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July 18th, 2009, 10:29 AM #1
Merchants & OPM & AM Should Read This Post.
- Join Date
- January 17th, 2005
Okay, Crew listen up ... this tip may be the answer to your marketing salvation.
I was checking my stats for my #1 earning site ... and low and behold, yesterday I left $20 on the table because I forgot to update a PPC listing on a secondary SE and that traffic was not in the mix.
How so you ask? Well, this site pays you X amount for a sale. But they increase that amount by 50% if you send them 100 unique visitors on the day.
But, come to think of it, this idea is a gold mine for both merchants and affiliates.
And for sure, I would send at least the minimum traffic to any merchant who increased my commission on any day, I make a sale where I send them 100 unique visitors.
So for example, as a merchant you pay 10% for a sale ... you include a 5% more bonus, if the affiliate who sent you that sale ALSO sent you 100 unique visitors
to your site.
Now, one of the really good things from this idea from the affiliate POV, if I get
a cookied visitor coming back and buying something, IF I have sent the required
100 per day unique viewers, I make 50% more than if not.
I have made over $50K from this merchant ... and have gotten a check every month for at least 5 years in a row. It's hugely profitable for me. And the merchant gets a daily shot at selling 100 unique people plus just from my traffic.
The idea of giving a bonus commission for traffic should be something ALL merchants need to consider.
July 18th, 2009, 11:05 AM #2
- Join Date
- January 18th, 2005
- Nunya, Business
But that goes against what you said earlier:
"By the way - ALL TRAFFIC IS JUNK - if it does not buy anything or sign up for anything."
So your idea is for merchants to pay a 5% bonus on traffic that doesn't do anything, what you call junk traffic.
An affiliate can see they made a sale earlier in the day on let's say 20 clicks and they figure let's get 80 more clicks to get that 5% bonus, let's get different ip addresses or something to get those extra clicks. There is a reason why most merchants who payed per click years ago, stopped. Fraud.
As a merchant, wouldn't it be better (what a lot of merchants do now) to pay bonuses on actual sales? When you hit a certain tier, get paid a higher percentage or bonus. That would be a bonus on actual performance. Your method opens up a merchant to click fraud.
July 18th, 2009, 11:56 AM #3
I just find it odd that a merchant would offer a traffic bonus after being successful for 5 years. Meh, maybe this past spring's economic contraction made them try new things.
Anyhoo, this gets to the main issue of the conflict of interest that develops for many affiliate program managers. They are given two diametrically opposed commands.
1. Steadily increase your sales figures every quarter.
2. Prevent sales from being made through affiliate channels that would have been made anyway.
Eventually, like HAL in 2001, the affiliate managers go crazy and try to kill everyone in their sleep (by sending emails at 5PM on Friday and then leaving for the weekend).
Merchants think of their affiliate program as all of those great websites filled with their demographic are now going to be advertising their product to all of those beautiful potential customers. ABestWidget will join our affiliate program and advertise our widgets to all of that widget-using traffic that they already get.
Affiliate Managers often (but not always) think about how to increase numbers. How to add to their army of noobies by providing things like feeds or easy 'make a page' tools where the affiliate makes affiliate sites THEN tries to get traffic instead of trying to monetize traffic they already have.
It amazes me how few AM's actively pursue deals with sites that already have the traffic for their demographic. I always try anyone, that looks legit, that contacts me because they think that I can monetize my existing traffic with their program. It does not happen as often as you would expect.
Your post just sounded so wrong to me that it made me think about that.
I'm sorry for hijacking the thread. ):
July 18th, 2009, 02:01 PM #4
- Join Date
- January 17th, 2005
Merchants do not pay if no one buys anything ... but if they get a sale from that affiliates traffic and on that day, he or she sent them 100 uniques visitors, the affiliate gets the extra money.
Since the affiliate does not know who or when someone will buy, they have the incentive
to send some traffic to the merchant on the come every day.
Extra bonus on sales means nothing - if there is no traffic to make the sales.
This merchant has been doing this bonus thing for the whole time. It did not just start.
The problem was I forgot to make sure I was sending them 100 people from a source that
consistently makes sales.
Of course the affiliate could make a sale on 20 visitors and then go send another 80 to the merchant ... but that just means, both merchant and affiliate have 80 more chances to make a sale. It does not necessarily mean the merchant loses.
As a merchant, suppose you have 100 affiliates ... get them all to send you 100 unique visitors per day for FREE unless YOU make a sale, you get 10,000 visitors per day or 300K visitors per month. Sell 1% and you sell 3,000 whatevers.
Okay, now go to Google and buy that so called 80% incentive traffic ... 240,000 for 5 cents which is the minimum and for which to get that number, you will need to spend $1/click.
You want to pay $240K or what the minimal extra percentage on a sale would cost?
If a merchant is buying TV time, they are paying way more than what they would have to pay out in a bonus for unique visitor traffic.
One thing EVERYONE on both sides of the fence fails to consistently realize: The idea is to make a PROFIT not just sales.
I call it the General Motors Disease. Everyone spends all their time, thinking up dreck that does not generate a profit instead of lowering costs and selling more product.
It would be a pretty good bet that IF the top 5 guys running GM got $5 each for every car sold at a profit. and a $200 per diem so they could buy something more than MacDonald's for lunch, GM would be selling a zillion cars and making at least $25 profit on each one. And all 5 guys would be making more than $25 million per year.
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