Advidi. Leading the affiliate marketing world by example. Part II

Advidi. Leading the affiliate marketing world by example. Part II


What are you seeing on the screen behind us. This is one of the first logos in the world
created by an algorithm. How do you create something so unique that
a selected group of people would like to have it but something that you cannot afford it
no matter how much money you have. Are you trying to create some kind of Advidi
community in there with all your affiliates? Absolutely, absolutely. This is Mark. Yeah, I wanted to introduce you to Mark. Hi, Mark! Nice to meet you. I’m Roman. Mark is our VP of Global Strategic Partners
and he will also have a quick chat with you about… Business side of things. Oh yeah, very much. I only ask this question because it’s public
information. Your annual revenue is estimated to be 350
million dollar. Is it a correct assessment? 350 million dollars. Really? It’s…. Yeah. I actually went to my old university a few
months ago and I told my professors, I said, like, I don’t know why you guys don’t have
a course in affiliate marketing? We usually provide prizes from our guests
and heroes. So, what do you guys then give us as a prize? Okay, Mark, can you, first of all, tell me
what you are responsible for here in Advidi? Sure, sure. So, I’m the VP of Global Strategic Partnerships,
which basically means that my responsibility is to go out, represent Advidi and look for
the next big partnership for the company in order to grow. That can be with advertisers that we currently
work with and just, like, take the relationship to the next level, have maybe discussions
about where we can intensify the relationship in terms of maybe exclusivity or different
billing model, maybe go on RevShare with them or I’ve even spoken to some of our partners
and see whether we can maybe take equity in their company, to really say, like, “Okay,
we are committing to you as a partner and vice versa,” so… So, you sometimes invest? Yeah, yeah, yeah. Well, you’re kind of… It can be, it can be with… It doesn’t always have to be with people,
it can be with… Or it doesn’t always have to be with money,
it can be with people, it can be with time, it can be with intent but it in any way… I take a wave, I focus on my piece of the
industry that you can’t really expect from a normal account manager that is dealing with
the day-to-day operations. I try to have a bit of a higher overview on
it, and the advertisers are basically the first layer, but there are many other companies
in our industry that help advertisers, that help affiliates, that make the whole ecosystem
work and we can have beneficial relationships whether it is referrals, whether it is partnerships,
whether it is even joint ventures, it can be. How many advertisers do you work with directly? Uhh, by my latest recollection, I think that
in Advidi we have somewhere around 1600, maybe 1700 advertisers, yeah. But, of course, that’s not all active and,
like, and also, yeah, your 80/20 rule, of course, your 20% delivers 80 percent of your
traffic. So, yeah, there’s definitely a core group
that is going to give us the bulk of our revenues, yeah. And in terms of affiliates, how many? A way more. I think we have over 3,000 now. So, yeah, yeah. 3,000? 3,000, yeah, yeah, but these are, you know,
these come and go. It’s… You kind of have to, I mean, there are very
specific specialists that can click on to, like, very specific campaigns. So, yeah, you kind of have to have that spread
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icons. Try it out for free. Find details in the description. As far as I know, it’s not your only office. You have recently opened a new office in the
States if I’m not mistaken. Can you tell me how many offices do you have
in total? So, we… both of them very recently. So, we have the majority of our people here
in Amsterdam in the building we’re sitting in now. We have about 70 people I think here and we
opened up two new offices. So, one of them is in Puerto Rico, which is
a territory of the United States and another one is in Bangkok in Thailand. All right. And the office in Puerto Rico has a few pros. Basically, it’s time wise. It’s in between West Coast US which is always
nine hours behind us, which is a hassle to deal with. So, that’s nice. And they’re halfway so they can also talk
to us and them in a day’s work. Puerto Rico has been a very good place for
finding advertisers. They have a very favorable tax environment. Therefore, guys that have the money and the
will, they move their business and sometimes even their family over to Puerto Rico in order
to get that favorable tax benefits. It’s only, I think it’s only, like, 4% they’re
paying, so… It’s good. Yeah, and therefore it kind of creates this
island full of, like, really you know, big hitters. And I think that we as a network have found
our place there. And I think that our representatives that
are living there are not too angry about paying 4%. I think, yeah, in Amsterdam we pay a little
more, yeah. And the Bangkok side, that’s our daughter
company called Bidmath. It’s fully focused on programmatic media buying
and… That is also a new project that you have recently
launched, right? Yes, yeah. Can you tell me a little bit more about that? Sure. So, I think it was, like, year and a half
ago we started conversations with KK who is now our CEO of Bidmath in Asia. And he was supposed to come on board here
in Amsterdam and help us with programmatic media buying. And it took off in such a way, and we saw
such good results that we saw, like, “Okay, listen, we really need to give this a lot
more attention and time and maybe even a dedicated office.” And his speciality coming from TradeDoubler
in Asia was always there, and he said, like, “Let me go there, let me do my thing. I know the people there, I know the culture,
I know… I have a lot of clients there.” And then, yeah, we just went for it. It’s also for us… We have a whole bunch of clients that are
of course there, the show, a big show every year in December that is in Bangkok. So, we’re like, okay, then it would be nice
to have Amsterdam and then, you know, before us in time we have Puerto Rico and after us
we have Bangkok. I think it’s a great spread to be a global
company with, like, three offices in different time zones. So, yeah, very happy with it. And what does a programmatic media buying
company do? Sure, yeah. So, programmatic media buying is just an engine
to drive traffic and it’s a way to get traffic, it’s a way of bidding on per impression. And I think that… What the strategy is to really go for that
is to not only have the current verticals that we are very familiar with, dating, nutra,
sweepstakes, casino, but those guys actually are focusing on stuff like banks, on travel,
on fashion, on telecom companies, on e-commerce. So, these are real brands that want to know
exactly, you know, where their brand is going to be, how it’s represented, and the best
way to do that is to have control over where you’re going to put that ad. So, it’s not really suited to put in the affiliate
network where we have to give it again to affiliates. That’s more for brands? Yeah, it’s much more for brands. And I think it’s, for us it’s also a great
way to further our company, to really see if we can… what we’ve done in our current
verticals to also do it in like these big branded campaigns. Is it a part of your diversification strategy? Oh, for sure, for sure. I think that our dream is to, you know, to
really be in that landscape of, to compete with media agencies, to out-compete media
agencies. I think that they… the media agencies of
the past are just stuck in their ways of you pay for… They are in the past, as far as I can see. Oh, the thing is, like, you pay for a really
good name, you know, you pay for a high-profile agency to take your campaign and do something
creative with it. But really it’s not performance-based, it’s,
yeah, you know, you’re gonna be in a billboard. It’s blowing money away. Yeah. The billboard on the side of Times Square,
okay, it’s amazing, great brand exposure, but how much really does it give you in terms
of sales? And I think that that’s where we’re coming
from. So, we’re all about performance-based, we’re
all about measuring exactly. If you put a dollar in us, you get a dollar
ten back, you get a dollar fifty back, what is, you know, what is measurable and that’s
I think… How does it work for brands like banks, for
example? What is in action? Well, it can be, for instance, somebody who
applies for a new credit card. Mm-hmm. So, a bank knows very well that somebody who
applies for a new credit card, well, doesn’t make anything now, but on average, a new credit
card subscriber will eventually spend X on us and maybe even can be upsold to a mortgage
or a different kind of loan. So, yeah, they’re very keen on getting the
right kind of traffic in. And for us it’s also about, like, monitoring
what the value is of what we bring. I wanted to ask you that. Is that hard to build a sustainable company
in a very unpredictable industry such as ours? What are the major things to consider? I think that… It’s a good question. One of the things we felt is very much to
focus on your own path because around you everything is changing superfast. It’s very easy to get distracted and think,
like, hey, this is a new thing and I got to jump on that, but more focus on the engine
of the car, that you’re saying is that, okay, what is really going to drive us forward,
what is really efficient. And let’s say that tomorrow we do see a good
opportunity this machine can be applied to that. If tomorrow it would be, I don’t know, like,
gummy bears online, then we can promote gummy bears online. It doesn’t matter really what the product
is, it’s about that the engine can really deliver quality traffic and can measure the
success. What are the major risks do you see for Advidi
as for a business? I would say it’s that… It would always be… First, looking inwards, maybe growing too
fast and, you know, being very ambitious in where I want to go and forgetting to sometimes
look at the engine and, you know, put a little WD-40 here and a little tweak there to make
sure that everything is still running smoothly. I think that running a company is hard at
any level whether you have now, like, if you have seven people, 70 people or 7,000 people,
but you have to keep looking at the engine critically. Is this the best we can do? And that is often in the rat race of things
forgotten to really look critically at what you’re doing is the right thing. Because then you can, it can create maybe
people that are not happy or not in the right place and it takes a long time for you to
pick up on that, and maybe business relationships can be hurt by that, you know, somebody’s
not motivated or somebody’s not really putting the extra effort into it, and you’re not picking
up on the new market development. So, I think you should always look at, like,
okay, is the engine still running at the best that we can do? And if you’re doing that and I think you can
do great things. Yeah, you’re growing rapidly, just as you
mentioned. Yeah. And was what was the growth for 2018 in percentage
comparing to 2017 if you have in mind those numbers? Off the top of my mind, I think that… Yeah, Jan Willem, our CFO, might have to correct
me but I think we’re at 40% or something, yeah, yeah. I think I’ve started in 2013 and basically
every year we’ve, we’ve fit around the 40-50% mark to grow. And this year, I think that last year was
maybe almost 40%, it was a little bit slower because we were really, we had a year of reorganizing
the company, restructuring it, the branding was all new, we really focused on, like, hey,
let’s polish it all up. And now we’re using the engine to… This year I think we’re, we have the ambition
to double instead of just growing 50%. So, this year you have intentions to double? Yeah, 100% of growth. That’s what we want to do. That’s a goal. It is a goal, it is a goal. And the thing is that it’s an obtainable goal
as long as, you know, if you keep focused on the things that really matter. Alright. I only ask this question because it’s public
information. I found that on owler.com that your annual
revenue is estimated to be 350 million dollars. Is it a correct assessment? 350 million dollars? Yeah, it’s up here. I was surprised, I mean… Really? It’s… yeah. Well, I mean, I don’t know if… Is it for last year? Yeah, I guess so. Yeah, no. I think they’re, I think they’re… It’s a credible resource, but the number
is too incredible to me. Yeah, they’re off by a bit, yeah, yeah. If I, if I… I think I would buy a different car if we
did 350 million in revenue. So, it’s not close to that? No, no. All right. Let’s talk a little bit about your verticals
and offers? Sure. What are your biggest verticals? Is it still dating or something else is taking
over? No, dating is still our bread and butter,
and I think it’s basically also our test case of why we want to… why my role that I have
now exists. So, dating was always part of Advidi because
the two founders were media buyers in dating, and they just saw, like, hey, this is something
that we can also pass on to our friends and take margin and with HasOffers that they found
suddenly a mini network was born. And I think that throughout the years we’ve
cultivated these relationships with dating advertisers that are really strong and we’ve
even started working on RevShare with some of them. And I think that that really showed us, like,
wait a second, when two companies, when one is focusing on product, the other one is focusing
on traffic and they’re both doing revenue share, they’re both looking at the metric,
user value, you can do really powerful things. And I think that that’s why we are so dominant
in dating. I think we’re, safe to say, the biggest network
in dating at the moment. Yeah, that’s what I was going to ask you
about. Yeah, we, we… For a while there was a, there’s a few that
are still doing it, but I think that definitely in Europe you can say that we’re the biggest. And what is your second biggest vertical? Second biggest is… Depends on the day, but it’s usually, it’s… So, nutra or health and beauty, how you want
to describe it, is battling with sweepstakes, mobile content. So, those two verticals. Sometimes one is higher, than the other, but
I would say that probably nutra is our second vertical. Nutra? The last year was not the greatest for nutra
because all those regulations that came to power in the US. Is it now getting to normal? Correct, and there’s more regulations coming. Yeah, you know, the thing is that… And again, coming back to what I said earlier
about, like, having the machine work properly, is that you just have to, you have to adapt
to the new situation. It’s not like people don’t want to buy the
next diet pill or have the next skin cream promoted to them, it’s just about, like, working
with the regulations are. And I think that last year really showed that
we can also push, like, hey, why don’t we try straight sales. And that’s what we did, and that’s what we
had success with and I think that… Straight sales, it’s when the product is purchased
on the webpage, am I correct? Yeah, so, basically, a trial is where you
pay $4.99 and you subscribe for a free trial, $4.99 for the shipping and then you get the
bottle and then you’re in a subscription model where every month you get a new bottle for
a full fee. And a straight sale is basically a one-time
bottle that you get, that you pay the full fare for. And the advertiser will, of course, try to
contact you and say, like, I want to upsell you to another bottle, but there’s no continuity
behind it in terms of, like, that the next bottle is coming the next month. So, of course, you get a higher price for
that, but it’s harder to promote, of course, for somebody to fork over 70, 80, 100 bucks
for a bottle. Do you think that nutra is still, you know,
a good thing to try for affiliates? Of course, it is, yeah, yeah. I think that the regulations last year and
the regulations coming the 14th of April from MasterCard are not unlike we’ve seen in other
verticals, they clean up the industry, they set a new standard of, hey, guys, we’re going
to work in this way, the consumer is going to be protected a little more, and in terms
of, like, hey, they need to be aware of what they’re buying and they need to be informed
and… But I think it’s, it only makes room for the
good guys who know what they’re doing to really expand their business and the bad apples which
you don’t want to work with anyway to drop out. So, that new regulation by MasterCard, they
do not allow you to charge people for trial physical products anymore or..? There’s, yeah, yeah, they said there’s,
they’ve been semi-vague about it, but that is the gist of it that they do want to inform
people a lot more about, like, hey, this is going to be a subscription model, you are
going to get billed again for a new bottle. And we’ve been talking for the past two-three
months with a lot of advertisers that we know very well on what the strategies are to work
with this at the moment, everybody’s now testing what would work better than the rest, but
we’re confident that we have a good group around us. So, you are not concerned? No, no, no. You launched in May of 2018 gaming vertical. How has it been doing so far? I think that gaming was always a passion project
of mine coming from gaming before Advidi. I think that it has been a big challenge for
us just in terms of seeing where that vertical was growing and the other ones were growing. We made a conscious decision to stop with
gaming, we’ve just seen that the focus was much more going to be on the, on our current
four verticals and nurturing another new one… So, yeah, with this we decided that this is
going to be, that’s going to be on the back burner. We still have a few advertisers that we’re
going to be running with, we’re not going to actively go to conferences and hook up
a lot of new advertisers for us. What is the process of screening new advertisers? Is there any due diligence process in place? For sure, for sure. I think that… Tell us a bit more about that. Yeah. We learned the hard way that not all advertisers
have the best intentions with you. I think that especially in 2015-2016 we got
hit hard with some advertisers that didn’t pay especially in credit card submits and
in nutra. And you lost a lot of money? Yeah, yeah, yeah, yeah. And that… You know, back then it was a lesson, but it
really prepared us for, like, for instance, when you said last year… Were affiliates affected? No, no, never, no, no. I think that’s one of the things that we kind
of always do very well, and you can look up online, like, we always pay our bills, we’re
never mentioned as a network that doesn’t pay what is owed, so. But kind of those lessons from 2015-2016 really
made us evaluate, ok, what is going to be our risk policy in terms of outstanding amounts
with an advertiser and what kind of things do we want to know from the advertisers before
we say, ok, we’re going to go from, I don’t know, 25k outstanding to 250k outstanding,
you know, what do we want to feel comfortable with. There’s many checks both in the pre-process
in terms of questions that the AMs are asking from even verifying if the IP that they’re
talking on Skype is really there where they’re at in the world to actually doing some checks
with other networks that are friends of ours, hey, have you had experience with working
with them et cetera, et cetera. So, you have to be very careful with that
because, you know, we’re running on small margins and sometimes we do big volumes in
a day and that can add up. What kind of offers or products you will never
have in your network because of your philosophy? We made the active decision never to go for
forex and binary options. Can you elaborate on that? Sure. I think that the… We took a look at what the earning model is
and how at the back end they target people and in terms of how much money you’re trying
to pull out of a customer and it just seems that it’s excessive and it doesn’t weigh against
what really is being delivered as a service. And I think that we’re all fine with, you
know, somebody having a subscription to a dating website with some girls that they might
never meet but they feel like, hey, we’re having a, we’re having a great time and I’m
flirting with them and I’m saying things to them that I might not say to my wife and I
have to pay for it every month.” That’s all fine, but it’s not like pulling,
you know, going for hundreds or thousands or even tens of thousands of savings to get
them out of there to invest like The Wolf of Wall Street shit that I really don’t… So, binary options, Forex, what else? Back in the day, I think two years ago some
pay per call was really booming and we just… Some, sorry, what? Pay per call. Pay per call. Yeah, yeah, yeah. And there were, like, some really aggressive
models behind that with tech support and really shutting your computer down, you have to call. That was a big issue, as far as I know. We never touched that and I’m happy that we
never did, so. Do you believe that the lack of education
in our industry may cause some kind of problems in the future? I don’t know. What do you mean by a lack of education? For affiliate managers. There are no, like, credible courses around. Oh yeah, yeah, yeah, for sure, yeah. I mean, I actually went to my old university
a few months ago and I told my professors, I said, like, I don’t know why you guys don’t
have a course in affiliate marketing. I mean, it’s just, it should be taught already
right out of high school, you know, how do people make money online, yeah. And it’s not just affiliate marketing, it
should just give the whole spectrum because, you know, it is a major industry and it’s
being completely skipped at least in Holland, I don’t know how it’s elsewhere. Do you believe that there is enough room in
the industry for everyone to make money? For sure, for sure. I think that it will only be growing. I mean, there’s, there’s not… I mean, you can throw a stone in our industry
and you’ll hit somebody who’s successful. It’s ridiculous. Like, everybody is doing very well in our
industry. It’s a super big growth market. I don’t see us, I don’t see other networks
as real competitors. We’re all taking a big bite out of a big pie,
so. And then how do you see affiliate marketing
in ten years? How will that change? I think it will be, I mean, I think it will
definitely… The, the… What I said before, the performance part will
start to seep into a lot of traditional markets that have been really relying on branding
and getting your name out there. And I think that it’s much more attractive
to see where your marketing dollars are going and to really get you customers that are paying
rather than knowing of your brand. More money for the affiliates to be made. I think so. I mean the budgets that these… that, you
know, a Nike or BMW or Coca-Cola are working with are, you know, they laugh at our entire
industry. It’s a fraction of what, of course, they’re
spending on marketing. And if we can, you know, if we can get in
there and if we can prove that we know how to get quality traffic to the right place. You have a serious, serious shift in what
the marketing landscape is going to look like. And lastly, what do you like the most about
affiliate marketing? Ooh yeah. I mean the thing was what I liked always the
most is that it’s so quick. Like, I can… The instant gratification of meeting somebody
at a conference and say, like, hey, let’s try something together, having an interesting
conversation and basically three days later you can see some numbers on the board that’s
a lot of brick and mortar industries would be like, sorry, what is the revenue you’re
doing with a new client? And that’s something that always excites me. I mean it can be daunting, like, so, how many
chances did I lose rather than win? Because, you know, which guy did I talk to
at that bar but not that guy at that bar. It can be so many opportunities everywhere
that are in front of you. So, yeah, I really, I really like it, I really
like that it can change and it can move any day. Thank you very much, Mark. I really enjoyed the conversation. Cheers, cheers, cheers. Thank you. Petar, I’m back to you. You guys are still here? Yeah. You kind of like it, right? Oh yeah. I think you’re staying for Friday drinks. Yeah, after it’s all finished, only after
it’s all finished. There’s one thing that I have forgotten. I have told you about our tradition to have
a competition in the end of every interview and we usually provide prizes from our guests
and heroes. So, what do you guys can give us as a prize? You asked me several times during the interview
about how we actually put the community together, how we create this interaction in, you must
admit, very lonely industry, especially if you’re, like, affiliate individual. We are quite famous for putting together and
throwing these receptions, networking events where we bring the industry together. And sometimes those meetups are more valuable
than a conference itself because it’s already pre-filtered, pre-selected, quality audience. So, on the 7th of July, a day before the start
of Affiliate World Europe, we’ll also have one of those events. It’s happening on Plaza Espana in Barcelona
in hotel Catalunya. They have a beautiful rooftop terrace where
we’re going to bring the industry together, mostly affiliates and some of the industry’s
well-known names. So, I just wanted to give your audience an
advantage in this, and we’re going to give five entrance tickets for this party for affiliates. That’s cool. It’s not only a networking event but it’s
a walking dinner, like a walking dinner. We’re gonna have some other surprises. It’s like a full night event and if they… Is that a private event? Yes, it’s Advidi private event. It’s invitation only. So, in this case, your affiliates will have
an advantage, your audience will have an advantage in the guest list. Cool. And I will put the conditions in place. They are very simple. Just simply tell us what do you like about
affiliate marketing the most, the same question I have just asked Mark. Be specific and detailed. The best five comments will be chosen by us
with Petar. And the winners will get those private invitations
to Advidi party in Barcelona, 7th of July. That’s correct. And before you end the interview, we also
have some presents for you, guys, because you were amazing. Us? Yes. All right. Because you like our merch. All right. My colleague Tanya has something for you. Thank you, Tanya. Thank you very much. Enjoy the presents. We will expect those comments for the party
on the 7th of July, and it was quite a pleasure to have you today at the office. Likewise. It was a pleasure. Come again. And also an invitation for the affiliates
who are visiting Amsterdam. Our office is always open. If they want to use a pop-up desk, if they
need a space for work or meetings, we have that option too. They just have to let us know and we’re going
to welcome them. Cool. Don’t forget to subscribe to this channel. That is kind of things we have and discuss
here. Bye now. See you next time. Bye-bye.

3 comments

  1. 💥 MEGA-BONUS!

    On the 7th of July, right before the AWE conference in Barcelona, Advidi is holding a private party for affiliates and all those involved in affiliate marketing. Describe in detail what you like about affiliate marketing the most. The authors of the five best comments will receive invitations to Advidi’s private party.

  2. I'm really so happy that you made an interview with one of my most favorite networks in the industry thank you <3 <3

    now answering the questions:

    What i like the most about the affiliate marketing industry, is FREEDOM and relations type.
    I'm not looking at just making money and big numbers or high ROI.

    1- Freedom is that i'm able to run and pause whenever I want, I have the whole control of my business, I used to pause multiple times in my journey and still survived because at that point I already made some CASH.

    2- Relations type: is that there is no strict or official type of talk with everyone in the industry. as you get a friend with your AM's at networks and traffic sources. you talk to people and connect in a very casual way and more easily than any other industry.

  3. What I like about Affiliate Marketing the most? The diversity of people we meet and do business with. We can partner up with high school dropouts or college educated, people that figured out affiliate marketing later in their life, different nationalities, age ranges, corporate backgrounds, introverts, extroverts, travelers, family members, you name it. Affiliate marketers tend to have relationships all over the world, and that's awsome!

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