Meet Claus Cuzmar Niemann, the dynamic CEO of Karma Group, whose journey in the world of digital marketing and affiliate marketing is nothing short of inspiring. With a career spanning over eight years, Claus has evolved from fixing computers as a teenager to becoming a prominent figure in the affiliate marketing space.
In this interview, he shares insights into his beginnings, challenges, successes, and future plans, offering a glimpse into the mind of a successful media buyer and entrepreneur.
Can you please introduce yourself in a few words to our audience?
Okay! I started working in digital marketing about eight years ago. Before that, I used to fix computers when I was quite young — I think I was 16 at that time. That experience helped me learn how to create WordPress pages, which introduced me to web page development and a bit of digital marketing. I also dabbled in Google AdWords (back when it was still called AdWords) and Facebook ads (before it became Meta).
But my real journey in digital marketing began about eight years ago with dropshipping. I don't remember exactly how it started, but I think I stumbled upon a YouTube video while I was searching for some info on Facebook ads. The launch took several months to get things up and running, but in the end, it was successful. This was back when dropshipping was at its peak. That's how I started in the digital marketing world.
What budget did you have when you started dropshipping?
To tell the truth, I didn’t have much money at all. I was in a tough spot because I had just lost my job. I remember I had a credit card with about $300 on it, so I started with that, basically borrowing it from the bank. I didn’t have any other resources. I kept telling myself, "I can either use this money for basic needs like food and look for a new job, or I can take a risk and try something different." I hoped for the best, and luckily, things worked out. I think I spent around $250 before I found my winning product, and then I started to scale. Once you start making sales, you get paid instantly, which allows you to scale up quickly.
So why did you decide to quit dropshipping and move to affiliate marketing?
As I’ve already mentioned earlier, I was in dropshipping for about eight years. Around my third or fourth year, I started facing a lot of bans. We were mainly dropshipping to Latin America, especially Chile, and it took a long time for products to arrive from China — sometimes 20 days, sometimes even 40. Then Facebook introduced a review page where customers could leave feedback on their shopping experience, including the delivery time. Of course, we had zero reviews there, because we were taking so much time to deliver the products, and because of that all of our fan pages started to get banned, and later the same happened with our add accounts.
I needed to find a way around these bans, so I started searching for solutions. That’s when I came across the CPA.RIP forum, which was basically the first link on Google. They had a FAQ on how to bypass Facebook bans, which was incredibly useful and helped me relaunch my dropshipping business. But during my research, I noticed people were making a lot of money with nutra products in affiliate marketing, especially in the CIS region.
I didn’t understand much of it at first, but I got really curious. So, I started looking into it more, and within a month or so, I launched my first affiliate marketing campaign with nutra products, based on the information I’ve found on CPA.RIP. That’s also how I discovered Partnerkin. I tried to translate all of the information I had found, as there wasn’t that much of it in English. But, let me be honest, it didn’t help.
What GEOS do you prefer working with?
We’re not focusing on specific countries but rather on continents. We’re primarily working with Latin America and cover almost every country there. We also work with Europe, and we are starting to explore Asia. Currently, I’d say Mexico is one of our best markets at the moment. Other Latin American countries are also great, and in Europe, we have a really good affinity with Spain and Portugal, as we speak the same language, and of course there are other countries, but we’re still new there and figuring out the potential volumes. As I mentioned, we’re testing Asia now, and it's going pretty well so far.
If you ask me which GEO is the best for us today, I’d say Mexico. It’s a big country where you can scale a lot, it’s not too challenging, and it’s affordable. Once you have a good setup there, I’d recommend moving to Europe because it’s very stable. Unlike many Latin American countries, which can be unstable and require a lot of effort to maintain campaigns, in the case of Europe, you can set things up and just relax.
Do you work with affiliate networks or with direct advertisers?
We are working with both. We're working with direct advertisers and affiliate networks in Mexico and other Latin American countries. We're partnering with some big holdings that include both advertisers and affiliate networks. Currently, we're working with Shakes.pro, with CPA.RIP partners, who are one of our best partners these days. They have data advertisers, so we're working with them in Europe. We also work with LEADROCK, another top partner, with whom we are working mostly LATAM geos, and a couple of lesser-known ones like Upscale, a direct advertiser which we’re trying out in Asia now. We’ve just met them at the Affiliate World and decided to try to work with them.
Can you please share your recent successful campaign and the results you achieved?
Yeah, let’s take April as an example, since we're still finalizing May's results. In April, we made around $60 000 in profit and half of this profit we achieved just in Mexico, basically in one product in potency. We’ve been stable in Mexico for about six months. While the profit from this offer isn't as high as it used to be, it’s still substantial.
How do you see the affiliate world right now? What trends are emerging in the affiliate marketing industry globally?
I think the main trend is shifting towards more digital businesses, like gambling and crypto. Many affiliates are moving into these fields because of the high scalability. And I think I know the reason. Unlike physical products, digital products don’t have issues like stock shortages. This year, both gambling and crypto are strong, especially crypto, due to the recent surge in Bitcoin and other stuff. I'm not sure which one of them will be the most profitable field in the future, but it will definitely be something fully digital, not physical.
What do you think about artificial intelligence? Do you use AI services, and does it help you promote your products and create creatives?
100%. We use a lot of AI. During our testing phase, we often used AI, as we added voiceovers to almost every video. AI is incredibly advanced now, making it perfect for such tasks like video creation, particularly if you have someone skilled in using it. We now have a Video Leader in our team, which has been a real game changer. We also use a lot of ChatGPT. For example, when we're brainstorming strategies, it acts as our support system, which helps us to clarify our thinking process. We also use it for copywriting. While I’m not a huge fan of relying too much on ChatGPT for copywriting, sometimes it gives you a more informal approach rather than Deeple or Google, which tend to be more formal in translation. This way, we use AI to be closer to people. For videos, AI is great for initial tests, but we still refine the finished result to avoid looking too artificial, we want it to look as real as possible.
Can you tell me more about your team?
Sure! Our team structure is tailored to our specific needs. I didn't have much knowledge of how Russian teams work, but I’ve met many professional Russian team leaders and business owners recently. Our team consists of five designers — one specializes in designing web pages (landings), but he's still the designer, not a programmer. Two designers focus on videos and are great filmmakers. The remaining two are media creators who support everything, doing adaptations and so on. They have one leader among them, the design leader, though we haven't settled on a specific title yet.
We also have three media buyers. One of them is like my right hand and backup, while the other two are juniors, still gaining experience in affiliate marketing. They’ve been very helpful and have grown a lot with us. I'm also a media buyer, leading the media buying team with my experience. Additionally, we have one HR and one PR specialist who looks for influencers and other famous people to create user-generated content. We also have a growth hacker, a versatile person who can fill any role and is always thinking about new content ideas and tests. And lastly, we have one accountant, it’s a necessity.
What key qualities do you look for when hiring designers, media buyers, and other team members?
We prioritize two main qualities that aren't based on experience: passion and curiosity. We have a robust system to help people progress, and one requirement to work with us is always taking some kind of course. We cover the expenses because staying updated in this fast-moving field is crucial. We’re currently recruiting junior media buyers to train and an SEO specialist to lead our new SEO project. We have a part of our team working on it, but to make it launch we need a SEO leader. Another essential quality is the ability to speak English. I don't care if you are from Kazakhstan or Georgia, we don’t really care where you are from. We're going to pay you with crypto anyway. We hold meetings and believe that written communication isn’t enough; you need to meet people, at least virtually and of course be able to easily communicate with them. You don’t have to be an expert in English, it just has to be good enough for a basic conversation. If needed, we provide English courses for our team members. Actually, all of my team members are taking English courses right now.
Can you share your future plans in the affiliate marketing space? Do you have any new projects or areas you want to explore? What are your goals for 2024?
Our main goal is to move into the gambling vertical. One of our media buyers is already fully focused on the gambling sphere, and I plan to do the same. I used to run some campaigns on it last year before switching to nutra for quicker returns. This year, switching to gambling is our primary focus. We also have a significant SEO project underway, which is new for us, but promising. I have some SEO experience, and we aim to grow in this area as well.
What do you think is the most critical skill for success in affiliate marketing today?
You need to think outside the box and break away from conventional thinking, it’s like getting out of the Matrix. For example, many people that I know in the dropshipping sphere think that it is tough to work in the Russian community, but I stepped out of that mindset and succeeded. You should learn from everyone you interact with, sort through the information, and apply what works for you. The key difference between successful people and others is their ability to innovate and do things differently, which brings better results.
Can you give some advice to people who would like to start affiliate marketing today?
I have two pieces of advice. First, visit Partnerkin, read the blog and case studies, and explore the forums. If you’re from the CIS, check out YouTube for tutorials on starting from scratch. Conference videos and niche Telegram channels are also great resources. I remember, when I had many problems with those bans, I translated a video from KINZA 360. The information is there, you just need to do the research. Use spy tools, but remember to innovate rather than just copy others. Simply copying won’t give you the same results, I can guarantee you that. Second, if you have some experience, join a good team. I know lots of excellent teams in Russia that are willing to help and teach you. It’s worth trying, and you have nothing to lose.
Do you agree with the idea that it’s better to join a small team rather than a big one at first, to gain more insights and grow faster?
I think if a company gets too big, it can be hard to manage everything. Smaller teams tend to be more open and eager to grow, which requires an open-minded approach. However, large teams also face challenges and need to stay innovative and network effectively, also they could be experienced enough to teach in a more structured way. Networking is essential at any stage, regardless of the team size. I personally believe that there is no endpoint for networking.
Conclusion
Claus Cuzmar Niemann's journey to becoming the CEO of Karma Group is a testament to the power of perseverance, adaptability, and continuous learning. His insights into the evolving landscape of affiliate marketing, the importance of thinking creatively, and his forward-thinking approach to business make him a valuable voice in the industry.
As Claus and his team look towards new horizons in gambling and SEO, their story serves as an inspiration for aspiring affiliate marketers everywhere.
