View Poll Results: How dependent are you on your top merchant?

Voters
41. You may not vote on this poll
  • 0-19%

    11 26.83%
  • 20-39%

    14 34.15%
  • 40-59%

    7 17.07%
  • 60-79%

    3 7.32%
  • 80-100%

    6 14.63%
Results 1 to 12 of 12
  1. #1
    Full Member
    Join Date
    January 18th, 2005
    Posts
    290
    In terms of net revenues. Just want to compare how well I manage my risk. [img]/infopop/emoticons/icon_smile.gif[/img]

  2. #2
    15 years and counting
    Join Date
    January 18th, 2005
    Posts
    6,121
    I made a mistake a few years ago. I was very successful with one merchant. May be I was lazy (or just naive) and I stick with him. One day that merchant went greedy, changed his conditions and I lost a lot a money. It took me some time to recover but I learn a lesson. Now, I don't trust anybody, I have back up merchants, back up web sites, back up networks... I don't have a single merchant bringing me more than 10% of my income.

    It's not the big that eat the small... it's the fast that eat the slow. Jennings & Haughton

  3. #3
    Super Sh!t Stirrer SSanf's Avatar
    Join Date
    January 18th, 2005
    Posts
    9,944
    Yes!

    This is one of my major problems!!!!

    I am in the process of replacing my top merchant right now.

    My problem is that the merchant thinks and acts like he has a monopoly and he is a rude and abusive. And, he is unwilling to fix even minor problems that seriously impact the program.

    I have felt so trapped because I thought there was only one merchant that had what I need. I replaced some of his products the last time I got mad at him and now all the rest are going. But, that will leave me dependent on the new one as well. I am going to be developing a lot of new areas of interest this next year.

    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.

  4. #4
    Newbie
    Join Date
    January 18th, 2005
    Posts
    2,694
    My best merchant changes from month to month; it sort of cycles around among the good ones. I've seen enough horror stories here about merchants changing their conditions to near impossible and affiliates getting left out of a Google index to concentrate too heaviliy in any one area. I decided that the safest way to go about this was to take a lesson from what happened in the Stock market and diversify my array of merchants much like investors are urged to diversify their portfolios, and do the same with SEO. So far it seems to be working out well.

    {

    Stuff that makes me go, "huh?"

  5. #5
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    United Kingdom
    Posts
    1,797
    Yeah, that makes good sense to me. I have a similar problem to Ssanf - but my problem is that most of my income from affiliate stuff comes via a company that keeps appearing in f****dcompany.com ! While I don't believe everything I read a fc.com, it is a bit of a worry, so I am trying to find potential replacements in case of the worst happening. However, this seems to be easier said than done.

    Search Engine Positioning - 1 Design 4 Life

  6. #6
    Newbie
    Join Date
    January 18th, 2005
    Posts
    2,694
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> While I don't believe everything I read a fc.com, it is a bit of a worry, so I am trying to find potential replacements in case of the worst happening. However, this seems to be easier said than done.
    <HR></BLOCKQUOTE>

    In a situation like that; I'd suggest widening your array of (affiliate) products and services instead of looking for direct replacements for that one merchant. For one thing, the particular industry the merchant is part of itself could tank and you'd be in trouble.

    Think of it this way; if you have financial stability in mind and are putting together a portfoloio of investments - and you ARE investing in a merchant when you decide to promote them - not only wouldn't you invest in a single company, you wouldn't invest too heavily in a single industry, sector, or even in a single type of investment (stocks, bonds, cd's). Then if an industry or sector tanks, you are still making money from your other investments.

    I don't know if this part is true in your case because I don't know if you promote affiliate content seperately from your SEO site or on the same site, but it can indeed be a challenge when you have a site where a merchant has to be presented in a contextual light. In that case I would look for common denominators. There are certain goods and services that almost everyone uses, or that almost all your visitors would find useful even if those goods and services don't directly pertain to the subject matter of your website. For example, everyone who is online has or uses a computer and everything that goes with it - software, books, memory, PDA & laptops, cases, etc, etc, etc. Then there are the furnishings for computer and office, office supplies, etc. - that widens it a bit more. It may not be an exact fit, but your visitors are not one-dimensional [img]/infopop/emoticons/icon_smile.gif[/img]

    Another example - my first fully affiliate site was for electronic tax services because of course everyone with an income files taxes. Or as Micheal from Bare Necessities pointed out - (almost) everyone buys underwear. Although that would be a bit stretch for an SE site [img]/infopop/emoticons/icon_smile.gif[/img]

    {

    Stuff that makes me go, "huh?"

    [This message was edited by eaglefire on August 31, 2002 at 09:41 AM.]

  7. #7
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    United Kingdom
    Posts
    1,797
    That makes sense too. However, the one site that I was referring to brings me $2,000-ish a month and is a winner on the search engines, so a direct replacement that pays about the same would be very useful to have.

    You are right in that I do need to expand the range of affiliate products and services though just to be safe, if nothing else.

    And no, my SEO site has no affiliate links at all - it is just to promote my main business. I don't think having affiliate links on the site would project the right kind of image for my client base. All the affiliate stuff is on separate targeted sites.

    Search Engine Positioning - 1 Design 4 Life

  8. #8
    affiliate emeritus missdonna's Avatar
    Join Date
    January 18th, 2005
    Location
    Torrance, CA
    Posts
    1,986
    I try to keep well diversified, but things always seem to stack up in favor of one or two merchants, so I'm always beating the bushes for new ones.

    Sometimes I get lazy and then I find I just have 2 or 3 major ones I'm depending on.

    Ideally I try to have at least 4 well-producing merchants, and 2 or 3 coming up. It rarely works out the way I plan it.

  9. #9
    ABW Ambassador Ron Bechdolt's Avatar
    Join Date
    January 18th, 2005
    Location
    Affiliateville, USA
    Posts
    7,927
    My top merchant (80% of my sales) dropped their payout in half a couple months ago. I was shocked and worried. I was worried my commissions would drop in half. The good news is that the number of sales to this merchant went up 50% this month and by next month I won't even have noticed the difference.

    I did learn the lesson to spread out with other merchants and that, too, seems to be a smart move.

    Ron
    7 Days A Week Marketing

    "Keep your hands out of my cookie jar!"

  10. #10
    ABW Ambassador
    Join Date
    January 18th, 2005
    Posts
    1,086
    I have yet to have a single merchant hang around long enough for me to build a merchant dependent program.

    Actually, I think the best approach to the game is to choose competitive areas in the market, where there are multiple merchants hungry for your traffic. Inkjet ink is a good example. The fact that there are several companies in the market not only means you have multiple choices, but they know they have to compete among each other for affiliates.

    Even when there are multiple merchants, you can suffer from the entire market falling out from under your feet. A case in point is the job search market: These companies paid well; then came the industry killing report that less than 1% of interviewed employees got their job through big job boards...Poof! the industry vaporized.

    Entire categories can vanish. Inkjet ink might vanish. A new printing technology could emerge, or low cost inkjet refillers machines might show up in every supermarket and, poof, the industry is gone. There is definitely no security in this market.

    Missoula - Short Stories

  11. #11
    ABW Ambassador
    Join Date
    January 18th, 2005
    Location
    West Coast USA
    Posts
    3,043
    >Entire categories can vanish.

    Watch ringtones

    The newer phones can RECORD anything.
    People replace their phones about every 18 months.

  12. #12
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida
    Posts
    12,817
    Personally I try to promote everything that I think will sell and pay up, that isn't sleaze. My top merchant is good for about 10%-15% of monthly, and I have a few that are right up there with them.

    My original motivation wasn't diversification (I just figured there was no point in leaving all those other fish in the sea without getting my fishing lines in), but it has worked out quite well. More than once I've been glad I promote so many different, unrelated things when some merchant goes belly-up or gets an attitude! With so many categories to promote, it doesn't matter if a merchant DOES have a category monopoly. So I'll promote something from a different category, big deal...

    There is no knowledge that is not power.~~Ralph Waldo Emerson

  13. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. How Can Top Merchant Have No Sales?
    By JoyUnltd in forum Midnight Cafe'
    Replies: 8
    Last Post: October 22nd, 2013, 02:03 PM
  2. Replies: 1
    Last Post: May 24th, 2007, 02:21 PM
  3. Replies: 11
    Last Post: October 12th, 2003, 02:21 PM
  4. How Google Dependent Are You?
    By Lionstail in forum Midnight Cafe'
    Replies: 33
    Last Post: August 6th, 2002, 10:55 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •