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  1. #1
    Member Azam's Avatar
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    For years we've had to promote merchants who have been offering us menial commission amounts and unfair terms and conditions. After 7 years of being in this game, our business has grown to such a position that we are now in position where we can turn down 90% of companies who contact us asking us to join their affiliate program.

    Feels so good what I just wrote to a smug affiliate manager offering us 6%:

    "Unfortunately, we no longer promote any company which offers less than 10% commission and doesn't offer residual income.

    But thank you very much for expressing an interest in working with us."

    Boots on the other foot now, so certain affiliate managers (not the ones who spend times on these forums - they're usually the reasonable ones) better start learning the meaning of the word "fairness". I'm no longer going to work for 40p commission on a sale when every lawyer I approach is asking for £200 an hour.

  2. #2
    Affiliate Manager
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    I totally agree with you, and that is why adsense is such a great invention. I make soo much more with adsense per click, than I make with most of my merchants per click, it's unbelievable. And the most interesting thing about that, is that I only get a portion of what the merchant paid for the clicks I sent them through adwords.
    Thomas Burgemeister - Affiliate Manager
    affiliates@LensWorld.com - 425-372-3471
    LensWorld.com: 10% commission, 120 return days, parasite free - Sign up at <a href="http://www.shareasale.com/shareasale.cfm?merchantID=20626">ShareASale</a>.

  3. #3
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    Hello,

    You have to consider the program first before you should make such a judgement whether or not less than 10% is too little. Let me give you an example: I offer 8% and this month I have started to give away free commission for every sale that is not sent by affiliates....Every Sale off my site is tracked and credited to an affiliate even though they may not have referred a customer!

    In fact this free commission strategy was just filed in the patent office....I am only giving away 8% but I just gave away 8% for free on watches that cost $200 and more...

    Please read my original post....at
    http://abw.infopop.cc/eve/ubb.x?q=Y&...=871108056&p=1

    We are making this strategy permanent...which favors all affiliates, even if they don't bring in many conversions! Your opinions appreciated!
    ARA Master Watchmaker & Sons
    www.masterwatchmaker.net

  4. #4
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    You're trying to patent the free commission strategy? Even tho i like your enthusiasm and your free commission deal you got going on, i actually think you should keep it since you earned it.

  5. #5
    Member Azam's Avatar
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    That sounds like a good deal, but it is not directly relevant to the topic of this discussion and you might be accused by others of just jumping in to promote your own offer.

    Of course I considered the advertisers proposal seriously. I make all business decisions carefully.

  6. #6
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    So you base you decision on the 10% commission rate. How many good electronics merchants do you have on your site. Commission rate is 1 factor but you're probably cutting out a lot of good merchants if they don't meet your 10% requirement and other affiliates will pick that up so no loss to the merchant.

    2 merchants selling the same stuff, one giving you 10% commission the other 8%. The one giving you 8% converts at 2x the rate than the 10% one. I'll take the 8%

  7. #7
    Member Azam's Avatar
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    I welcome your advice, but my strategy seems to be working for me. Maybe different strategies work for other affiliates.

    I do look at the EPC very very carefully, so no I don't just promote a merchant based on commission rate.

    Once your website begins to draw a certain level of high quality traffic, you can negotiate better terms with advertisers. I have over 30 advertisers on my sites and only have two or three that pay me less than 10% commission.

    I'm not going to let any electrical retailer take me for a ride. Anybody who has worked in Dixons, which is probably the UK's largest electrical retailer, will tell you that their profit margins are 60% on certain radios.

    Obviously prices are lower in the USA and profit margins thinner, but I personally don't feel able to promote a merchant if they pay me 3 or 4% commission. Unless a merchant offers residual income, dynamically-updated links or has no competitor offering a similar range of products, I feel that 10% is a fair amount to ask.

    Don't believe their sob stories about how they can't afford to pay you more than 2% commission. They are often... how shall I put it tactfully... lying.

    BTW, Allan Gardyne and other affiliate gurus actually recommend you promote affiliate programs that pay at least 40% commission. They must know what they are talking about, because those guys are making huge profits.

  8. #8
    ABW Ambassador
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    "BTW, Allan Gardyne and other affiliate gurus actually recommend you promote affiliate programs that pay at least 40% commission. They must know what they are talking about, because those guys are making huge profits. "

    If i took that recommendation my site would have 0 merchants on it, lol.

  9. #9
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    Huge profits selling you their ebooks on making huge profits. The minute someone claims - affiliate guru - I know they are talking out their ass.

    Chet

  10. #10
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    Trust: I am keeping it as my own....That is why I am patenting it...Legally permission will have to be granted by me if another merchant wants to do this....I may give out licenses for people wanting to use my strategy.....

    Azam.com: I was making a point.......As for trying to promote myself...I was merely defending merchants that offer less than 10% because some have a lot to offer.

    I have given away many free commissions this month which has made many affiliates happy..That is my goal! Happy affiliates bring in more traffic!
    ARA Master Watchmaker & Sons
    www.masterwatchmaker.net

  11. #11
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    "Trust: I am keeping it as my own....That is why I am patenting it...Legally permission will have to be granted by me if another merchant wants to do this....I may give out licenses for people wanting to use my strategy....."

    Usually i support you but i think that's just crazy. Do you really think a merchant is going to have to get permission from you if they wanted to do this?

  12. #12
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    Trust: Well if it's patented...they will legally have to get permission....I am not saying it would be easy to police, but I can claim it as my own, where others can't. If affiliates are aware this strategy is patented and merchants do it anyway...in my opinion that will tarnish the reputation of that merchant (Trust-"no pun intended" is a huge part of affiliate marketing)...Legal notices will go out to people employing our strategy. If need be, legal action can be employed...but I would only do that if I can make some big bucks doing so!

    If Tony Robins can patent his flaky strategies, I am going to patent mine!
    ARA Master Watchmaker & Sons
    www.masterwatchmaker.net

  13. #13
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    Have you gotten far in researching what it takes to patent a business process? Since the majority of your process involves shareasale, your process will be tied to them. Very general patents rarely get approved (okay some exceptions), but most business process patents are very tight in their description of the process, which makes them fairly limited in their use, especially when based on technology you do not own.

    I am curious how far along you have gotten in the process.

    Chet

  14. #14
    ABW Ambassador kaizen's Avatar
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    Watchmaker

    I can only speak for myself here, but I'm afraid that any merchant who was willing to share profits with affiliates would hardly tarnish their reputation with me, your pending patent notwithstanding. I would more likely be offended by a merchant who was trying to make a buck off of their generosity. Had you just put out the idea as a means for more merchants to reward and motivate affiliates, I'd have been much more impressed.
    We did not change as we grew older; we just became more clearly ourselves.
    ~Lynn Hall

  15. #15
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    Chet: I understand what you mean by a really descriptive patent.....A provisional patent is a pending one and is much more loose ended..But after the provisional patent expires the specifics need to be laid down just right and with much more detail.

    Othello: I always do things with affiliates in mind....This was my way of ensuring success of my program and ensuring success of affiliates..I do not want any merchant to take my strategy and apply it because the potential for fraud is to easy....Who really knows when I make a sale??? Only I do....BUT I credit affiliates when I make a sale on my own every time! Even on the telephone!

    There is no question I want to make a buck, but
    I want to do it the honest way and I want to ensure that everyoine that uses my strategy does so as well. A serious merchant wont steal this idea, but will seek out a license...A non serious merchant may steal this idea, but who knows if they are rewarding affiliates for every sale?
    ARA Master Watchmaker & Sons
    www.masterwatchmaker.net

  16. #16
    Resident Genius and Staunch Capitalist Leader's Avatar
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    &gt;&gt;So you base you decision on the 10% commission rate.

    Me too. Very few with less commish get on my sites either.

    &gt;&gt;How many good electronics merchants do you have on your site.

    Those chiselers are not cost-effective to promote. When I can spend the same amount of time making pages for something that'll give me a real commission, I see no need to waste my time on that 1~3%er-infested category.

    There may be unlimited space on my sites, but I don't have unlimited time. Every second spent promoting a place with a substandard commission would be a second that could have been spent promoting a place with a *real* commission!

    It's a choice--either spend the the time getting electronics customers, or spend the time getting customers who want things that pay 10%, instead. It's no contest here.

    Electronics isn't the only category with expensive things.
    There is no knowledge that is not power. ~Hemingway

  17. #17
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    Yes, electronics is usually not the best, i was speaking as someone with a deal/shopping site who has categories for every merchant. I got azam confused with asif who has a site kinda like mine. If it wasn't that type of site, no i wouldn't spend my time building for electronics merchants. However i have found some that do great paying more than the 1-3%.

    "Electronics isn't the only category with expensive things. "

    Yes, i know

  18. #18
    Moderator MichaelColey's Avatar
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    Trust is right. There's much more to consider than just the commission rates.

    Commission rates are different in different categories. Ink, magazine, and ebook merchants often pay 30%-60%. I would not be interested in a merchant offering 10% in those categories. Electronics, computer, and travel merchants often pay 3-6%. I would jump for joy for one offering 8%. I know one affiliate who makes six figures per month from a merchant who pays less than 4%.

    Conversion ratio makes a huge difference, too. I have one merchant that pays 35% commissions and gets a 5% conversion ratio. I have another merchant that pays 22% commissions and gets a 27% conversion ratio. Guess which one I promote most heavily? Do the math and you're realize that I make 4x as much from the merchant with lower commissions and higher conversions.

    Setting an arbitrary minimum commission rate may work for you, but it's not the only factor to consider and probably not even the most important factor to consider.
    Michael Coley
    Amazing-Bargains.com
     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

  19. #19
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>BTW, Allan Gardyne and other affiliate gurus actually recommend you promote affiliate programs that pay at least 40% commission. They must know what they are talking about, because those guys are making huge profits. <HR></BLOCKQUOTE>

    They're talking mainly about ebooks and other electronically-delivered stuff that has huge profit margins. Not relevant to most of the things sold by the vast majority of merchants.

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