View Poll Results: Lifetime Commissions?

Voters
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  • Keep the 7% and extend the cookie days to ?

    2 20.00%
  • Keep the 7% and offer a lower % for lifetime commish

    6 60.00%
  • Drop the 7% and offer a fixed amount for initial and lifetime commish

    0 0%
  • Keep the 7% and add a new customer bounty

    2 20.00%
Results 1 to 18 of 18
  1. #1
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    Hello team,

    We are tinkering with the idea of offering something no merchant in this vertical has ever done before.

    We want to explore the possibility of offering lifetime commissions on Superstore

    We want your feed back, how you think it should work, (we have our own ideas churning) but want to hear yours.

    Any feed back would be appreciated and encouraged....

    We currently pay 7% on all sales, with a 30 day cookie.

    We are looking at all options, but we will be keeping the 7% and working with a lower % for lifetime sales...

    Basically, we want to reward you for your efforts, on an ongoing basis. You keep working with us, and we will keep paying you for your past and current efforts. While we want to drive new customer acquisition, we understand where that customer came from and we want to pay you for repeat orders.

    Thoughs?
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  2. #2
    Moderator MichaelColey's Avatar
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    The problem with lifetime commissions is this:

    Once an affiliate generates that first sale, any sales generated for that customer by other affiliates don't count.

    Take this hypothetical example... I generate a new customer sale. Then, a few months later, that customer is searching on Google and sees an PPC ad paid for by another affiliate for a product they're searching for. They click that link and order the product. The other affiliate generated that sale, but I sent the original customer. It wouldn't be fair to give me credit for the sale.

    About the only fair way to do it would be to extend the cookie duration. Along with that, you should also make sure that no internal marketing overwrites the cookies.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  3. #3
    Moderator MichaelColey's Avatar
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    I guess one other fair way to do this would be to pay BOTH the original affiliate and the affiliate responsible for the current order. In this case, you might want to pay 7% for new customer orders, 5% for returning customer orders, and a 2% residual to the original affiliate.

    Another thing to consider is adding a new customer bounty. For instance, pay 5% of sales, plus a $5 bounty for new customers.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  4. #4
    Affiliate Miester my2cents's Avatar
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    I luv lifetime commissions...

    My only concern is offering lifetime commissions wont mean much if customer support continues to be lest then desired...

    Joe
    ++++++++++++++++++++++++++++++++++++++++++
    that's my2cents, 'cuz I'm a legend in my own mind....

  5. #5
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    We are considering new customer bounties...but i want to reward our true partners, the people who burn the midnight oil to help put the merchant on the map.

    Listen, i know that customer acquisition is the goal of 98% of the merchants out there, it's like the afiliates are "used" to drive the new sale and then bang, you are out of the loop.

    But why can't the merchant work in the magic number to allow for compensation to the partner. Now, there would be a certain level of sales, clicks or activity present from the partner to have them "qualify" for lifetime. We don't want and it's not fair to have someone send 50 sales one month and then poof they are gone..we want to build a real world, brick and mortar relationship with you.
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  6. #6
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by my2cents:

    My only concern is offering lifetime commissions wont mean much if customer support continues to be lest then desired...

    Joe <HR></BLOCKQUOTE>

    Agreed - look for news coming up soon that will be addressing this very issue. There will be many changes made to this program, this is one top of the list. News coming soon...
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  7. #7
    pph Expert! Gordon's Avatar
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    I don't like any new ideas that could give either a merchant or an affiliate more options/ways of cheating.

    Call me cynical if you want but the bigger the carrot you dangle the more takers you will have. For a start I suspect 180 and a good few more will inundate you with so many applications any profits you anticipated making would be needed to pay for extra staff to keep them out.

    I would suggest leave both the 7% and the cookie as they are, if the profit margins are there in the future then add more % to them if not leave as is. But to open a can of worms just for a bit of good PR is not a good thing especially in the present climate ie the cheating networks/affiliates/merchants

    Thats my 2cents like it or leave it.
    One day parasites and their ilk will be made illegal, I bet a few Lawyers will be pissed off when the day comes.
    Mr. Spitzer is fetching it nearer

    YouTrek

  8. #8
    Affiliate Miester my2cents's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by Andy Rodriguez:
    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by my2cents:

    My only concern is offering lifetime commissions wont mean much if customer support continues to be lest then desired...

    Joe <HR></BLOCKQUOTE>

    Agreed - look for news coming up soon that will be addressing this very issue. There will be many changes made to this program, this is one top of the list. News coming soon... <HR></BLOCKQUOTE>

    I look forward to hearing more about a solution... I really want to add this program to my mix...

    Joe
    ++++++++++++++++++++++++++++++++++++++++++
    that's my2cents, 'cuz I'm a legend in my own mind....

  9. #9
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    Not to get off track, but the site is lacking in BILLBOARD messaging.

    It looks like an affiliate site; perhaps hiring a professional to design the site might be in order. Please do not take this as a negative; my sole intent is to be constructive.

  10. #10
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by SandraR:
    Not to get off track, but the site is lacking in BILLBOARD messaging.

    It looks like an affiliate site; perhaps hiring a professional to design the site might be in order. Please do not take this as a negative; my sole intent is to be constructive. <HR></BLOCKQUOTE>

    Hey Sandra,

    You looking over my shoulder? That's second on our list and being worked on as we speak. Look for a complete overhaul 3 - 4 weeks tops...

    Agreed...the dude with the laptop has to go !!!!
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  11. #11
    ABW Ambassador CDC's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Once an affiliate generates that first sale, any sales generated for that customer by other affiliates don't count.

    Take this hypothetical example... I generate a new customer sale. Then, a few months later, that customer is searching on Google and sees an PPC ad paid for by another affiliate for a product they're searching for. They click that link and order the product. The other affiliate generated that sale, but I sent the original customer. It wouldn't be fair to give me credit for the sale.
    <HR></BLOCKQUOTE>
    Correct me if I'm wrong but in the current situation no one would get a commission on the second sale. Once the customer is established, they're in the merchants system and no affiliate would get credit. Unless of course they were a repeat customer within the XXday cookie period...

    I like the idea of lifetime commissions.
    I voted for the 7% + offer a lower % for lifetime commish.

    CDC
    I can't complain but sometimes I still do...

  12. #12
    Moderator MichaelColey's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR><BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by MichaelColey:
    Take this hypothetical example... I generate a new customer sale. Then, a few months later, that customer is searching on Google and sees an PPC ad paid for by another affiliate for a product they're searching for. They click that link and order the product. The other affiliate generated that sale, but I sent the original customer. It wouldn't be fair to give me credit for the sale.
    <HR></BLOCKQUOTE>Originally posted by CDC:
    Correct me if I'm wrong but in the current situation no one would get a commission on the second sale. Once the customer is established, they're in the merchants system and no affiliate would get credit. Unless of course they were a repeat customer within the XXday cookie period... <HR></BLOCKQUOTE>No, if they clicked through a second affiliates link and placed a second order, the second affiliate should get credit.

    My vote would be for a comissions plus a new customer bounty. I'm surprised more merchants don't do that.
    Michael Coley
    Amazing-Bargains.com
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  13. #13
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    A new customer spiff with the standard 7% and 30 day cookie is very fair. With Andy at the helm the reporting is vertified by freguent test purchases so the reality is a value-add affiliates should be able to get a monthly check for the life of the merchant's program.

    Once that site gets so disguised you can't tell its a datafeed from a shoppers viewpoint the trust and conversion ratio will rise. Sure makes sense to me that a merchants site has to look different from the 5 million clones feed affiliate sites. Why can't merchants copy Overstock's and others design, which display product choice on every darn page inviting shoppers to browse and impulse buy?
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  14. #14
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by MichaelColey:
    My vote would be for a comissions plus a new customer bounty. I'm surprised more merchants don't do that. <HR></BLOCKQUOTE>

    Fair enough, I added it to the choices above. That is something we were considering as well. I'll let this run for a while and make a decision then, in the meantime will post a few more questions and ideas.

    Thanks for all the comments....
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  15. #15
    Prince of Content Vinny O'Hare's Avatar
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    what about a second tier, I would like to recruit more people to sell for you.
    Vinny O'Hare - OPM - Contact Info email: vinny at teamloxly.com ~ 702-582-6742 Twitter

  16. #16
    Affiliate Marketing Consultant Andy Rodriguez's Avatar
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    <BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by nyfalcon:
    what about a second tier, I would like to recruit more people to sell for you. <HR></BLOCKQUOTE>

    V,

    Wait till you here what's happening with this program buddy...you are going to freak...I'll IM you now.
    Andy Rodriguez Consulting, Affiliate Program Management and Consulting Services, Since 2001
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  17. #17
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    Andy,

    When it comes to lifetimes, you have a problem of do you mean the company's, the affiliate's or the customer's lifetime.

    Number 2 is that the affiliate agreement is a contract and you will have to be crystal clear about what you mean.

    You have 2 choices the publiser as advertiser model or the true partnership model. It will be hard to merge them fairly.

    Something like this might work...the normal program of 7% with 30 days applies to all for the first order.

    When you have converted a cookied person to an actual sale, that person then is the affiliates customer for some time frame - say 365 days.

    If they buy something else within that time frame the original affiliate who brought them in gets credit for the sale...even if the click thru comes from another affiliate link.

    If they don't buy anything else, then the day after the 'he's mine' time frame expires they go back into the 'open to get as your customer fair game.' If the customer buys and the buys again say 3 months later, then the 'he's mine' time restarts from the second order and so on.

    If all affiliates are playing by the same rules, then it's fair. I bring a real sale, I get any re-orders for x amount of time, if there are any, if there are no orders, I lose the lock on that customer and others can go get him.

    This set up would be a partnership set up. Now it will seem unfair for the guys who are out to just set cookies but, the idea of CPA is to get orders and customers...you get paid for the order and you should get paid for getting the customer as well.

    Setting a whole bunch of cookies and praying for the sale is just one of many tactics...the problem with it is the game becomes mass cookie setting and not on getting a customer for the merchant.

    The rational for the he's mine set up is that it only applies after the first sale. It's fair because all affiliates are playing on the same field...I may step on your toes and vice versa but we both have the same equal shot at the first sale.

    If I get first sales and you only get one, then I should be rewarded more.

  18. #18
    ABW Veteran jc101's Avatar
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    Whats the update on this???? Andy?

    Not doing to well with this program.

    5702 clicks total

    5 sales

    Average per sale: 1140.4 clicks.

    This is total nonsense. Can you explain this Andy? over 300 clicks alone this month.

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