Online computer retailer Cyberian Outpost was founded in 1995 and has been traded publicly (under the stock symbol COOL) since July, 1998. Their revenue-sharing affiliates program, launched in December, 1997, has attracted over 7,500 affiliates with a dual commission offer (3% cash or 5% store credit). In the first six months of 1998, Cyberian Outpost saw net sales of $28.6 million in computer hardware and software from the Web.
On the anniversery of the launch of their affiliate program (as COOL gets hot on Wall Street, with shares up 153% in the month of November), ReveNews sat down with Alissa Perry, Cyberian Outpost's Affiliate Manager, to learn more about what works in revenue-sharing for Outpost.com.
ReveNews: How does your affiliate program fit into your overall marketing plans?
Alissa Perry: We look to the Affiliate Network as the ideal model for low customer acquisition cost and high brand recognition. Our affiliate membership is made up of a wide variety of sites -- everything from personal homepages to small and mid-size company sites. We have experienced a 2500% growth in affiliate sales in the last six months.
RN: What types of websites show strong results participating in your program?
AP: Our most successful affiliates are product reviews sites, Macintosh-related sites and direct computer shopping sites.
RN: How much commission do your high-producing affiliates generate?
AP: Exact numbers are not something that we generally publicize, but I would say the average high-end commissions hit in the $150 to $200 range in any given month.
RN: What types of activities do you find the best results for your affiliates?
AP: A combination of banner ads and content containing text links seems to be the best formula for visitor and sales generation. Providing visitors with enough information to make an informed decision is still the most powerful selling tool out there.
To add to the features for affiliates, we are now pushing the idea of virtual storefronts (hosted by LinkShare) that we can co-brand for affiliates. These allow us to maintain a page with very targeted products that they use a simple link to get to and we do the rest.
RN: Among your affiliates, what's the most overlooked method for increasing sell through?
AP: Proper placement of key links on their sites -- dropping a banner in the midst of all kinds of other products/stores. Not providing proper categorization of products offered on their site (not just for the Outpost, but in general).
RN: What advice would you give one of your affiliates if they don't generate any sales commission in their first few months?
AP: We would take a close look at their site to see where they placed the links to us and to see where the links take people. Then we would suggest possible movement of the link or change in type of link. If warranted, we might take it to the next level and discuss their demographic and suggest specific products they might want to promote.
About the Author Alissa Perry is the Affiliate Manager for online computer
merchant Cyberian Outpost, where she began
working at in March, 1998. She has been involved in the
marketing/customer service aspects of the high tech industry for
most of her professional life.
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