Affiliate Playbook
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3 min readOct 26, 2023
The Core Four: Warm Outreach; Post Content + Monetize Content; Cold Outreach; Make Ads + Monetize Ads
1. The Core Four 1. Lead Magnet I 2. SEO I 3. Your First 5 Clients I 4. Content Marketing I 5. Cold Outreach I 6. Paid Ads I 7. More, Better, New
2. Lead Getters 1. Referrals I 2. Employees I 3. Agencies I 4. Affiliates
3. Excecution: Open To Goal, I $0–$100M Roadmap
Quick Story: The Power of Persistence
- Alex Hormozi’s journey with his supplement business for gyms is a testament to persistence.
- Despite a massive $3M launch, the initial weeks were met with silence.
- It wasn’t until the 4th week that success knocked, with a staggering $100,000 in a single day.
- This turnaround was largely due to gyms reselling the supplements.
- For an intimate look into Hormozi’s thoughts and concerns before the launch, listen to Episode 98 of “The Game Podcast” titled “I Remember.”
Understanding How Affiliates Work: The Lead-Generating Allies
- Affiliates are more than just referrers; they are independent entities that actively promote your products to their audience.
- They serve as lead generators, expanding your reach and doubling your marketing efforts.
- This symbiotic relationship is crucial for mutual growth and market penetration.
Building an Affiliate Army: A Step-by-Step Guide
Step 1: Identifying Your Ideal Affiliate
- Your ideal affiliate should have a customer base that mirrors your target audience.
- Analyze your best customers’ buying habits, frequented locations, and interests to identify potential affiliate businesses.
Step 2: Crafting a Compelling Offer
- Market your affiliate offer with the same rigor and creativity as any of your products.
- Emphasize the potential for new revenue streams and business growth.
Step 3: Qualifying and Onboarding
- Establish clear terms and conditions for your affiliates.
- Aim for quick wins to keep them motivated and engaged.
- Consider converting them into customers to deepen their understanding of your products.
Step 4: Structuring Compensation
- Clearly define the actions that will trigger compensation.
- Implement a tiered payout system based on performance.
- Use products as rewards to create a sense of value and loyalty.
Step 5: Launching and Promoting
- Adopt the “Whisper, Tease, Shout” method for a phased promotional approach.
- Start with curiosity, build interest, and finally drive action.
- Use this method to create a buzz and maximize launch impact.
Cost and Returns: Measuring Affiliate Success
- Assess the success of your affiliate program by comparing the cost of acquiring an affiliate to the gross profit from the customers they bring.
- Strive for a favorable Lifetime Gross Profit to Customer Acquisition Cost (LTGP: CAC) ratio.
- Enhance this ratio by reducing the cost of acquiring affiliates, increasing the lifetime value of customers they bring, or both.
Conclusion: Nurturing Affiliate Relationships
- Treat your affiliates with the same care and attention as your customers.
- Focus on building long-term relationships with affiliates who consistently deliver results.
- Use the success stories of your top affiliates as lead magnets to attract and inspire new affiliates.
Action Steps:
- Launch a targeted campaign to recruit 10–20 affiliates.
- Use their feedback to refine your affiliate program, addressing any issues in your offer, terms, and strategies.
- Scale your program by leveraging successful affiliates’ testimonials and results as powerful lead magnets.
