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  1. #1
    Moderator MichaelColey's Avatar
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    A New Low - Best Buy Laptop & Wii Commissions Dropped to 0.25%!
    Just got this from Best Buy:

    "We are all facing one of the most trying economic climates in our nationís history. Best Buy is challenged with the task of remaining profitable while continuing to offer competitive pricing to help you drive sales. To do so, we must make difficult financial decisions. One of these is our decision to reduce commissions on Notebooks/Laptops and Wii Hardware from 1% to 0.25%."

    So, for a $1000 laptop, we'll earn $2.50? How unmotivating.

    And I thought 1% was bad already.
    Michael Coley
    Amazing-Bargains.com
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  2. #2
    ABW Ambassador
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    I got the email but didn't read it yet. That's crazy. And with Walmart doing what they did. Go Amazon. 4% electronics and this month I'm getting 7% on everything else.

    Actually I'm getting 1.76% on laptops at Amazon. Ah, I keep forgetting, they have a maximum of $25 commission for a computers sale.

  3. #3
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    Don't these merchants realize that is just makes the affiliates promote a competitor?

  4. #4
    Moderator leeann's Avatar
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    Incredible.
    leeann


    Shoppers determine what has value and they like coupons. Stop manipulating who set the cookie just because you do not like coupon and promotional sites.

  5. #5
    Beachy Bill's Avatar
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    Ah, I am soooo glad I don't have sites where my readers expect me to promote those types of stores.
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  6. #6
    ABW Ambassador
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    Quote Originally Posted by Bill
    Ah, I am soooo glad I don't have sites where my readers expect me to promote those types of stores.
    So am I. It isn't worth my time. The numers needed to earn any decent money make it a waste of time for most affiliates

  7. #7
    AM Navigator Geno Prussakov's Avatar
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    0.25% is shockingly low...

    Better for Amazon.

    Geno

  8. #8
    ABW Veteran Mr. Sal's Avatar
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    Cool
    Quote Originally Posted by MichaelColey
    Just got this from Best Buy:

    "We are all facing one of the most trying economic climates in our nationís history. Best Buy is challenged with the task of remaining profitable while continuing to offer competitive pricing to help you drive sales. To do so, we must make difficult financial decisions. One of these is our decision to reduce commissions on Notebooks/Laptops and Wii Hardware from 1% to 0.25%."

    So, for a $1000 laptop, we'll earn $2.50? How unmotivating.

    And I thought 1% was bad already.
    But, you always will find some affiliates here, that would say that 0.25% or $2.50, it's still better than nothing...

    So what else is new?

  9. #9
    Believe knight01's Avatar
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    I got the email as well. Though I don't promote laptops or games, I had the same initial reaction. But after thinking about it, they really don't have much option. The prices on laptops and gaming consoles have dropped which lowers what was already a tight margin.

    I know it doesn't help those who do promote those items, but in this case I don't think they are doing this out of ignorance about affiliate marketing or to squeeze us. On a typical laptop that is likely to be sold online, BB is probably making around 2% to 4% net profit.
    Someday starts today
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  10. #10
    ABW Ambassador simcat's Avatar
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    I dropped them a week ago when they forced new TOS. No 'best buy' in meta tags, description, title tag, etc.

  11. #11
    Merchant & ABW Ambassador
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    how about buy.com as an alternative.

    i think circuit city will go belly up soon with the chapter 11. So alternatives are amazon, buy.com and best buy (just eliminated)

  12. #12
    ABW Ambassador meadowmufn's Avatar
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    Imagine if car salesmen got paid like that. They'd get $50 for selling a $20,000 car. Now, I don't know what car salesmen make, but I'd have to guess it's more than that!
    -Don't criticize anyone til you've walked a mile in their shoes. Then when you do criticize them, you'll be a mile away and have their shoes.
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  13. #13
    ABW Ambassador simcat's Avatar
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    BestBuy is hurting, but still making a profit.

    http://news.yahoo.com/s/ap/20081216/...earns_best_buy
    I'm not going to be making any sites about these kinds of products for a while.

  14. #14
    Full Member drumminlogan's Avatar
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    That's pretty crazy. I sold my first laptop this month through amazon and it will probably be my last unless one of my other links converts. I got less than 3.5% at Amazon and I thought that was bad. What is the point with Best Buy even offering a commission on those. They should just send a tootsie pop or a cookie for every laptop sold. That would save them some cash.
    [b]Logan Thompson[/b]
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  15. #15
    ABW Ambassador simcat's Avatar
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    it is pretty crazy when a laptop gets you the same commission as selling something like a baseball cap or a couple of calendars.

    Plus looking at the stability of the merchant, will they be around, etc.

    2009 looks to be a crazy year affiliate-wise.

  16. #16
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    just think about how many millions of laptops are sold online, and how many of those will be affiliate sales. Some sites are still going to make a lot of money.

    It is just hard for most affiliates. For some, the Best Buy name is too important to drop

  17. #17
    Analytics Dude Kevin's Avatar
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    Wow.
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  18. #18
    Moderator leeann's Avatar
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    I noticed they are offering their corporate employees "voluntary" severance packages. What a nice thing to worry about over the holiday season...
    leeann


    Shoppers determine what has value and they like coupons. Stop manipulating who set the cookie just because you do not like coupon and promotional sites.

  19. #19
    ABW Ambassador
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    Quote Originally Posted by leeann
    I noticed they are offering their corporate employees "voluntary" severance packages. What a nice thing to worry about over the holiday season...
    At least they are not filing for Chapter 11 as Circuit City are

  20. #20
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    In lean times, you motivate commission sales people. This is redunklulously backwards.

    I cannot be convinced that cutting to essentially nothing (0.25%) has a value basis in it's underlying analysis that is anything but negative for us collectively. I think the perceived value of the channel continues to erode, thanks to the scum among us.

  21. #21
    Full Member 1stAngel's Avatar
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    Quote Originally Posted by Donuts
    This is redunklulously backwards.
    What a marvellous word!!

  22. #22
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    I need an avatar like Donuts, it really gets the point across on threads like these =)

    I can't help but wonder how close Best Buy is from filling for bankruptcy. Offering 0.25% I think will put them one step closer. Why would anyone promote that at this point unless you already have a large amount of promotions in place and were too lazy to change it?

    Have you ever read BB's return policy - complete rubbish!! I can't understand why anyone would shop there anyways. They are a great place to goto and window shop though =)

  23. #23
    Best New ABW Member 2007 sfcom's Avatar
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    Let's see - Best Buy pays us no healthcare, no 401k, no contributions to health benefits, etc. and expects us to sell a $1000 laptop shipped direct from a warehouse for $2.50 in compensation (minus income tax.) Meanwhile, an average Best Buy employee who visits the restroom for 15 min/day gets paid more than that for peeing and pooping. Here is the most outrageous affiliate plea of 2008: Please pay people who make sales more money than those who are in the restroom.

    -sfcom


  24. #24
    Moderator MichaelColey's Avatar
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    An affiliate would only need to sell 20 million $1000 laptops per year to make as much as Best Buy's CEO made last year.
    Michael Coley
    Amazing-Bargains.com
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  25. #25
    The Seal of Aproval rematt's Avatar
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    For the life of me I can't imagine why anyone would want to market laptops or Wii's for such a piddly amount.

    OK let's give them 50% credit for name recognition and that's probably generous, now let's find a program paying out at 2.5% or ten times their commission rate. Now let's assume that we actually know how to market (I mean come on, we call ourselves affiliate "marketers") and are able to actually convert the 50% that didn't run as soon as they didn't see Best Buy on our sites. So on what would normally be $1,000 in sales you'd lose half or $500 in the new world order. Your net loss of commissions would be.....(insert drum roll here)......an increase of $10.00.

    You'd have to lose 90% of your sales to make replacing this merchant for these products unprofitable.

    Yep, a no brainer.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

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