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  1. #1
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    March 16th, 2006
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    Thumbs down CJ and Commissions
    Oh...First let me say I really appreciate this forum...

    I thought webmaster world was the only place for me to hang out...But that place is garbage...Their Nazi TOS keeps sh*t dull...Anyhow...

    Since I decided to check other networks outside of Linkshare and CJ, for example, azoogleads and partner weekly, I have found better deals to promote certain merchants...

    For example, why would I want to use CJ and promote a merchant who pays $6/lead, stats aren't real time, and pays out net 60 when I can go to azoogleads for the same merchant for $10/lead, real time stats, and pays net 20?

    Is CJ really making at least $4/lead...Or perhaps more because azoogleads has to be making something...

    There are a handful of merchants who have much greater payouts on azoogleads vs. cj...

    Is CJ 'cheating' affiliates? I know it is not really cheating, but that seems like an insult!

  2. #2
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    How ironic-

    My rep at Partner Weekly contacted me and noticed I was promoting a merchant that CJ and Partner Weekly share...

    She said if CJ is giving $35/lead, she will give me $37/lead...

    She said they are on a campaign to beat their competitors commish rates...

    And if they are Net 7, how could I turn them down??? (Also real-time stats)

  3. #3
    Moderator MichaelColey's Avatar
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    January 18th, 2005
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    Some of the differences are even more astounding. I've seen some that pay 2-3 times as much OR MORE on CPA Networks.

    "Why" is a bit complicated.

    Part of it is that the CPA Networks typically operate on a much smaller cut. CJ charges merchants 30% of the commissions paid, so a merchant who pays $10 to an affiliate will have to pay a total of $13. The CPA Networks are often happy with closer to a 10% cut.

    For some of the more extreme examples, the merchants pay a wide range of commissions on the traditional network (CJ, LinkShare, BeFree, etc.). For example, they might pay a base of $6/lead with tiers paying up to $15/lead. That's publicly. Privately, they might be willing to pay high volume affiliates $20/lead. (Most merchants don't have such large variations in commissions, but some do.) Now, the CPA Network enters the picture and says they can bring in 10,000 leads per month. The merchant might be willing to pay them $25/lead (which is less than the $20/lead + 30% fee at CJ). The CPA network will then pay their affiliates $20/lead (and might pay some high volume affiliates up to $22.50/lead).

    It's an incredibly incestuous relationship. If you trace links from CPA networks, often (especially with the smaller ones) you'll see the links redirecting through multiple CPA networks before getting to the merchant. CPA networks often act as affiliates, merchants, and networks. One network will have a relationship with the merchant. Half a dozen CPA networks will be "affiliates" of that CPA network. And dozens of other CPA networks will be affiliates of those networks.

    These CPA networks also enable spammers, parasites, and other deceptive marketing practices.

    It's definitely not CJ (or any of the traditional affiliate networks) cheating people, though. It's mainly that the CPA networks are very focused on that lead amount (because that's all they really have to compete on) while the traditional networks are giving the merchant (who will want to pay as little as possible) total control.
    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

  4. #4
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    March 16th, 2006
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    Great stuff!

    Thanks for the insight!

  5. #5
    Full Member
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    May 19th, 2005
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    Thanks guys.
    azoogleads is what I need.

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