Product vs Sales in affiliate marketing

What should companies focus on, product, marketing or sales? I’m questioning this in both the SaaS industry as well as in affiliate marketing. 

I could ask a bunch of people and I know some would give me biased answers but I’d like to ask a collection of people. After tagging a lot of people the last few newsletters, I'll try to save them for later so I can get a future reaction.

In B2B SaaS, this is always a hot discussion where marketing is not always considered in the mix and you have 3 segments that don’t seem to jive.

Thanks for the sponsors of this newsletter FTDx and StatsDrone!

In affiliate marketing I think we could argue what is the best thing to focus on, product or sales?

I think there is a time for place but I’m going to say product is 1st and sales is 2nd. 

Actually if I were to include marketing in the mix, it would be in this order.

1. Product

2. Marketing

3. Sales

There you have it, PMS. 

Sometimes in the world of affiliate marketing, I feel like things are more like SMP where product is in last place, marketing is in the middle and sales is everything.

I’m writing this article on the back of a previous article called The role of product in affiliate marketing.

This short article I’m going to share some insights about StatsDrone and some of the pressures we have had in focusing more on sales and less on product or marketing.

John, you need to focus on sales

A few years ago, an investor said he felt that sales was the missing link in StatsDrone. 

Not for me to do the sales but to hire for it. 

Well that story remains a short story because after hiring for sales help, that role didn’t last and it only cost us a lot of money with little to show for it. 

It was a painful lesson to endure and in my journey of learning about SaaS GTM, I’ve read that this is a common problem in the SaaS space. 

That is founders think they need to focus on sales, or they get investors that think you should focus on sales. Investors that haven’t been in the shoes of a SaaS founder that has to figure it out.

Industries change

Both SaaS and affiliate marketing have been changing a lot in the past 5 to 10 years. I would say these 2 things are true that what worked 10 years ago in SaaS and affiliate marketing, isn’t quite the same thing you would do today.

There is a reason why I won’t read many SaaS business books that are more than 5 years old. When it comes to podcasts, I rarely will listen to anything older than 3 years. 

I don’t think you can trust many affiliate marketing books that are also older than 3 years because the space just changes that much. 

Product-led growth

In January 2023, my business partner Darrell Helyar decided we need to build some product features. One month later, we had an invoice generator, cool!

Since then, I think we’ve only tested a few outreach campaigns at scale which I don’t think were very successful. I actually believe the automated emails we did using Mailshake, were causing more damage to our brand. 

I'm sure Nils Schneider from Instantly.ai would likely have some suggestions of proper messaging. I got some solid notes from Bibi the Link Builder at the SEO IRL event in Toronto.

GTM crossroad

2 years later after that sales experiment, I have some people suggesting that we need to focus on sales. 

At first I was thinking these people could be right. However after a week attending the SiGMA World conference in Malta, I remember what got us to our current position: product.

If we want more sales, do we hire for sales, invest into marketing or keep building a better product that sells itself?

I don’t know if I’m right or wrong but I feel that raising the bar with a better product will lead to more sales. 

When I listen to some of the founders on the 20VC podcast, I’m starting to notice a pattern. Any of the founders building solid products, the product itself was the main driver of growth.

They are product obsessed and I don't think any of these ultra successful companies get to the top by just outselling everyone.

I think in making a decision to increase more pipeline via sales or just keep making the product better, something tells me making a better product is the right thing to do.

My peers are very biased either having done it themselves or working in the SaaS space.

I also believe that any good marketer would pick product over sales. Not because marketing people are anti-sales, but if you want to make the job easier for a marketer, give them the best product to promote. Give your sales people the best product to sell.

Products inspire people

I just got asked to check out the Aboutslots Awards and the whole experience of the design and UX of the awards was top quality. Thanks Armin!

It was so good that I have to link it here. 

What does sales in affiliate marketing look like today?

On the operator or affiliate program side, your affiliate managers are most likely tasked with 2 things: more affiliates and FTDs

They are usually not tasked with any other growth metric. 

What would marketing look like for an affiliate manager?

Why not doing a content series focused on VIP players that encourages or rewards affiliates for writing VIP related content and promoting your brand. Something I think Gali Hartuv would agree with me on.

Now let’s look at sales from the affiliate’s point of view.

Many affiliates are now asking for listing fees or other tops of pay to play exposure. Top lists are the keyword here where to be number 1, it will cost you a listing fee.

Thankfully, StatsDrone now has listing fees (aka flat fees) you can add in addition to the Deal CRM. 

Speaking of deals, StatsDrone has a Black Friday offer which expires December 17th, 2024. Get 30% off a yearly subscription and all new subscriptions can have a custom Tableau dashboard made for them, a $1750 value!

https://statsdrone.com/blog/black-friday/

This ecosystem is helping affiliate focus a bit more on sales and it makes me wonder: where is the marketing? And where is the product?

Products is the new SEO

I had a call yesterday with someone who’s well versed in PPC but really understands SEO.

He wanted to get my take on what is working in SEO today and if he would grow an SEO team or hire for it.

I often think about myself being in that position today if I had to run an affiliate site. I’d likely consider both options and it is something I’m wanting to do with StatsDrone too. 

When you have a great product, it will sell itself just like how Credit Karma does.

If your affiliate site is a great product, it sells itself and does the marketing and SEO for you.

Of course, I think the same is true in the SaaS world. 

The easiest way to sell something is when a product has a reputation for being good, that the message was well received by the buyer long before you approached them.

The buyer just needed time to know they could trust you.

Thanks for the sponsors of this newsletter FTDx and StatsDrone!