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  1. #1
    Newbie
    Join Date
    July 18th, 2013
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    5
    Risks associated with offering 150% - 200% of first month's payment?
    I'm setting up an affiliate program for a language-learning website whose basic membership starts at $10 per month. To make our affiliate program competitive and to reward our affiliates, we're considering offering $15 or $20 per referral, knowing that on average our members stay well longer than 2 months and in the long-run the program will still be profitable for us.

    My only concern is, do I need to worry about dishonest affiliates somehow signing up fake accounts and canceling within a month in order to exploit the payment structure? Our network is ShareASale. Are there any other problems that might come with a payment structure like this?

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
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    16,646
    James you will need to extend commissions until the credit card clears and possibly do reversals for charge backs.

  3. #3
    Outsourced Program Manager Chris -  AMWSO's Avatar
    Join Date
    January 18th, 2005
    Location
    Bangkok
    Posts
    11,273
    My only concern is, do I need to worry about dishonest affiliates somehow signing up fake accounts and canceling within a month in order to exploit the payment structure?
    Yes you'll need to watch out for the few that try and spoil things for the many. I believe, that although the standard commission lock period is 30 days, that ShareASale can set up a longer commission lock date for you on the program if you request it, so that you can ensure each order is legit before you pay out.

    Once you know an affiliate is sending quality sales then you can manually lock their commissions to ensure they get paid faster

    Cheers

    Chris
    Affiliate Marketing by AMWSO. Skype - chrissanderson ::: TEL 1-720-336-1784 ::: www.amwso.net
    Join our affiliate programs :Vaper Empire, Iolo, Art of Tea, or See ALL our Programs here

  4. #4
    Affiliate Network Rep JCrooks - AffiliateWindow's Avatar
    Join Date
    March 7th, 2007
    Location
    Denver, CO
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    4,988
    Also, do not do incent unless you are prepared financially for a high cancellation rate.
    Jeannine Crooks - Always happy to share what I know! - Voted Best Network Rep 2013 & 2014
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  5. #5
    Newbie
    Join Date
    July 18th, 2013
    Posts
    5
    Thanks for the input everyone. You helped to alleviate my concerns, so I think we'll feel safe going with the higher commission rate. The company has been around for 7+ years and has good data on how long the average customer sticks around to know that it will still be profitable – as long as we manage to keep dishonest affiliates out!

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