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  1. #1
    ABW Ambassador Ron Bechdolt's Avatar
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    CJ Launches "Action Lifecycle"
    Just saw this announced at CJ after I logged in:

    New Functionality Launch: Action Lifecycle
    On August 29, 2006 we will be launching an exciting new functionality: Action Lifecycle. This functionality will give advertisers the option to implement custom action lifecycles when creating new program terms. Advertisers may specify a period of time – between 7 and 60 days after the event date of an action – before an action becomes Locked.

    This new functionality will allow advertisers to offer you more appealing options and will allow you to receive payments faster and more effectively forecast receipt of commissions. You will be able to view an action’s lifecycle in the Program Terms section of the Advertiser Detail page. Traditional lifecycles, in which actions automatically lock on the 10th of each month (unless extended), will continue to be available. For additional information on the new Action Lifecycle functionality please review the FAQs posted on CJU Online.
    Just curious, did CJ inform merchants or beta test this before today?
    Ron Bechdolt | Affiliate Program Management Consultant
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  2. #2
    notary sojac Herb ΤΏΤ¬'s Avatar
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    Arrow
    and this is exciting for whom?

  3. #3
    ABW Ambassador Ron Bechdolt's Avatar
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    Um, did we not hear the same thing from LS when they boasted about consilidated payments?
    allow you to receive payments faster
    Still wondring, did CJ inform merchants or beta test this before today?
    Ron Bechdolt | Affiliate Program Management Consultant
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  4. #4
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    Ron, you're an affiliate. Why do you worry about all these little CJ things like CJU attendance, CJ job openings and this? It's not really major stuff.

  5. #5
    ABW Ambassador Ron Bechdolt's Avatar
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    Guess as an affiliate who for many years made most of his earnings from CJ merchants I'm a little concerned where they are heading.
    Ron Bechdolt | Affiliate Program Management Consultant
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  6. #6
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    Unless I'm misunderstanding, this will have a negative impact on affiliates in some cases. Aren't they now giving advertisers a longer period to reverse a transaction?

    These networks always try to put a positive spin on everything, regardless of whether there are any benefits to the affiliate or not.

  7. #7
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    "Guess as an affiliate who for many years made most of his earnings from CJ merchants I'm a little concerned where they are heading."

    "Key Publisher Benefits

    Commission payments will be faster and future payments easier to forecast.
    Publishers may choose advertisers with faster approval of commissions.
    Commissions will not be extended for an additional thirty days by an advertiser."

    What part are you concerned about? How does this negatively affect you as an affiliate?

  8. #8
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    Commission payments will be faster and future payments easier to forecast.
    Only if an advertiser opts for a shorter duration before the sale is locked.

    Publishers may choose advertisers with faster approval of commissions.
    And we hope those same advertisers pay on time. If not, it's a moot point.

    While I don't think this is going to have any significant impact on me, I do think the benefits are far more heavily weighed toward the advertiser than the publisher. It's 100% upside for the advertiser. As per my previous post, there appears to be downside for the publisher.

  9. #9
    Internet Cowboy
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    If it works competitively, good for us. Otherwise it can become an automatic 60 day extension. We'll see!


  10. #10
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    It's not like they're hiding any info. It'll be right there in the terms. If you don't like it, don't accept it and move on. I think it's a bunch of worrying about nothing. You make sales, you'll still get paid and you'll have the stats to see what's happening.

  11. #11
    ABW Ambassador sjangro's Avatar
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    Quote Originally Posted by Snowman
    Unless I'm misunderstanding, this will have a negative impact on affiliates in some cases. Aren't they now giving advertisers a longer period to reverse a transaction?
    Right now, the longest a transaction can go before getting 'locked' is 2 months + 10 days. (longer before payment happens)

    For example, a transaction happens on August 1st. On Sept 10, it gets extended. Oct 10 it gets locked for payment.

    With this new model, the longest is 60 days.

    So it seems that on average, the time a transaction remains outstanding should get shorter.

    Presently, the shortest time a transaction can go is 10 days. With the new model it's 7 days.

    I need to think about this more, but I think I see at least as much good as bad. It's an interesting change.

    According to the FAQ, performance incentives aren't supported right now. So that'll stop a lot of advertisers from participating.

    Hopefully this means that they're thinking about issuing payments more often.

  12. #12
    Moderator MichaelColey's Avatar
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    The only way I could see that this would allow faster payments would be if CJ were to switch to multi payments per month. Perhaps this is a preliminary step for something like that?

    They would also need to encourage a lot of merchants to set low Action Lifecycles if they were going to do something like that.

    With the current locking (which will continue to be the default, from the sounds of it), transactions lock around the 13th of the following month, so it's anywhere from a 14 to 44 day Action Lifecycle. Taking the average, we can say it's a 39 day Action Lifecycle.

    It'll definitely complicate reporting, as transactions would be eligible to be paid anywhere from 7-60 days after they are earned. That means we could get paid THE SAME MONTH for some transactions (early in the month with a short Action Lifecycle) and up to THREE MONTHS LATER for other transactions (late in the month with a long Action Lifecycle) For instance, a 7/1 sale with a 7-day merchant could be paid on 7/20, while a 7/22 sale with a 60-day merchant wouldn't be paid until 10/20 (since it was still locked until 9/22).

    Overall, I think it'll be a very slight advantage over the current system. Of course if they go with multiple payments per month, it'll be even better.
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  13. #13
    Full Member TLE's Avatar
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    Quote Originally Posted by TrustNo1
    Ron, you're an affiliate. Why do you worry about all these little CJ things like CJU attendance, CJ job open
    ings and this? It's not really major stuff.
    Pardon the intrusion.

    IMHO, this is exactly the type of issues of concern, in the general business world, between businesses and their vendors/suppliers.

    For example, open up any VAR publication and half the stories will be about hr or show attendance.

    When the care is gone, the party is over and the competition (or shorts) moves in. Sort of like the HP/Compaq thing.

    Tuan
    Last edited by TLE; August 28th, 2006 at 10:20 PM. Reason: spelling

  14. #14
    ABW Veteran Mr. Sal's Avatar
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    and will allow you to receive payments faster and more effectively forecast receipt of commissions.
    Unless that means that we are going to get weekly or by-weekly checks, .......
    ...

  15. #15
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    "IMHO, this is exactly the type of issues of concern, in the general business world, between businesses and their vendors/suppliers."

    CJU, probably will end up being sold out.

    There have been some big people leaving, that's a sign. But job openings with any big company, who doesn't have those. Hiring, firing, retiring, moving on, expansion, job openings etc. Normal stuff.

    Action Lifecycle, this is a negative sign to you?

    They have 86 new programs open up in August, 1,785 total. Looks like they're doing ok in that dept.

    My major concern was going js only. And they reversed on that.

  16. #16
    Full Member TLE's Avatar
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    Quote Originally Posted by TrustNo1
    Action Lifecycle, this is a negative sign to you?
    Not directly, but (by this point) the pattern of (seemingly unilateral) "initiatives" with an accompanying long list of "benefits" does trigger a reflexive concern.

    Thanks for your response, I am also confident that CJU will sell out. It's just shocking that two years ago the discussion was whether it should be moved to the convention center to allow for more attendees.

    Tuan

  17. #17
    ABW Ambassador Ron Bechdolt's Avatar
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    Reading their FAQ, I'm not sure I understand the last part:
    Why are performance incentives not available for actions with a custom lifecycle? Is this something that will be offered in the future?
    Support for performance incentives will be offered in the future. We feel that the custom action lifecycle feature is so valuable that we wanted to get its benefits into the hands of our advertisers and publishers as soon as possible.
    So is this saying that if someone goes with lifecycle, they can't offer performance incentives (at least right now)? Or am I reading this wrong?
    Ron Bechdolt | Affiliate Program Management Consultant
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  18. #18
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    Ron,

    Quote Originally Posted by sjangro
    According to the FAQ, performance incentives aren't supported right now. So that'll stop a lot of advertisers from participating.

  19. #19
    ABW Ambassador Ron Bechdolt's Avatar
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    Guess I missed that. I have a few that nearly double my commissions if I meet their performance incentives. I'm not going to be too happy if some gung ho merchant goes playing with this before he realizes he just eliminated all his performance incentive offers. Just hope CJ is educating their merchants about this.
    Ron Bechdolt | Affiliate Program Management Consultant
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  20. #20
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    Hopefully merchants know how to read, it's in the FAQ. Since it's not supported at this time, those merchants that want to offer incentives just won't use Action Lifecycle until it does.

  21. #21
    ABW Ambassador Ron Bechdolt's Avatar
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    In any case, I think I will open a dialogue with my merchants I know well who use performance incentives just to make sure they understand. Could easily be a big chunk of money if the don't understand.
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  22. #22
    ABW Ambassador Ron Bechdolt's Avatar
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    Did this get launced yesterday as announced? Can any merchants comment on it now that it is avalable and what they think of it now that they have a hands on look?
    Ron Bechdolt | Affiliate Program Management Consultant
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