Targeting specifically deals-oriented users Twitter has introduced its new @EarlyBird account. This one will essentially be Twitter’s own account for the distribution of time-sensitive offers and discounts. All you need to do is follow it, and make sure you catch your worm early enough (before it’s gone).

Explaining what it is, and how it will work Twitter writes:

Twitter @earlybird Exclusive Offers are special time-bound deals, sneak-peeks, and events that are promoted by the official Twitter @earlybird account. We partner with select advertisers and retweet offers that they have crafted only for the Twitter community.

The account has already had over 25,000 followers join it, and this is only after two non-deals-related tweets (read: the boom is yet ahead):

Twitter’s announcement continues:

Does Twitter make money from this?

Yes, we earn revenue through our relationships with advertisers. Our focus will be to try and make these deals interesting and of value to you. We take pride in being selective about the type of deals we highlight and hope they will be an exciting way to start your day.

How exactly will Twitter make money on this? This part is unclear now. Some already suggest that the opening of the @EarlyBird account marks Twitter’s “turn to to affiliate marketing”, but there’s no clear indication of this, because we haven’t seen one deal tweeted through this account yet, and can’t tell how these will be linked. I agree that “some sort of CPA model would seem to make the most sense” here [source], but won’t Twitter then automatically become a competitor of every affiliate who distributes links via Twitter (e.g.: using Amazon’s “Share on Twitter” button, LinkShare’s #TweetShop tool, or any other method or approach)? They will.

However, before discussing any potential implications of this any further, it seems sensible to just sit back, and wait for the first deal to be tweeted by the @EarlyBird account…

The number of followers a Twitter account has is irrelevant, or near-irrelevant. It is the influence that it has that’s important.

I’ve had a merchant approach me with an idea to run a giveaway promo, distributing gift certificates where the nominal of the gift card would be tied to how many Twitter followers or blog subscribers the affiliate has. I’ll leave the question of blog subscribers for now (it would make a good subject for a separate post), and let’s concentrate on Twitter here. Does the fact that someone has 700 or 2,000 followers on Twitter mean anything? It does, but what exactly this means depends on the influence this Twitter user has on his followers and the followers of his followers (through retweets, for example) too.

How do you measure the influence?

There are numerous KPIs you’d have to analyze if you had to do it all by hand. Thankfully, there are a few good tools that can make your work easier.

I recommend the following 5:

1. Twitalyzer — One of the most comprehensive tools I know of. Arrives at an one’s impact rate based on a number of metrics (including engagement, influence, clout, generosity, velocity, signal, Klout Score, and twelve other factors). Also allows you to compare Twitter users one to another, and generate graphs too.

2. Twinfluence — This tool measures a Twitter account’s influence on three levels: its reach, velocity, and social capital.

3. TweetLevel — Calculates one’s influence on a scale from 1 to 100 based on three factors: popularity, engagement, and trust. More about the tool and the algorithm behind it here.

4. Klout — Its score is incorporated into Twitalyzer’s analysis, but it’s well worth checking Klout out on its own. Scores range from 0 to 100, and use “over 25 variables to measure True Reach, Amplification Probability, and Network Score” [more here]

5. Tweet Reach — Analyzes the number of impressions one’s tweets received within a set time frame, or how many people were reached via one’s tweets.

Forget about the number of Twitter followers. It’s a poor metric, and can be gamed easily. If you’re looking for real quality, focus on influence.

If I haven’t mentioned a tool that belongs here, please post about it in the comments area below.

Earlier this Spring a study by Arbitron and Edison Research revealed that close to half of Americans (48%, to be exact) have profiles on social networks, which actually is exactly double the level from two years ago [more here].

However, a more recent research conducted and published by the same two companies has shown that when comparing consumer behavior and intentions on Twitter versus social networks, we see that over half (51%) of those on Twitter follow companies/brands, while on Social Networks this percentage is only 16%:

Moreover, a vast number of Twitter users utilize it to “learn about products/services”, “look for discounts/sales”, and “purchase products/services”:

Eye-opening, isn’t it? No wonder why LinkShare offers its affiliates a #TweetShop tool, while more and more merchants start experimenting with “Tweet this” type buttons. Are you (as an affiliate, or merchant) active on Twitter yet?

Related reading:

• Everything You Need To Know About Who’s Using Twitter [slides from above-quoted report]

On October 27, 2009 LinkShare launched a Twitter tool for affiliates to use. Almost simultaneously with the LinkShare’s announcement, Amazitter (an iPhone app for tweeting Amazon affiliate links) came out. The wave continued, and yesterday Amazon has changed its policy from no affiliate links on Twitter to let’s “Share on Twitter” and provided a tool for it as well [more in Eric Nagel's and Tim Jones' posts].

The new FTC’s guides, which prescribe mandatory disclosure of affiliate links, come into full force in just 25 days, but it seems that regardless of the size of the company that launches a Twitter tool, an important point is being continuously missed — that of helping affiliates stay compliant with the new rules. Additionally, there is also a growing concern among merchants/advertisers that do not specifically offer any tools for promoting their brands on Twitter, but wonder how exactly they are can be policing/monitoring affiliates that promote them via social media. It is these two questions that I would like to address in my today’s blog post.

1. Helping Affiliates Stay Compliant

If I am reading and hearing the Federal Trade Commission right, the burden that’s being placed on the merchants’/advertisers’ shoulders is actually considerably greater than that which is being placed on the backs of the affiliates. On October 7, 2009 Richard Cleland, the FTC’s assistant director of advertising practices, stated that in case with “bloggers” the “approach is going to be educational”, and no one should fear a “penalty if they inadvertently make a mistake.” He also added:

We’re focusing on the advertisers: What kind of education are you providing them, are you monitoring the bloggers and whether what they’re saying is true?”

Is including a relevant clause in the affiliate program’s TOS going to be enough? Not really. There are two components that the FTC will be looking at: (i) education, and (ii) monitoring. The clause in the TOS will take care of the former, and I will address the latter below (see point #2). What I think every merchant/vendor who is putting a Twitter tool ought to also do is ensure that the disclosure is in place: be it with a use of an #ad hashtag or something similar to what cmp.ly is doing, but the disclosure of the monetary connection between the “endorser” and the “sponsor” must be in place.

2. Monitoring Affiliate Compliance

This is another thing that is expected of advertisers. How do you do this on Twitter? Coincidentally, Nathan Hangen of of Making It Social has just published a directly relevant post at TwiTip.com. In it he talks about the three tools that companies can use to monitor their brand on Twitter. These three are: TweetDeck, Hootsuite and Tweetizen. All three can be successfully used for monitoring what your affiliates tweet about your brand. Hangen writes:

TweetDeck panes: …TweetDeck is robust and easy to use. The simple way to set up monitoring in Tweetdeck is to add a few search panes for the keywords and hashtags that represent your brand. For instance, I have a search going for #twitterrockstar and Twitter Rockstar to see what people are saying about my Twitter course.

Hootsuite tabs: …a fabulous web client that has all of the features of TweetDeck without having to download an application, which is perfect places where you can’t download (like at work). You can handle multiple accounts here as well, but the best feature of Hootsuite in my opinion is being able to set up a tab for each brand. I set up tabs for Twitter Rockstar, Beyond Blogging, Nathan Hangen, and any other product or name that I want to track. Since everything is saved to my account, it’s always ready and waiting for me when I log in.

Tweetizen: …a great way to not only track your brand, but to show it off to others. Tweetizen allows you to create a “group,” which you can use to track keywords or hashtags, but the difference here is that you can embed the results in any web page. This is great for product pages or launch pages so that you can build hype for your brand without having to force it on your own.

Great lineup, and affiliate program managers can certainly use the above-quoted tools for monitoring what their affiliates say about them (and their products) on Twitter, and whether their tweets are compliant with the FTC’s rules.

In an effort to bring an “online Twitter mini-mall” to consumers LinkShare has announced a #tweetshop tool which allows affiliates to tweet recommendations of merchants’ products for their followers to see. Recommendations can be put together within one interface, and here’s a LinkShare’s video on how this works:

Very cool idea. Kind of like PopShops for Twitter. More about it here. One suggestion and one question to LinkShare:

Suggestion: I think it would be much more convenient for affiliates if the drop-down menu displayed only the advertisers who have already been joined by the affiliate (and it’s okay if for this purpose the tool is available only from within the affiliate’s interface).

Question: What about the mandatory disclosure of material connections?

So the Federal Trade Commission has announced the new rules for disclosing the sponsor-endorser relationships. This includes all affiliates that tweet, post, or publish any other online content that has affiliate links embedded in it (or content on which they earn money).

But how do you squeeze an appropriate disclosure into the 140 characters of a tweet? I’ve seen some affiliates using an #AffiliateLink hashtag, but I am not positive it provides a clear enough disclosure (especially in light of how differently “affiliate” may be defined by different readers, friends and followers).

Some of the following hashtags may work:

• #SponsoredTweet
• #PaidLink
• #ThisIsMySponsor
• #iAmPaidToTweetThis
• #YouPurchaseIGetACut

Of course, it would help if Twitter came up with some sort of a universal hashtag that could be used to mark affiliate tweets (e.g.: #TIMS for #ThisIsMySponsor).

Additionally, PCWorld.com has described another possible scenario involving Twitter:

Say, for example, you work for Microsoft and become a fan of the company on Facebook or tweet about how much you love Windows 7. Now, what if you have not made it clear on your Facebook and Twitter profiles that you work for Microsoft? Some of your Facebook friends or Twitter followers might see your posts, and — knowing that you’re an expert in technology, but not necessarily that you work for Microsoft — take your Windows 7 endorsement at face value. You still might love Windows 7, but you haven’t made it clear that you’re receiving financial compensation as a Microsoft employee. Under the new FTC guidelines, you may have just crossed the line. True, it’s unlikely the FTC will be interested in you, but if you have a large amount of Twitter followers or Facebook friends, it might be a good idea to disclose your corporate affiliations.

So here’s another set of hashtags to choose from:

• #iAmCompanynameEmployee
• #iWorkForCompanynamehere
• #iWorkForThem

Will the above ones be enough to safeguard you from the legal action that FTC may take against you for improper disclosure of the relationship with the advertiser? I cannot guarantee this. So do not take any of the above as a legal advice, but talk to your lawyer. Most online marketers agree that the key here is in being sincere, straightforward, and transparent. Honesty always produces trust.

We have been registering a surge in applications from affiliates who either list no other website but a URL of their social media profile (on Twitter, Facebook, etc), or list their social media profile(s) (some – more than one) as the main website(s) where they plan to promote the merchants whose affiliate programs will accept them.

I have polled a group of affiliate program managers to see how they normally respond to such applications. The question was: “Do you accept affiliates who list their social media profile as main website?“

Here is how the pie chart looks at the time of this post:

Those who have chosen to vote for the “other” option, posted the following clarifications:

• Not usually, though if they look like they have a good following or decent website attached I will.
• Occasionally. Social Media is okay in my book, provided that their profiles don’t come across spammy.
• Depends on the merchant and the affiliate application. If it’s obvious from their social media page that they know what they are doing, meet the merchant criteria and are playing by the rules, I’ll usually accept them and keep an eye on them for awhile

Basically, in favorable circumstances all of the above presuppose a positive reply, which shows that a majority of the polled affiliate program managers are supportive of affiliate use of Social Media.

Is this becoming a  new trend?

If you manage an affiliate program, and haven’t participated in the above-quoted poll, I’d like to encourage you to please cast your vote here as well.

I have just finished a quick Twitter analysis of 100 tweets with the word “affiliate” in them, and discovered that the two most popular topics “affiliate”-related people tweet about are: (i) tools, eBooks and technology that can make you a fortune overnight, and (ii) the “best affiliate program(s) on earth”. The former category includes tweets on becoming a super affiliates in the blink of an eye, “secret affiliate weapons”, generating “massive affiliate profit”, “taking ownership of your future”, buying multimillion homes from affiliate income, etc. The latter one is full of spammy recruitment attempts to find affiliates to promote products/services. I was able to find some absolutely sound tweets as well, but, unfortunately, they were quite scarce.

Here’s the actual percentage distribution that I’ve arrived at:

• 67% – make-a-fortune-overnight tweets
• 26% – spammy affiliate recruitment tweets
• 7% – decent/worthy/helpful tweets about affiliate marketing

Surprising? Not in the least. Disappointing? Certainly. The snowball of affiliate marketing industry misrepresentation just keeps on rolling and growing.