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  1. #1
    Member
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    Transactions Reversed Due to Non-Payment
    Every few months I get a handful of transactions reversed due to non-payment and was wondering what sort of legal recourse I might have as an affiliate who is owed these commissions.

    Obviously, certain times, when the amount owed is quite small, it's easy to write those transactions off and just forget about it. But, I can imagine that one day, one of my top merchants may fail to make payment and owe me over $1,000. At that point, I would be interested in taking legal action.

    So:

    1) Do I as an affiliate have any legal recourse here?
    2) Does Commission Junction have a collections department that goes after non-paying merchants?
    3) Has anyone had success contacting merchants on their own demanding payment?
    4) Do you have any advice for an affiliate in this situation?

    Thank you, in advance, for your time.

    Dave Nathan

  2. #2
    Member
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    I thought I'd bump this to see if I could get any fresh responses.

  3. #3
    Member
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    I thought I would bump again. It's "that time of the month."

  4. #4
    Affiliate Manager
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    June 10th, 2005
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    Hey Dave - Are those marchants still participating in CJ? That's strange, I've never seen that one before. Are you sure it's Non-Payment by the merchant? Or is it Non Payment for the order (i.e. card declined, etc).

    Just curious. I'd love to help from the merchant side or things, but I've never seen that one.
    Matt Sampson
    Affiliadd Development Manager

    Affiliadd.com
    - - - - - - - - - - - - - - - - - - - - - -

    [SIZE=1]Email: msampson (at) ColoradoWebSolutions.com

    Yahoo IM: affiliatematt

    [URL=http://www.Affiliadd.com/affiliadd]Affiliadd.com - Advanced Affiliate Tools[/URL]

    [/SIZE]

  5. #5
    Member
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    This has happened about 7 times now, since I joined the CJ network as an affiliate. The merchant is deactivated (due to non-payment), and then about 45-60 days later, the pending transactions are reversed (assuming the merchant didn't pay their bill to be reactivated.

  6. #6
    Affiliate Manager
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    June 10th, 2005
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    Wow.... That's terrible. Have you tried to contact CJ about it at all? I know their contact system is a pain and half the time they don't actually give you an answer, but I'd be curious to hear what they have to say. I'm sure a lot of people here would be curious!

    Keep up the good work Dave.
    Matt Sampson
    Affiliadd Development Manager

    Affiliadd.com
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    [SIZE=1]Email: msampson (at) ColoradoWebSolutions.com

    Yahoo IM: affiliatematt

    [URL=http://www.Affiliadd.com/affiliadd]Affiliadd.com - Advanced Affiliate Tools[/URL]

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  7. #7
    Full Member
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    The commonsense solution would be to require all merchants to give CJ enough money up front to ensure that they always have a positive balance - and to switch them off whenever that balance got too low - and for CJ to place them on hold rather than the terribly generic "deactivated".

    This would, of course, require CJ to keen about commonsense solutions.

  8. #8
    Super Sh!t Stirrer SSanf's Avatar
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    CJ extends credit to the merchants without telling you. They have it in their contract with you that if a merchant does not pay them, then they don't pay you. This happens fairly often. You are just plain stuck. You gave those merchants free sales and advertising. You would have to sue them. But, don't expect any help or informatuion from CJ because they don't give a darned about your losing your commissions or the opportunity to sale for another merchant instead of the deadbeats they extend credit to.
    Comments are opinion unless otherwise noted. Remember, pillage first. Then burn. Half of all people in the world have IQs under 100. You best learn to trust ol' SSanf!

  9. #9
    Affiliate Manager
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    Yes, that is true, occasionally over a weekend a merchant can run out of funds in their account and CJ extends a bit of leway, but merchants are pretty much required to keep a minimum of $500 in their account at all times to stay active. They do however tend to be pretty flexible with that minimum.

    Dave - so sorry to hear of your troubles. Good luck with all of that.
    Matt Sampson
    Affiliadd Development Manager

    Affiliadd.com
    - - - - - - - - - - - - - - - - - - - - - -

    [SIZE=1]Email: msampson (at) ColoradoWebSolutions.com

    Yahoo IM: affiliatematt

    [URL=http://www.Affiliadd.com/affiliadd]Affiliadd.com - Advanced Affiliate Tools[/URL]

    [/SIZE]

  10. #10
    Full Member
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    Just curious. I'd love to help from the merchant side or things, but I've never seen that one. ~ Matt-AllMountainSports
    Publishers can find those merchants by selecting “Extended transactions due to non-payment” and “Reversed transactions due to non-payment” in Custom Reports from Run Reports page. I always full out all the links to the merchants that ever stayed there. Whatever they said, they’ll leave CJ in less than 6 months. My rule: never ever follow them if they move to other networks.
    IRS
    Don't ask why the ball doesn't come.

  11. #11
    Moderator MichaelColey's Avatar
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    Legally, you have much more recourse with the merchant than you do with the network. The network is basically just a service hired by the merchant. Your relationship is with the merchant.

    I would recommend contacting the merchant. If they're not responsive, hire a collection agency. They'll take a big chunk and may need to negotiate the amount that the merchant owes down, but it's better than nothing.
    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

  12. #12
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    I bet there usually isn’t enough money in question to allow CJ to take action and not lose a bunch of money in the process, as I know often when something goes to collections the creditor only sees pennies on the dollar.

    Here's the quote from the Publisher agreement:

    3.4 Payment. If on the 20th day of the month Your Account exceeds CJ's "Minimum Balance Amount", as set by CJ from time to time, for Transactions reported for the previous month, CJ will issue to You any positive balance in Your Account. CJ shall have no obligation to make payment of any Payouts for which CJ has not received payment from the relevant Advertiser. If CJ elects, in its own discretion, not to make payment to You for amounts not received from an Advertiser, those amounts shall not be included in the Minimum Balance Amount. Your recourse for any earned Payouts not received by CJ and not paid to You shall be to make a claim against the relevant Advertiser(s) and CJ disclaims any and all liability for such payment.

  13. #13
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    http://www.cj.com/solutions/adv_acce...payment_policy

    See Under ADVERTISER PAYMENT POLICY --> Claims

    Claims: Your publishers shall have a claim against you directly for non-payment of earned but unpaid payouts that are unpaid because you have failed to make payment to Commission Junction.

    I was a publisher of the Commission Junction network promoting CrappyCompany.com and its' products. During the month of April, I generated 5 sales totaling $659.75 on CrappyCompany.com's behalf. Based on the 20% commission rate, I am entitled to $131.95 in affiliate commissions due. CrappyCompany.com failed to make payment to Commission Junction and, thus, Commission Junction was under no obligation to make payment to your publishers of payouts where there are insufficient funds in your account. (See ADVERTISER PAYMENT POLICY --> Claims.

    However, as per the "Claims" policy, your publishers "shall have a claim against you directly for non-payment of earned but unpaid payounts that are unpaid because you have failed to make payment co Commission Junction."

    Jurisdiction: This Agreement is governed by the laws of the State of California (USA), except for its conflict of law provisions. Each party may apply to the state courts in Santa Barbara, California, USA, and, to the extent that federal courts have exclusive jurisdiction, in Los Angeles, California, for injunctive relief until such time as the Award is rendered or the Dispute is otherwise resolved, and the parties agree that those courts and JAMS arbitration (in accordance with Section 11.3) shall be the exclusive fora for any such actions related to this Agreement. You consent to such venue and jurisdiction.

    Sincerely,
    Dave Nathan

    -----Original Message-----
    From: xyz@crappycompany.com
    Sent: Tuesday, June 14, 2005 2:28 PM
    Subject: Affiliate Program


    Without dishonoring presentment, we'll ask you to provide the basis for your claim, as well as the contract establishing such. Further, we'll ask you for evidence of jurisdiction.

    Be sure to provide all that with your claim, or it will be invalid.

    Kim

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