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  1. #1
    ABW Ambassador Ron Bechdolt's Avatar
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    Reversing Commissions Back To Jan. 1st!!!
    In the last week I had a merchant at CJ get deactivated and all my commission back to Jan. 1st of this year were reversed. I was in shock! Maybe this is normal and I never had it happen before, but I thought it was CJ's job to ensure that a months worth of commissions was in the till to protect us from this sort of thing.

    Is this normal that they can reverse a couple of months sales when they deativate a merchant?
    Ron Bechdolt | Affiliate Program Management Consultant
    7 Days A Week Marketing

  2. #2
    Moderator MichaelColey's Avatar
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    Most merchants are required to maintain an escrow account with a positive balance. Some are extended credit by CJ. If a merchant that CJ extends credit to goes bankrupt or splits without paying up, CJ reverses the commissions.

    I've always contended that if CJ wants to extend credit to a merchant, they should take the responsibility if the merchant doesn't pay up. At the very least, they should identify which merchants they are extending credit to so we know where we're taking a risk.
    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
    Defender of Truth, Justice and the Affiliate Way
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    Agree Michael. Affiliates should have the necessary information in order to formulate their own risk assestment prior to partnering with the Merchant.

  4. #4
    Internet Cowboy
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    File a complaint with the BBB against the merchant in question. If they have not gone bankrupt they will most likely pay you instead of letting themselves be dragged through the mud.

    www.bbbonline.org


  5. #5
    ABW Ambassador Ron Bechdolt's Avatar
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    Good point about the BBB. This merchant is still in business. I've contacted the merchant, I've contacted CJ and neither have given me anything to go on.
    Ron Bechdolt | Affiliate Program Management Consultant
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  6. #6
    ABW Ambassador Snib's Avatar
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    I'm curious to hear how this goes 7-days. Can you update us on what happens with the BBB?

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  7. #7
    Super Sh!t Stirrer SSanf's Avatar
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    That is one very big complaint we have all had with CJ.

    It is also why SAS is set up the way it is. At least, with SAS the dastard merchant doesn't profit from free sales by deceiving you when they know darned good and well they will stiff you.

    Pick your poison.

    Of course, the merchants with auto deposit at SAS are risk free and don't go off line.
    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!

  8. #8
    Chick with Brains Tracy's Avatar
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    I feel much better about CJ than Performics and LS who don't collect any money from the merchant until one to three months later. I only today received a check for December sales from a LS merchant.

    I've had two merchants go bankrupt at Performics. The first only owed me $18.24, but the other one owed me $769.18. Then there was all the time I had to spend replacing thousands of links. At least the chances of it happening are a lot less likely at CJ. And you can count on receiving most of your commissions less than 30 days after the close of a month.

  9. #9
    Super Sh!t Stirrer SSanf's Avatar
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    Yes, once LS really has the consolidated checks up and running, I think the next step should be requiring an escrow and then start sending the checks out in a timely manner.
    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!

  10. #10
    ABW Ambassador Ron Bechdolt's Avatar
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    Quote Originally Posted by Tracy
    ... At least the chances of it happening are a lot less likely at CJ. And you can count on receiving most of your commissions less than 30 days after the close of a month.
    I'm not so sure of those chances being less at CJ. This is the first time in over three years I had something like this happen at any of the networks.

    The reversals I got for this merchant appeared on March 11 and covered all sales going back to Jan. 1st of 2005. What if this had been a merchant that does $1,000 in commissions a month. I would have had reversals of over $2,000. I am not very happy that CJ extended credit to this company that far back. CJ runs a top notch program, but I'm a bit bitter about this one item. If CJ extends the credit, then CJ better be ready to cover the amount due the affiliates. They are supposed to be my Trusted Third Party looking out for my interests.
    Ron Bechdolt | Affiliate Program Management Consultant
    7 Days A Week Marketing

  11. #11
    Super Sh!t Stirrer SSanf's Avatar
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    They are supposed to be my Trusted Third Party looking out for my interests.
    Those were the days, my friend. We thought they'd never end. We thought they'd last forever and a day.
    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!

  12. #12
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by 7-days
    I'm not so sure of those chances being less at CJ. This is the first time in over three years I had something like this happen at any of the networks.
    Same here. The last time this happened with me was with KBtoys.com at CJ. I can't remember the last time I've had a deadbeat merchant on Linkshare or BeFree. I've had three indies skip out on me in the past year.
    Michael Coley
    Amazing-Bargains.com
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  13. #13
    Internet Cowboy
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    I will not name names, but a CJ merchant owed me $200 for non-tracked sales. CJ said talk to the merchant, the merchant said talk to CJ.
    I filed a bbbonline.org complaint against the merchant. It takes a week or so for the merchant to get a copy of the complaint. Within 48 hours I had payment in my CJ account.

    It works.


  14. #14
    notary sojac Herb ԿԬ's Avatar
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    Unhappy
    Quote Originally Posted by SSanf
    Those were the days, my friend. We thought they'd never end. We thought they'd last forever and a day.
    (look what they've done to my song, Ma!)

  15. #15
    ABW Ambassador Ron Bechdolt's Avatar
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    Interestingly enough, I did get an email from someone at the company saying that the owner was now involved and looking into things. I'll wait on contacting the BBB until early next week to see what is done. Earlier I told the merchant and CJ I would be pulling all the links by the end of the week (it's a dedicated datafeed site, so it's many, many pages that will be coming down), but will wait on that too to see if they get this resolved next week.
    Ron Bechdolt | Affiliate Program Management Consultant
    7 Days A Week Marketing

  16. #16
    Resident Genius and Staunch Capitalist Leader's Avatar
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    I've always contended that if CJ wants to extend credit to a merchant, they should take the responsibility if the merchant doesn't pay up.~Michael Coley
    Agreed!

    The last time this happened with me was with KBtoys.com at CJ. I can't remember the last time I've had a deadbeat merchant on Linkshare or BeFree. I've had three indies skip out on me in the past year.
    Anyone who still wonders why I don't like indies, bookmark that post.
    There is no knowledge that is not power. ~Hemingway

  17. #17
    ABW Ambassador Ron Bechdolt's Avatar
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    UPDATE: Still no word from the merchant. Time to contact the BBB.
    Ron Bechdolt | Affiliate Program Management Consultant
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  18. #18
    pph Expert! Gordon's Avatar
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    Keep us up to date please Ron. Best of luck with it I hope you get the cash.
    I've always contended that if CJ wants to extend credit to a merchant, they should take the responsibility if the merchant doesn't pay up.~Michael Coley
    I totally agree Michael.

    I would like to know how CJ can be legally allowed make an agreement with a merchant that affects payment to their affiliates without having the decency to letting us know?

    Oh I forgot that word is not in their dictionary.
    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

  19. #19
    Moderator MichaelColey's Avatar
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    I'm sure there's nothing illegal about it. When they let a merchant go on credit instead of an escrow, they're working just like most other affiliate networks (Linkshare, BeFree, Performics). My complaint is that this isn't what affiliates expect (since most merchants are on escrow and our earnings are virtually guaranteed) and there's no way we can make an informed decision.

    Todd: I'd like to hear what you have to say about this. Any chance of pushing those "credit" merchants to become "escrow" merchants? If not, could we get some way for affiliates to be able to tell the difference? If we're bearing the financial risk, we deserve to know.
    Michael Coley
    Amazing-Bargains.com
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    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  20. #20
    ABW Ambassador Ron Bechdolt's Avatar
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    Quote Originally Posted by MichaelColey
    ...Todd: I'd like to hear what you have to say about this. Any chance of pushing those "credit" merchants to become "escrow" merchants? If not, could we get some way for affiliates to be able to tell the difference? If we're bearing the financial risk, we deserve to know.
    Yes, I'd like to hear something more from CJ about this.

    Followup report: I have still not heard anything from the company and today the last of my sales with them were reversed (wondering why cj took so long on these last ones).

    I have contaced the company informing them that I will be contacting the BBB Online, their local BBB and the Securities and Exchange Commission Internet Commerce Division. When I do so, I will also provide the name of the company here so others who have lost commissions can do the same.

    We cannot stand by and let these merchants do this to us!!!!
    Ron Bechdolt | Affiliate Program Management Consultant
    7 Days A Week Marketing

  21. #21
    Super Sh!t Stirrer SSanf's Avatar
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    You're all blowing smoke if you expect CJ to do anything positive about this. We have complained about it for years. It would be simple for them to give us notice when a merchant is going in the hole but they don't give a damn what is in the affiliate's best interest.
    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!

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