View Poll Results: Commission Increases

Voters
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  • Increase the frequency of existing exposure (rotation) to that site

    1 11.11%
  • Find more new opportunities for placement of the program

    7 77.78%
  • Nothing, Keep the exposure the same

    1 11.11%
Results 1 to 7 of 7
  1. #1
    Member
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    January 18th, 2005
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    92
    If one of your merchants increases their commission by 15-20%, what would you be more inclined to do and why:

  2. #2
    Resident Genius and Staunch Capitalist Leader's Avatar
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    January 18th, 2005
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    12,817
    First, I should clarify by saying it would depend on how much the original commission was! If a program goes from 20 to 25% commish, I'm obviously going to be more impressed than if it starts at 5% and goes to 6.

    If it starts at 5% and goes to 6, I'm more prone to think, "now how about the OTHER 4%!" than to do anything different. There's not much worse than a cheapskate whose "big 20% rise" doesn't even add up to a couple percentage points of bottom-line commissions.

    On the other hand, if a "20% rise in commissions" means that my commish just became 30% of the sale instead of 25%--that merchant can look forward to appearing on more sites unless a) They're *already* on lots of my sites! or b) The product is a dead horse.

    Those that CAN convert and have performance incentives typically end up on quite a few of my sites.

    Simply increasing rotation wouldn't do anything for my sales so I wouldn't bother with that. It makes some merchants FEEL good to see their link in the SmartZone and get lots of imps, but that really doesn't DO anything except eat space on the front page. So I'd look for more opportunities to place their program.

    Doing NOTHING is an option if I don't think the item will sell any better no matter what. It's also an option if the merchant already *has* a lot of pages devoted to them.

    And like I said, "raises" that amount to an actual number of say, 1% (from 5% to 6%, or any 1% difference) do not cause any action.

    ~Revenue is King

  3. #3
    ABW Ambassador
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    January 18th, 2005
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    United Kingdom
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    1,797
    Personally, I would be inclined to keep the exposure the same. If someone wants to pay me more money, then that's great, but I don't care enough about it (money, that is) to put in extra effort that I wasn't going to before.

    Search Engine Positioning - 1 Design 4 Life

  4. #4
    Member
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    January 18th, 2005
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    92
    Probably about $3 per sale (since we deal on CPA basis)....

  5. #5
    ABW Ambassador
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    January 18th, 2005
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    1,086
    I'd start by quitting my job.

    I would take out a loan from the bank so I could start promoting the company heavily. I'd get some tee shirts and pens with the company's logo on it.

    I would run a bunch of PPC ads for the merchant...hoping to get that coveted google traffic.

    I would brag to all of my friends about how I am going to be rich, and spend the money I borrowed to prove it.

    I would then look at the program.

    I would notice that I have to pay back my loan. I would notice that the increased commission on a $50 a year commission only brought it up to $75 a year.

    I would panic.

    I would beg for my old job back.

    I would sell my car to make loan payments.

    Then after all my ads are in place, and I've wasted a bunch of times, I would look at my affiliate checks and discover that the increase in the commissions was temporary.

    I would play that "don't get fooled again" revolutionary song.

    I would rail against the system.

    Then I would hear about a new program that just raised it commissions, and repeat the cycle.

  6. #6
    ABW Adviser Panel Dynamoo's Avatar
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    January 18th, 2005
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    Opposite the Slough of Despond
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    5,465
    For me, the commission rate is a secondary consideration. The first consideration is "can I get visitors to click through", and that usually means product links.

    ________
    All your commission are belong to us.
    Check out the latest Homeland Security press releases.

  7. #7
    ABW Ambassador
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    January 18th, 2005
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    England
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    4,327
    Commission rate is not always the most important issue. I have a merchant that pays 5% commission that outperforms a similar merchant who offers 10% commission. The one that pays 5% has higher prices as well, but they convert better. I have tried to find a different merchant who pays a higher commission rate, but none of them ever convert the same.

    People buy what they want to buy, and sometimes they will pay more to buy it from a company that they are familiar with.

    www.cjshoppingnetwork.com

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