are secure where they already are. Hiring them with a high fire rate policy isn't exactly going to induce them to commit to leaving any company where they have made a profound impact.
There are companies which can advise on recruitment and of course if you attend affiliate expos and scour this forum, especially the affiliate manager and OPM sections, you may find people for certain segments who use this forum.
November 26th, 2013, 02:21 PM #8
I'll give you one very small hint for future recruitment. Look for people who understand Deming's Principals. Dr Deming was a genius in the 50's and his various points on marketing are valid today online and the best companies remember his overriding assertions on price, customer care and quality. Find people who adhere to those crucial tenets and you have the beginning of a team.
November 26th, 2013, 04:33 PM #9
November 27th, 2013, 12:15 AM #10
If it ain't broke don't fix it. I teach his Principals to the new crop of AM's as part of a brushing up of skills when asked to come in to companies (and agencies), as part of understanding the appeal of marketing to the consumer.
Customers like a voice (they can understand) at the end of a telephone and be able to order (up-sell,cross-sell), they like to have a perceived bargain without skimping on quality and they want to feel special (the Prisoner - I am a name not a number). Above all they want you to have time for them. The same applies when an affiliate manager addresses an affiliate. How often have affiliates complained about not being listened to by affiliate managers?
Deming's Principals are very valid in digital marketing and in mainstream marketing in general. From the manufacturing process, to quality assurance, to understanding the consumer and your demographics to presentation of product or service to closure of the transaction and the after care service.
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