Affiliate Summit…random notes from Michael Sanchez’s keynote. This is not verbatim and should just be used as a guide. Contact Michael for exact details.

Intro
-Michael started Clubmom in 1999. Andrew Shue (Melrose Place) also involved.
-Raised more than $50m in VC
-Bulk of business for first 5 yrs was a loyalty program - moms would shop, fill out surveys, get points and redeem them. Added 100s of millions of dollars in revenue for our partner companies. Over the last couple years, we’ve shifted online - community/social networking. A couple months ago we launched CafeMom - social network for moms. Growing like weeds.
-Shawn Collins (head of Affiliate Summit) ran the original ClubMom affiliate program. Paid affiliates about $5m throughout the years.

Web 2.0
-consumer is completely in control
-want to create and interact with their media
-must have a great product that consumers are excited about
-go fast, try stuff, repeat, iterate

Marketing 101
-reach the right person at the right time with the right message
-awareness –> consideration –> qualified lead –> transaction –> loyalty/usage

Affiliate
-pay per lead - LendingTree - one of the reasons it works is that they’re providing a lot of data to the lenders
-sites like Upromise doing really well for marketers/affiliates
-social networks - huge opportunity
-pay for performance is the holy grail, but too many affiliates are not driving quality traffic, sometimes affiliates/marketers are not aligned on true metrics

CafeMom
-social network for moms to connect with friends - old and new, express themselves
-new members are averaging 100-200 pv/member results in $25-$50 in revenue/yr

Conclusion
-consider testing several performance structure and incentives
–check out what Glam.com is doing
-get more data

$1m Challenge
-Will pay an affiliate $1m by Mother’s Day if they can drive true performance
–looking to test program for 2-3weeks
–might be for qualified leads, page views, provide more data, people who return within 72hrs