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  1. #1
    Affiliate Manager Howard Gottlieb's Avatar
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    December 30th, 2006
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    Lowest Prices or Highest Commission
    We are going to be launching our new magazine merchant site in the next couple of days. We will be contacting Shareasale to use their network.

    I have a couple of questions, though, to see how to make this the best possible program.

    1. What's more important - higher commissions or the best retail prices? I have compared our retails to the top magazine affiliates and we appear cheaper nearly across the board and can offer competitive commissions. Should we raise prices and commissions?

    2. Would you go outside of a network for higher commissions? In other words if we offer the program thru SAS at X commission we could offer if for X plus without the expense of SAS to top affiliates?

    3. For you magazine affiliates is there room in the market for another merchant? We are very well funded and will offer 650 titles out of the gate.

    Thanks for answers here and any other suggestions.

    Howard
    I would rather live my life as if there is a God and die
    to find out there isn't, than live my life as if there
    isn't and die to find out there is.

  2. #2
    ABW Ambassador kse's Avatar
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    November 29th, 2005
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    As an affiliate to be honest higher commissions would make me consider joining (Along with Return Days, Auto Deposit, etc....). For me I say a network would work better. The company would need a long track record before I would join outside a network.

    Just my two cents..........
    MERCHANTS: Start showing your coupons directly on your site, that way your shoppers will stop leaving your site looking for them!! If not then remove your Coupon Box!!

  3. #3
    Full Member Lanny's Avatar
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    Howard:

    (1) Highest commission and the lowest authorized prices (combination, not one or the other)
    (2) No - Never
    (3) Possibly, if you have something very special to offer the customer and the affiliate and an established reputation in the field.

    Without a track record, as a Magazine Subscription company, I think you will have a very tough time ahead, but, hopefully I am wrong about that. You will need to offer the customer something the established vendors are not offering them. You will also need to offer the affiliates something the established vendors are not offering.

    Much good luck with your new project! Lanny

  4. #4
    ABW Ambassador superCool's Avatar
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    superCool has not done much with magazines, but with other stuff, he likes low prices that can be proven to be the best and advertised as a selling point for the product. he also like huge commissions though . if you can prove that you convert better than the others, then you might not need the high commission (as long as you're competitive)

    good luck

  5. #5
    ABW Ambassador
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    I'm very leery about joining out-of-network affiliate programs anymore, especially those programs that are small and unknown. I've had four small indie programs essentially "stiff me" and cost me around 1K total, and I probably have never joined more than 10 or 12 indie programs in total (including Amazon, Art.Com, Allposters). Needless to say, a 40% failure rate among Indies has been very disappointing. Thus, I tend to gravitate toward the networks (CJ and Avantlink in particular).

  6. #6
    Beachy Bill's Avatar
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    1) If you can offer the lowest prices around and a "competitive" commission that will allow affiliates to offer something of true "value" to their readers - instead of "just another magazine site." And that approach seems to work well.

    2) I would not go outside of a network for a "new" company. With that said, however - the majority of my income is derived from a couple of indies in the travel vertical - and has been for the last 10+ years.

    3) There is room in most verticals for affiliates that provide value to their readers/visitors.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
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  7. #7
    Believe knight01's Avatar
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    Any commodity item like a magazine, it has to be about the price. A subscription to Time is the same whether it is purchased through you or another agent. Unless there is some other value proposition that you're offering.

    The commissions can be made up by conversions. I'd rather have 5% commission on 25% conversions than 25% on 5% conversions. (not sure if that math makes sense, but I think you probably get the meaning)
    Someday starts today
    Military Discounts

  8. #8
    Analytics Dude Kevin's Avatar
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    Don't forget consumer trust in the merchant...

    I'd go with best Converting
    Kevin Webster
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  9. #9
    Affiliate Manager Howard Gottlieb's Avatar
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    Awesome feedback ...

    We've decided to price check the competition and limit our lower to prices to around 5% lower and still offer a very attractive commission rate. I believe we will offer between 30 to 50% depending on volume of business.

    I believe the best way would be to offer 30% until a very low threshold ... 40% for a moderate volume and then 50% on all sales over a certain level .. that way we reward the top players.
    I would rather live my life as if there is a God and die
    to find out there isn't, than live my life as if there
    isn't and die to find out there is.

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