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  1. #1
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    Is Off-line affiliate marketing possible?
    Hi All,

    My name is Jonathan Treiber. I run a NYC-based start-up called OnCard Marketing. At OnCard, we're working on a bigger initiative to track the impact of online affiliate marketing initiatives (promotional advertising, direct marketing, email marketing etc.) on off-line purchases (i.e. retail, restaurants, bars etc.).

    I am very interested to hear what you all think and will start another thread on the topic of cross-channel marketing.

    QUESTION / DISCUSSION:
    1) Why would you care about this?
    2) How do you think it should work?
    3) What is the financial value you see?

    Thanks so much, let's start a discussion!!!

  2. #2
    ABW Ambassador
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    First off - welcome Jonathan.

    Help me understand what you are trying to do here. Are you suggesting affilate tracking in the bricks and mortar world? That would be neat.

  3. #3
    Online Marketing Consultant
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    Nevermind I get what you're saying I think....There is definitely an impact.

    Suppose you are a bar owner in a certain city and you find affiliates who have sites about that city, the bar owner could easily do a pay per click campaign and get those affiliates.

    Then, if the bar starts getting more and more new clientel as well as a more than average influx of out of towners coming in, it could be traced to the affiliates.

    If the affiliates were the only ones given a ticket for a discount drink, and you made the codes unique to the affiliates, you could then definitely see an impact because if people care enough, they will print out the coupon and bring it in to redeem....then again, some people don't care about the cost of a drink and don't want to look cheap if they try to impress everyone in the bar.

    Now a big issue that might come up and will be a huge downfall for the programs is that the bar staff might just throw the printouts out in the garbage and the affiliates loose the sales and commissions the owner would have to plug in and pay. there is also no way to prove the patrons brought in the coupons, unless each coupon had to be scanned in to a computer which would then read the unique affiliate coupon code ID and automatically make the sale.

    Not only would this be too expensive as the bars etc... would have to pay the networks, buy equipment to set up in their establishments and pay commissions, but it is way to easy to have employees just toss away the coupons and not have to pay the affiliates.

    There are ways to do it more effectively, but I believe that is your job to figure out.

    Anyways, welcome to ABW!
    Last edited by Liquidate; November 16th, 2007 at 01:06 PM.
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
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  4. #4
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    Ohh and if it is a bar or a club for instance, you may want to put restrictions like no restroom advertising for the establishments you have programs for. That would be to easy to get commissions and take from the current customer base. Sort of like an offline merchant parasite hahaha =0) New term ehh?
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
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  5. #5
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by JTreiber
    QUESTION / DISCUSSION:
    1) Why would you care about this?
    Easy ... http://forum.abestweb.com/showthread.php?p=762057

    BTW, aren't you the same Oncard marketing that Linkshare's Stephen Messer was promising as the Offline tracking solution for Affiliate Marketing a few years back? What happened to that?
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  6. #6
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    Thanks for the warm welcome
    You're right about the tracking issue. That's why we're not using any print-outs.

    We track affiliate commissions and sales using credit card payments data, not unique links or anything like that.

    So it does work ideally for off-line merchants brick & mortar who want to drive sales to their stores. Our affiliates would use online marketing (web / email) to communicate with consumers and we track consumer purchases at that merchant within a predefined # of return days. Affiliates then get the commission.

    Thoughts?

    There's also an opportunity over time for affiliates to send direct mail to consumers and we can still track the affiliate sales. Obviously that costs lots more money, but if the merchants are willing to fund most/all of the cost, why not...?

  7. #7
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    Quote Originally Posted by Haiko de Poel, Jr.
    Easy ... http://forum.abestweb.com/showthread.php?p=762057

    BTW, aren't you the same Oncard marketing that Linkshare's Stephen Messer was promising as the Offline tracking solution for Affiliate Marketing a few years back? What happened to that?
    Not sure, never heard this before... We weren't even around a few years ago. Funny though...

  8. #8
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    Out of curiosity, how does credit card data track an affiliate sale of it is not online? Do you pay everyone equally if there is an increase in people at the establishment?

    Or do you go by the number of clicks the affiliate sent? If that is the case, many people will find the page because of the content, but probably won't click the link unless there is a valid reason. Also, if you would be doing it on how many impressions = payment, well some of us get 10K uniques a day while others get 50. However, the site with 50 could be very targeted and actually sending in the customers while the site that has a ton sent noone.

    Plus, most people at bars do not use credit cards, unless they open a tab. Also, at restaraunts, what if people are using cash? If the bills are not high enough or the restaraunt isn't pricey, cash could be used to pay for many meals and drinks.
    Adam Riemer Marketing, LLC. Online Marketing Blog and Affiliate Management Company
    Do you need help with your Marketing or Sales funneling, write me at adamr (at) adamriemer (dot) me

  9. #9
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    great question liquidate.

    this offline network works best for large national retailers, restaurants with either a catalog or brick & mortar business, not so much the local bar/restaurant. Here's an example (although there are other variations that could involve CPC etc):

    Sample Affiliate: Ebates/Mypoints/Upromise/FatWallet
    Sample Merchant: Dicks Sporting Goods (6% affiliate commission, 7 day return window)

    1) Consumer registers credit card with affiliate rewards program. OnCard encrypts and collects data, which will serve as unique link between marketing message (i.e. action) and purchase.
    2) Ebates markets Dicks Sporting Goods offer (i.e. Thanksgiving Day Sale or 2% cash-back) to consumer
    3) Consumer clicks on offer either via email or website to activate in-store offer
    4) Consumer goes into Dick's on day 2 after receiving promotion and buys something for $100 with registered credit card- pays full price at the register as they currently do online with ebates
    5) Dick's sends OnCard credit card data associated with any registered card
    6) OnCard reports back to affiliate on consumer purchase and collects fee from Merchant if purchase within the return days window (e.g. 7 days)

    Very much same thing that happens now, where a consumer on Ebates can click on an offer for Dick's online, go to the site, not purchase, close the web browser and then return direct to Dick's website 7 days later and make a purchase. Affiliate transaction gets tracked via cookie on consumer's computer and affiliate gets credit for the sale. The way our technology works, there aren't any cookies, just a time-stamp...

    Thoughts?

  10. #10
    Analytics Dude Kevin's Avatar
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    Sample Affiliate: Ebates/Mypoints/Upromise/FatWallet
    25% of these are passable. You might see some resistance at this here forum on the rest
    Kevin Webster
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  11. #11
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    I'm very sorry for have offending. I understand what the community thinks and didn't mean to make any comparisons. I was only trying to give you a concrete example of how the process works and different types of companies involved. By no means did I mean to endorse the three companies mentioned. Quite the contrary.

    I apologize to anybody who might have been offended by my statement. For illustrative purposes, you should feel free to replace the three companies mentioned with any other more reputable affiliate.

    Humbly,

    Jonathan

  12. #12
    Analytics Dude Kevin's Avatar
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    Well, you certainly picked some winners... I need to get my head around what you're talking about here.... I'll think about it tomorrow when I'm back in the office....
    Kevin Webster
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    Kayak Fishing
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  13. #13
    Full Member iolaire's Avatar
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    This is from a personal standpoint not an affiliate response... This sounds like what rewardsnetwork.com does for dinning miles - i.e. get miles on AA, NW, United etc... My only thought is my wife and I signed up with dinning miles to get more miles - but we would not if the message was you could get 2% back. And with dinning miles you don't need to preregister for each establishment. But that getting said it might have a draw for users of the reward type sites.

  14. #14
    Believe knight01's Avatar
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    This sounds like it's going to be aimed mostly at rewards type sites. You have already gotten the general impression of what is thought of most of those. So, no need to even go into that aspect.

    As a consumer I'm not going to enter my credit card at dozens of websites, with or without encryption promises, in order to get what amounts to a coupon.

    There is also just too much danger involved that a phishing scam is being run that looks like your legit program.
    Someday starts today
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  15. #15
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    Great point. You're right about Rewards Network. From the consumer perspective with our network, consumers will register their cards, not with OnCard, but directly with the affiliate, since the affiliate is the one with the consumer relationship. OnCard will be behind the scenes encrypting the data to ensure data security.

    After that, the consumer will be able to receive offers that are redeemable when they shop with any of our network retailers by shopping in-store. With the registered card, we can track the affiliate sales and reward the affiliates.

    As you can tell, this isn't such a good fit with CPC affiliates but more so with large affiliates who have a direct relationship with consumers through a membership program etc. Also, our model is different than Rewards network in the sense that we are operating an affiliate network.

  16. #16
    Classic Rocker Mack's Avatar
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    Quote Originally Posted by JTreiber
    From the consumer perspective with our network, consumers will register their cards, not with OnCard, but directly with the affiliate, since the affiliate is the one with the consumer relationship.
    Dealkiller. Do you have any idea what can of worms this will open?

  17. #17
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    There are laws about how and why credit card info can be stored and used.
    Deborah Carney
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  18. #18
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    Please explain why. I'd be curious to hear your thoughts.

  19. #19
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    These are great points.

    I understand the issues regarding customer privacy and credit card privacy.

    So what do you think about Rewards Network and serving as an affiliate to them by promoting member restaurants for a fee?

    What are the possible issues?

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