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  1. #1
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Thumbs down More Work Less Pay
    I received an email solicitation from a new merchant that was offering an intriguing activation bonus, but when I scrolled down to see what they called a "Great" commission structure, this is what I saw:

    Our Commission Structure is Great!
    • $0 - $1000 5% pay out
    • $1,001 - $5,000 4% pay out
    • $5,001 - $10,000 3% pay out
    • $10,001 - $50,000 2% pay out
    • $50,001 - $100,000 1% pay out
    • $100,001+ .5% pay out, max pay out $5,000
    I sent this email response. I have not received a reply:

    I was intrigued by your offer, but upon scrolling down I was really surprised to see what you deem to be a "Great" commission* structure. Diminishing returns is no way to run an affiliate program - the more work an affiliate does, the more creative, innovative, the more hours spent, and the more successful the affiliate becomes, the lower and lower the return. I have been an affiliate marketer for more than a dozen years, and I would NEVER promote an affiliate program that pays less and less the better and better you do.

    Best of luck with that.
    I'm not saying this is unheard of, but that penalizing success is not how to curry favor and maintain happy, productive affiliates.
    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]


  2. #2
    Beachy Bill's Avatar
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    heh - Yeah, I saw the same thing and thought exactly the same. I hit delete - and then I hit myself on the head for opening an email ad from ABW.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  3. #3
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Actually, Bill, it came from SAS, not ABW.
    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]

  4. #4
    Affiliate Manager
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    I have to agree with you. Success should be encouraged and celebrated, not penalized. It's going to be hard to attract affiliates, let alone keep them, if there is no incentive to do well and grow.

  5. #5
    Beachy Bill's Avatar
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    Quote Originally Posted by AffiliateHound View Post
    Actually, Bill, it came from SAS, not ABW.
    That's right, it did. I don't open them either.
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
    If you are too busy to laugh you are too busy.

  6. #6
    OPM and Moderator Chuck Hamrick's Avatar
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    Care to name the merchant? Perhaps a bit of shame would teach them a lesson.

  7. #7
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    As they did not feel any need to reply to my email, I have no problem doing that now: ifonly.com
    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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  9. #8
    ShareASale President/CEO and ABW Veteran Brian - ShareASale's Avatar
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    I'm not sure "shame" is really the right word, or even way to go here...

    They have a commission structure, which you certainly don't have to agree to, or even like if you don't want .... but "shame" is a bit strong for this.

    The structure is transactional based - meaning that for an individual transaction, those commission percentages change.

    So, two orders at $1,000 would be processed at 5%... not one at 5% and one at 4%, etc... It's not a monthly, or life tier - it's transactional.

    Either way... what's the point in shaming them or even the benefit of doing so. They haven't done anything to wrong you, just posted up a commission structure.
    Thanks,

    Brian Littleton
    President/CEO - ShareASale.com, Inc.


  10. #9
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    Perhaps 'shame' is too strong a word, but where's the logic here..?

    They are only motivating publishers to sell up to $1,000.. what's the point when they offer diminishing returns..??

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  12. #10
    ShareASale President/CEO and ABW Veteran Brian - ShareASale's Avatar
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    The products are all unique and vary wildly in price point.

    One product might be $1,000, one might be $50,000, etc... The tiers are based on the transaction - not a tier such as monthly sales, etc...

    Certainly, if interested in promoting them, I would encourage you to contact them if it is a concern (the commission structure).
    Thanks,

    Brian Littleton
    President/CEO - ShareASale.com, Inc.

  13. #11
    Affiliate Manager Hozta com's Avatar
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    I can see why they have a tier like that. With some of their offers being as high as $110,000.00 (from what I seen) they can't an affiliate 5% of that. A commission like that would be $5,500.00. That's why they tier it down and limit the total they will pay to $5,000.00

    That being said, I can see that stuff as being a hard sell and you may only make 1 sell per year. But who am I to judge the service lol.

  14. #12
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by Hozta com View Post
    I can see why they have a tier like that. With some of their offers being as high as $110,000.00 (from what I seen) they can't *an affiliate 5% of that. A commission like that would be $5,500.00. That's why they tier it down and limit the total they will pay to $5,000.00

    That being said, I can see that stuff as being a hard sell and you may only make 1 sell per year. But who am I to judge the service lol.
    *Did you leave a word out, one like "pay"?

    That is absurd. The affiliate promotes the merchant and produces a sale. The affiliate is absolutely positively totally ENTITLED to the ENTIRE COMMISSION whether it computes to be 5¢, $5, $5,500.00 or $5,000,000!
    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]

  15. #13
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by Brian - ShareASale View Post
    One product might be $1,000, one might be $50,000, etc... The tiers are based on the transaction - not a tier such as monthly sales, etc...
    Brian, first of all, it does not say that - they need to make that clear. Second: So, if you promote a $100,000 sale [paid at .5%] your commission will be $500, the SAME commission as for a $25,000 sale [paid at 2%]? Now THAT is really unreasonable.
    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]

  16. #14
    Affiliate Manager Hozta com's Avatar
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    lol, yes I left out the word "Pay" but it was my mind thinking faster than my hands lol.

    I should say affiliatehound, I see your point and totally agree with you, but I was just coming from it at their point of view. I believe an affiliate is worth every dime (or dollar ) that they earn. Again, just trying to see it from their point as well.

  17. #15
    Beachy Bill's Avatar
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    Quote Originally Posted by Hozta com View Post
    I can see why they have a tier like that. With some of their offers being as high as $110,000.00 (from what I seen) they can't an affiliate 5% of that. A commission like that would be $5,500.00. That's why they tier it down and limit the total they will pay to $5,000.00
    ......
    Hmmm...if you find a large company and sell them $110,000 of our business checks we'll gladly pay you our regular commission - certainly not tiered down. Probably even figure in a bonus. Of course, we have a different type of product...
    Bill / Marketing Blog @ 12PM - Current project: Resurrecting my "baby" at South Baltimore..
    Cute Personal Checks and Business Checks
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  19. #16
    Outsourced Program Manager Chris -  AMWSO's Avatar
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    Quote Originally Posted by Bill View Post
    Hmmm...if you find a large company and sell them $110,000 of our business checks we'll gladly pay you our regular commission - certainly not tiered down. Probably even figure in a bonus. Of course, we have a different type of product...
    Heck, when we worked on Mondera , seeing our largest affiliate sale of a $116,000 diamond made my day, and the affiliates! If the issue is on margins then they need to be using a structure that is SKU based. Not one that is Dollar value based.

    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

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  21. #17
    OPM and Moderator Chuck Hamrick's Avatar
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    Item Based Commissions, makes sense then affiliate know what they make up front.

  22. #18
    ShareASale President/CEO and ABW Veteran Brian - ShareASale's Avatar
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    AffiliateHound,

    If they had stated a 5% commission, and then tried to back out of a large commission ... then I would totally agree with you and fight to get all earned commission.

    But in this case, I can't agree with the "Entitled" argument. They are simply stating their commission ranges, based on the business model that they have. Other business models may be different and may include commission percentages that go up, or stay the same... Theirs - they've decided dictates what they wrote.

    It may not be a good fit for you, I can certainly see where you wouldn't want to promote them... I just don't get where it rises to the level of "shame" as has been mentioned in this thread.

    I definitely agree with you that it should have been clearer in the email, which was my fault.
    Thanks,

    Brian Littleton
    President/CEO - ShareASale.com, Inc.

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