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  1. #1
    Advocate mellie's Avatar
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    Merchants Switches to CPC for NY affiliates
    Herb posted this ( http://forum.abestweb.com/showpost.p...0&postcount=21) in another thread but I think it's important enough for a thread of it's own, it might get missed in that other thread.

    Ice.com is switching to a cpc payout for their NY affiliates. They've chosen to pay NY affiliates a penny a click as a temporary "solution".

    I'm not an affiliate of ice.com so it is a little hard to judge the fairness of this penny but if this was a converting merchant for me I would find this a bit low.
    Is a penny a click fair? How do you arrive at a fair per click figure for a merchant who was paying commission (and continues to pay commission to other affiliates)?


    Also important - does switching to a cpc payout for NY affiliates mean exampt from the tax law? I have to look back but I thought some interpreted the law in such a way it wasn't an alternative.
    Melanie
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  2. #2
    http and a telephoto
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    Paying CPC doesn't establish nexus. Paying a percentage per sale establishes nexus.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  3. #3
    Affiliate Manager Maim133's Avatar
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    $.01
    A Penny is pretty low, but CPC always scares us merchants. Someone tries to game the system, you don't notice for 2 days and all the sudden you got some sort of complete junk 200,000 visitors.

    At least with the Penny you mitigate some of that risk.

  4. #4
    Advocate mellie's Avatar
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    I thought I read that if a merchant is paying on a commision basis, switching to cpc for just the NY affiliates would not eliminate the nexus which was already established by June 1.
    I have to try and find where I read this.
    Melanie
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  5. #5
    Analytics Dude Kevin's Avatar
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    That depends Mellie. If their previous 4 quarters added up to 10k in NY Aff sales to NY shipping addresses, the move now has no short term effect.
    Kevin Webster
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  6. #6
    Advocate mellie's Avatar
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    A penny is better than nothing We appreciate efforts made to keep us in programs!
    I'm not really into cpc (guess that's going to change) so it (is a penny fair) was more or less a question and not an educated opinion. I need to know how to judge these new offers that might be made available to me.
    Melanie
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  7. #7
    The affiliate formerly known as ojmoo
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    CPC is a solution, but the actual amount per click is a bit tricky. I have my own solution, but it seems to me, if an affiliate was earning a substanial amount from an merchant (I guess at least $100 a month) I would simply contact the merchant with the stats of the commissions over the last 6 months and make a contact which states, the affiliate will promote the merchant the same as before without network links being involved and the merchant will simply pay a fixed amount which is an average of the last 6 months sales. Of course, the amount is negotiable. This solves the problems for everyone.


    Although if the network was SAS, it would be nice to put in the contract something for SAS, its not their fault and they shouldn't get screwed out of thier commission :-) (cj and linkshare, serves them right though :-)
    Expert who says Moo

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  8. #8
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    Since average order size is $210 and they pay 10%, $21 average commission per sale. A penny a click would be 2100 clicks. I would hope the conversion rate is better than that and if it is, a penny would be a joke. Just imagine how much per click you would make with Adsense on jewelry terms, lot more than 1 penny.

  9. #9
    ABW Ambassador simcat's Avatar
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    If anyone has a reasonable site & is selling clicks for a penny, please direct me to your adv. sign up page.

    As for fake clicks, I doubt .01 is even enough to motivate anyone to create fake clicks.

  10. #10
    Advocate mellie's Avatar
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    Quote Originally Posted by oranges
    CPC is a solution, but the actual amount per click is a bit tricky. I have my own solution, but it seems to me, if an affiliate was earning a substanial amount from an merchant (I guess at least $100 a month) I would simply contact the merchant with the stats of the commissions over the last 6 months and make a contact which states, the affiliate will promote the merchant the same as before without network links being involved and the merchant will simply pay a fixed amount which is an average of the last 6 months sales. Of course, the amount is negotiable. This solves the problems for everyone.


    Although if the network was SAS, it would be nice to put in the contract something for SAS, its not their fault and they shouldn't get screwed out of thier commission :-) (cj and linkshare, serves them right though :-)
    GMTA I was working on a similar solution with and indie but now might just sell him my site (currently negotiating). It would be nice if there could be a more equitable solution for all 3 parties - merchant, affiliate and network.
    Melanie
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  11. #11
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    I suppose that you could argue that there is a heck of a lot of junky jewelry traffic out there that will never convert, so 1 cent per click could be lucrative. A lot of people look at jewelry with no intention to buy.

    I am sure that ICE.com wouldn't want to pay for those visitors though. Seems to be rather stupid for ICE.com to offer 1 cent per click.

    Any traffic worth anything, an affiliate wouldn't want to accept 1 cent for. Any junky traffic wouldn't be worth paying for. Doesn't make much sense either way.

  12. #12
    Advocate mellie's Avatar
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    Quote Originally Posted by Trust
    Since average order size is $210 and they pay 10%, $21 average commission per sale. A penny a click would be 2100 clicks. I would hope the conversion rate is better than that and if it is, a penny would be a joke. Just imagine how much per click you would make with Adsense on jewelry terms, lot more than 1 penny.

    That's how I was looking at it. If I was looking to join a new merchant a penny wouldn't entice me. Adsense would be more in my pocket. When I've been talking with a couple of merchants regarding solutions, I was looking at a much higher figure than a penny but that's with merchants I have working relationships with. Also a monthly rate seems fairer to all but again you need to have an established relationship and it would be nice if merchants in networks could figure out a way to do it.
    Melanie
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