Thanks dude. Howdy Affiliate World.
So I’m closing out the show. I only have 15-20 minutes to talk to
you guys today. I’ve got a really dope slide deck that is in front of me.
Maybe if I click this, it starts. Here we go. Get ready. So my topic today is performance marketing is about to explode, here’s what you need to know.
Chad help me put this together. The guy put this whole show together. I think
it’s an awesome topic. It’s brought to you by your friends at GiddyUp. If you
guys don’t know, I’m one of the co-founders of GiddyUp as Heath mentioned, and that’s
about as much as I’m going to talk about myself. So it kind of posed the question
to me, when I said I’m going to talk about the performance marketing is about
to explode. Are we going to blow up into a million pieces or are we about to
blast off to the next level? Who thinks that we’re gonna blow up?
Nobody? Blast off? A few, okay. I don’t even have the crowd yet. So let’s go through the scenario number one.
Are we about to blow up? Affiliates of the world. Robots are
coming to take you out and there’s nothing you can do to stop them.
Who feels like this? Nobody? Somebody. Let’s talk through this real quick. The first
scenario is the smartest and best funded technology companies in the world are
currently fighting against you every day. If you’re not providing value to their
consumers, then they’re looking for ways to get you to stop doing what you’re
doing right. That’s actually happening. It’s happening at a high rate and both
Facebook and Google are investing hundreds of millions of dollars building
artificial intelligence to stop you from doing things that hurt their consumers.
CPA networks are going out of business at an ever-increasing rate.
Marketers are still making money but it’s harder and more competitive. We also have
this scenario where the number of marketers is growing. These shows are
growing. The number of people in the performance marketing space is growing,
but the number of opportunities to make money isn’t growing at the same rate.
So if we want to go this scenario and make the argument that a performance
marketing is about to blow up into a million pieces, these would be
some of the things that I would use to make that argument. Now I don’t think that.
I’m gonna go through the other scenario. So are we about to blast off?
I think the answer is pretty obvious. We’re the best sales people on the internet.
Of course we’re about to blast off right. Let’s go through this.
By “the best sales people on the internet”, I mean that we’re the people that are
the best in the world at connecting internet users with the things that they
want and need. So I’m not talking about the best person that just like to sell
stuff for the sake of making money, it’s about the ultimate goal of being able to
connect people with the things they want and need. That’s the value that we
provide to the world and if we embrace that, I think it’s easy to see that we’re
gonna blow up. We’re gonna take this thing to the next level and I think it’s
self-evident. Let’s think about this. Being the best is in our nature. Why do I
say that? First thing. We only make money by profitably selling someone else’s stuff.
That’s like a really big value. Most people don’t understand
the level of this value, but if you work with business owners, like
people that run really big businesses, corporations. Running the business,
operations, finance, these things are not very hard. They’re well thought out, but
how to profitably scale customer acquisition, probably one of the most
difficult things in business and yet it’s the thing that we do every day and
we’re great at. Second thing is we spend our own capital to promote other people’s products. What? It might seem normal to us, but to everyone else, that’s crazy. it’s like legitimately, people are like,
so what’s the catch? Every time we mention this. The losses we incur, they’re
what teach us how to perform. There is no university of performance marketing. The
tuition you pay is the money you lose figuring out things that didn’t work.
This is actually one of our biggest values and why other people who
do advertising and do it well, have a hard time doing it as well as we do. It’s
because they don’t feel those losses in the same way and they don’t learn those
lessons in the same way that we do. The next is that we’re part of a feedback
loop, a very valuable feedback loop to people that make things. We know what
consumers want, and after they buy it, we know what consumers like. Does anyone
resonate with this stuff? Does anyone feel like they’re the best sales person
in the world? A little? Okay. So this is why I believe
that we’re about to blow up, but I’m gonna go through this a little bit more.
This is a really interesting slide. Afffiliate marketing right now is said to
be about $12 billion. Before I go through the numbers, I’ll give you this little
note. This data is compiled from a mix of reports. They were like three
reports I grabbed from World Ban,k Forrester, and Rankin, and I also
approximated them for ease of consumption. So if you want to argue with
the numbers, just go look on the internet. Look them up yourself, but we’re at $12 billion,
global advertising is around $600 billion, ecommerce is
at $3 trillion. This is 2019. Does that help anyone see the
scope of this $12 billion sounds like a lot, but you are there. We are all
right there, and if you take this a step further, advertising, ecom,
and then global GDP, you’ll see that even ecommerce is just a
small drop in the bucket of all the ways people make money today in the world.
Making money on the internet is very sexy and awesome and we all want to
do it, that’s why we’re all here but it’s a small part of this bigger ecosystem
that’s playing and I just want to show this to you to help you see the size of
the opportunity. The next piece, I hope I don’t get too nerdy for you guys, but
this is actually I think a really critical piece to understand the whole
future. The cumulative growth 5 year comparison of these four industries.
So on the bottom you’ll see that we have global GDP, global advertising, global
affiliate marketing, and global ecommerce. That’s in that slide.
So this is year over year, five years, and the things that stand out
to me most are this. Number one, everyone in this room
that is an affiliate marketer legitimately participates in ecommerce.
I know people like to think about GiddyUp, oh we’re doing a new vertical,
we’re doing ecom. If you sell something on the internet for a living,
you do ecommerce. That’s the definition of it. So when we say
we grew 12%, that’s commissions paid. When we say ecommerce, that’s
stuff we sold. We’re participating in both of these markets and
they’re growing at 12 to 20% and look at this, that means that affiliate
marketing is growing three times faster then global advertising is as an entire
industry. That includes Facebook and Google, like global advertising, and
ecommerce is growing five times faster than all of the other industries in the world.
That’s global GDP. Does that make sense? We’re literally on a rocket ship
that is growing three to five times faster than any other industry,
all the industries combined. That’s how much faster we’re growing right now.
The other takeaways are that affiliate marketing is projected to double.
When I got into it, it was $7 billion, five or five and a half years ago,
we started GiddyUp. Now it’s at 12.
We’re projected to double again and be at 25 in another five to seven years.
I think we can do it faster. That’s what the past data tells us
and then this one is really even more interesting. $5.8 trillion by the end of 2021. So in two years from now,
they think ecommerce is going to go from $3 trillion to $5.8 trillion. So it doubled over
five years. We just saw a 100% growth. Five years, doubled. They think
it’s gonna double again in two years. Anyways, I want to make some of
that money. Don’t you guys? The other thing that you might not see when you
note this, is like if affiliate marketing is going to grow 12% next year and
this year it was over $12 billion How much new money is gonna be
in affiliate marketing next year? Can anyone do math real quick and tell me? The new money will be $1.5 billion.
So our our industry is going to make $1.5 billion extra that we didn’t make this year,
next year. Who in here is gonna make a piece of that? Just my team? Cool. I think we’re gonna blast off together. This is my conclusion in my hypothesis.
I’m gonna go through a little bit of time talking you guys through how
we’re gonna do this, because that’s the most important thing, but I wanted to set
the stage so you guys know. I don’t know how many of you read the letter, my open
letter that we wrote with the founders, but this was really the whole opportunity.
To help you guys see that really, the scope of the
opportunity that performance marketing provides to the world and the value that
we provide and how we’re going to achieve it together.
So yeah. I think we’re gonna blast off together, but how are we gonna do it? Glad you asked. So I think the first thing
we need to do is to know ourselves. That the value that we provide to the world.
Why would anyone in the world, who wants to sell things, work with us? We are the best at, in my opinion, number one, figuring out and monetising traffic sources.
How many people here agree with that? I know most people here were
the people that figured out Facebook, figured out Google, figured out Taboola.
We’re the people that did that years ago. There’s a lot of people now
jumping onto it, but we’re the people that cracked new platforms.
The next thing that we do is we connect products with audiences and buyers and we’re very,
very good at finding who should we sell that to and making it work right.
The next thing that we’re really good at obviously is generating massive amounts
of revenue and massive amounts of awareness for brands. I think that’s like
something that people – obviously, we know how much revenue we drive for brands, but
I think we’ve often forget how much awareness we drive because for every 100
sales we do, how many thousands of people did we serve an ad to right? Then you
have the next piece. We’re the best at scaling customer acquisition. We’re great
at scaling it across traffic sources, across geos, across demos.
This is what we’re really good at. I don’t know if anyone will argue it with me in this,
but I think this is like our prime value, and the next is we’re really,
really good at optimising ad creatives and sales funnels to lower
the customer acquisition cost. Because that’s the only way we make money, but if you
ever talk to a legitimate business owner the things they care about is
what’s your customer acquisition cost and what’s your lifetime value of your
customer? So this is a really key part to every business in the world
and especially ones that want to work online. So the next thing is you need to
develop your robot-friendly skills. Remember how I said that robots are
coming to take you out? It’s only if you don’t provide value to the space.
There are skills that you have and I have and we all possess as performance marketers
that if we refine, there’s no robot that’s gonna take us away. In fact, they
help us do a better job at these things, and so I want to walk you through these
things because I think knowing yourself like what the value you provide is,
and what you should focus on, what skills you should refine,
this is what’s going to determine who is the most successful
this year, next year, and years to come. So first thing I think you can be focused on is developing creative ad development and angle testing. Making great ads that work and testing
all the different angles you can. I know a lot of people here,
they test images and they test headlines and test all sorts of things but testing the angle is
really often where you find the biggest wins, especially really early on when
you’re doing this thing. Getting new products and new categories working.
This is the way that we expand and go from $12 billion, take a bigger piece of that $3 trillion,
as we get out of the things we’ve been doing and we expand to new
things that people aren’t doing right now. Sales funnel optimisation. It’s kind
of obvious, but once you have something working, why not make it work a little better. Developing strong partnerships. I imagine that’s why most
people are here, but I think that this is another thing.
Performance marketing isn’t done in a vacuum. The value of being able to make money on the
internet is not having to do all the work yourself. You don’t that make the
product. You have to invent the product. You don’t the source the product.
You don’t have to do logistics. You don’t have to do for global fulfilment.
You don’t have to do customer support. You have to do this stuff. This is your stuff.
This is the stuff that you should be good at. The next thing is cracking ad platforms and
ad units. I’ve never met anyone so good at this, as a performance marketer.
Affiliate marketers and performance marketers are really good at saying, hey
there’s new eyeballs? Let’s make some money! Next thing? Scaling campaigns
across geos and demographics. I’ve already told you that but the real
thing is, I’ve also never met anyone when you get something working in one
geographic or one target person, marketers are really good at spreading
that out and saying, hey if US buyers are buying this, who else would want to buy this,
and bringing it to those places. Managing profitable ad campaigns
for multiple brands. Again this is really hard,
like some people that work inside of a company or work inside of an agency,
they’re able to have success with one or two things and then they point back to
that success to tell everyone why they should work with them.
Performance marketers are really good at making things work across lots of things and
having stories where they’re selling things across verticals, across brands,
across all sorts of things. Diversifying revenue to support scaling your organisation. This is something I’ve seen some people be good at and some
people not be so good at, but being able to manage your money and diversify how
you make money in such a way that you can stably grow your organisation,
so that you can accomplish more and add more value back because frankly, this is
a lot of stuff to do by yourself. If you’re trying to do that.
And then finally, building engaging and monetising your audiences of buyers.
There’s so many people that do so much work to get clickers and to get
buyers and that’s the end of it. There ROAS is all the money they make. They’re not making money from these audiences. So over the next year, next two years,
three years. Rather than going too far because I’m a future guy,
I like to think about the future. These are the things that I think that
if you’re developing, if you’re doing, I think you can call yourself a
performance marketer legitimately and I think that the world is very, very bright
for all of us that band together and do these things. So I’m gonna close pretty quickly cause I’m closing the show and I don’t
want to take up too much time. I would love by the way, to go through this whole
list with you guys in detail, and maybe in the future, I’ll have the opportunity
to do that but what’s this hippie talking about? Right? You guys see
me walking out with long hair and no shoes on and I bet you,
everyone’s here is like, this guy’s just full of sh*t and he’s trying to sell something. You’re right, I’m trying to sell you on
being bigger and being better and becoming the full thing that we can become, and if you don’t align with that, that’s
cool, but I believe that the performance marketers that are gonna have the most success, as I said, are gonna be the people that do these things. I’m boiling it down and down,
if you guys haven’t noticed. Number one, you need to see and believe in the
opportunity. I showed you guys a couple things to show the scale of the
opportunity, why I believe we’re gonna take advantage of it, but you got to see it yourself.
I can’t make you see it and you have to believe it,
because if you don’t believe it then it’s not gonna happen for you that
doesn’t mean it won’t happen. You need to develop the right mindset.
When I said know thyself, that’s what I was talking about. Who are you? What are you about?
What are you good at and what value do you provide to the world?
Sharpen the right set of skills. If you’re really, really good at
hiding things from Google and Facebook, that might make you money today,
but that’s the kind of stuff that robots are coming to take out. Not people that
are really good at finding angles, that sell products, that actually helps
Facebook and Google make money. So fight with the robots rather than
against them, and by developing the right set of skills. Surround yourself with the
right people. I mean this is kind of a no-brainer and any leadership course
you’ll take, will tell you that it’s really important. You’re a product of the
five people you spend the most time with. You need to surround yourself with the
right set of people. Lastly you need to do the most important work every day and
you need to define what that work looks like. I’m gonna break these down into
five words so you guys can even boil it down further. Vision. You need to have vision.
I have vision. I want to generate billions of dollars from performance
marketing, like that’s what I want to do, and that’s what I’m on a mission with my
team to do regularly, to do that for performance marketers that see this
opportunity and want to take part of it. Mindset turns into purpose, like why are
you here and what value do you provide to the tribe? If the world
was a tribe, what does the performance marketer add to that tribe because I
think they add a ton and I’ve already shared that with you.
Sharpen the right set of skills. Value. You know this is what you do that the robots don’t do,
and why you’re going to continue to exist, and why we’re not going to have
our jobs automated out by robots in the future while a lot of other industries
are in the next two decades. Partners. I know you guys probably
don’t know that we call it performance marketing
rather than affiliate marketing, at least for ourselves.
We think performance marketing is a sub-sect of affiliate marketing. There are
people that get links and make money, and then there are people
that do all this stuff I talked about. We’re a smaller sub-sect of
a larger group, but partnership is a key thing both in affiliate
marketing because affiliate is a relational word. It means that
you’re affiliated with someone else and so this idea of partnership, finding the
right people to do business with, both in terms of your personal life, your
business life, the brands you sell, everything you do is super critical to
having success, and then yeah, doing the most important work every day.
That’s focus right. Focusing on what actually matters and is
what going to drive success for you and so this is a high-level talk. It’s really
designed to inspire you guys. I hope to take advantage of the opportunities that
are presenting themselves in 2019 and 2020. Thanks for listening. Hope you guys
have a great Q3, Q4. See you guys around. Big round of applause. Thank you so much,
Topher that was exactly what we were looking for to close off this show.