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  1. #1
    Join Date
    June 6th, 2010
    Any Time Frame For Reversal
    Hi all

    I jumped into PPC advertising/affiliate marketing last Wednesday. After some trials, three days later on Saturday, my stats were something like

    Money spent : $20
    Commission earned : $165 (2 sales).

    The numbers are making me go crazy..But looking at the program's reversal rate is making me nervous - a whopping 95%. It's been more than 24 hours since I got those dollars printed on my SAS account. But I am afraid if the money will be given back to the merchant. Incidentally, the sales happened on a Saturday morning which is a weekend.

    So, my question is whether there is a particular time-frame by which merchants have to declare a reversal. I am scared I will end up spending a lot of money on ads and end up with all commissions being reversed later...


  2. #2
    Moderator BurgerBoy's Avatar
    Join Date
    January 18th, 2005
    jacked by sylon
    Since you posted this in SAS I'm assuming its a SAS merchant. They can reverse the sale any time they want too.

    Why would you use a merchant with a 95% reversal rate to start with?

  3. #3
    Join Date
    June 6th, 2010
    Hi Burgerboy,

    Yes, it's a SAS merchant. well, there were a few reasons why I went with them

    1) They are new - started only around end of last month. So I just gave them the benefit of doubt that high reversal rate is due to the low initial volumes

    2) The commission is pretty high and is in a very "hungry" market

    3) Because the commission is high and I am targeting long-tail keywords (with reasonably low CPC), I presumed I can be forgiven for wasting too many dollars in learning the tricks of the trade.

    I think that's unfair to the affiliates. Like Billy Kay here has noted, there is a good likelihood for the system to be exploited.

  4. #4
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Mansfield, TX
    Quote Originally Posted by BurgerBoy View Post
    Since you posted this in SAS I'm assuming its a SAS merchant. They can reverse the sale any time they want too.
    Just to clarify, they can reverse the sale any time until the 20th of the following month, when you get paid for the transaction.

    You might search for the merchant name here to see if there are any threads about them. Review their T&C's to make sure they don't have any odd restrictions on what they pay commissions on or what you're allowed to do. Also, you might want to gradually ramp up the PPC after you see how your own reversal rate is, so that you'll have less exposure.

  5. #5
    The Seal of Aproval rematt's Avatar
    Join Date
    November 19th, 2006
    The Windy City
    There might be an circumstance when I might promote a merchant with a 95% reversal rate using SEO (but for the life of me I can't think of one). But there is no way that I would risk a penny of PPC on a merchant with such a high reversal rate without a pretty credible explanation as to why. Contact the merchant and express your concerns. They may have a very good explanation for the high reversal rates; internal testing, a popular product out of stock (possibly another reason for concern) a rash of fraudulent orders or returns or any number of legitimate reasons. Keep in mind that even legitimate reasons for reversals are cause for concern if their return rates are consistently high. Discuss your concerns with them and try to seek some assurances that the current reversal rates are an anomaly, just make sure that you have your B.S. meter plugged in and turned to high.

    (I've been dying to use this smiley)

    If you're unable to contact the merchant or you're not totally thrilled with the outcome of the conversation it's time to shine them on. Regardless of the outcome of your conversation with the merchant, start looking for another merchant with similar products or services. It's that whole basket and eggs thing.

    There are about 45 days between now and July 20th (the last date for a reversal). At your current burn rate you could potentially spend another $300 on PPC. If your current conversions hold (and that's a big if, 2 sales isn't really a trend) you could potentially earn a little under $2,500 which is an excellent ROI. However if their current reversal rate holds, you stand to lose 95% of those sales which means that you'll end up with a net loss. So tread lightly.

    "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

  6. #6
    Join Date
    June 6th, 2010
    Thank you Michael and Rematt for your points. Okay, so I have to wait until July 20 to see if that's a genuine sale or not..But you people are right..I shouldn't have opted for a PPC campaign for a risky product as this. I actually noticed the reversal column only I saw that a PPC campaign of mine had generated a couple of sales.

    I just came across a thread about the program and have contacted them for information. Let me look at their response before drawing to a conclusion. Seeing that they have a dedicated affiliate managing company handling the transaction, I am just tempted to believe that they are genuine guys..But anyway have paused my campaign till I get a reply.

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