Inside Mybestbrands: Episode #6 of The Partner Marketing Podcast

In this episode of the Partner Marketing Podcast, Tradedoubler CEO Matthias Stadelmeyer engages in an extensive discussion with Jörg Domesle, the co-founder of Mybestbrands, about the evolution of Mybestbrands and the Partner Marketing industry. Their conversation covers Jörg’s background as an entrepreneur, the origins and growth of Mybestbrands, and the critical role of Partner Marketing in its journey to success. Jörg shares detailed insights into the difficulties of launching an online marketplace, the necessary strategic adjustments to ensure sustained growth, and the significance of cultivating strong partnerships in building a robust digital business.

Early career and the beginnings of Mybestbrands

Jörg continues explaining that at the same time he joined forces with Moritz Seidel, which ultimately led to the foundation of Mybestbrands. Jörg and Moritz were eager to establish a business in the B2C sector that did not involve the logistical complexities of handling physical inventory. They observed the increasing popularity of shopping clubs such as Brands for Friends and recognized an opportunity to develop a platform that would inform consumers when their preferred Brands were offering discounts. Initially, Mybestbrands operated with a broad product range, including apparel, tools, and electronics. However, after conducting market analysis, they determined that premium and luxury fashion presented the highest potential for growth and consumer demand, leading to a strategic focus on this segment.

Jörg explains that as the business evolved, they realized that selling a diverse range of discounted products placed them in direct competition with large-scale platforms like Zalando. By 2015, they made the crucial decision to reposition Mybestbrands exclusively as a marketplace for premium and luxury fashion Brands. This strategic shift required a complete overhaul of the website to align with the expectations of high-end consumers and fashion labels. The reBranding allowed Mybestbrands to stand apart from discount-driven platforms and establish itself as a go-to marketplace for premium fashion enthusiasts.

The role of Partner Marketing in Mybestbrands’ success

Jörg shares that from the outset, Mybestbrands relied heavily on affiliate networks to establish partnerships and drive traffic. Initially, the company operated on a Cost-Per-Order (CPO) basis, where commissions varied widely between Brands. This inconsistency created financial instability, prompting the company to reassess its monetization strategy. In 2011, Mybestbrands made a pivotal decision to transition from the CPO model to a Cost-Per-Click (CPC) model.

The transition to CPC was met with scepticism from Brands that were hesitant to pay for clicks rather than confirmed sales. Many partners feared potential fraudulent activity or ineffective traffic generation. To alleviate these concerns, Mybestbrands introduced low CPC pricing, allowing Brands to test the model with minimal financial risk. Over time, as Brands experienced positive results, this approach gained wider acceptance, significantly improving revenue predictability for Mybestbrands. Jörg explains that as confidence in the CPC model grew, the company was able to gradually increase CPC rates, with premium placements eventually reaching up to €1 per click.

Jörg states that during the initial years, the majority of Mybestbrands’ partnerships were facilitated through affiliate networks, accounting for roughly 80% of Brand relationships. However, as the company expanded, it became increasingly clear that direct collaborations with Brands provided more flexibility and control over pricing structures and traffic quality. By actively fostering direct partnerships, Mybestbrands enabled Brands to gain better insights into their marketing performance and optimize their return on investment.

Strategies for traffic growth and customer acquisition

To establish itself as a leading platform in the competitive e-commerce landscape, Mybestbrands adopted multiple strategies to attract both Brands and consumers. A key component of its traffic acquisition strategy was search engine optimization (SEO), which helped drive organic traffic at minimal cost. Given the company’s limited marketing budget in its early stages, SEO played a crucial role in generating visibility.

In addition to SEO, Mybestbrands experimented with television advertising, opting for low-cost TV spots to test their effectiveness. Surprisingly, these advertisements resulted in significant increases in website traffic and user engagement. Word-of-mouth marketing also contributed to Mybestbrands’ growth, as early adopters recommended the platform to their social circles, creating an organic network effect.

Jörg highlights that one of the fundamental challenges faced by Mybestbrands was the “chicken-and-egg” dilemma that many marketplaces encounter. The company needed to onboard both Brands and consumers simultaneously to create a functional ecosystem. To tackle this, Mybestbrands prioritized targeted SEO efforts, strategic Brand positioning, and direct outreach to potential Brand partners. By demonstrating the value of the platform, Mybestbrands successfully convinced key players in the fashion industry to participate, ensuring a steady flow of quality traffic.

As Mybestbrands grew, it sought to enhance Brand visibility through innovative Partner Marketing strategies. The company introduced a tiered CPC pricing system that allowed Brands to bid for enhanced visibility and placement on the platform. This system, which included different pricing tiers such as Platinum, Gold, and Basic, created a competitive marketplace where Brands could strategically increase their CPC bids to secure higher rankings and increased traffic exposure. This dynamic model closely resembled a stock exchange, where demand dictated pricing and visibility.

Lessons from working with Luxury Brands

Luxury Brands have a unique perspective on marketing and demand exclusivity. Jörg observed a stark difference between online multi-label retailers, who are primarily focused on growth and traffic, and high-end luxury Brands, who prioritize Brand image and meticulous attention to detail. This realization led Mybestbrands to create a dedicated "Luxury World" section, which features only mono-Brand stores to cater to the expectations of premium Brands.

Through this experience, he learned that selective partnerships are essential, as accepting every Brand indiscriminately does not align with the exclusivity that luxury Brands seek. Additionally, it became clear that understanding the values and expectations of these high-end Brands is crucial, as they prefer to be positioned next to other prestigious Brands rather than being grouped with lower-tier companies. Another important lesson from working with these Brands was the need for consistency. Luxury Brands value a steady performance throughout the year rather than experiencing fluctuating traffic patterns with seasonal spikes.

One of Jörg’s major takeaways from working with premium and luxury Brands is the importance of community building. Successful Publishers create their own loyal audience, which in turn drives high conversion rates and attracts Brands that are seeking quality traffic. For example, Mybestbrands maintained a strong conversion rate between 2.5% and 5%, with an average order value of around $250. In the luxury segment, this average order value was even higher.

Differences between Publishers and Brands & keys to a strong relationship

From a Publisher’s perspective, the primary focus is on delivering high-quality traffic with strong new customer acquisition rates. Luxury Brands, in particular, expect a consistent influx of new customers throughout the entire year, rather than short-term bursts of activity. Unlike other Publishers who experience fluctuating traffic and revenue, Mybestbrands built long-term reliability, which helped Brands plan their budgets more effectively. Some luxury Brands even asked Mybestbrands about their future revenue expectations so they could align their marketing budgets accordingly.

Jörg emphasizes that trust and transparency are essential elements for maintaining strong Brand-Publisher relationships. Open communication between Brands, Networks, and Publishers plays a crucial role in ensuring a smooth collaboration. He also highlights the importance of industry events and conferences, as face-to-face interactions, particularly at major events such as Fashion Week, help strengthen relationships and create valuable networking opportunities.

Furthermore, he stresses that affiliate networks must develop a deep understanding of a Publisher’s value proposition and audience in order to present them effectively to Brands. In addition, he mentions that clear communication about business models is necessary, as many companies mistakenly assumed that Mybestbrands was a direct-to-consumer retailer, when in reality, it operates as a platform.

The evolution of Partner Marketing and industry trends

Jörg and Matthias highlight that the Partner Marketing landscape has evolved significantly over the past two decades. In the late 1990s and early 2000s, affiliate marketing was still in its infancy, with limited sophistication in tracking and payment processing. By the early 2010s, affiliate networks had become more established, yet inefficiencies persisted, particularly in payment validation and performance tracking.

As the digital marketing ecosystem matured, the role of Partner Marketing became more integral to Brand growth. In today's digital marketing mix, strong partnerships play a crucial role in achieving success. Jörg notes that rather than simply buying traffic from Publishers, Brands should work closely with them to develop a collaborative approach that benefits both parties.

Looking ahead, Jörg expects technological advancements, particularly in artificial intelligence, to further transform Partner Marketing. AI-driven analytics and automation tools will improve efficiency in fraud detection, partner selection, and campaign optimization. While the industry is currently in an efficiency-driven phase, the next frontier will likely involve AI-driven solutions that generate incremental revenue growth. As AI capabilities continue to develop, Partner Marketing strategies will need to adapt to new consumer behaviors and emerging digital touchpoints.

Conclusion and key takeaways

This episode provided an in-depth exploration of how Mybestbrands effectively leveraged Partner Marketing to scale its business and establish itself as a leader in the premium and luxury fashion marketplace. Jörg’s entrepreneurial journey underscores the importance of strategic adaptation, strong business model refinements, and fostering lasting relationships with partners. The insights shared in this discussion serve as valuable lessons for businesses seeking to navigate the evolving digital marketing landscape, highlighting that long-term success is built on innovation, strategic positioning, and the ability to provide high-quality traffic for Brands.

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About The Partner Marketing Podcast

The podcast brings together thought leaders and professionals from across the globe. In each episode, our host, Matthias, sits down with guests to discuss the evolving world of Partner Marketing and share personal stories.

For more details, please visit www.tradedoubler.com/podcast