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  1. #1
    Affiliate Manager Textbooks's Avatar
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    Should a Merchant be able to price on your site based on the commission they pay you?
    We recently found out that one of our merchants was listing price on our site higher than if you went to their site directly. When confronted the merchant explained that since we wanted a higher commission they had to charge for to make up the profit lose. he also told me this was a "common affiliate practice". I have been on the retail and affiliate side for over 8 years and have never seen this. Before I tell him he is full of it I wanted to see if others agree with me or the merchant

    Question: If a merchant gives you a 2% increase in commission should they also be able to increase the prices displayed on your site by 2%?

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Absolutely, positively, NO!!!

    Never

    Not in this lifetime

    At the basis of affiliate marketing is the universal representation we can make to our visitors that if they buy through our links and we earn a commission is that DOES NOT raise the price that they pay.

    To allow higher prices would DOOM affiliate marketing.
    Last edited by Phil Kaufman aka AffiliateHound; December 15th, 2011 at 05:29 PM. Reason: correction
    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]


  3. #3
    ...and a Pirate's heart. Convergence's Avatar
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    Have only seen that once and it was years ago. Dropped/Replaced that merchant...
    Salty kisses, Sandy toes, and a Pirate's heart...

  4. #4
    Affiliate Manager Textbooks's Avatar
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    Thanks for the initial response. I know I am not crazy and I know the practice sounds crazy just wanted to double check before I take the next step in case I was wrong.

  5. #5
    Affiliate Manager Government Auctions AM's Avatar
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    Don't want to get attacked.. but does this conventionally work backwards as well? As in... If a merchant slashes the price, can they also slash the affiliate commission in order to make up for the loss, even though the conversion would be higher?
    Steven Shnayder
    [B][URL="http://www.governmentauctions.org"]GovernmentAuctions.org®[/URL][/B]
    Join us on [URL="https://signup.cj.com/member/brandedPublisherSignUp.do?air_refmerchantid=2932365"]CJ[/URL] [URL="http://www.shareasale.com/shareasale.cfm?merchantID=10834"]SAS[/URL] [URL="http://www.governmentauctions.org/home/partners.asp"]ClickBank[/URL] [URL="http://twitter.com/GAORGAFFILIATES"]@GAorgAffiliates[/URL]

  6. #6
    ...and a Pirate's heart. Convergence's Avatar
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    Quote Originally Posted by Government Auctions AM View Post
    Don't want to get attacked.. but does this conventionally work backwards as well? As in... If a merchant slashes the price, can they also slash the affiliate commission in order to make up for the loss, even though the conversion would be higher?
    Not the same. What happened above is the merchant was showing two different prices. One price through the affiliate link and one price to non-affiliate links...
    Salty kisses, Sandy toes, and a Pirate's heart...

  7. #7
    Affiliate Manager Government Auctions AM's Avatar
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    oOo I see. That's a clear no no. Thanks for clearing it up!
    Steven Shnayder
    [B][URL="http://www.governmentauctions.org"]GovernmentAuctions.org®[/URL][/B]
    Join us on [URL="https://signup.cj.com/member/brandedPublisherSignUp.do?air_refmerchantid=2932365"]CJ[/URL] [URL="http://www.shareasale.com/shareasale.cfm?merchantID=10834"]SAS[/URL] [URL="http://www.governmentauctions.org/home/partners.asp"]ClickBank[/URL] [URL="http://twitter.com/GAORGAFFILIATES"]@GAorgAffiliates[/URL]

  8. #8
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    I don't necessarily have issue with it? If the program works, good. If not, drop it. Amazon.com kinda does the same thing with the marketplace. If the buyer isn't careful, it's easy to pay more for an item because you're buying it from the wrong merchant.

    But on a superficial level, I fail to see the real benefit to the merchant. Overpricing items seems like it would discourage purchases, hence the program not working.

  9. #9
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by bradk View Post
    ...
    Amazon.com kinda does the same thing with the marketplace. If the buyer isn't careful, it's easy to pay more for an item because you're buying it from the wrong merchant.
    In no way, shape, or form is that the same thing. Amazon provides shopping options on most products but NOT related to whether or not an affiliate link was clicked, and NOT intentionally charging higher prices through affiliate links.
    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]

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  11. #10
    OPM and Moderator Chuck Hamrick's Avatar
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    I have programs where the dealers get to set their prices and its a disadvantage to the affiliates. We negotiated so affiliate have a coupon code to offset the price. We then have to make sure the affiliates are not trademark bidding but I find the dealers doing it all the time. Double standard.

    Another scenario I have seen is affiliates getting commissions reduced to offset a coupon. They take it willingly because consumers are not willing to buy without the deal.

  12. #11
    Outsourced Program Manager John Jupp's Avatar
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    Any merchant which charges higher pricing via an affiliate link because they cannot stomach covering the CPA costs themselves are scum sucking vampire leaching perverts who go to bed each night with an anal dilator to see how much more they can screw themselves. Bad enough they screw others!

    I will have nothing to do with any merchant employing this sort of underhand activity at all regardless of how big, profitable or in demand they are. Ethics are far more important.
    Flambi Media Limited - USA/UK/EU Affiliate Management Expertise


  13. #12
    Outsourced Program Manager Jorge - SHOPiMAR's Avatar
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    No merchants should show different prices as one price through affiliate site and link and then another price once customer clicks through onto merchant site. It is not only unethical towards towards affiliate partners but also very confusing to the consumer and will cause either a no sale or many customer service call ins to merchant and sometimes even to affiliate.

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