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  1. #1
    The affiliate formerly known as ojmoo
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    Thumbs down What stupidity and gall!!!
    I got this email from one of my merchants
    ---------------------------
    Thank you for making the Affiliate Program one of the most succesful pet affiliate programs on the ShareASale network. Is is mainly through your hard work and effort that our affiliate program that is as succesful as it is today.

    Due to your hard work, the growth of the program has far exceeded our expectations. We originally had a set budget for affiliate marketing but have allowed the program to continue to grow, even as the costs have exceeded the funds we originally planned on allocating to affiliate marketing. However, after a recent review of our program, we have decided to slow the escalating costs by changing the commission structure


    The new commission structure is as follows:

    - 8%: All orders under $500
    - 9%: All orders between $500 and $1000
    - 10%: All orders over $1000


    While the commissions have decreased, our high conversion rates (over 5% for the past 3 months) due to our great prices (on average 10-20% lower then our closest competitors) will continue to keep the EPC high (currently $44 over the past 3 months). We will continue to offer hands on support to affiliates, whether it is in the form of live support or custom made banners upon request.

    If you have any questions regarding the change in commission structure, please feel free to email or call me. Thank you, and I look forward to continuing to work with all of you to increase commissioned sales for the benefit of all.
    ---------------------------

    Every once in a while I get emails like this and the stupidity behind them never seems to amaze me. The only reason your affiliate budget is up is because you are selling more product. If you didn't want to sell more product why did you8 start an affiliate program in the first place.. Obviously your profits are up so just move some of those profits into the affiliate budget.

    Anyway, because affiliates have made them too much money, they will be giving affiliates less. This is gall.

    Mike

  2. #2
    Internet Cowboy
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    We originally had a set budget for affiliate marketing but have allowed the program to continue to grow, even as the costs have exceeded the funds we originally planned on allocating to affiliate marketing. However, after a recent review of our program, we have decided to slow the escalating costs by changing the commission structure
    This is a merchant who truly does not understand the CPA model. How can a budget be set when the only outgoing revenue is tied to a sale that generates revenue for the merchant? The only way this has any validity at all is if the merchant is giving the affiliate all of the profit from the sale in hopes of keeping the customer aboard after the affiliate cookie is expired, which is the wrong way to approach it anyway.

    I recently ran in to this on one of the small affiliate networks and it amazes me. This merchant has no business in affilaite marketing. They should spend their money on a PPC campaign if they are glued to a budget.

    If I get this e-mail, the merchant will be immediately unplugged from my site(s).

    This is indeed gall, but more seriously this is a classic case of a merchant who does not understand the metrics of a Cost Per Action advertising model.

    You should send them a link to this thread.
    Last edited by UncleScooter; May 27th, 2005 at 04:20 PM. Reason: spelling....DOH!


  3. #3
    The affiliate formerly known as ojmoo
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    I sent an email to the merchant, I'll remove the links as I find them, My site is complicated, takes a while to remove links from a specific merchant. Anyway, I had a great line in the email I said, "If you want to decrease the budget, just fire the person who is generating the most sales" I hope the absurity of that statement will snap them into reality.

  4. #4
    Outsourced Program Manager tmartini's Avatar
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    They did the same thing with their Commission Junction program. I guess I'll have to start promoting their competitors (that have higher commission rates) on their pages on my site.

    -- Todd
    Todd Martini
    Digital Marketing Manager
    Jones Soda Co.
    Follow Me on Twitter

  5. #5
    Newbie
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    Thumbs down Affiliate for three months
    I have been an affiliate of thiers for just three months, and I have only started to send them traffic as I was still testing them out, but I have still sent them over $2000 since signing up. Not much, however, I imagin there are several affiliates like me. NO MORE, I have already found a hand full of merchants that pay better. This was a really bad move by there part, WHAT'S IT GOING TO BE NEXT... "DO TO YOUR SUCCESS WE DECIDED NOT TO PAY YOU THIS MONTH"???

  6. #6
    The affiliate formerly known as ojmoo
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    Hey the email address they supplied bounces back too, not a good sign.

  7. #7
    Internet Cowboy
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    Who is this?


  8. #8
    Moderator MichaelColey's Avatar
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    we have decided to slow the escalating costs by changing the commission structure ... While the commissions have decreased
    Yep, lower commissions will definitely decrease their affiliate "expense".

    If they stop shipping orders, it will also decrease their shipping "expense".

    If they take down their web site, it will decrease their Internet "expense".

    Some companies just don't get it.
    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

  9. #9
    ABW Veteran Mr. Sal's Avatar
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    Quote Originally Posted by ojmoo
    I got this email from one of my merchants
    ---------------------------
    Thank you for making the Affiliate Program one of the most succesful pet affiliate programs on the ShareASale network. Is is mainly through your hard work and effort that our affiliate program that is as succesful as it is today.

    Due to your hard work, the growth of the program has far exceeded our expectations. We originally had a set budget for affiliate marketing but have allowed the program to continue to grow, even as the costs have exceeded the funds we originally planned on allocating to affiliate marketing. However, after a recent review of our program, we have decided to slow the escalating costs by changing the commission structure


    The new commission structure is as follows:

    - 8%: All orders under $500
    - 9%: All orders between $500 and $1000
    - 10%: All orders over $1000


    While the commissions have decreased, our high conversion rates (over 5% for the past 3 months) due to our great prices (on average 10-20% lower then our closest competitors) will continue to keep the EPC high (currently $44 over the past 3 months). We will continue to offer hands on support to affiliates, whether it is in the form of live support or custom made banners upon request.

    If you have any questions regarding the change in commission structure, please feel free to email or call me. Thank you, and I look forward to continuing to work with all of you to increase commissioned sales for the benefit of all.
    ---------------------------

    Mike
    If and only if.......

    I was looking to join that merchant on SaS, and see those commissions:

    - 8%: All orders under $500
    - 9%: All orders between $500 and $1000
    - 10%: All orders over $1000

    Well.....

    I would not have a problem with those numbers if I didn't knew about that email.

    But, after what I just read........... Forget it.

    What is the use of working hard to promote any merchant, if as soon as you start to make a lot of money with them, they are going to lower your commissions?

    In that case they should increase your commissions, not lower your commissions.

    There is no valued excuse to pull a crap like that on any affiliate that is generating a lot of sales for the merchant, unless of course they find that affiliate doing some tricks to make those sales.

    Thanks for the info, Mike.

    Sal.

  10. #10
    Roll Tide mobilebadboy's Avatar
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    Quote Originally Posted by UncleScooter
    Who is this?
    Ditto. You should let others know who they are so noone else bothers to affiliate with them and take a chance in increasing their budget.

    Shawn Kerr (.com) | Disney World | SEC Football

  11. #11
    Moderator BurgerBoy's Avatar
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    Maybe these people worked for LS before going to where they are working now.

    That would explain it.

  12. #12
    ABW Ambassador
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    Entirely Pets. I would think merchants would want this kind of "problem", program taking off.

  13. #13
    More Cheesier Than Ever Cheesehead's Avatar
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    Here's what they should have said
    Thanks for all your hard work!
    As a result, sales have increased greatly!!
    We are trying to figure out how to reward you!!!

    How about a decrease in your commissions?
    We knew you would agree. You agree?
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  14. #14
    Moderator BurgerBoy's Avatar
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    Quote Originally Posted by Cheesehead
    Thanks for all your hard work!
    As a result, sales have increased greatly!!
    We are trying to figure out how to reward you!!!

    How about a decrease in your commissions?
    We knew you would agree. You agree?
    For a minute you confused me.

    I thought Mr. Sal had posted this.

    Give me a minute before I post again.

  15. #15
    ABW Veteran Mr. Sal's Avatar
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    I am going to have to call the
    Some people around here are putting their hands on my smilies box today.

    You all just wait till I finish here

    Some heads are ging to

    Who is next?

  16. #16
    More Cheesier Than Ever Cheesehead's Avatar
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    Uh-oh
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  17. #17
    Outsourced Program Manager
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    Any affiliate program that LOWERS their commissions is the affiliate program to drop. VERY bad and the rumors will grow and their will be no faith in the merchant. Will they lower them again?

    Get out before you send them more traffic is my advice.
    Richard
    Affiliate Marketing Manager AMWSO
    Digestinol, Luxe-Design


    Every child is an artist. The problem is how to remain an artist once we grow up. Pablo Picasso

  18. #18
    ABW Ambassador Snib's Avatar
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    I just received this email as well. I agree that it's a pretty bonehead move and, if anything, we should be rewarded for our success. Maybe if they revert this recent mistake some affiliates might forgive them, but they've definitely started ruining their good reputation.

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

  19. #19
    ABW Ambassador Snib's Avatar
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    I got a bounced email as well. It even matches the address in their SAS account info, so they've got a problem to fix. I responded to the email in the signature, so hopefully they receive this one.

    Update: Okay, I give up!! His namesake email address bounced as well. What kind of service is this??

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

  20. #20
    ABW Ambassador
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    >>drop them in 3 days unless they respond.

    And THAT right there is the advantage of the inhouse email that CJ has - though that would not be checked as often as ISP mail.

    There are emails I NEVER got from merchants because at least 90% of the affiliate mail lands in the bulk mail folder, and some can easily get deleted if there 400-500 to sift through. Losing one or two emails isn't worth taking a ton of time to meticulously sift through the volume of "enlargement" and "dribble" and other claptrap that comes through.

    3 months or 6 months may or may not be adequate depending on how some people do sites and plan ahead - especially now with the Google sandbox.

    People have different systems they use. I've got a couple in the pipeline now planned for 3-6 months down the road to give the fruit time to ripen and rank. The programs I sign up for with the future in mind won't see anything for a while, but those are my assets - and I use "collecting" good programs to decide on the type of sites I'll be doing.

    I'm taking a few domain names this week for future development; I'll go through my available merchants I've signed with to see if it's worthwhile to do that type of site as a final check. No sense to it unless there's inventory - and the merchants are the inventory, but only if I'm already signed up. Example: eluxury turned me down because my site doesn;t target their price niche - bullpucky, I've seen bargain basement sites with their links. But I *will* be doing a site wth that niche/pricing in mind, which can't be done without merchants to populate it, which I HAVE got because I signed up long ago, they're already in my "bank" of merchant assets.

    Plus - it may take a few days to get a site up and running using datafeeds, but NOT so when you hand roll sites slow as molasses.

  21. #21
    ABW Ambassador
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    From the first post:
    "The new commission structure is as follows:

    - 8%: All orders under $500
    - 9%: All orders between $500 and $1000
    - 10%: All orders over $1000"


    And from today's email:
    "Currently, the pay structure pays out 8-10% in three different tiers. Due to a reallocation of our funds in our affiliate marketing budget into other marketing programs such as PPC, we have had to change our pay structure, though the cookie will remain at 14 days. The pay structure is as follows:

    6%: Sales up to $500
    7%: Sales between $500 and $1000
    8%: Sales greater then $1000

    James Le
    HealthyPets, Inc.
    Work: 800-306-7910x201
    Fax: 800-320-6107
    james at healthypets.com

    So basically they're spending more money on their own PPC efforts so they've decided to lower the commissions to their affiliates. Boneheads.

  22. #22
    Life is Supposed to be Fun! Rexanne's Avatar
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    This is classic "punish the sales people" mentality - Merchants want the sales generated by affiliates but resent paying out commissions over a "set" amount to each publisher. If an aff is making "too much money" they balk and pull down commissions to keep the sales people in line. Idiots ... Sales people are PROFIT.

    What the hell did they expect?!
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  23. #23
    Moderator MichaelColey's Avatar
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    If they keep lowering their commissions, pretty soon you'll need to pay them.
    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

  24. #24
    Crazy like a fox suzigeek's Avatar
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    Why do they have 2 merchant sites with basically the same inventory?

    I still have entirelypets on a site but the way the sales happen with them is wierd. I get a lot of small orders (between 3-4 dollars) for the same amount in a row and then they are reversed the next month. Makes me feel like they are cooking the books and made some mistakes ...I might have to dump em...if I ever get around to it...
    Suz~~GearGirl~~

  25. #25
    Member
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    Was just starting to look at pet supply merchants for a content site that's starting to get some darn good traffic. THANK YOU for exposing these dolts.

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