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  1. #1
    Join Date
    October 30th, 2011
    Question Dropping commission amount
    Hi all,

    I have recently dropped my prices and would also like to drop my commission rate from $12 to $10. How will this affect my current affiliates? Is it standard to drop commission rates when the product price is dropped? Should I keep the same $12 commission so I don't risk losing any of my current affiliates?

  2. #2
    The Seal of Aproval rematt's Avatar
    Join Date
    November 19th, 2006
    The Windy City
    It's perfectly reasonable to lower commissions when you lower your price. I'm sure that most affiliates would not expect you to make less on each sale while they continue to earn the same commission. On the contrary, many will see the lowering of your price as an opportunity for increased sales. Of course their will always be the greedy affiliates that want it all.

    But consider if you were paying a percentage as opposed to a flat rate. If you were paying 10% on a $120 product and subsequently lowered the price to $100 the end result would be the same.

    "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

  3. #3
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Park City Utah
    Make sure you write an email to affiliates prior to making the commission change so they are not blind sided. Where affiliates get upset is when it comes as a surprise and they feel they have no recourse. I recommend personally reaching out to your top producers and always include your phone number and direct email.

  4. #4
    Join Date
    October 30th, 2011
    Thanks for y'alls input!

  5. #5
    Newbie ConduciveShane's Avatar
    Join Date
    October 28th, 2011
    Safety Harbor, Florida
    Unless you are brokering out an offer from another network, if the advertiser chooses to lower the payout then you have no choice to do the same and as long as you explain that to your affiliates there should be no problem. If you are brokering out the offer and it gets lowered then just go directly to the advertiser and get it for a higher price.
    Shane McCarrick
    AIM: conduciveshane

  6. #6
    Member robbinsinteractive's Avatar
    Join Date
    April 2nd, 2009
    San Diego, CA
    timing is everything. I would grandfather the existing active affiliates until after the holidays.

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  8. #7
    Moderator bibby's Avatar
    Join Date
    November 6th, 2007
    Minneapolis, MN
    As an affiliate I understand dropping a flat $ commission when prices drop but not when the program is based on a percentage commission.

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