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  1. #1
    The affiliate formerly known as ojmoo
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    High Conversion Rate <pet peeve>
    Everyone once in a while I get emails (usualy merchants from cj) asking me to join thier program. I know I get the standard email that everyone gets. But when they list their reasons to join, one of thim is invariably. "High Conversion Rate".

    When ever I ask, what is this rate they usual say, we can't give out that information b/c if our competitors had it it would harm us. (I can't see how knowing the number would effect competitive advantage) But assuming that is true, don't say high conversion rate unless you are willing to tell me what it is. What you think of as high I might not. Plus, previous conversion rate isn't a guarantee of success in the future.

    So I say here and now, to all merchants, don't brag about a high conversion rate unless you are willing to say exactly what it is.

  2. #2
    Moderator MichaelColey's Avatar
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    Too true. Plus, once you hear what they consider high you find out that their definition of high is quite a bit different than your own.
    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
    Member Chocolate_Chicken's Avatar
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    I like the ones who have "paid out millions to top affiliates" before they have even so much as approved an affiliate application.

  4. #4
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    The frustration on getting a merchnat to honestly state the networkwide conversion ratio led me to device the SafeHaven Network Model. Each merchant's rate gets published as part of network stats. Forces both the merchants and affiliates to match or better their competition.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  5. #5
    Moderator MichaelColey's Avatar
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    With affiliates like Mike in the network, I would take the networkwide conversion ratio with a grain of salt. I usually ask merchants who type of conversion ratio they're seeing with other sites like mine. That's usually a much better indication of my potential, good affiliate managers will know those numbers, and my actual numbers are usually much closer to than than to the network average.
    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

  6. #6
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    The published networkwide average conversion ratio seperates the competing SHN merchants on their ability to close sales on targeted traffic. No traffic is allowed to come from non-physical clicks generated from the coded links on affiliates actual site pages. This is what merchants expect from a 1099 sales force... targeted prospects focused upon what value proposition they offer buyers. The better the affiliate focuses the value proposition the easier it is for the merchant to close the referral. They rightfully pay a premium for this type traffic.

    No merchant should be forced to accept that affiliate traffic has to have either a ROI killing coupon/rebate or BHO double dipping penality fee attached. Current advertising networks demand and impose this penality on their merchants, as in their mind, the traffic volume trumps the focusing value of the traffic every time. Therefore commissions flow to those adept at gaming the cookied traffic regardless of the real premium value to the merchant.

    Only the SHN model will guarantee the networkwide affiliate traffic converts better then general SERP traffic and mass traffic scammers for each SHN merchant. It would be a cold day in Hell that a Overstock, operating in a SHN model, could justify a 1/1320 conversion ratio. They'd have their SHN affiliates running them out of town on a rail yelling fraud.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  7. #7
    Moderator MichaelColey's Avatar
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    Still, I think the conversion ratio from top affiliates is much more revealing than the conversion ratio from the average affiliate. Conversion ratio is affected by much more than just fraud and problems on the merchant end.

    Just look at some of the merchants (like NetMagazines.com) who post the conversion ratios from their top affiliates and average affiliates. There's a factor of ten between the top and the average.
    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

  8. #8
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Quote Originally Posted by MichaelColey
    Still, I think the conversion ratio from top affiliates is much more revealing than the conversion ratio from the average affiliate. Conversion ratio is affected by much more than just fraud and problems on the merchant end.

    Just look at some of the merchants (like NetMagazines.com) who post the conversion ratios from their top affiliates and average affiliates. There's a factor of ten between the top and the average.
    Oh so true Michael under the current advertising network model. In the SHN sales network model, ALL traffic has an equal traffic ability to convert on the average, or above average, ratio. We all know the existing model rewards those who can influence and disrupt buying flow at the point of sale. The BHO's and incentive affiliates. A click from a nice showcase page display should convert at the average rate without crutches. The higher ratio of sales, not encumbered with incentives, from SHN affiliates would encourage merchnats to concentrate on conversion factors knowing they can't divert sales reporting.
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

  9. #9
    Moderator MichaelColey's Avatar
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    Quote Originally Posted by ecomcity
    In the SHN sales network model, ALL traffic has an equal traffic ability to convert on the average, or above average, ratio.
    So the SHN vapor model is able to set aside the laws of mathematics? Everyone can't be average or above average. Let me guess. Gravity doesn't apply to you, either?
    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

  10. #10
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
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    Quote Originally Posted by MichaelColey
    So the SHN vapor model is able to set aside the laws of mathematics? Everyone can't be average or above average. Let me guess. Gravity doesn't apply to you, either?
    No. Those who can meet of beat the average conversion ratio go in informed of the merchnats conversion ratio and get rewarded by enhancing the merchant's limited space offerings. Even within good converting merchants ecatalog categories are jems which the merchant's Advertising manager doesn't even know about, that can sell when showcased on their own. Problem is only the SHN model makes the effort to identify and showcase these getting a payoff on the long run. Think of it as specific coupons to apply only to specific product landing pages....
    Webmaster's... Mike and Charlie

    "What have you done today to put real value into a referral click...from a shoppers viewpoint!"

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