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  1. #1
    ABW Ambassador isellstuff's Avatar
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    Best Buy goes to 0%, .5% and 1% commission rates
    Wow, talking about ripping affiliates off... Best Buy used to be a great affiliate program. Now they just suck...

    I wasn't following their commission changes closely enough. Their default rate is 0%... In order for an item to get the 1% commission rate, it has to be in a certain commission tier list. So for instance, TV's are 0% commission. Previously, their default commission rate was 1.25%... Well, now I received the following, and I'm glad I did because it made me go back and examine my commissions from them over the last few months. I noticed I would sell many thousands in products and not even make 1%. That was because of the default rate of 0%. So now they have made it even worse???? How is that possible? It was extremely poor already...

    The Rakuten Affiliate Network team is reaching out to inform you of a decision made by Best Buy's senior leadership. Effective Wednesday, 11/18, the program's baseline offer will be moving to a flat 1.0% on all categories eligible for commission, excluding Laptops, Tablet & e-Reader Categories, which will move to 0.5%. This decision was strictly influenced by profitability intentions and comes from the vantage point of an overall Best Buy enterprise strategy
    I think this is probably another example of poor affiliate management destroying a good program?
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

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  3. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Affiliates need to make a statement about this sort of thing. Send emails saying change this or we quit and then Follow Up by terminating your affiliation when they fail to reverse themselves. I would never, ever promote any merchant with a rate like that. They seem to be following buy.com aka rakuten shopping that did the same thing, 0% to 1% where they use to be at 8%. What does Best Buy carry that cannot be promoted through Amazon (and many other merchants) at a reasonable commission rate?

    A mass exodus of affiliates will send a message. And it needs to be widely publicized so other merchants are aware of it.
    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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  5. #3
    ABW Ambassador isellstuff's Avatar
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    I agree and I did send such an e-mail. I think LinkShare manages Best Buy and of course they own Buy.com.

    Affiliate Managers should note that being associated with a program that does this is a career killer. We all have long memories and I personally refuse to work with anyone who I associate with a large commission drop...
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

  6. #4
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by isellstuff View Post
    We all have long memories and I personally refuse to work with anyone who I associate with a large commission drop...
    Absolutely agree.
    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]

  7. #5
    OPM and Moderator Chuck Hamrick's Avatar
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    In the same week that a report comes out stating that affiliate marketing is one of the top revenue generators for ecommerce we get this? Having trouble getting my head around this sentence:
    This decision was strictly influenced by profitability intentions and comes from the vantage point of an overall Best Buy enterprise strategy
    "enterprise strategy", why not just cut the channel out completely?

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  9. #6
    ABW Ambassador isellstuff's Avatar
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    Quote Originally Posted by Chuck Hamrick View Post
    In the same week that a report comes out stating that affiliate marketing is one of the top revenue generators for ecommerce we get this? Having trouble getting my head around this sentence:

    "enterprise strategy", why not just cut the channel out completely?
    I know that quite often affiliate marketing is just considered another marketing expense with fixed costs. e.g. I have allocated $1 million a month to this marketing channel and it can not go over the allocated amount. My worry is that many of these big programs are not properly policed, so they fall prey to intense trademark hijacking. So trademark hijackers and other less than honest affiliates (toolbars, eBates, etc) quickly suck up the allocated money and we get into a downward rate spiral. It is much easier to continually reduce commission rates than to properly classify and police affiliates.

    I had a weird discussion with an affiliate manager the other day. They tried to explain why it was necessary to work with certain coupon sites who were trademark hijacking, e.g. "merchant name coupon" so that they would have a presence in the SERPS for various other important search terms. And so the downward spiral begins...
    Merchants, any data you provide to Google Shopping should also be in your affiliate network datafeed. More data means more sales!

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  11. #7
    Member Prosperent's Avatar
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    They clearly don't care about or value affiliates. I sent them a note letting them know that our network is rerouting their traffic to a competitor. I suggest everyone do the same if you can.

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  13. #8
    Certified Affiliate Manager sunshiner's Avatar
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    Unfortunately unless the big boys do the same, they won't care. Because I guarantee you, they aren't falling into the same commission rules as you are. They do get commissions, and not 0 or 1%, its just not advertised by Best Buy. So, the smaller affiliates who work much harder to even make the sales get screwed over.
    Cindy Ballard, VP of Operations, Greg Hoffman Consulting
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  14. #9
    Member Prosperent's Avatar
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    We have almost 20,000 affiliates using our tools, and handle 8 Billion api requests to our tools per month. We will definitely impact Best Buy's bottom line this holiday

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