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June 9th, 2011, 11:11 PM #1Attn: Affiliate Managers - Opinion Poll on slashed commission rate
This is not a "voting" poll; I'm polling for opinions on this matter.
A merchant that I have been actively promoting for the past year sent me an "offer" on CJ, dropping my commission rate from 10% to 2%.
I am not being penalized for "non-performance" (see below); I send them a steady stream of sales. In fact I have been stepping up my efforts recently to promote them more and their direct competitors less.
Here are my sales figures for this merchant for the current year:
Jan 2011: $3,000+
Feb 2011: $4,400+
Mar 2011: $4,900+
Apr 2011: $2,200+
May 2011: $8,800+
June 2011: $13,000+ so far
Their current default commission rate is 5%.... so any unproven/new affiliate will be paid two-and-a-half times what I, a hard-working affiliate who is sending paying customers to them, is paid.
To top it off, the affiliate manager does not reply to messages to her @merchantsdomainname.com address, CJ mail system, or even messages through her personal facebook page. I also get no response to inquiries sent to the merchant's staffed-around-the-clock service@ email address.
Am I missing something here? Is there some possiblity that they could have a legit and sane reason for treating a productive affiliate this way? If there is, please enlighten me!
My vocabulary is not extensive enough to even begin to say what I think and feel about being treated this way by a merchant that I bust my ass to promote and send paying customers to.
What is your opinion on this?
June 9th, 2011, 11:28 PM #2
June 10th, 2011, 12:16 AM #3
June 10th, 2011, 12:28 AM #4
They were already paying me 10% while the default rate is 5%. I doubt I would get any additional "bonus rate", as I'm probably not anywhere near being one of their top 10 or 20 affiliates.
A cut to 2% instead of the default 5% though... for an affiliate who sends paying customers on a steady and regular basis? That's where my vocabulary range is failing me.
June 10th, 2011, 09:11 AM #5
- Join Date
- May 2nd, 2006
- Columbus, OH
I don't think there's any sane reason to cut a productive affiliate from 10 to 2%. Vinny's right...maybe it's supposed to be 12% because that definitely seems like a mistake.
Good luck getting in touch with them.
June 10th, 2011, 09:36 AM #6Renée
Pay no attention to that woman behind the curtain. -Wizardress of Oz
June 10th, 2011, 10:28 AM #7
If you are adding value and bringing-in new customers to our store I would raise your commission NOT decrease it. So it could be a typo, I would also allow 24-48 hours for said merchant to respond to your inquiry.
Affiliate Manager's .02
June 10th, 2011, 11:11 AM #8
If it were a typo they would have responded to clear up the error.
Avoidance = Shame and Embarrassment
June 10th, 2011, 11:18 AM #9
Are you a coupon, loyalty or PPC affiliate? Some merchants do across-the-board commissions cuts (or terminations) to those groups (throwing the good out with the bad), rather than resolving the problems with the bad players.
June 10th, 2011, 12:07 PM #10
I agree with what Michael said but that being the case I would expect an explanation from the AM.
Another reason is an online director who see the affiliate channel as a competitor (which I have experienced). Its a no win because they look at the data through rose colored glasses. It can take six months to a year before they figure out the loss of traffic, branding and sales that affiliates brought. Generally shows a big dip in organic backlinks as affiliates move links to a competitor.
Am dealing with a merchant who has allowed dealers to trademark bid while restricting affiliates. We are working to level the playing field. Affiliates are adding another 15-25% to the gross margin as dealers are wholesalers.
June 10th, 2011, 12:43 PM #11
June 10th, 2011, 01:12 PM #12
- Join Date
- January 18th, 2005
One of my merchants (with a good product line) has just reduced the commission rate for everybody from 10 to 2%. (The merchant is not on CJ) I know he's upset by PPC affiliates using TM keywords.
I'm already seeing the effect. You can't make money with 2%. I'm not promoting this merchant anymore and one of his competitors is more than happy with the sales (and me with the 12% commisssions).
It's a bad decision for this merchant. Instead to deactivate a few TM poachers, he's going to lose all the affiliates bringing sales.
June 10th, 2011, 01:32 PM #13
I would understand - even though it's a stupid, suicidal thing for a program to do - if it were an across-the-board change, or if they were dropping those with a premium commission rate back to the default commission rate, or if I were a dead wood affiliate who is not producing any sales for them. But apparently they singled me out for a ridiculous and unfair commission slash; that's what baffles me. No, I do not promote them on a coupon site... strictly relevant websites with organic and type-in (advertised offline) traffic. It makes no sense from any angle I try to look at it from.
June 10th, 2011, 04:21 PM #14I've commented on that before - I think it is an outrageous, discriminatory double standard.
Unfortunately affiliates are filtered by the affiliate manager so don't carry identities like a PPC manager, SEO, email, display etc. Davidh if you have generated $13k+ already this month and are treated like this then I have to wonder what #1 in the program is doing?
June 14th, 2011, 02:47 AM #15
- Join Date
- May 17th, 2011
Might be a typo? but their not replying to you sounds weird.
How long did you usually have to wait to hear back from them?
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Last edited by 2busy; June 14th, 2011 at 08:09 AM. Reason: removed unpaid ad