Results 1 to 23 of 23
  1. #1
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    How many additional sales do you give to the merchant with one sale?
    A not-so often mentioned benefit of affiliate marketing is that one sale (or lead) can (or has the potential to) generate multiple sales (or leads) with that one single conversion. Of course, branding is another.

    What I mean to say is when we give the merchant one sale, the merchant gets a customer whom the merchant can resell again. Except few very good affiliate sites, not many customers come back to the affiliate site to buy again when buying from that merchant.

    So, what to you think is the additional sale a merchant gets from one sale on an average ?

    My guess is that for each sale from an affiliate, the merchant gets 3 more sales through that customer (whether it happens with the same buyer, a member in the buyer's family, buyer's friend or someone else through word of mouth)
    so I would say the ratio is 1:3

    What's your guess ?
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  2. #2
    affiliate emeritus missdonna's Avatar
    Join Date
    January 18th, 2005
    Location
    Torrance, CA
    Posts
    1,986
    It has to depend a lot on the type of merchant it is. I think in many cases they'll never see the customer again. Scooters come to mind.

    But for other ongoing purchases, toys or pet supplies, probably 2 or 3.

    I think 3 is way too high for the average merchant. Maybe 1 additional sale. Probably less.

    But what do I know?
    Affiliate Marketing - The hardest easy money I ever made.

  3. #3
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    missdonna, of course, it depends on several factors and the type of product/service

    like you mentioned for single sale, they may never see the buyer again but the buyer (if satisfied) can generate several more sales by word of mouth even if he/she is not going to purchase it again, because the buyer is more likely to remember the merchant's brand (and the website) rather than the affiliate's, no ?
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  4. #4
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    What are you kidding me?

    CPA = Cost Per Action or Acquisition - the merchants are willing to pay x for a sale brought to them from you with in x time (the cookie) after that ... customer retention kicks in because that customer was acquired in the cheapest model method currently available and here's the best part ... the consumer is educated and not scared to buy on line which only means that the merchant can initiate an online retention campaign with the customer saving on traditional retention methods (ie. calls, catalog and other mailings).

    If you look at companies in the high tech arena like TigerDirect, or even NewEgg, buy something and watch the retention team kick in - if you've bought once at x dollar your good for x sales over the next x months (statistically) and they want to make sure your buying it from them and not their competitor or via an affiliate link because then the costs of retention went up as did the initial CPA for that customer. Only after X time of no sales do they snail mail catalogs or flyers or the such to initiate other levels of retention.

    But to say one or three is ridiculously almost a spastically low number of sales.

    Of course many factors do come into the picture, as do specific attributes of various niches, but you can bet your bottom dollar that merchants ain't going through the headache nor expense of running something that brings them onesy or twosy sales. No way.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  5. #5
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    Location
    Florida
    Posts
    12,817
    What's your guess ?
    I don't know, but I can hardly wait to find out!!

    I like the way Haiko's figuring, but that assumption probably would be high for bulbs (and many other categories). Bulbs last for years, and unfortunately, not too many people would do like me and just delete the lawn when their garden space ran out...

    But hey, if every sale from last year begets 10 this year, I won't mind being wrong about my projections
    There is no knowledge that is not power. ~Hemingway

  6. #6
    ABW Ambassador Sam Bay's Avatar
    Join Date
    January 18th, 2005
    Posts
    1,603
    None: If it's not the first time a customer is purchasing from that particular merchant. Take coupon sites, for example. Consumers usually visit them to find a discount offer from brands and merchants they already buy.

    Impossible to determine: If you're the first the introduce the customer to the merchant, the lifetime value of that customer is depends on many things including the merchant's products/service and its ability to keep the customer. Take Netflix, Overstock, 1-800-Flowers. Different businesses, different results.

    One thing is the truth, though: Affiliate marketing is, currently, the cheapest way for merchants to acquire new customers.

  7. #7
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    buy something and watch the retention team kick in
    exactly. the merchants (especially the ones that have a good conversion ratio) would do a lot of things which will get the customers to buy from them and not through the affiliate link. they have the customer's email id (of that customer who has already trusted them to make an online purchase) which can be used to make that customer buy again and again directly through them.

    running something that brings them onesy or twosy sales.
    so you are saying, it's a lot more than that ?
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  8. #8
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    Quote Originally Posted by newaff
    so you are saying, it's a lot more than that ?
    Oh Hell Yes I am. But once again it's dependant on the niche and the retention team / follow ups.

    I can, right off the top of my head, think of an niche affiliate link that I've made over 30 purchases on. in the past, lets say 60 days.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  9. #9
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    Sam Bay,

    I agree that coupon sites are one exception which doesn't cover this aspect.

    And yes, it is not possible to determine easily, that is why I was just guessing

    Also, one great example is ebay. Ebay has a lot to attribute its growth on the affiliate model. Granted the first purchase on ebay from a new member may not be a high one but when the buyer has to buy next time, where does he go? Directly to ebay.

    And there are several buyers who buy nowhere else but ebay. And even for the buyer whose first purchase on ebay was that $1.99 ebook , once the buyer becomes friendly with ebay's model, that buyer(who was sent by an affiliate) certainly can become a big buyer who can buy thousand dollars worth of goods without any second thought.
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  10. #10
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    made over 30 purchases on
    wow ! so from that merchant's perspective, even that one affiliate link has given several times returns. Of course, the merchant would be loving it
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  11. #11
    Troll Killer and best Snooper!
    I decide when the pigs fly!
    Rhea's Avatar
    Join Date
    January 18th, 2005
    Location
    New York, USA
    Posts
    6,195
    Unless a merchant or two chimes in with some hard data all we can do is guess.

    Might be more productive to discuss the ways in which merchants generate additional sales after we've brought a shopper to them.

    - newsletter signups
    - discount coupon included with shipment
    - catalog signups
    - aftermarket promotions
    - buyers' club memberships

  12. #12
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    Quote Originally Posted by Rhea
    Unless a merchant or two chimes in with some hard data all we can do is guess.
    Umm, if they did, honestly, we'd all demand a pay raise (cookies and comms).

    Might be more productive to discuss the ways in which merchants generate additional sales after we've brought a shopper to them.

    - newsletter signups
    - discount coupon included with shipment
    - catalog signups
    - aftermarket promotions
    - buyers' club memberships
    Actually that would be examining how merchants retain and not to further CPA (AM) acquisitions and thus fueling the pay raise demands once again.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  13. #13
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    discuss the ways in which merchants generate additional sales
    sometimes, the merchant does not have to do anything, it might happen by itself.
    I started this thread because just yesterday I sent one buyer to one of the merchant to make a purchase and I was wondering how many sales that one referral of mine would generate

    I gave him all the instructions over the phone (of course, he is a friend so the sales commissions wasn't the only reason I was helping him out)

    Now, my friend is excited with the purchase and he is part of a community and I am sure he's going to refer 3-4 more customers the merchant's way.
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  14. #14
    Plazan Merchant Neil's Avatar
    Join Date
    February 25th, 2005
    Location
    cyprus
    Posts
    1,764
    Unless a merchant or two chimes in with some hard data all we can do is guess
    I cant give you hard and fast facts, as we have only had our program for 9 months.
    but our trend looks like our customer will come back 3-4 times a year.
    this is due to the time taken to use our product.
    but we offer 365 day cookies .
    as was said before, depends on the product\ niche.
    Find us at shareasale.com 12% commission
    Shareasale Merchant 7191
    PLAZAN SKIN CARE As seen on TV . Used by Jennifer Lopez

  15. #15
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    Niel,

    100% of your customers have returned and re-ordered? I seriously doubt that.

    Reread the postualtions and questions and stop selling if your going to answer.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  16. #16
    Plazan Merchant Neil's Avatar
    Join Date
    February 25th, 2005
    Location
    cyprus
    Posts
    1,764
    No, no.
    I am talking about the ones that do return.
    Find us at shareasale.com 12% commission
    Shareasale Merchant 7191
    PLAZAN SKIN CARE As seen on TV . Used by Jennifer Lopez

  17. #17
    Member SuccessPoint's Avatar
    Join Date
    August 8th, 2005
    Posts
    53
    but we offer 365 day cookies .
    I wish cookies would actually remain for a year on someone's computer. Can't you look at the data and see who initially referred the customer and pay commission if it was in the 1-year period?

    It's a total "no lose" situation for the merchants and most do not pay their affiliates what they deserve. People overlook the value of "branding" we do for merchants.

    I think a mixed CPA/CPM model might be better than the current payout system.

    I'm so frustrated with tracking issues and other problems. I've been replacing most of the ads on my sites to pay-per-click ads and doing a lot better.

    -SP

  18. #18
    2005 Linkshare Golden Link Award Winner  ecomcity's Avatar
    Join Date
    January 18th, 2005
    Location
    St Clair Shores MI.
    Posts
    17,328
    Actual merchant stats can vary all over the place based upon the product and their post sales promotional efforts. I do know for 5 years Holdup Suspenders averages 1 sale per every 4 color paper catalogs they mail out to existing customers within 30 days. They don't do ANY e-mail marketing except to double -Opt-IN existing customers 2 times a year. Christmas and Fathers Day. Online return shoppers average 2.4 sales per year, but the average order size is double first time buyers. Those dealing in commodity/consumable items sure would have a higher repeat purchase ratio. Their Storefront resellers average 3 inventory "turns" per year. The cleavet in retail is it's always easier to sell to existing customers.

    My skateboard client uses every tool available at eBay and Yahoo Stores and hired a e-mail firm to spam the crap out of scraped sales info and purchased lists for his targeted market. He also uses a direct mail firm to hawk new products and brands willing to pay part of the mailing costs if he runs magazine Ads. His ROI sucks when expensing out the Adwhore costs compared to his pure play online eBay sales. His Yahoo store (no affiliate program) has always been profitable and he averages 5 add-on or accessory sales per new customer.
    Webmaster's... Mike and Charlie

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

  19. #19
    ABW Founder Haiko de Poel, Jr.'s Avatar
    Join Date
    January 18th, 2005
    Location
    New York
    Posts
    21,609
    Quote Originally Posted by SuccessPoint
    It's a total "no lose" situation for the merchants and most do not pay their affiliates what they deserve. People overlook the value of "branding" we do for merchants.

    True.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  20. #20
    ABW Ambassador phillyburbs's Avatar
    Join Date
    January 18th, 2005
    Location
    in the PhillyBurbs!
    Posts
    3,097
    Haiko is spot on, IMO.

    I'm STILL getting regular e-mails from merchants that I haven't purchased from in years. I'd guess that most any merchant could triple or quadruple affiliate commissions and still be in the black in the long run.

  21. #21
    Influencer Marketing GravityFed's Avatar
    Join Date
    January 18th, 2005
    Location
    Ithaca & Park City
    Posts
    3,338
    Merchant retention campaigns are crucial because I am not sure the brand loyalty online is what it is offline (this isnt with every instance, of course). We've all heard many times that the 'best value' drives sales on the Internet. I dont think many shoppers are broken up about buying from a new merchant IF that new merchant offers a better value for the item they are looking for...

    What do ya'll think?

    -

    Specifically to the issue of this thread.. As an affiliate, for a 10-15% commission, I am thrilled if I get one return sale (IF). But frankly I am not too worried about it. I have to give up something for no fulfillment obligations and no inventory to manage...

  22. #22
    ABW Ambassador
    Join Date
    November 26th, 2005
    Posts
    560
    It's not that I am worried whether the merchant makes one additional sale or several with my one referred sale. As long as I am being paid for every sales, I don't mind it Because by signing up with the program, I know that I'll get this % for the sale I bring and not for any sales that I may bring
    The Best Forums
    Nothing in the world can take the place of persistance
    . Talent will not; nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not; the world is full of educated derelicts. Persistance and determination are omnipotent.
    Abestweb Store

  23. #23
    Analytics Dude Kevin's Avatar
    Join Date
    January 18th, 2005
    Location
    Rochester, NY
    Posts
    5,904
    What I would also be interested in seeing is conversion rates on PPL programs. Obviously much higher risk, but also a much greater reward to the merchant if it closes. So the risk is obviously balanced out...

  24. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. Replies: 1
    Last Post: May 16th, 2004, 11:17 AM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •