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  1. #1
    Affiliate Manager
    Join Date
    May 11th, 2010
    Is this this a good commission incentive or strategy?
    Hi. Has anybody done this? And would this really work or motivate an affiliate to join and actively push the program?

    - giving out 8% commission once they join the program then increasing it to 10% once they have posted two links to the affiliate program

    Many of our competitors are starting at 10%. We are using the permanent commission boost to encourage affiliates to post the links on their sites. However, with the official starting commission at 8%, it appears at first glance that we are offering lower commissions. So basically, which is better:
    1) Start at 8% and increase to 10% upon posting of affiliate links
    2) Just start at 10% to be at par with competitors

    If we did start at 10% instead, what other ways can we get affiliates to actually post the links up? We would like to save further commission increases for motivating more active affiliates in the future.

    Last edited by MyBabyShowerFavors; June 29th, 2010 at 11:50 AM.

  2. #2
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Mansfield, TX
    Many do similar things, increasing cookie duration or commissions to encourage specific actions. It can be a good motivator, as long as that base commission isn't artifically low (which would keep many from even joining in the first place).
    Michael Coley
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  3. #3
    Affiliate Manager
    Join Date
    May 11th, 2010
    Hi Michael. Thanks for the post. It's good to hear that what we're doing with our commission strategy is OK. But what I'm concerned about is nobody's taking time to post a link in their site since nobody has ever emailed us back that they have posted two links and are claiming their increase. We have clearly stated this in our reply email for approved affiliates that they have to email us once they have posted the links. But no emails came. Did we miss something here?
    Another thing, we are currently recruiting affiliates and sending them emails to join our program. We are targeting the content sites in our recruitement effort right now. But unfortunately we have a response rate of 0.5% only. Do you now or anybody here that what we've got in response is a good response rate? If not, what would be a good response rate for email recruitment?

  4. #4
    Defender of Truth, Justice and the Affiliate Way
    Join Date
    January 18th, 2005
    The Swamp
    There can be many reasons why an affiliate does or does not join a program. There are probably more factors for a new program (e.g. no track record).

    I noticed on the affiliate pages on both your sites stated this

    8% starting commissions - 4% for coupon affiliates (as a special promotion, we will increase commission rates by 25% for anyone that signs up by May 31, 2010 and posts two affiliate links on their site - non-coupon affiliates only)'s June 30th. As an affiliate, I would think the promotion is over.

    On your SAS merchant page I see only:

    8% starting commission (4% for coupon affiliates) with possible increases based on performance.
    Nothing specific. Not many affiliates will join with the "hopes" of possible increases based on performance, especiallly without any kind of specifics given.

    Often time a new merchant/program will attract coupon affiliates initially. With that 4% commission...well I doubt it's too enticing. Why half the commission for coupon affiliates? And do the quality for the 25% bump as well?

    Outside of commission issues, I see this on your SAS page for Merchant provided TOS (and this is all there is):

    Affiliate Marketing Restrictions:
    -You cannot use our company names in your PPC or SEO campaigns.
    Do you realize what you are telling affiliates they can't do when you say SEO campaigns? You are basically telling affs they can't use your name when promoting you. "Click here to go to the mystery merchant!" Even if they put your links up, it's not going to be too effective. I don't think that's going to attract too many affiliates, well maybe the one who don't read the TOS.
    Last edited by Kellie aka Ms. B; June 30th, 2010 at 10:07 AM. Reason: The dreaded typos!

  5. #5
    Affiliate Manager
    Join Date
    May 11th, 2010
    Great points Kellie. We have removed the SEO restrictions and coupon affiliate restrictions. We actually had a long discussion about the whole coupon affiliate thing in another thread. I guess we'll have to just keep remembering to change the date on the commission increase.

  6. #6
    http and a telephoto
    Join Date
    January 18th, 2005
    Your domain name is generic keywords that not only your affiliates use, but your competitors too. Keep that in mind when making your PPC and SEO rules in the future. You may have already annoyed a large group of potential affiliates, and now they may wait and see if you will stay "affiliate friendly" or if you will haphazardly change the rules again down the line.

    Affiliates look for stability and for new programs it takes time to build trust. There is no way to "hurry" that up.
    Deborah Carney

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