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  1. #1
    Affiliate Manager maria jarel's Avatar
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    PPC Affiliates requests more commission?
    As a merchant I have observed that PPC Affiliates usually asks for more commission, this make sense too because if they are spending on Keyword bidding then radically their operating cost increases that’s why they ask for more commission.
    My Question is should we give concern over such requests because this strategy will lower the revenue and competition with same keywords in which we are doing PPC. How to discriminate? Will PPC affiliate give a thought to not to bid on Company’s own bidding keywords?
    [B][COLOR="Purple"]Maria Jarel[/COLOR][/B]
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  2. #2
    ABW Ambassador 2busy's Avatar
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    If your program's terms have no PPC restrictions then PPC affiliates can bid on any terms they choose. If your company has their own PPC campaigns then yes, you and your affiliates are possibly competing for the same keywords and traffic.

  3. #3
    Speechless OTProf's Avatar
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    I almost never ask for higher commissions. I only will do so if I have not gotten out of the red over a long stretch and think a small bump would make it work.

  4. #4
    ABW Ambassador kaizen's Avatar
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    I don't see why affiliates who go after organic traffic should subsidize PPC affiliates. We all choose our methods and should be on equal footings.

  5. #5
    Moderator BurgerBoy's Avatar
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    I agree with you kaizen.

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  6. #6
    Beachy Bill's Avatar
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    Quote Originally Posted by kaizen View Post
    I don't see why affiliates who go after organic traffic should subsidize PPC affiliates. We all choose our methods and should be on equal footings.
    Agreed. That would equate to some affiliates subsidizing the others. Fair to the affilates? Some would say yes - but those would likely be in the PPC group.

    The "massaging" of commission levels, however, does occur. There is an old (last Summer) discussion going on: HERE and HERE are two (somewhat) relevant posts. The lengthy thread is HERE and can be an eye-opener for those not familiar with PPC outsourcing.
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  7. #7
    Visual Artist & ABW Ambassador lostdeviant's Avatar
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    Non-PPC affiliates also have expenses to pay for like fees to article writers, SEO help, back links help. Perhaps payment for article spinning software to have different versions, perhaps payment for link placement on related sites.

  8. #8
    Affiliate Network Rep Kim Salvino's Avatar
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    I would base commission increases on quality first, and quantity second, regardless of the promotional method.
    Kim Salvino, Client Services Director, Performance Horizon Group
    Reach me at kim.salvino(at)performancehorizon.com or on (443) 617-4036

  9. #9
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    These "PPC Affiliates" aren't asking for a higher advertising rate because of their expenses; they're asking for a higher rate because they want a higher rate. We all want higher rates.

    And many advertisers will approve higher rates (sometimes just because we asked; sometimes based on our reputation; sometimes based on past performance; sometimes because we threaten to drop the advertiser if rates aren't increased; sometimes the rate increase is permanent, other times it's temporary or contingent). Some advertisers will "collapse their rate tiers" if asked.

    Frankly, the balance here is simple: you must decide whether your reduced profit from each transaction (due to the higher rate paid to the publisher) will be offset by increased sales (or by avoiding the reduction in sales that might come if the publisher drops your advertising).

    If you grant a higher commission rate to one publisher, you should consider whether a similar incentive might work with other publishers.

    In the past, when I ran "direct-to-merchant PPC" (DTM-PPC) campaigns, I managed the campaigns based on ROI. I would spend $100 on PPC only if I had strong data to support an expectation that I'd earn back that $100 plus a profit. My threshhold for "profit expectation" varied depending on my confidence in the advertiser.

    If I determined that I couldn't reliably profit from running a campaign, I terminated the campaign (or dropped my PPC bid rates to levels that allowed profit, but drew very little traffic), and I informed the advertiser that given their advertising rate, their conversion rate, and their average transaction size, I couldn't find a way to profit from DTM-PPC. A few times, advertisers would respond by offering a higher rate, but usually not enough to persuade me to resume DTM-PPC activity for that advertiser.

    What else can higher rates get you (from web publishers)? More exposure and better position, which equate to more traffic and more sales.
    Last edited by markwelch; February 24th, 2011 at 11:37 AM.

  10. #10
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    I would like a commission increase too 'cos I work hard on my websites, which costs me money.

    What a ridiculous request.. PPC costs, but what about MY operating costs, which happen to be spent on development & thousands of hours generating original content. Will merchants compensate me for that?

    If a PPC affiliate isn't covering their costs, too bad.

    As Mark put it
    they're asking for a higher rate because they want a higher rate
    Exactly. Nice try...

  11. #11
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by Bill View Post
    The lengthy thread is HERE and can be an eye-opener for those not familiar with PPC outsourcing.
    Good links Bill, thanks. I missed the last thread the first time around. Think I was on vacation.

    For what it's worth, I do lobby for higher commissions sometimes. I usually do this when I'm pushing serious sales volume to a merchant and I am not happy with their default commission structure. (e.g. not in line with their competitors)
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  12. #12
    OPM and Moderator Chuck Hamrick's Avatar
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    You should have a gross margin calculated for your program. From that you subtract the network fees and OPM fees (if applicable). That yields your total commission range. I build three ranges, base, VIP and high producer. I give super affiliates VIP to recruit them but still have a higher tier if they produce. You can build performance incentives but they take an extra month to pay so I give producers the higher tier when they sustain sales.

    For PPC I usually create special terms and only give it to proven PPC affiliates like imwave/Move Marketing. We also create a secondary domain so they don't compete on the primary. There are other techniques but this seems to work the best.

  13. #13
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    For PPC I usually create special terms and only give it to proven PPC affiliates like imwave/Move Marketing. We also create a secondary domain so they don't compete on the primary.
    Chuck,

    How would you handle PPC affiliates who have their own PPC Ad Network?
    Salty kisses, Sandy toes, and a Pirate's heart...

  14. #14
    OPM and Moderator Chuck Hamrick's Avatar
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    Not presently working with them. I work through the top 5 networks: CJ, GAN, LS, SAS, AV so they would have to be an affiliate of one of those. I am open to other networks but would need to research then negotiate with the merchant. I am not working with any CPA networks currently.

  15. #15
    ...and a Pirate's heart. Convergence's Avatar
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    Thanks, Chuck...
    Salty kisses, Sandy toes, and a Pirate's heart...

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