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  1. #1
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    Need Input, Developing New Affiliate Program
    Hello everyone, I appreciate you taking the time to read and post on this topic.

    Daybreak Enterprises is a musical instruments and accessories dealer. We've been around since 1997 and on the web since 1998.

    I need to know how affiliates feel about our program. The details are as follows:

    The program is coupon based and will require customers to enter a coupon at checkout.

    -Affiliate marketers will supply their visitors with a custom coupon code.
    -The customer will receive a discount of 10% off their order (the incentive to enter the code). The affiliate will receive a commission on the sale.
    -The proposed commission structure is 7% flat rate (we are considering a 3-tiered structure (i.e 5% up to $1000 in sales, 6% for over $1000, 7% for over $5000)
    -We offer a 30 day return policy, so payouts occur after 30 days.
    -The coupon will not expire (although this may change, we would like to actively monitor affiliate sites/advertising to maintain high quality).
    -We plan to offer a non-compete policy for our affiliates. In other words, we will not compete for online advertising with our affiliate marketers. We will not have a default coupon code on our site, we will not set up ppc campaigns, we will not submit to coupon sites, we will not run Adwords or Yahoo Search Marketing campaigns, etc. Our efforts are in offline marketing.

    The only real drawback we can see at this time is the fact that the customer will actually have to enter the coupon code manually during checkout.
    However, this also significantly increases the accuracy of affiliate earnings. Our affiliates will not have to worry about cookies expiring or being overwritten with someone else's code.

    Do you like the idea of a coupon based affiliate program?
    Do you prefer flat rate or tiered commision?
    Of course, any constructive criticism is welcome. We want to make sure that our affiliates earn money .

    (removed site url... points can be addressed without it and it looks spammy with it)
    Last edited by loxly; October 6th, 2006 at 08:43 PM.

  2. #2
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    OK...i'm on the edge of my seat waiting for some kind of response. I'm even willing to edit my post...but don't have an edit button avail.

  3. #3
    AM Navigator Geno Prussakov's Avatar
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    Honestly, I would recommend purchasing a space in the New Affiliate Programs and Announcements part ot this forum. Or at least not mention the specifics.

    Quote Originally Posted by daybreak
    Do you like the idea of a coupon based affiliate program?
    Some would. Others (from my experience - the majority) -- won't.

    Quote Originally Posted by daybreak
    Do you prefer flat rate or tiered commision?
    Kill the tiers. The affiliate that sent you the initial customer gets it all.

    Geno

  4. #4
    http and a telephoto
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    Today started out busy and then it seems to have gotten quiet. It would be interesting to hear what affiliates have to say about the model you propose but you may not hear much at the moment because:

    A. It's Friday
    B. It's Q4

    Maybe some folks will pop back later... or over the weekend when they are taking breaks from making pages....
    Deborah Carney
    TeamLoxly.com BookGoodies.com ABCsPlus.com

  5. #5
    ABW Ambassador Snib's Avatar
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    So what if an affiliate gives the coupon to a customer and the customer makes a purchase without the coupon? I'd be a very angry affiliate if I didn't get that commission.

    Your proposal is flawed in that aspect and I don't think it's a good idea at all. I'd never promote a merchant that doesn't give me every commission I earn, coupon or not.

    - Scott
    Hatred stirs up strife, But love covers all transgressions.

  6. #6
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    Geno, I fully intend to purchase a spot when the program is official. For now, I'm just trying to refine the program based on feedback.


    Loxly...sounds like a good explanation to me


    Snib,
    So what if an affiliate gives the coupon to a customer and the customer makes a purchase without the coupon? I'd be a very angry affiliate if I didn't get that commission.
    The idea is that a 10% discount would help the customer "Remember" to use and re-use the coupon. I always feel left out when I get to the "Discout Code" section of a checkout with nothing to enter.

    Your proposal is flawed in that aspect and I don't think it's a good idea at all. I'd never promote a merchant that doesn't give me every commission I earn, coupon or not.
    What if one of your referrals ordered by phone?

  7. #7
    AM Navigator Geno Prussakov's Avatar
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    Quote Originally Posted by daybreak
    The idea is that a 10% discount would help the customer "Remember" to use and re-use the coupon. I always feel left out when I get to the "Discout Code" section of a checkout with nothing to enter.
    Ok. But you haven't answered Snib's question. He asked about those referrals of his that will order from you not using the code at all (on any number of reasons: forgotten about it, haven't noticed it, noticed it, but forgotten about it ever since, etc). What about them? Will you pay your affiliates for non-coupon sales?

    Quote Originally Posted by daybreak
    What if one of your referrals ordered by phone?
    To be fair to your affiliates, choose a network that enables merchants to track affiliate-generated phone orders too.

    Geno

  8. #8
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    Quote Originally Posted by daybreak
    The program is coupon based and will require customers to enter a coupon at checkout. * * * Do you like the idea of a coupon based affiliate program? Do you prefer flat rate or tiered commision?
    I have a modest amount of experience in this space. As an affiliate, I've received affiliate checks from Musician's Friend during most of the past 12 months, and I see a few musical instruments and related items in my Amazon sales each week. I also did some consulting work for SheetMusicPlus a number of years ago, and continue to receive affiliate payments from them, too.

    My first reactions:

    (1) I wouldn't participate in a "coupon-only" affiliate program. Period. It's just a bad idea, with too many opportunities for lost commissions.

    (2) Nearly all my sales resulted from "datafeed" links. You must offer a datafeed to succeed.

    (3) I personally prefer a flat-rate commission, but there are many affiliates who respond well to tiered structures. Indeed, my experience is that the affiliates who prefer tiered programs are usually those who would have earned more under a flat-rate structure, and those who prefer flat-rate would usually earn more if it were tiered. (Assuming that flat rate is 7% and tiered would be 6% to 9%, for example.) If you do offer a tiered structure, there are some super-affiliates who will demand the top tier rate (or more) as a flat rate.

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