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  1. #1
    ABW Ambassador ToughTurkey's Avatar
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    I've recieved an email from a merchant who pays $5 per sale. They say the traffic I am sending them is hindering their company, and instead of $5 per sale want to pay me 10% plus $10 for every 20 sales.

    So far this month I've sent them $267 in business spread over 12 sales and recieved $60 in commissions or about 23%. Under the new proposed agreement I would earn $26.70 for those same transactions. I've never had 20 sales with them before in a month. I understand thier point, but they are the ones who set the rules in the first place, not me.

    Of course I'd like to keep things the way they are, but the option is they may simply pull the plug on me. Fair play to them for approaching me about this it instead of simply cutting me off.

    Commments?

  2. #2
    ABW Ambassador Ron Bechdolt's Avatar
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    Why not suggest a compromise? Meet them somewhere in the middle.

    Ron - 7 Days A Week Marketing
    Every day is a chance to learn something new and an opportunity to teach others.

  3. #3
    ABW Ambassador ToughTurkey's Avatar
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    So you agree it's a reasonable request?

  4. #4
    ABW Ambassador
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    I don't buy it when they say the traffic you send them is hindering their company. You have to watch out for merchants that say this. It seems they want to pay you less for generating sales, when they should be paying you more. Usually when you generate lots of sales a merchant will offer you a higher commission not a lower. And what about the other affiliates they have that generate some sales, are they still gettting the higher commission? If they do this, it should be across the board, not to good converting affiliates. Wouldn't be fair that an affiliate that gets less sales then you, getting a higher commission than you. I wouldn't be affiliated with a merchant that penalizes you for driving sales.

    Shake your booty

  5. #5
    ABW Ambassador Ron Bechdolt's Avatar
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    I have had a couple lower my rates and with one, it did work out with a compromise. There are a couple of sales a month where I know they make no money off of the sale because of my commission, but others always offset that.

    You have nothing to loose by asking if they would "consider" your offer. If they don't, you can accept theirs (or not).

    Ron - 7 Days A Week Marketing
    Every day is a chance to learn something new and an opportunity to teach others.

  6. #6
    ABW Ambassador Ron Bechdolt's Avatar
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    I should also add that the one company that lowered my rates also has the lowest prices on the web for their products so I know their markup is not very high. Even with the lower commission, they are my top performer.

    Ron - 7 Days A Week Marketing
    Every day is a chance to learn something new and an opportunity to teach others.

  7. #7
    ABW Ambassador
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    It depends upon the value you have in that particular partnership and how they rank in importance amongst all your merchants.

    I for one would not take the bait...Why are they singling you out in the first place, do you really understand what it is that they are stating about your partnership or visitors? It just seems like an odd request, honestly.

  8. #8
    ABW Ambassador
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    This is crazy. A merchant is expecting you to operate with a lower commission? Just because you had some success? You sent them traffic which made THEM some money, and they want to reward you by LOWERING your commission?
    Incredible. I just had some success with a company in Linkshare and they thanked me by offering me a private offer that has almost DOUBLED my commission.
    This merchant in CJ wants to lower your commission? Tell them to forget it and find a company that will reward you.
    If $267 is all it takes to make them want to reduce your commission, they can't be very successful anyway

    www.cjshoppingnetwork.com

  9. #9
    ABW Ambassador DesignerWiz's Avatar
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    Their request in my view is ludicrous. Be successful .. lower the affiliate profit quick. To even remotely say your traffic is "hindering" their service is absolutely hysterical! Why the heck did they even bother to run an affiliate tier anyway??????

    DesignerWiz.com CEO
    Development Resource & Javascript Public Archive Center
    http://DesignerWiz.com

  10. #10
    ABW Ambassador Ron Bechdolt's Avatar
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    Perhaps I should clarify my circumstance as I agree with what all is being said here. When my merchant told they were lowering their commissions, it was for everyone, not just me. I contacted them and asked that we meet in the middle and they uped it just for me.

    Your circumstance may be entirely different. If they are singling out you, then I think that is wrong!

    Ron - 7 Days A Week Marketing
    Every day is a chance to learn something new and an opportunity to teach others.

  11. #11
    ABW Ambassador ToughTurkey's Avatar
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    I just emailed them asking why I've been singled out for this proposal and here is the reply..


    quote:
    You are actually our top seller as far as number of sales and I want to
    reward you for your efforts and also make you aware that I will pay you
    bonuses for your hard work.



    I'm the top affiliate with 12 sales and they want to drop my payout.

  12. #12
    ABW Ambassador
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    If a merchant (any merchant) becomes successful and makes money as a result of affiliates, then surely they should reward them by giving them a share of the success. How can reducing commissions be acceptable? Get rid of any merchant who lowers your commissions when they are getting results, as a result of those affiliates that they are now wanting to rip off. How can you continue to promote them?

    www.cjshoppingnetwork.com

  13. #13
    ABW Adviser Panel Dynamoo's Avatar
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    Is there an alternative merchant? If so, just threaten to walk away. Or better still, don't threaten, just do it.

    After all, you'd be doing them a favour by not cluttering up their store with all those untidy customers.

    ________
    All your commission are belong to us.

  14. #14
    Defender of Truth, Justice and the Affiliate Way
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    Absolutely clueless merchant is my take on the info you've provided. You are their top performer and you are hindering their business? They are rewarding you by cutting your commissions. It would appear to me that this merchant did not sit down and crunch the numbers like they should have when they set up their commission structure. That does not speak very favorably of their business skills. I would wonder if that's how they plan their business how long are they going to be around. You might want to start looking for a replacement regardless of what they do with your commission rate.

    Keep Your Hands Off My Cookies

  15. #15
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Good advice given on all the above replys. Mostly you will hear this type arguement when a merchant hastely granted some B-a-HO like eBates double normal affiliate's commission rates. The the BHO rapes the merchant by double dipping them at higher commission rates on non-commissionable links. Do merchant AM's have to take a stupidity class as part of their job description?

    It will be interesting this year as the BHO perps get reamed by the bean counters at these merchant corporate offices. You want to know who's necks are on the line in the theftware/spyware initiatives as the legal eagles zero in on Opt-Out e-mail and spammers, P2P networks, and all forms of popup/under alert messaging on competitor web sites???

    The networks where 80% of the commissions go to BHO incent Dupers shafting normal affiliates in the process...All the merchant AM's milking their bosses with bonuses running programs listed at the BHO websites.

    Charlie ...

    If they won't adopt and feed a bird ..flip them one! BBQ some Gator and remember to flush WhenU..

  16. #16
    ABW Ambassador JJJay's Avatar
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    quote:
    Originally posted by EcomCity.com:
    Do merchant AM's have to take a stupidity class as part of their job description?


    Mike, as far as I am aware that's a standard industry requirement.

  17. #17
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    In my opinion you should take the emotion out of it and decide based on the finances.

    If there is another merchant that you could earn more, then leave the current one. If not then it boils down to whether $26 a month is really worth the effort.

    Don't feel obligated to them, it is just some CJ merchant afterall.

  18. #18
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    Stupidity class, that was never offered to me =( Silly me I reward top affiliates.

    Daniel Fink
    Affiliate Marketing Coordinator
    FreeDebtConsolidation.com
    Dan@Intermarkmedia.com
    $7.5 Million paid to affiliates last year
    Highest Converting app on the Net!
    Private Forum at ABW

  19. #19
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    You are a super affiliate, 8k comms last month, they do not deserve you, you will have to deal with good merchants who have good vision on what a win-win game is, and who want topay more since that means earn more.

    I think they are in the loosers way...

    Fer

  20. #20
    Assistant Regional Manager Rik's Avatar
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    Find a merchant to replace their product, tell the offending merchant you are going to drop them and replace them, direct them to this exact thread then drop em.

    ------------------------
    Webmaster Resources

  21. #21
    I like traffic lights
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    Tell them to put the crackpipe down for a while.

  22. #22
    Resident Genius and Staunch Capitalist Leader's Avatar
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    RUN, RUN, RUN!!!

    Run because they have set too high of a payout across the board and are likely to die soon because they don't know what to do about it! If they think chopping off $35/month from one person is enough to save a business--they're not thinking. Any unexpected expense could eat that "savings" and then some!

    (Initial response: They are actually thinking that saving about $35/month is going to make a significant difference to their bottom line?!? What are they, lemonade-stand sized?! Geesh! )

    Their plan is pointing out a massive shortsightedness on their part. They can only see what's right in their face--your stats--and are missing the myriad of people selling one item here and one there. But all those people combined are almost certainly a much bigger expense than any one affiliate...yet they aren't aiming there. DUH, that's backwards! They should cut the mass of mediocre performers but *really* reward the top performers--or at least not dock them!

    They've apparently got a setup where more business = more losses instead of more profit. That's like if they had a disease where eating more made them starve faster! That's fundamentally and fatally flawed, and cutting the best aff. they have isn't going to fix it. Unless they make MAJOR changes to their business model, they are doomed. And since they're only aiming at what's right in their face by their extremely shortsighted move, I think the chances of them being able to figure out an *effective* plan to save themselves is rather minimal.

    Due to this, I don't think it'd be worth messing around with them except for the personal gratification of showing them the math you showed us and letting them know you don't think that's any kind of "reward"!

    Other than that, I'd help save them money by hitting Drop Program. Even if they get somebody over there who can turn them around from the Path of Certain Doom that they're on and save them from F'dCompany, there's no need to work with a place that insults your intelligence with a proposal like theirs!

    -Early in life, I had to choose between honest arrogance and hypocritical humility. I chose honest arrogance and have seen no occasion to change. ~ Frank Lloyd Wright

  23. #23
    ABW Ambassador ToughTurkey's Avatar
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    They've only been with CJ since Nov/02 and what BLFH said is true, they didn't crunch their numbers well when they came up with the $5/sale idea.

    ps. Just read leaders post also and I agree 100%.

  24. #24
    ABW Ambassador
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    it has happened before, it will happen again.

    IamJaloppy

  25. #25
    ABW Ambassador
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    whats wrong with your traffic?

    ----
    -J
    Merchants: Do you realize that some of your affiliates are being paid commission on sales which you have paid for via PPC, offline advertising, and your targeted mailings?

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