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October 26th, 2010, 05:03 PM #1
Disconnect between Groupon Affiliate and Referral programs
- Join Date
- October 22nd, 2010
Let me preface what I am about to write by saying I am a huge fan of Groupon. I have been onboard since day 1 in my city promoting the hell out of each day's Groupon offers. I have been rewarded handsomely, accumulating so many referral commissions, that I can buy Groupons almost indefinitely. I love Groupon.
That being said, the terms of your affiliate program are disappointing. There is an unfortunate disconnect between what is offered as a part of your referral program and what is offered as a part of your affiliate program. By putting up affiliate links, I risk the $10 referral in exchange for 10% on new customers. Sure, I get 2% from existing customers vs. 0 for existing in the referral program, however that risk doesn’t seem to be worth it.
Let’s use the Body Shop sale as an example and say I had 20 sales – 5 to new customers and 15 to existing customers. My referral commission would be $50 vs. $16 affiliate commission. The only situation where the affiliate program wins out is when a very expensive item is for sale ($500 liposuction for example).
Because of this disconnect, the vast majority of Groupon links I put up are referral links instead of affiliate links. I would love to see Groupon change their affiliate commission structure to be more in line with what LivingSocial offers - $2.50 per signup and $2.50 per sale. There is no question when it comes to LivingSocial offers – we use the affiliate 100% of the time.
October 27th, 2010, 06:16 AM #2
Sorry for the delayed response! There are a couple differences between Groupon's referral program and our affiliate program, and in all honesty, I think affiliates should choose which is best for them. Actually, quite a few of our affiliates take advantage of both programs and there's certainly no restriction against that!
The referral program pays out $10 groupon bucks for each new user referred. That $10 goes into your Groupon account and can only be spent on Groupons. Plus, after the visitor clicks through the link, they need to sign up for Groupon within 3 days.
The affiliate program pays out a percentage of sale for any purchase that occurs within a 30 day window, so it's not uncommon for affiliates to see multiple sales come through. Plus, as you mentioned, the affiliate wins out when the item is higher priced.
I've seen affiliates use both programs, they use an affiliate link pointing to the deal, and a referral link pointing to our sign-up page. Nothing wrong with that at all, we're happy for the referral either way!
November 18th, 2010, 06:39 PM #3
Using both eh??
- Join Date
- November 18th, 2010
Just a quick follow-up question:
You mention that some users use both the affiliate ID as well as the referral ID in their links... so with something like:
##GROUPON DEAL URL##.'/?referral_id='.##GROUPON_RID##.'&utm_campaign='.##GROUPON_PID##.'&utm_medium=afl&utm_source=rvs'
(where the RID=referral Id, PID=affiliate Id, and Groupon Deal URL=the dealUrl)
Would I be able to have my cake and eat it too / get BOTH the referral bonus (assuming they are a first time buyer) as well as the affiliate commission?
November 18th, 2010, 06:45 PM #4
I am going to ask that you at least keep them as separate links, yeah? I would imagine that if the referral program blows up, they'll discontinue it. I don't have any jurisdiction over the referral program...
November 18th, 2010, 06:56 PM #5
- Join Date
- November 18th, 2010
Thanks for the quick reply -- yeah I was curious what would happen (i.e. would one supersede the other?) but I guess from your answer I should just stick with one. OK thanks!
November 26th, 2010, 12:03 PM #6
- Join Date
- November 26th, 2010
CTanK, interesting info. I am interested to have my company become an affiliate partner of Groupon. I am working on some business-modelling, but I am missing some info on the actual revenue-sharing values.
You mention (and the site does too) the 15% rev-share on purchases. Just to clarify 100% this point, is the percentage of rev-share calculated on the actual value SPENT by the customer? Or is it calculated either on the discounted amount, or even the value of the discount?
15% appears to be a MAX possibile rev-share. What are the "tiers" in that case? Do they depend on the types of items sold? The number of total revenues generated through our sites? Or what else?
Also, if the user that we referred to Groupon makes more than one purchase, within those 30 days, do we get the rev-share on all? Is it always the same rev-share? Or does it change?
Please excuse me if I missed some online info on these points, and feel free to refer me to those of course if it answers the questions clearly.
Thanks in advance!
November 29th, 2010, 09:55 AM #7
As an affiliate partner of Groupon, you earn a percentage of what the consumer spends with us. We work on performance tiers, so your commission rate depends on the level of sales you drive us. You can view our commission specifics by logging into Commission Junction, which is our third-party tracking solution, and searching for Groupon. In order to become a Groupon affiliate, you must be approved by Commission Junction. It's free for you, there's just an application process.
In regards to the 30 days, yes, you get commission on all sales that come in from the customer you initially referred.
Hope that helps!
November 29th, 2010, 11:04 AM #8
Is the rumor true that Google is purchasing // has purchased Groupon? If so, a move from CJ to GAN would be on the horizon....
November 29th, 2010, 06:31 PM #9
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