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WHy we need a coupon network?

 
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  #1  
Old
ABW Ambassador
Join Date: January 18th, 2005
Location: Columbia, SC
Posts: 748
WHy we need a coupon network?

Merchants need a coupon network

Benefits For merchants:

1. No one can scrape coupon codes off TV commercials, catalogs, other affiliate sites

2. Tracking is based on coupon codes, not Coookies. WHich means nobody can hijhack commissions (cookie stuffers)

3. Network is only for merchants that are offering coupon codes and that need a way to track their offline (online) advertisng



The coupon network would work like this, It would only be for merchants looking to distribute coupons.

The merchant logs in and places their coupon code in a secure database

Each affiliate would sign up for each specific merchant.

Lets say Merchant A would enter coupon code "8189bsc89" for 10 percent off.

The database would then distribute a different coupon code to each affiliate.

Each affiliate would be provided a different coupon code based on the orginal.(Algorythm)

The sytem would track soley on each coupon code per affiliate, meaning each affiliate would have a different coupon code. This would be the tracking meaning if someone distubuted my coupon code off my site, I would still get commission.

It would be hack proof meaning the customer has to manually enter the tracking code.
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Jason Bishop
Columbia SC Web Design
  #2  
Old
Merchant & ABW Ambassador
Join Date: May 31st, 2006
Location: Houston TX
Posts: 4,723
Easier said than done. Being a merchant for the past 6 years, some or I would say most shopping carts are not catered towards creating and accepting unique coupons. The only compnay that comes to my mind that does that is Dell and I think they still have a leak somewhere cos I have seen people selling Dell coupons on eBay. Somehow, somebody either manager to replicate dell's coupon creation system or some insider created it.

That being said, there is not a lot of merchants that are able to do that.

Closest thing that I can think of when it comes to coupon distribution is GoldenCAN but that is not dynamic.

Good idea but it lacks the infrustructure.
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Eric Ewe
www.ericewe.com
Twitter @EricEwe
  #3  
Old
2005 Linkshare Golden Link Award Winner 
Join Date: January 18th, 2005
Location: St Clair Shores MI.
Posts: 17,328
Google could pull if off easily on a CPA basis. Then create an alogo change that would filter out any "coupon" listings in their SERPs leaving only their current active coupon at top for coupon searches.
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  #4  
Old
Lite On The Do, Heavy On The Nuts
Join Date: January 18th, 2005
Location: Winter Park, FL
Posts: 6,928
couponers may not like what this eventually brings - a clear, discernable difference in the value of coupon affiliates versus other types (not that all others are better).

conversely, non-coupon affs might like it - removing the couponers who are farther down the line towards the purchase point would raise your conversion rates a tad in many instances.
  #5  
Old
Moderator
Join Date: January 18th, 2005
Location: Mansfield, TX
Posts: 16,105
I think Eric hit the main reason that this will never happen. A system like Jason describes just wouldn't work with most merchant's shopping carts without significant changes.

I do see a need for a coupon network, but not one like this. I would like to see one where merchants from any network can syndicate their coupons and other promotions out to their affiliates. Some networks offer something like this (ShareASale.com Coupon/Deal Database, BeFree Offer Management, etc.), but most other networks don't (or what they offer is pretty much unusuable). There are some companies who attempt to do this on a wider basis, but I'm not satisfied with any of the solutions yet.
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Michael Coley
Amazing-Bargains.com
 Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
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  #6  
Old
ABW Ambassador
Join Date: January 18th, 2005
Location: Columbia, SC
Posts: 748
style="margin:20px; margin-top:5px; ">
Quote:
Originally Posted by MichaelColey
I think Eric hit the main reason that this will never happen. A system like Jason describes just wouldn't work with most merchant's shopping carts without significant changes.
mmm back to the drawing board
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Jason Bishop
Columbia SC Web Design
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  #7  
Old
ABW Ambassador
Join Date: January 18th, 2005
Location: Columbia, SC
Posts: 748
Ok, this is what i found out,

Me personally i have never been to the affiliate summit (I wish I would have)

However i went to their site and found a great article I would like to share

http://www.affiliatesummit.com/coupon-debate-0706.pdf

After reading this article this is my conclusion, most merchants are running from coupon sites because it affects their bottom line and their is a big debate on this. Most say its bad, others have no opinion and some say it doesn't matter. Most merchants to my knowledge say coupon sites are bad, because it henders their brand.

Which I totally understand (In a sense, only after reading the article above)

SO maybe this would work better.

If there was a single site that displays the merchants coupons ,instead of being affiliate based, it was based on Pay Per CLick. Meaning this site would be able to display merchants coupons and no other site would be able to display the custom coupons. Meaning the merchant was able to update the coupons and/or codes daily

It would work like this,

Merchant comes to this site and updates their coupon codes

Merhant would link to this coupon site (ppc, not affiliate) from their site (maybe in a sitemap) which would give the coupon site a ranking boost for "Merchants Name + Coupons" If a merchant would link to this site, they would achieve the top ranking for "their trademark + coupons" across all search engines.

Instead of paying a 30% network fee and a 10% affiliate fee and a 10% off customer fee, they would just pay a simple PPC fee and customer coupon fee (lets say 10%)

One merchant I have worked with stats are as follows

720 impressions
41 clicks
$40.00 commission + network commsssion fees

If the merchants decided just to pay for ppc it would work out like this
720 impressions
41 clicks
4.10 commission with no network fee

This would benefit the merchant and the end user, in which the end user would have a coupon and the merchant would not have to break the bank to cover all of the fees.

ANy merchants out their think this is a good idea? Sorry it doesn't work for any affiliates
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Jason Bishop
Columbia SC Web Design
  #8  
Old
Moderator
Join Date: January 18th, 2005
Location: Mansfield, TX
Posts: 16,105
Jason, you might want to actually talk to some merchants before making such big assumptions.

For what it's worth, I went to that session. The two people presenting the "con" side of coupons have coupon sites.

Most merchants are very enthusiastic about coupon sites. Some aren't, but they're in the minority.

If you want a coupon site that works on CPC, there's already one out there: MyCoupons.com. Search here and make your own judgments.
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Michael Coley
Amazing-Bargains.com
 Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
"Education is the most powerful weapon which you can use to change the world." Nelson Mandela
  #9  
Old
Lite On The Do, Heavy On The Nuts
Join Date: January 18th, 2005
Location: Winter Park, FL
Posts: 6,928
I used to be "con" in general, but gave in (faced reality). There's nobody now who can realistically convince me that coupons are ever going to go away. It's about as likely as "sales" going away. There's nothing for affiliates to debate in my view, merchants either have them or don't. I hope the folks at ASummit find a more interesting topic to replace the session referred to here.
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  #10  
Old
ABW Ambassador
Join Date: January 18th, 2005
Location: Columbia, SC
Posts: 748
ok back to the coupon network,

Do merchants use a custom built shoppingcart or do they use a commercial shopping cart. I was think many use a cutom built shopping cart

Anybody know?
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Jason Bishop
Columbia SC Web Design
  #11  
Old
Lite On The Do, Heavy On The Nuts
Join Date: January 18th, 2005
Location: Winter Park, FL
Posts: 6,928
to me, your question is like... do people drive toyotas or fords?

there are about 14,000 merchants in our affiliate realm I think, so asking if "they" use commercial or custom carts would be too sweeping of a question...

no offense, just seeing a lil humor here... brings to mind other favorite questions that i like to ask kids... do you ride the bus to school or do you take your lunch? which is taller martin towers?
  #12  
Old
2005 Linkshare Golden Link Award Winner 
Join Date: January 18th, 2005
Location: St Clair Shores MI.
Posts: 17,328
style="margin:20px; margin-top:5px; ">
Quote:
Originally Posted by netnow22
Ok, this is what i found out,

Me personally i have never been to the affiliate summit (I wish I would have)

However i went to their site and found a great article I would like to share

http://www.affiliatesummit.com/coupon-debate-0706.pdf

After reading this article this is my conclusion, most merchants are running from coupon sites because it affects their bottom line and their is a big debate on this. Most say its bad, others have no opinion and some say it doesn't matter. Most merchants to my knowledge say coupon sites are bad, because it henders their brand.

Which I totally understand (In a sense, only after reading the article above)

SO maybe this would work better.

If there was a single site that displays the merchants coupons ,instead of being affiliate based, it was based on Pay Per CLick. Meaning this site would be able to display merchants coupons and no other site would be able to display the custom coupons. Meaning the merchant was able to update the coupons and/or codes daily

It would work like this,

Merchant comes to this site and updates their coupon codes

Merhant would link to this coupon site (ppc, not affiliate) from their site (maybe in a sitemap) which would give the coupon site a ranking boost for "Merchants Name + Coupons" If a merchant would link to this site, they would achieve the top ranking for "their trademark + coupons" across all search engines.

Instead of paying a 30% network fee and a 10% affiliate fee and a 10% off customer fee, they would just pay a simple PPC fee and customer coupon fee (lets say 10%)

One merchant I have worked with stats are as follows

720 impressions
41 clicks
$40.00 commission + network commsssion fees

If the merchants decided just to pay for ppc it would work out like this
720 impressions
41 clicks
4.10 commission with no network fee

This would benefit the merchant and the end user, in which the end user would have a coupon and the merchant would not have to break the bank to cover all of the fees.

ANy merchants out their think this is a good idea? Sorry it doesn't work for any affiliates
Like I said above, you are describing my prediction of a http:// coupon.Google.com in this reply. Type in Merchant name+ or Brand name+ or merchant domain+ or Store name+ or Product name+ in the Google search box and the op of the SERPs display links to coupon.google.com which would operate on a CPC or CPA basis. Like Froogle.com it would be for merchants only. You know. The ones actually making the coupon and honoring them during cart checkout. Trademark owners, or their authorized agents, just log-into coupon.google.com and post their offer.

Coupon and content scrapers will have a new 800 Lb Gorilla to content with.

Self serve admin area with instant valid keyword triggered coupon SERP link generated to display at the top of their SERPs. Those merchants offering Google Checkout are forced to honor their posted coupon incentive making them 100% trustworthy to Googlers. Only problem for Google is choosing which pale color would outline the top of page SERP link to their valid coupon display page at coupon.google.com. Time for them to cash in on the millions of coupon $$$ they credited merchants the last few months for GC recruiting write off expenses. Imagine the free traffic, with no dip into the GC e-cashregister drive from this simple page... http://www.google.com/checkout/m.html (try a keyword search term at top of that page) to see how a coupon site should be run. Their Google Checkout and Analytics stats will show CPA would be the more profitable way to go.

Guess I should try for a proof of concept fee by publishing this and point the GC and Adwords staff I converse with to that page. Another cookied "point of sale" attack dog group joins the problems facing the BHO's. Might be a great cover page theme to create buzz for my new domain B-a-Ho.com
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Last edited by ecomcity; January 30th, 2007 at 09:52 AM.
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