View Poll Results: Would you rather...

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  • A discount site with 8% commission

    19 36.54%
  • Full retail site with 15% commission

    25 48.08%
  • Full retail site with 12% commission and coupons

    8 15.38%
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  1. #1
    ABW Ambassador Akiva's Avatar
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    I am taking on a cosmetics / fragrance retailer - a huge one - and they have two websites. One website sells everything at steep discounts and the other website sells at full retail (list price). So...

    Would you rather:

  2. #2
    ABW Ambassador Ron Bechdolt's Avatar
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    I may be wrong in my line of thinking, but I'd rather sell at a great discount as I want to offer prices that will get people to buy. If they want full retail they can go to Penny's or someplace like that.

    But I'm anxious to read what others have to say about this.

    Ron - 7 Days A Week Marketing

  3. #3
    Just Lurking
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    I tentatively agree with 7-days. (Hmm... I'm out of tea must be making me agreeable.)

    ------------------------------
    "A man is but the product of his thoughts. What he thinks, he becomes." -- Mahatma Gandhi

  4. #4
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    While we would get less commission per sale, with the price being lower, there are probably going to be more sales, so more commissions in the long run

    It is a lot harder to sell at full price compared to a discount

    So the discount site with 8% seems like the best bet

    www.cjshoppingnetwork.com

  5. #5
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    Who is it? Would help to make a decision.

    I work in lounge pants

  6. #6
    ABW Ambassador Akiva's Avatar
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    They are a huge player in the B&M world and are online for several years with a substantial presence. This will be a completely new program.

    Akiva Bergstrom
    Affiliate Partner Manager

    <TABLE BORDER=0 cellspacing=2 width=600><TR><TD> <FONT SIZE=1>EssentialApparel.com
    CJ/7.5% to 8.5%/120 days
    Datafeed/Parasite free
    Email: akiva@essentialapparel.com
    Phone: 973.696.6200 ext 751
    > Join now! < </TD> <TD><FONT SIZE=1>SportsFanfare.com
    CJ/10%/120 days
    Datafeed/Parasite free
    Email: akiva@sportsfanfare.com
    AIM: akivabergs
    > Join now! < </TD> <TD><FONT SIZE=1>FunToCollect.com
    CJ/11%/120 days
    Datafeed/Parasite free
    Email: affiliates@funtocollect.com
    ICQ: 240820068
    > Join now! < </TD></TR></TABLE>

  7. #7
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    Can't wait, i have a whole site devoted to that kind of thing, ready to plug whoever it is, in.

    I work in lounge pants

  8. #8
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I'll go with the 15%. The lower commissions on the other "offers" send me the message that the merchant isn't willing to lower THEIR cut one iota, yet they want to offer discounts/coupons--and are therefore lowering OUR commissions to "cover" it.

    If they want to offer a discount on their products, fine, but that doesn't mean that MY services are available at a discount!

    On that principle I'll vote for the 15% to avoid the merchant's apparent attempt to shift the burden of the discount/coupon off onto his affiliates. Is he going to shoulder any of that burden himself?!? 8%, that's a huge cut!! It really strikes me that he wants his bottom line to stay at XX% Profit Margin no matter what--while taking all of the cost of the discount out of affiliate commissions.

    I will say that 12%+coupons isn't a terrible sounding offer but I have the same objections to it as above.

    It's the most wonderful time of the year!~Old Christmas Song

  9. #9
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    I agree with the deep discount price and the 8% commission. A lot of people search for the best price, and I think it would lead to repeat sales.
    Cazzie

    Join the Fight! Parasite Free In 2003!

  10. #10
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    Full retail site with 12% commission and coupons

    I work in lounge pants

  11. #11
    Moderator MichaelColey's Avatar
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    If the coupons are good, frequent, and varied, I would prefer the full retail site with coupons. I can't speak for other types of sites, but on a coupon site it's much easier to promote coupons and short-term discounts than "everyday low prices".

    I've seen sales increase as much as 10X with merchants that offer an optimal mix of coupons. I regularly see conversion ratios about 3X as high with merchants that offer coupons vs. ones that don't.

    Coupons are very powerful, and can be used to influence shopping (and affiliate) behavior. Want to increase average order size? Create a coupon that requires a minimum somewhat larger than the average order size. What to get new customers? Create a coupon for new customers. Want to increase sales on a specific product or category? Use a coupon that applies just to that product or category. The possibilities are endless.

    Michael Coley
    Amazing-Bargains.com

  12. #12
    ABW Veteran Mr. Sal's Avatar
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    I'll go with the 15% for the same reason of what Leader said in the post above.

    And if I take the 8% and 10 people buy, I will only make halve the money but the merchant will get his full profit plus my visitor info.

  13. #13
    ABW Ambassador Andy's Avatar
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    I'll side with Leader and Jan72 on this one. A merchant has to recognize that we aren't in this for the fun of it. It's a two way street, and I don't think the merchant is really on my side when I'm always the one taking the hit!

    Plus, there are lots of people out there still willing to pay extra for good service, just ask some of the big specialty retailers who are raking in the big bucks, in spite of the economy.

    Andy

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  14. #14
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    My vote:

    * A discount site with 8% commission <- if a datafeed is available

    * Full retail site with 12% commission and coupons <- second choice, would work on my coupon site

    Michael

  15. #15
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    I agree 100% with Leader. Give me my 15%.

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

  16. #16
    ABW Ambassador Ron Bechdolt's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Jan72:
    I'll go with the 15% for the same reason of what Leader said in the post above.

    And if I take the 8% and 10 people buy, I will only make halve the money but the merchant will get his full profit plus my visitor info.<HR></BLOCKQUOTE>

    I don't know, but I think there is a flaw in this logic (and with some of the others). You are assuming you are loosing half your commission if 10 people bought at 15% commission. With the prices much higher, I don't think we are comparing apples to apples. Are you sure you'd get the same 10 people to buy at the higher prices.

    I'm the first to say "I really don't know which way is best". I think Leader has a strong point also.

    So, Akiva, why not start three sites, one with each option and we will make this the grand experiment to see which method really does work? Of course, there are flaws with this as there are way to many variables. LOL

    I think EmDub has the right idea: <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>
    * A discount site with 8% commission <- if a datafeed is available

    * Full retail site with 12% commission and coupons <- second choice, would work on my coupon site<HR></BLOCKQUOTE>

    Except, some of us have never used coupons so we don't know how well they would do.

    Regardless, Akiva, I will sign up no matter what you decide on. I've had the perfect domain name for over two years just waiting for the right program.

    Ron - 7 Days A Week Marketing

  17. #17
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    I would go with the 15%. With 8% you have to sell almost twice as much. I dont think the discount has this huge advantage.

  18. #18
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    I prefer a discount site or full retail site. No extra works (cost) for both parties: publisher and merchant. The most important thing is actually how to create a fair play environment for publishers. For me, even only 8% for publishers from a full retail site is much better rather than 12% goes to BHO.

    IMO, a parasite free site with coupon is nothing less than yelling FREE from parasite while scattering seeds for BHO’s embryo

    IRS

    Don’t ask why the ball doesn’t come.

  19. #19
    ABW Veteran Student Heyder's Avatar
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    I'll take the 15% because there is always someone out there with a lower price but products get sold either way. Not everyone is a discount shopper. All you need is first class service and a great reputation.

  20. #20
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Understand the industry vertical you represent Akiva and never introduce merchandising/marketing vehicles that don't historically work for that marketplace. Name brand fragrances are exclusively the marketing domain of higher class Dept. Stores and men's & women's boutique storefronts.

    Counterfeit Knockoffs and closeout/discontinued items filter down to second level marketing outlets. This industry is tightly controlled from deceptive Grey marketers, trademark abusers and will only in the long run condone established brick-n-mortar advertising practices.

    Some universal facts concerning online merchandising. Full retail amount sales will occur ( not in large qty) if the REAL product isn't available locally if it has brand recognition. The perfume industry like Debeers in diamonds protects it's brands and legit outlets with live ammo in it's legal guns.

    Free freight is the #1 motivator for shopping online as it eliminates the disparity and sales taxes of buying locally. The Perfume/fragrance abhors the wasted money of COUPONS as an ineffective advertising vehicle and only uses FREE bundled giveaways or brand seasonal clearance sales as incentives.

    If this program has NO COUPONS the opening up the BHO's popup bombardment, triggered by name brand trademark keywords, and spammy Google listings will be discerned by savvy shoppers as so much white noise. This doubly goes for SE listings, which inside the first week will be spammed to death with trademark violations and affiliate click deception routines. Every trademark brand will have coupon tied to it in Overture and Adwords campaigns even if this smart distributor has no "enter coupon code here" box in their cart checkout process.

    You want to guarantee success with this merchant over the long haul, then only push the discounted storefront model in the affiliate channel lauding the fact this is the only reliable URL outlet for name brand fragrances. Push FREE freight offers and bundled manufacturer give-a-ways specials as the only incnetives other then every day low prices on certain selected items. Don't lose fact that a good perfume/fragrance bottle only gets consumed once a year. Women & men are loyal to a proven brand that works for them and will impulse buy these if the PRICE IS RIGHT!

    Get input from the business owners on this thread and you'll get re-focused on how to launch this program. The adjenda of the affiliate promotions should be 100% inline with the adjenda of the merchant. This merchant demands consumer satisfaction and has a NO DECEIT policy when it comes to building it's customer base. Product Showcase Creator is #1 for this program's conversion stats.

    Mike & Charlie ...

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

  21. #21
    ABW Ambassador
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    Full retail site with 15% commission

    Do that, paying full price for cosmetics/fragrance is the wave of the future. I don't think there are any cosmetics/fragrance retailers that have discounts or coupons, so you should be competitive.

    I work in lounge pants

  22. #22
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    Also in discount site the prices are lower so the commission will be more like 6-7% compared to the retail site commission.

  23. #23
    Resident Genius and Staunch Capitalist Leader's Avatar
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    That 8% isn't competitive commission for a perfume discounter.

    I just checked--PerfumesAmerica (a discount perfume site) pays 10%. And Perfumania not only pays 10%, but there are bonus tiers.

    Perfumania also offers a feed.

    Actually the commission should be 15%, WITH discounts and a feed to beat Perfumania. 8%'s just another name to pass by in the list of CJ advertisers in the discount perfume category and 10% is merely keeping up with the Joneses.

    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Name brand fragrances are exclusively the marketing domain of higher class Dept. Stores and men's & women's boutique storefronts ~Mike<HR></BLOCKQUOTE>

    Baloney! www.perfumesamerica.com

    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> This doubly goes for SE listings, which inside the first week will be spammed to death ~Mike<HR></BLOCKQUOTE>

    Pay attention to THAT if you are content to be buried under already-existing Perfumania, CosmeticsMall, and the other perfume/cosmetics feed sites which currently own the category in the SEs. Offer a feed of your own and better commissions than they do and all their listings are belong to you.

    It's the most wonderful time of the year!~Old Christmas Song

  24. #24
    ABW Ambassador Akiva's Avatar
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    Great points all! I will take everything that's been said and go to the drawing board. Please note that commission rates were solely for example purposes. It is very likely that rates will be substantially higher and *will* beat the competition. The sites are killer, conversion is through the roof, selection is unbeatable and they are damn honest people. Stay tuned...

    Akiva Bergstrom
    Affiliate Partner Manager

    <TABLE BORDER=0 cellspacing=2 width=600><TR><TD> <FONT SIZE=1>EssentialApparel.com
    CJ/7.5% to 8.5%/120 days
    Datafeed/Parasite free
    Email: akiva@essentialapparel.com
    Phone: 973.696.6200 ext 751
    > Join now! < </TD> <TD><FONT SIZE=1>SportsFanfare.com
    CJ/10%/120 days
    Datafeed/Parasite free
    Email: akiva@sportsfanfare.com
    AIM: akivabergs
    > Join now! < </TD> <TD><FONT SIZE=1>FunToCollect.com
    CJ/11%/120 days
    Datafeed/Parasite free
    Email: affiliates@funtocollect.com
    ICQ: 240820068
    > Join now! < </TD></TR></TABLE>

  25. #25
    You are in, or you are out ... choose!
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    Late to the party, but, full retail site @ 15% commission.

    As leader says, if a discount is to be offered it should be borne by both merchant and affiliate alike.

    Also, I am assuming Name-Brand rather than Smell-A-Likes. Name-Brand should be at competitive prices certainly, but not discounted as that also discounts the name.

    Woz

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