Yes, you read that right and just in case you missed I will repeat it again, 50% in 5 months. Not only that, from using the strategy discussed below, CardKangaroo decided to drop and forget Google Adwords and just focus on referral marketing using OSI Affiliate Software.
So, how did they achieve this success?
To fully grasp why referral marketing works for CardKangaroo we have to understand the business first.
CardKangaroo is a website that allows you to buy, sell, or even trade pre-owned gift cards. Their customers are looking to turn unwanted gift cards into cash or trade them for gift cards they can use. For the customers who are looking to buy gift cards, CardKangaroo gives them up to a 35% discount to get gift cards to their favorite stores and restaurants.
Daren Nowak, the owner of CardKangaroo, was looking to attract more customers so he decided to give referral marketing a chance and see if this marketing channel will move the needle for his business. It turns out this was a great decision because by using referral marketing Daren was able to get more traffic and customers to his business.
Referral marketing is a great marketing strategy for all businesses. When you set up a referral program or affiliate program, it allows you to work with other marketers, partners, advocates, and bloggers to market your business. For all their work promoting you, you will reward them with commissions or any other reward you can offer them for all the successful sales they send to your business.
That is exactly what Daren did. He set up an affiliate program and recruited bloggers, marketers, and other partners in his industry. He thinks the affiliate program has helped a lot. His main affiliate is the company Gift Card Granny and they send him lots of sales. Gift Card Granny does price comparisons and because they have Google PageRank of 4 it was a perfect website to have as an affiliate. Gift Card Granny links out to CardKangaroo using their special affiliate link and for every customer CardKangaroo gets from Gift Card Granny they pay them a commission.
The feature Daren likes best of OSI Affiliate Software is the ability to easily modify referred sales and adjust commissions.
Special thanks to Daren Nowak for his insight. You can earn more at CardKangaroo.com.