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  1. #1
    ABW Ambassador ToughTurkey's Avatar
    Join Date
    January 18th, 2005
    Do merchants usually have higher payouts with inhouse programs than they do through with their program at CJ? It would seem logical to me if they did considering they'd avoid CJ's fees. Is this the case?

  2. #2
    Join Date
    January 18th, 2005
    Actually that is how most if not all get us to move over to their in-house program.

    Most have stated it’s due to the Network fee savings.

  3. #3
    ABW Ambassador ToughTurkey's Avatar
    Join Date
    January 18th, 2005
    So an inhouse program that pays 10% joins CJ and offers 10% through CJ, should sweeten the pot for existing inhouse affiliates - right?

  4. #4
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Mansfield, TX
    That's the theory, but it doesn't always work that way.

    Networks provide quite a bit for their fees. Although it varies from provider to provider, most provide:

    * Check-cutting
    * Fraud prevention
    * Banner serving
    * Extensive tracking and reporting software
    * Some degree of support
    * EXPOSURE to a prospective affiliates
    * Some degree of prequalification of affiliates
    * Tax reporting

    If a merchant doesn't use a network, they have to shoulder the cost of all that themselves. Part of what the merchant would have paid to the network will likely go towards those things rather than directly to the affiliates.

  5. #5
    Join Date
    January 17th, 2005
    Yes, that is very right, often you have to deal with that "push-pull" dynamic...on top of all of the costs Michael spoke of, you must also take into consideration your margin on your inventory and measure that versus what you pay your affiliates or in the end as a merchant your running a cash-flow negative business, so to speak. Very good point on your last thread Michael.

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