LOCAL Shopping + Affiliate Marketing = New Model - Ideas???

6 replies
I'm working with a VERY cool company with an exciting model.
Since you guys are such sharp brainstormers I wanted to ask a few questions here, to see what you think.

1st of all the only really successful company I've seen so far that marries "LOCAL" and "Affiliate Marketing" well is Groupon. I know the manager of the Groupon affiliate program and feel that having a strong affiliate program, to help get the work out, is one of the biggest reasons for their success. I also think it's one of the big reasons Google wanted to buy them - because they have such a strong sales channel already in place.

(Backstory: for those of you that mainly know me from here on the offliners forum - I also own 5 Star Affiliate Programs, one of the leading affiliate destination sites and have done promotion for the Google Affiliate Network, launched the Microsoft Adwords affiliate program and the Microsoft Zune Pass affiliate program. So my affiliate management consulting background is years longer and much stronger than my Google Places background.)

So anyway ever since I got into Google Places and got addicted to LOCAL marketing, I've been looking for a way to marry the power of local with the power of affiliate marketing and was lucky enough to hook up with LuckyLocal. (no pun intended.)

I won't go into a long thing about LuckyLocal, you can see how it works in the official launch PR here. But in a nutshell, to put some context into the question I'm going to add below - it's a LOCAL shopping comparison engine that anyone can put on their site/blog to allow people to shop and compare at tons of big brand stores like HomeDepot, ToysRus, Macys, Sears, OfficeDepot and more - right in their own backyard. So think of it like an affiliate datafeed, affiliate widget or shopping mall template, only designed to pull LOCAL product results for LOCAL stores.

If you want to find out more about how it works or see the merchant or affiliate network list or anything to generate ideas - all that info is on their affiliate portal. CommissionLocal.

So anyway, here's my question. You know how sometimes you can't see the forest for the trees? I'm coming up with a brain freeze on something. I'm trying build a list of all the possible types of sites/blogs that could use LuckyLocal to monetize their content.

I have some of the obvious ones on my list like: local directories and local news sites. Plus I think it would even work well for some "niche" sites and blogs. So for instance if someone had a home improvement blog, in addition to any regular affiliate links, they could add a widget or search box where consumers could comparison shop for LOCAL inventory at local stores, as yet another income stream for the blog. Same thing for Mom blogs. Mom's that visited the blog could shop and compare the best stroller prices at the local ToysRus, Sears and Macys, etc.

Since you guys all work to some degree with local offline marketing, (plus I assume many of you are also affiliate marketers) can you think of any other good fit? Can you think of any small businesses that would use it? Or other niche specific types of sites?

I feel like I'm missing some biggies, but there are so many directions this company could focus their efforts. I'm just trying to come up with a list of all of the options, so I can help them boil it down to some of the best opportunities.

Does anyone have any other ideas for marketing or strategic relationships?
Thanks in advance for any ideas/feedback.
#affiliate #groupon #ideas #local #marketing #model #shopping
  • Profile picture of the author tpw
    I would not consider Groupon to be an affiliate model.

    I tend to think that you are going to have a tough haul trying to blend affiliate marketing with offline.

    Cost-Per-Action might make a better match.
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    Bill Platt, Oklahoma USA, PlattPublishing.com
    Publish Coloring Books for Profit (WSOTD 7-30-2015)
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    • Profile picture of the author fernandoescobar
      Hey Linda,

      Personally, I think that you are onto what will become "the" business model. Just like all the big boys, including Google, are heading to a LOCAL model, you're wise to sense this, as well.

      I've been also involved in developing local networks that are true Web 2.0 and marrying adsense and affiliate offers to them. I recently launhed a WSO showing how to develop such networks using WordPress Multisite.

      The great upsite to this, or perhaps the possibility of multiple revenue streams, is that not only can you charge for the site but you can also earn and even share affiliate commissions with the site owner.

      My newest network of Multisite blogs is only a few months old and already enjoying adsense revenue and sporadic affiliate commissions.

      Hope my 2 cents has helped. Contact me if you need further clarification.
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      • Originally Posted by tpw View Post

        I would not consider Groupon to be an affiliate model.

        I tend to think that you are going to have a tough haul trying to blend affiliate marketing with offline.

        Cost-Per-Action might make a better match.
        Actually Groupon has a HUGE, very successful affiliate program. And like I said in my opening post the best example I know of, of an offline affiliate program that really works.

        ONE of the reasons I'm so excited about this one IS SPECIFICALLY the problems that have made it hard for affiliates to make money doing offline.

        Lots of people SHOP online but BUY at the local store which cuts the affiliate out of the picture. With this program affiliates can get paid EVEN when consumers buy locally - there are a couple different ways they can get paid.

        Originally Posted by fernandoescobar View Post

        Hey Linda,

        Personally, I think that you are onto what will become "the" business model. Just like all the big boys, including Google, are heading to a LOCAL model, you're wise to sense this, as well.

        I've been also involved in developing local networks that are true Web 2.0 and marrying adsense and affiliate offers to them. I recently launhed a WSO showing how to develop such networks using WordPress Multisite.

        The great upsite to this, or perhaps the possibility of multiple revenue streams, is that not only can you charge for the site but you can also earn and even share affiliate commissions with the site owner.

        My newest network of Multisite blogs is only a few months old and already enjoying adsense revenue and sporadic affiliate commissions.

        Hope my 2 cents has helped. Contact me if you need further clarification.
        Thanks Fernando, sounds like you REALLY get it!

        Yes Google is starting to show LOCAL product inventory, so that's one big indicator the time has come for a model like this.

        Also Local.com just bought Krillion last week for several million! Krillion is a local shopping site.

        Ebay just made a move into LOCAL shopping too.

        So this really is the bleeding edge of this new local shopping frontier I think, and one of the only good ways I know of that affiliates, webmasters, bloggers can get a nice piece of the pie.

        Off for Mother's Day picnic at the Lake.

        Thanks for weighing in guys!
        Signature

        Linda Buquet :: Google+ Local Specialist and Google Top Contributor
        ADVANCED Google+ Local Training :: Also offering White Label Local SEO
        Latest Google Local News, Tips & Tricks

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  • Profile picture of the author jsherloc
    Hi Linda,

    Once again, GOOD STUFF!

    But, I'm a little confused after looking over their site. So basically, our offline clients need to setup shop with one of the major affiliate networks in order for this to work?

    So, then if our client is signed up with google's affiliate network, I would upload their products to the feed. THEN, whenever people from my client's area happen across a website that is displaying this search feed and happen to click on my client's products, I would get paid?

    I see what you mean about the benefits of using this on a local directory website or something with a LOT of local eyeballs/traffic then. If you are getting a TON of general community traffic, I'd imagine some of these people are obviously shopping locally.

    ----EDIT: O.K., I reread your post now and it is making more sense, I had it wrong I think. So this is ONLY for the big chain franchise stores then? I agree that people browse online and shop locally...but I don't know about how much this is happening in the BIG stores. Walmart, etc...most people I know order online from these places as they advertise shipping deals on larger purchases...and when people shop at walmart and best buy they tend to make larger purchases in my opinion. But then again, I'm 26 and my social circle is mostly in their twenties.

    So, I guess I'm wondering why not just use the regular affiliate networks in the first place? If I had a community directory with thousands of uniques a month, I feel that I would make more money with A BIG chain online affiliate program than this, but once again, I am probably missing something here.

    - Jim
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    • Hi Jim,

      You've kinda, sorta got parts of it right.

      One of the reasons I wanted to bring this up here is that this model is SO huge and encompasses so many different elements that I was SURE people would get confused, since most affiliates don't "get" local. So that's why I figured if I started a convo here and the guys like you that GET local and probably affiliate marketing too are even confused, then we have a lot more work to do. So it's as I suspected.

      I'm a little short on time, so let me just illustrate with a couple quick examples.

      I'm a Mom with 3 kids and no time. My stroller breaks and I need it for my 1 year old this afternoon when I go get my 5 year old from kindergarten. I can shop and compare LOCALLY on your site to find the best deal PLUS make sure it's in stock at my local store. Order online for pickup and then go pick it up half an hour later and make it to school on time.

      Or you are remodeling your house on a Saturday and realize you don't have a special tool you need to do the last part of the joband it's pretty expensive. So you want to shop and compare at HomeDepot, Lowes and Sears to get the best deal. How much time in your remodeling Saturday would you lose if you had to drive to store 1, 2, 3 to compare, and then find #1 had best price and drive back across town to that store. If you could shop and compare LOCALLY plus SEE local inventory, it could save the consumer a couple hours.

      The reason you can't just be an affiliate (well you can be, but it won't be the same) is due to the LOCAL inventory feature Lucky has. If you became a ToysRus affiliate or a Sears affiliate, consumers could click your link and buy online, but could not shop and compare LOCAL inventory.

      So the key is LOCAL. You can't just join CJ and Linkshare and find merchants that have local feeds. They don't exist. It's LuckyLocal that creates the bridge (via datafeeds and APIs) that makes it all work. So they are like the middleman between the merchant, network and affiliate that creates a special conduit so you can make money off local shopping.

      Plus it's not just big box shops. And it's not just commission per sale like it is via affiliate programs. They also feature Shopzilla which has lots of smaller brands. PLUS with Shopzilla you earn per CLICK so get paid even if someone just searches and clicks to research but never buys anything. Plus they have direct deals with more and more local merchants that aren't even in the affiliate networks.

      If I keep getting great questions like this, I'll get LuckyLocal to come over and give you guys some more detailed answers.

      I know it's still confusing. But did that help?
      Signature

      Linda Buquet :: Google+ Local Specialist and Google Top Contributor
      ADVANCED Google+ Local Training :: Also offering White Label Local SEO
      Latest Google Local News, Tips & Tricks

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      • For all the Warriors that signed up to check out LuckyLocal and everyone that has more questions. Once you sign up Michael will be contacting you to answer any questions about adding the local shopping widgets to your site, integrating the API or using any of the site templates. That way your individual needs for your distinct situation can be met and your specific questions answered.

        But if anyone has any other general questions about how to make money with local shopping, I'm available here in this thread.

        I'm also researching other exciting opportunities for generating revenue from "local".
        Will share more as soon as I can.
        Signature

        Linda Buquet :: Google+ Local Specialist and Google Top Contributor
        ADVANCED Google+ Local Training :: Also offering White Label Local SEO
        Latest Google Local News, Tips & Tricks

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