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June 20th, 2008, 11:57 AM #1Affiliate Programs sales on the increase~
We are in tough times with the weak dollar, recession and astronomical gas prices. Here's some good news. We run a diverse set of affiliate programs from home & garden, fitness, health & beauty, domains & hosting. Looking at trends for the year the low point was around tax time April 15. Since then things have been trending up.
Fitness especially high dollar (AOV $1600) treadmills & ellipticals from Sole Fitness have maintained strong sales.
Our flagship products from Little Giant Ladder (AOV $400) have done well.
Infomercial products like WORX Yard Tools are going crazy. These are green products, light weight with many unique features.
Just wanted to give affiliate a heads-up. Its my impression that people are shopping more online and letting the UPS/Fed-Ex driver bring it to their doorstep.
What's your experience? Other merchants, do you have products that are selling well this season?
Last edited by Chuck Hamrick; June 24th, 2008 at 12:09 PM.
July 16th, 2008, 11:41 AM #2
- Join Date
- May 9th, 2005
In a well known forum for e-commerce, there is almost total agreement that e-commerce itself is in recession, perhaps for the first time ever. The consensus is that it is far worse than Sep 2001. Many complained of a nosedive after July 1st.
We are getting a marked reduction in affiliate commissions as well although affiliate marketing is a minor source of income for us. Since July 1st, we have been getting a big surge of cancellations for direct adverstisements on our sites. Many different niches are involved including highly resistant ones such as gambling.
So that although our earnings are now at an all-time high, I am pretty worried about the rest of the year.
July 16th, 2008, 12:55 PM #3
Most of our programs are pacing well and are not really being affected by the economy that I've seen. Especially the programs that emphasize discounting, low prices, coupons etc. and that are not luxury items. The programs that have seen a dip are those that are price-premium, luxury items that offer very little couponing or other discount incentives. I don't think that's a surprise given the economic climate that they would see a dip. Overall, I feel like the affiliate marketing model, of all business models, would fare better in an economic downturn, because of the emphasis on deals, free shipping, in many cases tax free shopping etc. - in other words, the perception that you can get a better deal online than you can at a brick and mortar store.
Also, given gas prices, I think we've actually seen more people shopping online to save on filling up the car and driving unnecessarily. So I'm pretty optimistic about how affiliate marketing programs will fare. Let's keep our fingers crossed.
www.schaafco.com | firstname.lastname@example.org Our Programs: Baby Catalog | Blue Bee | Constant Contact | CourseSmart | ForMeToCoupon | Homestead | InTheSwim | Ipsos Survey Panel | LightInTheBox.com | Moosejaw | Mrs. Prindables | Payless ShoeSource | simply youth ministry | SnagAJob.com | Specialty Pool Products
July 17th, 2008, 09:58 PM #4
- Join Date
- May 22nd, 2008
This is interesting, as a merchant of a product line that is definitely not a necessity, I have found me traffic and sales increasing in the last few months. Now, on the flip side of that my average sale amount is down a bit so it balances out for me. I actually incorporated 3 "lower" end lines about a month ago and believe that has been a huge help!
Our affiliate program is still pretty new and most of our affiliates right now are coupon sites, have not seen a ton of traffic yet from this, but I am just starting to really work it...
I just wanted to put in my "merchant" feedback to let everyone know that people ARE spending...even on things they do not NEED to have!
July 18th, 2008, 03:42 AM #5
I've seen some nice sales through my site this month - some even luxury items.Peace,
Loving Everyone's Child Creates Magic
July 18th, 2008, 07:57 AM #6
The pet industry has always been recession proof.
Pet owners will use there social security or unemployment checks to buy supplies for their pets.
I'm really not exagerating here we've seen those checks used in our retail warehouse.
The last few weeks have been normal, this week has been stronger we think because so many people are returning from vacation.
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