The $100 MBA Show: Episode MBA2386 – How to Start and Scale an Affiliate Program with Matt McWilliams

Release Date: November 6, 2023

Introduction

In Episode MBA2386 of The $100 MBA Show, host Omar Zenhom welcomes Matt McWilliams, a renowned expert in affiliate marketing. Matt shares his extensive experience in building and scaling successful affiliate programs, offering actionable insights for entrepreneurs looking to harness the power of affiliate partnerships to drive traffic, leads, and sales.

Why You Need an Affiliate Program

Matt McWilliams begins by highlighting the four major advantages of affiliate programs over traditional advertising methods:

1. Pay for Performance: “You make money before you spend it. You only pay for performance,” (02:30) ensuring cost-effectiveness, especially crucial for startups with limited budgets.
2. Targeting Ease: Affiliates handle the targeting, eliminating the need for businesses to delve into complex demographics and psychographics.
3. Warm Traffic: Affiliates act as trusted third-party endorsers, providing pre-warmed prospects that convert better than cold leads. “No other form of advertising converts clicks into leads and leads into sales as highly as affiliate traffic does,” (04:15).
4. Growth Through Success: Success with one affiliate often attracts others, creating a self-sustaining growth loop as affiliates connect and motivate each other.

Finding Affiliates

Matt outlines three primary methods to locate potential affiliates:

1. Personal Network: Start with people you know who can be reliable partners. “These are the folks that are going to promote you because it’s you, because they know you, they like you and they trust you,” (05:00).
2. Observing Competitors: Analyze competing affiliate programs by signing up for them and identifying their top affiliates.
3. Google Research: Search for affiliates promoting similar products or competitors to identify and reach out to them.

Matt also mentions his comprehensive report, “Your First 100 Affiliates,” available at mattmcwilliams.com, which details 15 places to find affiliates and strategies to secure your initial 100 partners.

Reaching Out to Affiliates

Effective outreach involves two key strategies:

1. Multi-Channel Communication: Utilize various methods such as email, social media, and even physical mail to connect with potential affiliates. “You need to use various methods to reach out,” (07:20).

2. Concise Initial Contact: Adhere to the Five Sentence Rule for initial emails. “Your goal is simply to inspire enough curiosity that they write back with three simple words, tell me more,” (08:10). This approach avoids overwhelming the prospect and encourages further engagement.

Matt emphasizes keeping the initial message short and intriguing, reserving detailed information for subsequent communications once interest is confirmed.

Motivating and Retaining Affiliates

Once affiliates are onboard, maintaining their motivation and activity is crucial. Matt shares several proven strategies:

1. Co-Branding: Customize landing pages and promotional materials to reflect the affiliate’s brand. “Custom promotional graphics... increases conversions and the likelihood they will share,” (10:05) making the affiliate feel valued and enhancing brand alignment.

2. Targeted Commission Increases and Bonuses: Offer specific incentives based on performance metrics. For instance, “If you hit 100 sales this quarter or beat it, we’re going to give you a big bonus,” (11:40) tailored to each affiliate’s achievements.

3. Affiliate Community: Create a dedicated community platform, such as a Facebook group, to foster competition and collaboration. This environment encourages sharing of best practices and mutual support among affiliates.

4. Affiliate Leaderboards: Implement leaderboards to introduce healthy competition. “They encourage people to aim higher and achieve more and fight it out, be competitive,” (14:00). Leaderboards provide visibility, inspire top performers, and motivate others to improve their standings.

5. Personalized Communication: Send personalized messages rather than generic corporate communications. “A personal message can incorporate bonuses or special promotions,” (16:20), making affiliates feel individually recognized and valued.

Matt underscores the importance of these strategies in keeping affiliates engaged and driving long-term success for the affiliate program.

Host Takeaways

Omar Zenhom reflects on Matt’s insights, emphasizing the importance of nurturing top-performing affiliates:

• “Most of the time it’s usually about eight to 10 people that really move all the sales,” (16:50) highlighting the need to focus efforts on the most impactful affiliates.
• Strategies for rewarding top affiliates include personalized incentives, regular communication, and showing genuine appreciation, even through simple gestures like thank-you cards or video messages.

Omar reiterates that building strong relationships with key affiliates is essential for sustained business growth.

Conclusion

Matt McWilliams provides a comprehensive guide to starting and scaling an affiliate program, emphasizing the benefits of performance-based marketing, strategic affiliate recruitment, and effective motivation techniques. Omar Zenhom reinforces these lessons, offering practical advice on prioritizing and rewarding top affiliates to maximize their impact.

Key Takeaways:

• Leverage relationships: Start with affiliates who already trust and know you.
• Keep outreach simple: Use short, engaging initial contacts to spark interest.
• Motivate strategically: Implement co-branding, targeted incentives, and competitive elements like leaderboards.
• Focus on top performers: Invest time and resources in your most impactful affiliates to drive significant sales growth.

For entrepreneurs looking to expand their reach and drive sales efficiently, establishing a robust affiliate program as outlined by Matt McWilliams can be a game-changer.

Notable Quotes

• “You make money before you spend it. You only pay for performance,” – Matt McWilliams (02:30)
• “No other form of advertising converts clicks into leads and leads into sales as highly as affiliate traffic does,” – Matt McWilliams (04:15)
• “These are the folks that are going to promote you because it’s you, because they know you, they like you and they trust you,” – Matt McWilliams (05:00)
• “You need to use various methods to reach out,” – Matt McWilliams (07:20)
• “Your goal is simply to inspire enough curiosity that they write back with three simple words, tell me more,” – Matt McWilliams (08:10)
• “Custom promotional graphics... increases conversions and the likelihood they will share,” – Matt McWilliams (10:05)
• “If you hit 100 sales this quarter or beat it, we’re going to give you a big bonus,” – Matt McWilliams (11:40)
• “They encourage people to aim higher and achieve more and fight it out, be competitive,” – Matt McWilliams (14:00)
• “A personal message can incorporate bonuses or special promotions,” – Matt McWilliams (16:20)
• “Most of the time it’s usually about eight to 10 people that really move all the sales,” – Omar Zenhom (16:50)

Resources

• Matt McWilliams’ Website: mattmcwilliams.com
• Affiliate Report: Your First 100 Affiliates available at mattmcwilliams.com

This summary provides a comprehensive overview of the key lessons from Episode MBA2386 of The $100 MBA Show, offering valuable strategies for entrepreneurs to effectively start and scale their affiliate programs.