How You Can Profit When Your Customers Surf the Web

The Internet has created a wealth of new opportunities. One opportunity that has thus far escaped widespread notoriety is the Affiliate Program concept. But in changing the internet landscape, Affiliate Programs are emerging as a potentially important new source of profit for the automotive service industry.

Mailmark, a Los Angeles based direct marketing firm, is working fast to become a hub of affiliate commerce by leveraging the more than 2 million e-mail service reminders it plans to send each month on behalf of its 4,500 fast lube, full service garage and car wash clients. Mailmark currently sends service reminder postcards, but is moving into online marketing with its Affiliate Program. Utilizing its thousands of contacts within the automotive industry, Mailmark is taking on new roles with leading online car seller CarsDirect.com and service warranty provider Warrantybynet.com to build a network of affiliates that mutually benefit by driving business to each other.

Each time a fast lube, auto service center or car wash affiliate's customer clicks on the link embedded in their e-mail service reminder or on a link within the affiliate's web site, the affiliate is either paid a fee for the lead, or a higher fee if a sale is generated within 30 days. The program can be structured so that the fast lube or car wash maximizes its income potential. The result is an overhead-free profit center.

As online car sales grow, Affiliate Program income will grow with it. According to Forrester Research, the number of households that will buy their cars online will grow from 17,000 this year to 470,000 in 2003, representing $12 billion in sales. More than 5 million new car and truck buyers will use the Internet this year to help them decide which vehicle to purchase, according to J.D. Power and Associates. That adds up to millions of mouse clicks, and could mean significant profit for operators who take advantage of Affiliate Programs.

Mailmark sets up and maintains Affiliate Programs for its clients, and works to create other opportunities for its clients where they exist. "We have a program in place for new car buyers to get a free car wash, and we're working to see if we can develop a program for new car buyers to get their first oil change free," says Barry Silver of Mailmark, "the fast lubes, full service garages and car washes earn extra income from the Affiliate Program, and some of the new car buyers who try their service for free the first time will become repeat customers."

"Our e-mail service reminders can link to the company web sites we design to allow operators to communicate more effectively with their customers. The e-mail pulls customers to the web site and ties them to the store. Our Affiliate Programs take that a step further, linking customers to other business that will supplement the customer's online experience while generating profit for the affiliate.

Establishing an effective online presence gives an operator more choices for communicating with customers and can result in significant extra profit through Affiliate Programs such as those that Mailmark is working to develop. Mailmark projects that it will have commitments from 1,500 service centers to use its Affiliate Program in the near future. The company expects to have its array of Internet Marketing Strategies fully operational by March. Mailmark can be reached by calling (800) 334-8983, or by e-mail at mailmark@mailmark.com.

The Auto Services Operator Magazine • April 2000