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  1. #1
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    http://www.gap.com/html/affiliates/bf_agreement.asp

    I am wondering what the reference below to the 20% figure means. Are they auto-stiffing us for 20% of our commissions, regardless of the actual rate of returns?

    Anyone else notice this paragraph:

    5. Commission determination

    Sales of Gap.com products will qualify for a commission when all of the following conditions are met: 1) products are sold by us, 2) products are purchased by users linking to our site from your site through a Link, 3) products are shipped by us, and 4) gap.com has received full payment. Commission will be based on the aggregate amount actually paid to us for qualifying purchases, excluding amounts collected by gap.com for sales tax, duties, gift wrapping, shipping and handling, credit card fraud and bad debt, and allocations of 20% for returned items (using a mutually agreed estimated average return rate of 20% per month) ("net sales"). All available items on our site will be included in the computation of net sales, regardless of whether the item is a fast delivery or special order item. Commission rates are as follows: Commission rate will be equal to 5% of net sales for qualifying purchases. The commissions paid under this Agreement are for use by you only and may not be transferred or in any manner passed on to any third party unless expressly authorized in writing by us.

  2. #2
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    Hmm, thats how I read it, also didn't realise that commission isn't based on the full amount of the sale, it seems to be

    Order Total (e.g. $200)
    - Sales Tax
    - Duties
    - Gift Wrapping
    - Shipping and Handling
    - Fraud and bad Debt
    = Gross Amount (e.g. $160)
    x 0.8 (for average returns)
    = Net Amount (e.g. $128)
    x 0.05 (commission)
    = Final Commission (e.g. $6.40)

    In other words for this example a true commission rate of 3.2%

    Mark Mitford
    Sales Director
    Dotster, Inc
    http://www.dotster.com/
    15% Commission - 90 day cookie - 0% reversals

  3. #3
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    St Clair Shores MI.
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    17,328
    Don't worry they do not convert worth a hoot so the fine print never comes into play! They are like Delias* and SimplyDresses over at Linkshare

    Charlie ...

    If they won't adopt and feed a bird ..flip them one! Where's the love and show me the money?

  4. #4
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    I make significant money from them. They do convert for some of us. They should just be more up front in what the commission really is if this is the case, rather than burying it in the agreement. I just didn't figure anyone had really noticed or it would have been brought up here before.

    [This message was edited by TI Master on January 31, 2003 at 02:51 PM.]

  5. #5
    Mama in Charge Anne's Avatar
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    This reminds me of my hubby's raise last year. He got a 10% raise.. based on his midline salary.
    HA HA HA! Ugh, a 5% raise.

    Creative marketing.

  6. #6
    ABW Ambassador Sam Bay's Avatar
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    Funny, I've always thought that their commission rate is 4%, because I was too lazy to look at their commission rate buried in the T&A.

    December Stats
    Imp:8,031
    Click:807
    Order:13
    Sales:$1,475.74
    Com:$59.03

    That's 4%. Yes, that's auto-stiffing at its best!

  7. #7
    ABW Ambassador
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    quote:
    buried in the T&A.

    LOL...


    Ack. 5% advertised, 4% paid..that sux..

    ----
    -J
    Merchants: Do you realize that some of your affiliates are being paid commission on sales which you have paid for via PPC, offline advertising, and your targeted mailings?

  8. #8
    ABW Ambassador
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    4,327
    I have a sale of $3.00 (yes, three dollars) with commission for 12 cents. I contacted Gap, and they don't even have a record of a sale from my web site. Something wrong somewhere

    www.cjshoppingnetwork.com

  9. #9
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Amazing Gap gives the BHO Dupers they work with 8% and throw smoke screens at the rest of us.

    Charlie ...

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

  10. #10
    ABW Ambassador
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    Gasp cough hack hack cough .... good Lord, give me a gas mask please. More smoke and mirrors accounting ... it's rampant in the affiliate business.

    Tells you something about the real quality of the merchant doesn't it?

  11. #11
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    Some of you need to check your math. Commission most always is figured on the net sales. I strongly disagree with Gap's assumption that everyone should pay 20% offset fee.

    After deducting the 20% offset fee from the gross sales of $1,475.74, you have $1180.06. A 5% commission on the net sales would be $59.03.

    $59.03 is 5% commission and not 4%.

    It is however, 4% of the gross sales. But, by affiliating with them you have agreed that they may take the 20% offset fee for returns. Thus the lower net sales amount.

    IMHO, they stole $14.76 from you.

    I don't use Gap myself for other reasons as well as this offset fee.

    Gene
    TCS

    [This message was edited by TCS on February 11, 2003 at 04:57 PM.]

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