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  1. #1
    Join Date
    January 17th, 2005
    I was recently contacted by a company who asked if I would prepay their affiliate commissions. They asked for this because they are a public company on NASDAQ and are real strict on affiliate payments. Is this standard protocol for a public company?

    I initially declined and the alternative was to have them do a credit check on our company to ensure their risk is minimal.

    So my question is should I prepay or allow a credit check?

    They are a high volume public company and they say they can send a good volume of sales. But I want to clear it with the experts

  2. #2
    Join Date
    January 18th, 2005
    Are you sure they are not asking you to maintain a type of escrow to ensure if you run off or go banckrupt your affiliates still get paid?

    The programs I know of, ask for money to be held for affiliates – its not the same as pre-paying affiliates.

  3. #3
    Affiliate Miester my2cents's Avatar
    Join Date
    January 18th, 2005
    far far away....
    how would you know how much is enough to prepay....

    YOu should opt for an escrow arraignment...
    this way a specified amount is set aside to pay commissions...

    this is similar to what Shareasle does for their members...

    that's my2cents, 'cuz I'm a legend in my own mind....

  4. #4
    Join Date
    January 17th, 2005
    Who is a reputable escrow company to use?

  5. #5
    ABW Ambassador JJJay's Avatar
    Join Date
    January 17th, 2005

  6. #6
    Internet Cowboy
    Join Date
    January 18th, 2005
    Might we ask who this "power affiliate" is?

  7. #7
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    I thought paying in advance was called normal advertising...
    There is no knowledge that is not power. ~Hemingway

  8. #8
    Kung Fu Master Eathan's Avatar
    Join Date
    January 18th, 2005
    Prepaying affiliates is not a normal practice. Having potential affiliates contact you with special requests, on the other hand, is very normal.

    Until they've actually started sending traffic, it seems like most of the potential affiliates you talk to are the best in the biz, have the most qualified traffic, can generate a ton of sales, etc. It's unfortunate, but you will be faced with this choice often; change your business model to fit an affiliate, or move on.

    In my opinion, it's generally best to focus on your core business and let a few potential whales slip through your fingers. There's money to be made, sure, but who knows what extra overhead you'll run into, how many hours each new special deal will add to your normal accounting, and so on? Not to mention trying to carry legacy deals forward as your core business evolves.

    I'd turn it around and get them to try a test run to see where they'll be. Bottom line, if they can make more money on CPA than CPM, the share holders should be happy...
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  9. #9
    Full Member webpartner's Avatar
    Join Date
    January 18th, 2005
    Beware... Beware,,, Beware...

    Since you have declined to mention the name of this so called
    “power affiliate,” then I can’t give you specific information...
    But... I do know a little bit about NASDAQ and I love to play
    “trade the scum bag shares before they go bankrupt” game...

    This sounds like one of the scams that been operated for years
    by some of the “pump & dump” experts...
    I’d be willing to bet that this company is not a big board stock...

    NADAQ has three levels...
    Registered Stocks: Big board stocks, the ones you see scrolling
    at the bottom of the CNBC screen everyday... Microsoft is a
    big board NASDAQ stock... then there’s...
    Bulletin Board Stocks: Under funded small companies that don’t
    meet the minimum reporting requirements of NASDAQ... and...
    Pink Sheet Stocks: Non-reporting companies, responsible to no
    one, they get away with murder... but, they are publicly traded...

    “Publicly traded company” is a common line used by the lower
    tiered companies to convince the gullible to believe them...

    My advice is check them out before you spend a dime... escrow
    or otherwise... these guys are very good... and escrow will not
    necessarily protect you... their lawyers are very good too...

    First, ask for their trading symbol... then find out if they are traded
    on the big board, the BB or the pink sheets... then, do a little research...
    If they are on the big board, you might be ok, or not! and I mean that...

    If they’re on the BB... be a very careful... check them out at....
    the OTC bulletin board site...

    If they’re pink... watch out big time... and check them out at...
    A lot of these companies, and I’m not saying that this is one of them...
    Come out of nowhere, make a lot of money, and disappear fast... and
    don’t count on the SEC to get your money back... it just don’t happen.

    They may be ok... but, since a “publicly traded company”... is asking
    you for money up front... for affiliate marketing services... you better
    do your homework... . it’s one of the hottest scams in penny stocks...

    SIDE LINE: Off Topic...
    I love trading penny stocks... it’s like playing poker... you learn the rules
    of the game... and pit wits against the scum bags that are cheating the
    public everyday... you take away what they took from others...

    I once bought 100,000 shares of a BB stock at .025 cents a share...
    $2,500... I sold 50,000 shares the next day at .06 or $3,000... Had my
    money back and a $500 profit... then, I sold the other half the day after
    that at .08 per share, another $4000 profit...

    A month later the company was bankrupt, trading was suspended, and
    they were being investigated by the SEC... Happens everyday... I love
    robbing the robber barons... Any of you guys want some tips on where
    to get started in this area... PM me... It really feels good to stick it to the
    bad guys... and make a buck at the same time...
    <Font size="1" color="99000">Never doubt anybody's word for anything... but... Always double check everything... - Grandpa</font>

  10. #10
    Join Date
    January 17th, 2005
    I don't know what they are but their on the nasdaq-nm.

    I checked out and they don't allow intangible products, so they wouldn't work. Are there any escrow services that offer intangible products/services?

  11. #11
    notary sojac Herb ԿԬ's Avatar
    Join Date
    January 18th, 2005
    Central/Western NY State
    I think they should be paid as they go, like the rest of us. ROI is a business risk everyone has to face.

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