Results 1 to 13 of 13
  1. #1
    Newbie
    Join Date
    December 29th, 2008
    Posts
    6
    how does a site like fatwallet or ebates.com negotiate with various merchants on how much commission they'd get from sales through their links?

    do they go through standard affiliate programs like commission junction? or do they negotiate directly with merchants?

  2. #2
    Moderator Nabz's Avatar
    Join Date
    August 24th, 2005
    Location
    VY Canis Majoris
    Posts
    1,751
    This is is from 2003? Right?

  3. #3
    Newbie
    Join Date
    December 21st, 2008
    Posts
    19
    Marc- Looking to hire someone to get my coupon site up and running. Do you think you could give me a referral? I have talked with a few web developers and many of them want to thousands of $$$ in consultation-before they start and I am getting prices from $4,000 to $80,000. None of these folks have convinced me that they can accomplish what many of you have. I appreciate your help!

  4. #4
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    Split off from a thread from 2003. Folks sometimes a new thread is better than reviving an old one.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  5. #5
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    Quote Originally Posted by cashcash
    how does a site like fatwallet or ebates.com negotiate with various merchants on how much commission they'd get from sales through their links?

    do they go through standard affiliate programs like commission junction? or do they negotiate directly with merchants?
    There are many ways to approach a merchant about special commission rates but the bottom line is you need to show them that you are able to produce results before you go asking for a better than average deal. Some merchants will be glad to give you a higher rate upfront because you are motivated and interested, others will want you to prove you can produce sales first.

    And some will stay on network and others will go with private tracking. It's all up to the individual merchant and how they work and what technical capabilities they have.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  6. #6
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    Quote Originally Posted by jg1907
    Marc- Looking to hire someone to get my coupon site up and running. Do you think you could give me a referral? I have talked with a few web developers and many of them want to thousands of $$$ in consultation-before they start and I am getting prices from $4,000 to $80,000. None of these folks have convinced me that they can accomplish what many of you have. I appreciate your help!
    Marc's last post was in 2007, not sure if he is around to answer you. Coupon sites are not inexpensive to create and run. $4000 sounds like a steal!
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  7. #7
    Merchant & ABW Ambassador
    Join Date
    May 31st, 2006
    Location
    Houston TX
    Posts
    4,731
    Quote Originally Posted by cashcash
    how does a site like fatwallet or ebates.com negotiate with various merchants on how much commission they'd get from sales through their links?

    do they go through standard affiliate programs like commission junction? or do they negotiate directly with merchants?
    1) Sell your company and show the merchant that you will bring value to the merchant.
    2) Look at the baseline that the merchant is offering.
    Let's say they are offering 4%, what value can you bring on to ask for more than 4%. Let's say you are offering them the ability to reach a niche customers of affulent Mothers and the merchant is selling baby car seats. Bam, you have a good chance.

    Other things you want to look at is volume, demographics, PPC vs non-ppc, etc.

    All the best!

  8. #8
    Banned
    Join Date
    February 7th, 2006
    Posts
    118
    Quote Originally Posted by loxly
    There are many ways to approach a merchant about special commission rates but the bottom line is you need to show them that you are able to produce results before you go asking for a better than average deal. Some merchants will be glad to give you a higher rate upfront because you are motivated and interested, others will want you to prove you can produce sales first.

    And some will stay on network and others will go with private tracking. It's all up to the individual merchant and how they work and what technical capabilities they have.
    All is very true.

    Sometimes you can get a mechant to give you a higher commision right off the bat, but usually the best way to go about doing it is to become a solid performer. Show them that you are consistently generating above-average sales or that your site is totally different from most other affiliate sites. The goal is to turn yourself into an asset to that merchant, an asset that they will want to keep even if it means paying a higher commission.

    When you become a real power-seller, the merchant will not only want to keep you seling for them but will also want to prevent you from focusing your efforts on one of their competitors.

    As to wether or not you go through the network or the merchant directly all depends upon the merchant. It is best to first contact the merchant directly if at all possible and then go from there with it.

  9. #9
    ABW Ambassador CathyM's Avatar
    Join Date
    May 30th, 2006
    Location
    Torrance, CA
    Posts
    893
    When you become a real power-seller, the merchant will not only want to keep you seling for them but will also want to prevent you from focusing your efforts on one of their competitors.
    I agree, I have better success asking for commission boosts when I have sent some significant sales to the merchant. I have success with meeting in person with the merchant's affiliate manager at trade shows. I make an appointment in advance and come prepared with facts and figures. Affiliate Summit is coming up!

  10. #10
    ABW Ambassador isellstuff's Avatar
    Join Date
    November 9th, 2005
    Location
    Virginia
    Posts
    1,659
    Quote Originally Posted by nobugs
    Sometimes you can get a mechant to give you a higher commision right off the bat, but usually the best way to go about doing it is to become a solid performer.
    There is a circular dependency here for websites that are driving traffic via PPC. I have merchants who want to be on my site because they see that my site dominates paid search results for their niche, but they are not willing to pay competitive commissions. I can't afford to give them results if they don't pay enough to fund the PPC campaigns.
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  11. #11
    ABW Ambassador simcat's Avatar
    Join Date
    January 18th, 2005
    Location
    Denver
    Posts
    1,786
    I wonder how coupon sites get any commission rates bumped.

    Lets say I am the #1 SE affiliate for the term 'merchantname coupons' driving a ton of traffic.

    Why would any AM want to increase my commission?, since if I wasn't #1, or didnt offer their coupons, so what, there are 100 other sites lined up behind me offering the same coupons on google?

    I could offer the merchant better placement on my site, but people generally just want a coupon when they need it anyway, so not a lot of benefit to them.

  12. #12
    http and a telephoto
    Join Date
    January 18th, 2005
    Location
    NYC
    Posts
    17,708
    simcat, it depends on if you are driving new traffic, and if you are doing more than just putting a coupon on a page. And whether you *consistently* rank number 1 for that term. Lots of coupon sites work very hard to get that number 1 ranking.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  13. #13
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    For my merchants you have to show numbers before I can get a higher commission for you. If you just ask for a higher commission and have no track record then I will have to see sales before giving a higher payout. If you are a known producer in another program then its a no-brainer if you commit to sending traffic and ask for a higher commission. Performance based programs require performance!


    jg1907: email me at chuck@hamrick.biz and I will hook you up with a coupon management beta I am working with.

  14. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Question re Negotiating Rates Directly
    By style in forum Newbie Affiliate FAQs & Helpful Articles
    Replies: 19
    Last Post: September 3rd, 2014, 11:28 AM
  2. negotiating with two merchants in the same industry
    By darkdepill in forum Business & Legal Issues
    Replies: 4
    Last Post: May 13th, 2012, 01:55 PM
  3. Negotiating improved payouts
    By Jon12345 in forum Midnight Cafe'
    Replies: 3
    Last Post: July 14th, 2006, 01:23 PM
  4. negotiating the best commission
    By MrFriendly in forum Midnight Cafe'
    Replies: 5
    Last Post: June 6th, 2006, 03:34 PM
  5. Negotiating A Better Deal
    By Cedric in forum Other Affiliate Networks
    Replies: 7
    Last Post: March 24th, 2002, 05:00 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •