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  1. #1
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    What is going on with the commission drops everywhere?

    I was looking at my pending and almost every single merchant dropped there commission.

    Also more of those boogers are back to 1 occurrence. We all need to ensure merchants like this get dropped immediately.


    Neptune Cigar Boutique

    Action: Sale
    Action Criteria Not Specified
    Action Referral Period 45 day(s)
    Action Referral Occurrences 1 time(s)
    Commission 7.00%

    They used to have an Action Referral Occurrences Unlimited


    Homevision dropped from 10% to 8%. They have never been that low ever?

    SandraR

  2. #2
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    I'm slowely learning to watch all these guys real close. Even when the change to BETTER terms, better look and see what's changed on their site.

    Web_Novice
    "Should I encounter a moment of clarity, I hope to have it recorded in these journals."

  3. #3
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    As the Super Duper Affiliates florish in gil netting referal commissions and double dipping with BHO's ....look for this to be a trend in 2004.

    Mike & Charlie ...

    If they won't adopt and feed a bird ..flip them one! BBQ some Gator and remember to flush WhenU..

  4. #4
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    It sure does seem to be a trend. I think the merchants maybe getting fed up with the SE SPAM, BHO, and the tricks for clicks. The Internet shopper is being deluged with crap from every direction and that crap is directly linked to affiliate marketing. It's giving affiliate marketing a bad rep, driving down commissions and making merchants think twice about their affiliate programs. It doesn't help the merchants or the affiliates to be pissing off the customers. Pissed off customers don't spend money. If affiliate marketing isn't perceived as adding value to the customers shopping experience then why should the merchants pay a decent commission?

    ------------------------------
    "If all the newbies are going to start writing ebooks maybe I should get started on mine!" -- Buddha

  5. #5
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    I agree, Buddha. Pissed off customers don't spend money. Some affiliates alienate the customers to a point where they would rather spend money at the competitor's store because they perceive the affil tactics as spammy and they associate that to the merchant....

  6. #6
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Spot on Buddha. If the real merchant's sales or ecommerce staff read this they can take steps to put some real profits back in their ecash registers. Just ask that advertising mindset AM firm to show you how to log into YOUR CJ -LS -Performics or BF account and learn how to use the simple merchant interface to place or change creatives.

    I'd recommend the VP of Sales hire their son or daughter to replace the existing AM firm once they have learned the ropes by reading through the ABW archieves. Then make up a sign and put it over the new AM's monitor.

    WHAT HAVE YOU DONE TODAY TO PUT REAL VALUE INTO A CLICK ....from a shoppers viewpoint.


    All else is white noise and liable to piss off shoppers. Then give the real "value-add" affiliates a commission pay raise.

    Mike & Charlie ...

    If they won't adopt and feed a bird ..flip them one! BBQ some Gator and remember to flush WhenU..

  7. #7
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Personally I think commissions are lowering because too many affiliates will accept them! Period!

    Just look at the rave reviews CHEAPSKATE CHISELERS like TigerDirect were getting before they yanked their feed! What incentive is there to pay a real commission when people will rave about such PEANUTS?

    If you want real commissions set a floor price, and put up no links for anyone paying below that floor price.


    10% Commish minus 30% of that for parasites = 7% effective commission.

    3% commish parasite-free, still = 3%! Junk!

    A 3%er merchant is like having a parasite take 70% of the commish! Worse yet, these cheapskates often have the UTTER GALL to act like affiliates should be glad to have the microscopic commission because they're "parasite free." Hah! Cheapskate merchants ARE parasites!

    Of course, they come up with all kinds of excuses for their commissions, including the ones Webmaster Mike, Irma and Buddha are feeding them to use, or that they have some unbelievably small profit margin. But it's typical for chiseler merchants to have excuses for their stinginess!

    Cheapskates are that way because they can get away with it.

    It's the most wonderful time of the year!~Old Christmas Song

  8. #8
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    Yeah, commission drops suck but i don't really see any kind of trend. Every month some go up and some go down. I see some dropping, some actually paying more. What i see are a lot of merchants just going back to the commission % they paid before the holidays, a lot of merchants up them to get affiliates pushing them for holiday sales. A couple of LS merchants i just opted today for a higher %.

  9. #9
    Moderator MichaelColey's Avatar
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    I've said it before, and I'm sure I'll say it many times again...

    You really need to take EVERYTHING into consideration for a merchant and not just one single factor like their commission percent, their return days, their EPC, or whether or not they allow parasites.

    Looking at my top 10 merchants (in terms of total commission earned) for the past year, 5 of them have commission ratess under 10% and 3 are under 5%. If I look at my top 20 merchants, 11 of them have commission rates under 10% and 7 are under 5%.

    Some low commission merchants can still perform well.

    Michael Coley
    Amazing-Bargains.com

  10. #10
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Buddha:
    It sure does seem to be a trend. I think the merchants maybe getting fed up with the SE SPAM, BHO, and the tricks for clicks. The Internet shopper is being deluged with crap from every direction and that crap is directly linked to affiliate marketing. It's giving affiliate marketing a bad rep, driving down commissions and making merchants think twice about their affiliate programs. It doesn't help the merchants or the affiliates to be pissing off the customers. Pissed off customers don't spend money. If affiliate marketing isn't perceived as adding value to the customers shopping experience then why should the merchants pay a decent commission?
    <HR></BLOCKQUOTE>That doesn't make any sense. Lowering the commission rate because affiliate marketing is bad?

    The correct question should be, why are these merchants still in affiliate marketing?

    know why? because they can suck the traffic from our websites and not really pay for it.

  11. #11
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    Remember . . . merchants are a dime a dozen too. It's up to you to drop them when they start their bogus shenanigans. I've always been pushing for an absolute minimum 10% on percentage-based merchants. There's a trend of dropping commissions because YOU are allowing it!
    DON'T BE A DUMMY

    Brian
    aka Cyclone

  12. #12
    ABW Ambassador Andy's Avatar
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    I'm going to jump in with Leader and Cyclone on this. Merchants will pay affiliates as little as they possibly can for as long as they can get away with it.

    If 10% works, lets try 8% next year. If 8% works, then we'll try 6%, and so on.

    Isn't your time worth more than that? I say drop them and promote their higher-paying competition!

    Andy

    _______________
    <font color="red">Call the Exterminators! We've Got PARASITES!</font>

  13. #13
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    To all, thanks for the excellent advice! So much to learn in this business and ABW is the place to be.

    BradleyB

    "Don't stay in bed, unless you can make money in bed."
    - George Burns (1896-1996)

  14. #14
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    I wonder if there is a way to gather and drop a merchant as a force.

    Homevision is my mad merchant right now. All these years 10% and they convert. Then WHAM 8%... NO way

    SandraR

  15. #15
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    I agree with Leader. Affiliates have to take much of the responsibility for this. Many seem to focus on every other thing before actual earnings on sales.

    Unless people start rewarding the merchants that pay the most for their time, instead of falling for gimmicks, or creating a site with their whole feed without care for commission or even testing how they convert, its just going to get worse. I don't care where the rest of their profits go to I look for merchants that pay me for my performance. If a merchant wants an affiliate who makes them money they should pay more to those who make them more.

    Reading posts here I'll see a merchant say "email me by this date and I'll bump up your commission permanently." people fall all over themselves to get in on it. What it tells me is that merchant doesn't value honest performance above emailing them. Do they get bonuses based on how many emails they receive? Why would anyone want more emails? if I write you a letter on really pretty stationery will you bump me up again? It also makes me wonder who and what else do they value over performing affiliates. So, if another affiliate were to join that program the next month and make twice the amount of one who happened to have better timing, the new better performing affiliate would get paid less?

    People get mad and make such a big deal when merchants call them employees. Big deal. Let 'em call us anything they want(you don't have to answer, LOL). Unless money is less important than what they call you, what we should be making a big deal about and acting on is what they pay us.

  16. #16
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    I like the idea of 10% plus commissions too. If most retailers can afford to give their employees 10% off they can afford the same for me. I've worked at a lot of retailers and never saw one that couldn't afford 10% employee discount. Some had 20% -25% discounts.

    That said. I'm still concerned about the health (for lack of a better word) of affiliate marketing. I take these concerns into consideration when it comes to long range planning. Just as I'm sure merchants do.

    Parasites affect your bottom line in more than one way. Not only do they steal from you, they tick off the customer, which in turn costs the merchants either in sales or customer service. Same goes for SE Spam, Email Spam, and anything else that negatively impacts the shoppers experience. All can be directly linked to Affiliate Marketing. When the merchants stop seeing affiliate marketing as a value added service it's dead.

    ------------------------------
    "If all the newbies are going to start writing ebooks maybe I should get started on mine!" -- Buddha

  17. #17
    ABW Ambassador
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    Leader, of course merchants would lower the commissions to increase revenue, but merchant stinginess is not the only explanation for lowering rates, just as bad affiliate tactics is not the only explanation either. Rather, they both are factors that lead to rate decline.
    I also run a merchant account and when I detect affiliates that resort to spam or other undesirable tactics, I either lower their commission or kick them out, depending on what happened. I do care about how my product is being advertised. I do NOT want it to be associated with spam or questionable advertising - believe it or not, I personally received complaints from customers when such occurrences happened. Some affiliates would simply resort to all sorts of garbage to make more money - that doesn't wash!
    On the other hand, I also give bonuses for my top performing affiliates.
    I think that lowering of commission accross the board is not the right way of dealing with problems, unless you really have profitability problems (or you are too greedy). Selective adjustments (both up and down) work MUCH better.

  18. #18
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    Buddha, merchants love affiliate marketing even with its problems. Pay for performance works. Only getting bigger, nothing to worry about.

    Still don't see a "trend" just because a few drop their commission rates. Some are just going back to their pre-holiday rates, some are even upping them. Every month someone will up them and someone will drop them, nothing out of the ordinary.

    You also have to take into account conversions.
    2 merchants everything else being equal:
    Merchant A pays 10%
    Merchant B pays 5%

    Merchant A converts 1/120
    Merchant B converts 1/40
    Both with average orders of $100

    After 120 clicks with merchant A you get $10 commission.

    After 120 clicks with merchant B you get $15 commission.

    I like the highest commissions possible but i like conversions and sending of checks better.

    [This message was edited by TrustNo1® on January 11, 2004 at 05:28 PM.]

  19. #19
    notary sojac Herb ԿԬ's Avatar
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    I wonder if Neptune Cigar Boutique changed their occurences as a necessary drop for profitability. No, I didn't like it either . . .

    Meanwhile, Thompson Cigar cut out a lot of non- or low-performing affiliates at the same time.

    What I don't understand, though, is why Neptune said don't use keywords for Thompson Cigar. By any chance are they the same company?

    I'm not so worried about Neptune's dropping the number of times as when it comes time for the customer's refill order the time period probably has expired in most cases.

    But no, I don't like it either. I'm exploring and joining the independents although I'm not finding product links on the outside.


    _____
    I earned something? Who screwed up?

  20. #20
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    Herb,


    I forgot all about @ffilaiteWindow, they offer feeds and have some seriosuly good merchants. You want to peek in on them.

    SandraR

  21. #21
    notary sojac Herb ԿԬ's Avatar
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    I'll take a look. I don't use feeds in the proper sense yet (pick off the products I need, instead) but good to know.

    I clicked on a "network" I didn't know about that showed their 468x above these threads this morning. Too many misspells. Too much verbiage in the agreement. No indication of what merchants, if any, were available. Plus they wanted 3000 unique clicks a day. Don't I wish. (I stopped filling out the app. at that point.)


    _____
    I earned something? Who screwed up?

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