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  1. #1
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    We have a new CJ publisher who is heavily advertising our service on google adwords (they submitted our links). They are, in fact, out-bidding us on many key terms in our industry and appearing higher up on the result pages than we are. While were certainly glad this publisher is putting us out there like that and generating sales, should we be concerned about anything. Because we use the Ad Words as well, we can estimate what he is spending and it is WELL above what he's making with us. Im certainly not going to bite the hand thats feeding me, I just wanted to know if this is something we should be look out for.. Any ideas? Thanks in advance.

    Jason
    ForeclosureNet.net
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  2. #2
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    The affiliate is paying more to be listed than they are making through the program that they are promoting?

    www.cjshoppingnetwork.com

  3. #3
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    My advice is to be careful not to give him/her and raise if they ask for it. That or work on your site to make sure you convert the hell out of your visitors ....then all else becomes moot ...unless you think this is an advertising thingy.

    Mike & Charlie ...

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

  4. #4
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    A great mass of affiliates competing with each other and with yourself, everywhere, everyplace, every technique, so agressive that real competitors seem to be alone...

    Amazon did it, ebay did it.
    Do you think they are wrong?
    They love it!

    Fer

  5. #5
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    This is a strange thread...because it looks like the particular affiliate doing this is being felt sorry for.

    If this isn't something hurting you, why concern yourself? The affiliate will get tired of losing money one day, and stop.

    They're not bidding on your name are they? If not, be happy they're out there gaining you customers for such competitive keywords.

    I very much see how merchants might become concerned when affiliates bid on their name, but in merely (competing as it were) for related keywords - you're going to have to weigh how many of your competitors out there have a love affair with such keywords.

    CJ makes money when this affiliate does score, so what do you expect for an answer ...if Tod were to speak up?

  6. #6
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    Like I said, im not complaining. If the publisher wants to spend ten times the amount he/she is making to advertise our service then great. I just thought it was strange that they would do this withought recognizing the financial discrepancy. There is also the issue of us getting beat out in google ad's and sales going through the affiliate link instead of inhouse (where we make more $). But thats minimal at this point. Thanks for the feedback.

    Jason
    ForeclosureNet.net
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  7. #7
    Domain Addict / Formerly known as elbowcreek Thomas A. Rice's Avatar
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    - - - - -
    There is also the issue of us getting beat out in google ad's and sales going through the affiliate link instead of inhouse (where we make more $).
    - - - - -

    That's not a problem at all in my opinion. For my tarp program, I'd rather type in a keyword and see the first 40 responses be MY tarp affiliates....... I don't care about them overbidding me, in fact I encourage it. If one of my affiliates is competing with me for the top position, I'll gladly back off and take second seat. If they have success promoting my products, they will add me to other sites, promote additional keywords, etc. It's all good!

    "Nothing like a nice piece of hickory."
    -Preacher, Pale Rider

  8. #8
    Resident Genius and Staunch Capitalist Leader's Avatar
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    Jason--

    I'm all for allowing affiliates to bid on anything and everything!!!

    But--if the person is bidding more than could possibly be profitable, there may be a (totally unwarranted) backlash on you when he/she finally wakes up and smells the coffee. I've seen it happen where people bid wildly, lose their shirts, and then they go around looking for something to kick besides their own butt, as it were. A guidance newsletter with hints on how to calculate the profit potential of a bid would add CYA (cover-your-***) value against those who may try to blame everyone but themselves for the results of their own idiot moves.

    I used to do quite a lot of PPC bidding before I got good Google ranks, and I would see unthinking people do bid-wars against merchants quite often. I never worried about it then because I knew those (competing) listings would disappear shortly, since their money would run out! But from a merchant's perspective, it's probably better to give some guidance on how to calculate whether a bid can be profitable--not only for CYA but also to keep the person "alive" and promoting your company instead of letting them commit such financial suicide.

    ~Revenue is King

  9. #9
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    you could always stop bidding on those keywords and let them do it for you...& use that money towards other keywords or methods...then start up again when they give up

    FreeCallz.com

  10. #10
    Super Sh!t Stirrer SSanf's Avatar
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    Well, I guess it depends. Are you sure they are losing money on those keywords? You may not be the only advertiser on the site for those keywords. They might be sending even more traffic to your competitor than they are to you.

    If someone finds me through my keywords I have more than one place to send them, generally speaking. Most merchants seem kind of blind to the fact that they aren't the only game in town.

    The Wolf Credo: Respect the elders. Teach the young. Cooperate with the pack. Play when you can. Hunt when you must. Rest in between. Share your affections. Voice your feelings. Leave your mark.

  11. #11
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    The same thing happened to me when I launched our program this year. I had many affiliates out bidding many of our internal promotions.

    It seems odd at first but it is actually very positive and great for brand building.

    Rob
    http://affiliate.kalmbach.com

  12. #12
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    I agree with Leader's advice 110%!

    Haiko


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  13. #13
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    Jason:
    my opinion is that no affiliate should dig its own grave with googling ( adwords or adsense). Your situation is dumb, because if you stay with this affiliate you were bidded out, if not you lose exposure. But of course: if your competitors find out what is going on they will perhaps bid your affiliate outand then you have paid a lot of comm. and adwords for nothing. In your place I would stop bidding and let the affiliate waist his money.


    carneol

    carneol

  14. #14
    ABW Ambassador Sam Bay's Avatar
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    quote:
    Originally posted by ForeclosureNet.net:
    There is also the issue of us getting beat out in google ad's and sales going through the affiliate link instead of inhouse (where we make more $). But thats minimal at this point. Thanks for the feedback.
    Jason



    Why would that be issues at all?

    If the affiliate is not making enough commission to cover the ad costs, you estimate it's ten times less, then he's doing you great favor, knowingly or not. It would your own ad budget you're losing, if you were bidding that high!

    Just thank God that he's not promoting your competetion!!!

  15. #15
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    Yea that's right. Just thank God he's not promoting your competition.

    "if your competitors find out what is going on they will perhaps bid your affiliate out and then you have paid a lot of comm. and adwords for nothing."

    The competitors find out what is going on and want these affiliates as their own..?? They start an affiliate program and you're left competing on commission rates you'll pay out, and all the other goodies affiliates will demand..??

    Always take good care of your affiliates. They have good memories, but none-the-less will tend to forget you if your competition will offer them a better deal.

  16. #16
    ABW Veteran Student Heyder's Avatar
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    Maybe this affiliate isn't really an affiliate. Maybe they are testing the waters. I do this very often with various business concepts. It might not be worth the high bids for your affiliate program but face the facts anyone can get foreclosure information and sell it just like you do. Once they figure out it's worth while they might go into it for themselves. Meanwhile they will sit back and see what kind of conversions the business gets.

  17. #17
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    I've done this type of overbidding to see if an advertiser converts or not, It's a quick easy way to get traffic to a page or site, your are testing,instead of waiting a month or 2 for pages to get indexed. This is an example of when time is more valuable then money.

    "It's your foot, you can shoot it if you want to." ~ Me

  18. #18
    ABW Adviser Panel Dynamoo's Avatar
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    I'm a suspicious bugger and I'd be concerned that maybe the affiliate is using a stolen CC and is trying to launder the money.

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  19. #19
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  20. #20
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    ...And suddenly I asked myself:

    How do you know he is outbidding you?

    May be he is targeting better geos, languaje, words, broad matching, exact matching, negative matching and doing better adcopy with better click-rate and better lead conversion.

    Someone could be higher than you and paying the third part...

    Some people thinks adwords is an easy thing, but not always... I am doing a campaign for a merchant because they could not did it without losing money, but suddenly I can, and they earn money and I earn too... Was not that simple that anyone can do it the same way...

    Fer

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