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  1. #1
    Newbie Tatar's Avatar
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    Leak Problem - How can we solve this?
    Hello everyone,

    We are soon going to join SAS and we are in the process of developing our new site. I know how leaks are percieved by affiliates and before structuring the service i need your thoughts on the following issue.

    In our case, the customer buys an art product and download it in digital format and get it printed whereever he/she wants. As we believe that we should focus on our core business (in our case it’s the artwork) we do not handle printing services internally. However 1/3 of our customers ask and demand printing service after their initial purchase. In order to satisfy and guide them we are thinking to provide printing services in partnership with a 3rd party network who has an international presence and competitive prices. We thought that we can be an affiliate of such a network, guide and direct our customers to printing services. In this case we will earn commissions as being an affiliate.

    The question is how will i give my own affiliates commission when a customer decides to buy printing service through that 3rd party? My affiliates deserve to get a commission too. Since we are not going to charge printing services through our site, SAS wont be able to track these sales.

    What we think as a solution is increasing the affiliate commission rate on the digital product for the coverage of that leak although we are not sure that every digital sale will lead to a print sale.

    Does anyone has an idea how to solve this? Are there similar cases?

    I hope i am clear enough and would be very happy if you can make some comments....


    Tekin Tatar

  2. #2
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Tekin,

    Easy. On your order form include a print version and then place the order yourself via the third party having them ship the product to the customer, not you. This way you complete the full sale on your site and can compensate the affiliates directly without any leakage.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  3. #3
    Newbie Tatar's Avatar
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    Thank you for your reply Haiko,

    I see your point, however there are some facts that avoid us doing so.

    If we include and charge the print version we would be responsible of all customer complaints, order tracking and other issues. This means recruiting more people on Customer Service, increase in prices, loosing our concentration from our core business. Instead we want to give the message " We Recommend X company, however you are free to choose".

    There are over 100 products that a customer can get our product printed (mugs, t-shirts etc) other than paper. This means a serious data feed integration to our site. Again more work and increase in prices.

    We are considering these facts.

    Another solution is not referring to any sites, but in this case we can not guide our customer at a certain need.

    Tekin

  4. #4
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by Tatar
    If we include and charge the print version we would be responsible of all customer complaints, order tracking and other issues.
    That's why you select a reliable source for the printing.


    Quote Originally Posted by Tatar
    This means recruiting more people on Customer Service, increase in prices, loosing our concentration from our core business.
    Well actually it's the completion of what you do, so by not offering it your not fully providing the service.

    Quote Originally Posted by Tatar
    Instead we want to give the message " We Recommend X company, however you are free to choose".
    Once again, I don't believe your completing your offering with out supplying a hard copy end product.

    Quote Originally Posted by Tatar
    There are over 100 products that a customer can get our product printed (mugs, t-shirts etc) other than paper.
    Cafepress?

    Quote Originally Posted by Tatar
    This means a serious data feed integration to our site.
    100 products is not serious anything, besides it's a one time programing setup job.

    HTH
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  5. #5
    Newbie Tatar's Avatar
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    CafePress may work great for our product.....Thank you for that.... The concept seems to cover our need.

    You are definetly right on your comment; we should provide printing services, otherwise we will not be able to provide full service.

    We will find a way to integrate into sales and avoid leak.

    THX

  6. #6
    Member Chocolate_Chicken's Avatar
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    "That's why you select a reliable source for the printing."

    Unfortunately, even the most reliable and astute printer must deal with very high return/complaint rates even if the product is produced 100% perfect to customer's exact specifications. This is an industry-wide affectation and every printer must deal with this type of anal customer BS every day.

    It would probably not be a good idea to get stuck in the middle.

  7. #7
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    Quote Originally Posted by Chocolate_Chicken
    "That's why you select a reliable source for the printing."

    Unfortunately, even the most reliable and astute printer must deal with very high return/complaint rates even if the product is produced 100% perfect to customer's exact specifications. This is an industry-wide affectation and every printer must deal with this type of anal customer BS every day.

    It would probably not be a good idea to get stuck in the middle.
    CC is on mark also, but in this instance, the product would be up to Tatar's spec, that the customer already approved and the end product is just the hard copy of the item - you'll see once he announces.

    -----------

    Tatar,

    I keep thinking Tots and Nap Dynamite, but I digress

    CafePress is a very reliable source, but be very trepidatious and selective if you print on a Black tshirt tho.
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  8. #8
    Newbie Tatar's Avatar
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    Are there any comments on what i offered before? Will increasing affiliate commission rate on the digital product for the coverage of leak solve the problem. Suppose that i will give %18 instead of %15?

    I know in order comment on this the affiliate should know the prices and the real commission, but will this kind of offer satisfy affiliates, assuming that the increase in commission is fair? Or will it still be seen as a leak and avoid affiliates signing?

  9. #9
    Moderator MichaelColey's Avatar
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    No, raising commissions will never compensate for leaks. It's a perception thing, as much as anything. If you raise your commissions to 18%, affiliates will expect 18% and will still view the leaks as a negative.
    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
    ABW Founder Haiko de Poel, Jr.'s Avatar
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    But by offering the printing, you eliminate the leak - are there anymore?
    Continued Success,

    Haiko
    The secret of success is constancy of purpose ~ Disraeli

  11. #11
    Internet Cowboy
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    Why not just complete the sale without offering printing. Let the customer know during checkout that printing options will be presented after checkout is complete.

    That way the affiliate gets paid on the artwork purchase and any leakage occurs after the deal is done. Therefore, in my opinion, it is no longer a leak.


  12. #12
    Newbie Tatar's Avatar
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    Quote Originally Posted by UncleScooter
    Why not just complete the sale without offering printing. Let the customer know during checkout that printing options will be presented after checkout is complete.

    That way the affiliate gets paid on the artwork purchase and any leakage occurs after the deal is done. Therefore, in my opinion, it is no longer a leak.
    Thank you for your comment, This might solve it, but not sure,

    At last, the customer is brought to my pages through an affiliate, any revenue occurance should be commissioned otherwise an affiliate (not all of them) might start a discussion here in ABW that we have a leak on our pages. Am I wrong?

    Maybe I should find a 3rd party (printing services) on shareasale, so that we can genarate a special code between us that tracks the visitor and rewards my affiliate. Does anyone know such a merchant...

    I am ready to share commissions on printing, but how?

    Still charging print services inhouse seem to be best solution.

    Are there any affiliates who can respond this? I need your point of view....

    Tekin

  13. #13
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    Quote Originally Posted by UncleScooter
    Why not just complete the sale without offering printing. Let the customer know during checkout that printing options will be presented after checkout is complete.

    That way the affiliate gets paid on the artwork purchase and any leakage occurs after the deal is done. Therefore, in my opinion, it is no longer a leak.
    Affiliates; what do you think about this, do you think this will solve the problem? I need more comments

    Thanks

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