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  1. #1
    The "other" left wing davidh's Avatar
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    Attn: 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?
    Last edited by davidh; June 10th, 2011 at 12:14 AM.
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  2. #2
    Moderator MichaelColey's Avatar
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    Time to promote their competitors.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela


  3. #3
    Prince of Content Vinny O'Hare's Avatar
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    Are you sure it isn't a typo and they mean 12%. I would find a phone number.
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  4. #4
    The "other" left wing davidh's Avatar
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    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.
    Last edited by davidh; June 10th, 2011 at 01:29 AM.
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  5. #5
    Affiliate Manager
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    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.

    Bob

  6. #6
    ABW Ambassador JoyUnltd's Avatar
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    Quote Originally Posted by Vinny O'Hare View Post
    Are you sure it isn't a typo and they mean 12%. I would find a phone number.
    I agree with Vinnie. I've seen such typos & a phone call/discussion can clear up exactly where you stand. If it truly is a reduction, then as Michael says, "Time to start promoting their competitors."
    Renée
    Pay no attention to that woman behind the curtain. -Wizardress of Oz

  7. #7
    Affiliate Manager Kush@VMInnovations's Avatar
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    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

  8. #8
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    If it were a typo they would have responded to clear up the error.

    Avoidance = Shame and Embarrassment
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  9. #9
    Moderator MichaelColey's Avatar
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    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.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

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  11. #10
    OPM and Moderator Chuck Hamrick's Avatar
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    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.

  12. #11
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    Am dealing with a merchant who has allowed dealers to trademark bid while restricting affiliates.
    I've commented on that before - I think it is an outrageous, discriminatory double standard.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  13. #12
    15 years and counting
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    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.

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  15. #13
    The "other" left wing davidh's Avatar
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    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.
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  16. #14
    OPM and Moderator Chuck Hamrick's Avatar
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    I've commented on that before - I think it is an outrageous, discriminatory double standard.
    You have to know the big picture and the affiliate channel may be 5 or 10% of revenue so they are the underdog. I had lunch with a super affiliate in PPC yesterday and he spends $150k a month for one client. They make 4:1 on that so are a big fish.

    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?

  17. #15
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    um~
    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?

    Moderator Note: To recruit affiliates, you'll need an ad: Advertise at ABestWeb Affiliate Marketing Forums
    Last edited by 2busy; June 14th, 2011 at 09:09 AM. Reason: removed unpaid ad

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