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  1. #1
    ABW Ambassador
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    November 25th, 2005
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    639
    What more can you do for us? (or we will drop your commission)
    How do you hande this merchant tactic... You know, that one where a merchant says "we just noticed that you are at a commission rate higher than our baseline rate. What more can you offer us in the way of better placement or other promotion to stay at this premium rate? Otherwise, you will be reduced to the base rate next month"

    My first impulse is to expire the program immediately but I know that there must be a better way to counter this tactic. In the case of one merchant, I am dealing with an OPM company - maybe I should expire the program and contact the merchant directly to let them know how the OPM let a proven affiliate go...
    When the only tool you have is a hammer - everything looks like a nail.

  2. #2
    Tax Paying Member
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    November 14th, 2005
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    Chapel Hill, NC
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    Money rules........

    If they are making money for me, I keep plodding and if not I look for a replacemt merchant.

    I just had this to happen with one of my all time best merchants. From 12% to 10%. Sales have been down for a while and I think that they have new management. I will stay put.

    Sometimes first impulse is good.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  3. #3
    OPM and Moderator Chuck Hamrick's Avatar
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    April 5th, 2005
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    Park City Utah
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    16,646
    Be upfront with the OPM who is probably getting pressure from the merchant to grow the program. If you feel you have done all that you can within reason then tell them so. If they reduce your commission tell them you are leaving the program then contact the merchant. An OPM would be stupid to let a producer go this time of year.

  4. #4
    ABW Ambassador kse's Avatar
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    November 29th, 2005
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    Its depends on how much you make from them. If its a lot then work with them and make a few minor changes to make them happy. If you do not make much from them well them drop them or better yet tell them what to do with the extra commission!!!

    Just my 2 cents worth...........
    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!!

  5. #5
    ABW Ambassador
    Join Date
    November 25th, 2005
    Posts
    639
    Thanks for the feedback - what I am hearing that there are basically three directions that I can go:

    1) Work with them to reach a compromise where it is worth it for both of us
    2) Drop the program and move on
    3) Do nothing and accept the reduction (I just hate to let merchants get away with this)

    The tipping point in the decision seems to be my past performance with the program. The program that I am dealing with today is in a niche I don't pursue so I will not offer to build-out my promotional efforts for the program. My performance with this program has been poor so I guess I have a "Dear John" email to send the OPM.

    Thanks again!
    When the only tool you have is a hammer - everything looks like a nail.

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  7. #6
    The Seal of Aproval rematt's Avatar
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    November 19th, 2006
    Location
    The Windy City
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    4,140
    I guess my reaction would depend on a couple of different factors. First and foremost would be if I could increase my performance without sacrificing revenue in another program. Common sense (and a finely tuned sense of greed) would dictate that if I can make more money in their program, I'd be a fool not to. However, if I'm just shifting revenue from one program to another there's not much point.

    Second would be my relationship with the AM and previous experience with the program. Is the program well run? Is it an AM that I enjoy working with? Do they have highly restrictive or convoluted terms?

    In the past my initial reaction would have been to drop them, promote the hell out a competitor and then rub their noses in it. That's still a good time, but these days my decisions are typically based on how it affects my income.

    -rematt
    "I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant." - Richard Nixon

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  9. #7
    ABW Ambassador kse's Avatar
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    November 29th, 2005
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    Quote Originally Posted by rematt View Post
    but these days my decisions are typically based on how it affects my income.
    +1
    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!!

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  11. #8
    Affiliate Manager
    Join Date
    March 30th, 2009
    Location
    Spokane, WA
    Posts
    33
    Maybe I'm missing something, but there has to be a reason you're currently at a higher commission level than their baseline rate. Was it due to past good performance that has dropped off or did they reduce their base commission rate? Were there any performance expectations outlined when the commission was increased? What's the difference between the baseline commission and your current commission level.

    It looks like there's been some good suggestions so far. If you email the OPM I would kindly let them know their tone and approach is not inspiring you to make any changes instead of replying to a threat of reduced commission with a threat of dropping their program. Although it should not be your responsibility, maybe they just need a little perspective. If they aren't willing to change they're approach the path ahead may be a little more clear for you.

  12. #9
    Newbie
    Join Date
    October 3rd, 2011
    Posts
    6
    Smile Dodgy merchant
    I'd gently remind the merchant that the person with the list is the one with the power of the sales. If they want your cooperation, they'll leave your commission alone. If the tamper with it, then you know that there are plenty of merchants in the Internet world who would like you to be their affiliate.

    Don't let them bully you. Call their bluff, but be prepared to walk.

    BTW, I'm just getting started as a merchant in information products. If you're interested, I'd like to hear from you.

    Cheers, Bruce

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