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  1. #1
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    What are your thoughts on this?
    If an advertiser were to publish these terms, how would you make them out?

    "offers 7.5%-10% Sale Commission for all affiliates who join in our program. We offer 7.5% commission on sales with built in incentives of 9% commission rate to those in excess of $20,000 in sales, 10% commission rate to those in excess of $50,000 in sales.Additionally we will offer 10% - 20% commision on special day or month deals.Welcome to join us.Thank you."


    Would you anticipate a bonus that month if you hit $20,000 in sales?

  2. #2
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by robb01 View Post
    Would you anticipate a bonus that month if you hit $20,000 in sales?
    Absolutely. Based on the merchant's stated terms, $20K in monthly sales should be paid at a 9% commission rate.

    -rematt
    "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

  3. #3
    ABW Ambassador Greg Rice's Avatar
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    Quote Originally Posted by robb01 View Post
    If an advertiser were to publish these terms, how would you make them out?

    "offers 7.5%-10% Sale Commission for all affiliates who join in our program. We offer 7.5% commission on sales with built in incentives of 9% commission rate to those in excess of $20,000 in sales, 10% commission rate to those in excess of $50,000 in sales.Additionally we will offer 10% - 20% commision on special day or month deals.Welcome to join us.Thank you."


    Would you anticipate a bonus that month if you hit $20,000 in sales?
    Sure, why not? This type of incentive is common.
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  4. #4
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    That was my understanding as well. They are a foreign based company and we have had some difficulties in understanding each others correspondances.

    I was accustomed to this format, as that is the way that Amazon handles thier sales. This merchant however, has sales figured at 7.5% through the entire month.

  5. #5
    Defender of Truth, Justice and the Affiliate Way
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    I would read it 7.5% on sales up to $20k and 9% on sales over $20k.

  6. #6
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    Maybe they mean:
    $0-$19,99K 7,5%
    $20K-$49.99K 9%
    $50K and over 10%

    "built in incentives of 9% commission rate to those in excess of $20,000 in sales"
    In this case, you'll get 9% only on sales over $20K.

  7. #7
    The "other" left wing davidh's Avatar
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    I'd be inclined to think that they'll add the difference in one lump sum at some point after you've reached one of the thresholds and the month has ended.

    Ask the merchant though; they're the ones who can clarify that for you.
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  8. #8
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    Quote Originally Posted by Zeus View Post
    Maybe they mean:
    $0-$19,99K 7,5%
    $20K-$49.99K 9%
    $50K and over 10%

    "built in incentives of 9% commission rate to those in excess of $20,000 in sales"
    In this case, you'll get 9% only on sales over $20K.
    This is how I read it too.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  9. #9
    Affiliate Manager Buddha Board's Avatar
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    I agree - that's how I'd read it as well.
    However do tiered systems really give affiliates a real "carrot"?

    Isn't it easier just to pay a generous commission up front so affiliates get instant gratification and come back for a second helping?

  10. #10
    The Seal of Aproval rematt's Avatar
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    Quote Originally Posted by Buddha Board View Post
    Isn't it easier just to pay a generous commission up front so affiliates get instant gratification and come back for a second helping?
    I like the way you think.

    -rematt
    "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

  11. #11
    Affiliate Manager Buddha Board's Avatar
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    well from a business standpoint - it's a pain in the ass for accounting as well. Any money "saved" from lower commissions ends up going to bookkeeping. Why not just save the headache instead and pay a flat GOOD fee.

    I'm a merchant here - and we're paying 12% commission on a physical product (which I understand is weird) - but if it keeps Affiliates happy, and us stress free - then why the heck not?

  12. #12
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    There are times when paying a high flat rate is fine and times when a tiered based on sales makes sense. There is no accounting when the network calculates it

    Affiliates that are going to be able to deliver volume will be able to negotiate a higher rate right from the beginning.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  13. #13
    Affiliate Manager Buddha Board's Avatar
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    Fair ball on the accounting bit for SAS. Pre SAS - it was a pain.

    But why play the game in the first place? I mean in so far as negotiation? If you pay top dollar off the get go - does that demotivate affiliates in any way? I'm logged on as a merchant - but I've been on both sides of the coin.

    As an affiliate I'd appreciate the no funny games approach to the deal hence the non-tiered offer on my launch.

    It'd be interesting to hear other points of view of why this could be construed as a negative.

  14. #14
    Analytics Dude Kevin's Avatar
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    Quote Originally Posted by Buddha Board View Post
    Fair ball on the accounting bit for SAS. Pre SAS - it was a pain.

    But why play the game in the first place? I mean in so far as negotiation? If you pay top dollar off the get go - does that demotivate affiliates in any way? I'm logged on as a merchant - but I've been on both sides of the coin.

    As an affiliate I'd appreciate the no funny games approach to the deal hence the non-tiered offer on my launch.

    It'd be interesting to hear other points of view of why this could be construed as a negative.
    I don't think it's negative. In my case, I think it's just that I'm willing to spend more money (per sale) on affiliates that drive converting traffic. Just like I'd be willing to up my PPC on a keyword that converts well.

    And like anything in life, not all affiliates are created equal (skill wise, time wise, effort wise), so why not use available mechanics to reward your most deserving partners?

    You still have latitude to further recognize top performers after the fact.
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  15. #15
    Beachy Bill's Avatar
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    Jill and I stated out on the affiliate side of things - and still do a lot of aff marketing. We have always felt that the "first" sale in a month is just as important as the "thousandth" sale. Many quality affiliates are only doing this part time (that's how I started) and work just as hard as an affiliate doing this full time.

    The difference is that the part time aff does not have the opportunity to produce the larger numbers - but their sales are just as important. To us, it belittles their efforts to pay a lower commission to folks doing this on a part-time basis.
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  16. #16
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    Quote Originally Posted by Bill View Post
    Jill and I stated out on the affiliate side of things - and still do a lot of aff marketing. We have always felt that the "first" sale in a month is just as important as the "thousandth" sale. Many quality affiliates are only doing this part time (that's how I started) and work just as hard as an affiliate doing this full time.

    The difference is that the part time aff does not have the opportunity to produce the larger numbers - but their sales are just as important. To us, it belittles their efforts to pay a lower commission to folks doing this on a part-time basis.
    I disagree. There are times when it is economically impossible for the merchant to award the top commission to everyone. Volume probably creates discounts for merchants which allows more margin to be available. In some verticals maybe not, but in most I think this is true.

    Negotiation also opens up dialog between affiliates and merchants, and that is usually a good thing. You can be a "part-timer" and still negotiate higher commissions based on quality of traffic you send.
    Deborah Carney
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  17. #17
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by robb01 View Post
    That was my understanding as well. They are a foreign based company and we have had some difficulties in understanding each others correspondances.

    I was accustomed to this format, as that is the way that Amazon handles thier sales. This merchant however, has sales figured at 7.5% through the entire month.
    Not the universal way to do it, though. I know through CJ some (if not most) merchants (one in particular that I exceeded the bonus threshold monthly for a couple of years) treat it very differently: They pay all sales at the lower rate, then two months later pay the extra 1-1/2% as a single bonus payment.

    I think affiliates will and merchants think affiliates will do more - consciously or unconsciously - to promote their products when they get close to a new tier, than they would without out a bonus rate approaching.
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