Tipser is a Swedish company that is turning affiliate marketing on its head! Super interesting conversation. Sramana Mitra: Let’s start by introducing our audience to yourself as well as Tipser.
Sramana Mitra: What happened in 2012? Stephan Goss: We started hiring pretty extensively on the tech side. I think, by the end of 2012, we got up to about 12 people. The questions were just statically built. They weren’t optimized. There wasn’t anything about switching them around. We started hiring a lot of developers around that
Sramana Mitra: Let’s go back to the very beginning. I’m going to step you through the process of how you put one foot before the other. How did you get the business off the ground? Who was the first client? How did you win this client? How did the business start to unfold? Stephan Goss:
If you haven’t already, please study our Bootstrapping Course and Investor Introductions page. Affiliate Marketing is at the heart of many wonderful bootstrapping stories. It’s inexpensive to get going and profitable quickly, and managed well, can scale substantially. Sramana Mitra: Let’s start at the very beginning of your journey. Where are you from? Where were you born, raised, and
Sramana Mitra: All right and with this model, you have generated about a $100 million in affiliate commissions so far. Of which, about 70% of that has been paid-out to your partners? David Sharpe: Technically, 100%. Last year, we did around $63 million in product sales. All of that, less processing fees, are given out
Sramana Mitra: If you’re claiming that part of your secret stuff in building this company is this 30,000 affiliate network, then I need to understand how you got to 30,000 affiliate partners in two years. I’m looking for round numbers. Let’s say you pay 90% commission to one layer of affiliate and they go and
Sramana Mitra: You pay what percent as affiliate commission? David Sharpe: It’s not quite 100% commission because we’ve got merchant, accounting , and processing fees. The commission is between 90-94% for our core product lines. We’re doing a $12,500 event at the beginning of March. Clearly, there’s event cost for that but instead of paying
Sramana Mitra: What were the profiles of these people? Were they sales people? David Sharpe: Yes. Initially, we were looking to find people who would help us go out and promote our products and services. We went after salespeople, promoters, and marketers. Sramana Mitra: What did you tell them? What was the call to action