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  1. #1
    Affiliate Manager Ian H - TicketLiquidator's Avatar
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    Websites/Networks with Insertion/Placement Fees
    Hi all, I was at Affiliate Summit East and really enjoyed meeting everyone, etc.

    My question is, what do you guys think of the websites that demand a placement or insertion fee to become their merchant?

    Is there any kind of guarantee whatsoever you can obtain from these sites, or is it a total crapshoot (given a little investigation, obviously)? They can promise some fantastic results, but how have you guys found them to be when it comes to actually delivering the goods, so to speak?

    Any answers are most appreciated, as ever.
    Last edited by Ian H - TicketLiquidator; August 26th, 2010 at 09:55 AM.
    [SIZE=3][COLOR=Navy][FONT=Arial]Ian Hough.
    Affiliate Program Manager, TicketLiquidator.com.
    Contact: [email]ianh@ticketliquidator.com[/email][/FONT][/COLOR][/SIZE]
    Don't let your work go to waste. Sign up and get paid for all sales: [B]Onsales[/B], last-minute, etc.

  2. #2
    http and a telephoto
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    Crap shoot.
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  3. #3
    Affiliate Manager Ian H - TicketLiquidator's Avatar
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    Quote Originally Posted by loxly View Post
    Crap shoot.


    Very annoying because they make it sound so good (naive of me to feel that, I know) and then they hit you with the, "oh, and it's just a two thousand dollar placement fee" routine, and your world grinds to a halt like one of those movies when the soundtrack slides off like a stylus from a vinyl record.


    Thanks Loxly. Guess I'll have to mosey on, or else sharpen up my dice throwin' skills...
    [SIZE=3][COLOR=Navy][FONT=Arial]Ian Hough.
    Affiliate Program Manager, TicketLiquidator.com.
    Contact: [email]ianh@ticketliquidator.com[/email][/FONT][/COLOR][/SIZE]
    Don't let your work go to waste. Sign up and get paid for all sales: [B]Onsales[/B], last-minute, etc.

  4. #4
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    On the merchant side, paying an up-front placement fee to a CPA network is almost never worthwhile. If the network is confident that your offer will earn money, they should be willing to accept the risk (though they may insist that you provide some data about conversion rates and average order size, and they might run some very small tests). The only reason I'd consider paying a CPA network any "setup fee" or "placement fee" to run an offer would be for "rush service" (jumping ahead of the existing queue and getting exposure and data more quickly).

    Unfortunately, there are so many credibility problems (and defaults) with so many CPA networks that it simply doesn't make sense to ever pay any up-front money to these folks unless you've had some past experience working with the network and its publishers (Catch-22).

    Some CPA networks may request a "deposit against earnings," so they can assure their publishers that there is money on hand to pay them, but again there have been so many defaults (and fraudulent schemes by both CPA networks and their affiliates and sub-affiliates) that even a modest deposit is an unacceptable risk.

    On the affiliate (publisher) side:

    Placement fees and guaranteed minimum earnings are extremely rare (and when they are promised, they are often never paid).

    Several times, I've persuaded a client to pay a relatively small up-front fee (less than $100, paid in advance) to persuade a particular web publishers to add an affiliate link (with specified placement, format, and duration). These publishers were skeptical of our earnings projections, because their prior experience with affiliate programs hadn't paid off.

    Once these folks added the link we'd agreed on, they quickly realized that the affiliate link earned far more than the up-front fee (obviously, I would never have recommended the arrangement if I wasn't reasonably confident of the result).
    Last edited by markwelch; August 26th, 2010 at 07:40 PM.

  5. #5
    http and a telephoto
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    Mark, like I said "Crap Shoot".
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  6. #6
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    To elaborate, remember that the affiliate channel and the advertising channel are separate. Affiliate channel is commission based, insertion fees are for advertising channel, not for affiliate channel.

    To me it says that the affiliate doesn't think they can actually sell enough of your product to make money with commissions. As for CPA networks.... I tell affiliates they need to promote us through the existing network relationships that we have.

  7. #7
    Affiliate Manager Ian H - TicketLiquidator's Avatar
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    Quote Originally Posted by loxly View Post
    To elaborate, remember that the affiliate channel and the advertising channel are separate. Affiliate channel is commission based, insertion fees are for advertising channel, not for affiliate channel.

    To me it says that the affiliate doesn't think they can actually sell enough of your product to make money with commissions. As for CPA networks.... I tell affiliates they need to promote us through the existing network relationships that we have.
    Magnificent, thanks. That answers my questions.
    [SIZE=3][COLOR=Navy][FONT=Arial]Ian Hough.
    Affiliate Program Manager, TicketLiquidator.com.
    Contact: [email]ianh@ticketliquidator.com[/email][/FONT][/COLOR][/SIZE]
    Don't let your work go to waste. Sign up and get paid for all sales: [B]Onsales[/B], last-minute, etc.

  8. #8
    ABW Ambassador Greg Rice's Avatar
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    If you think you may want to go ahead, have them prove their claims first. If they claim X sales over 30 days, get a 1 day placement to see how well that works. Our experience is the same as Loxly's-crap shoot. Just because they have high traffic does not mean that traffic will work for you or that all ad locations will work for you.
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