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November 15th, 2006, 05:16 AM #1Should merchants restrict affiliates on PPC?
Our PPC manager has noticed that we are competing head on with our own affiliates for some important PPC terms, and thinks we should restrict bidding. Personally, I think affiliates who invest their own time and money in promoting our site deserve all the commission they can get.
What are your views on merchants controlling affiliates bidding on PPC terms? Is it good, bad, or ugly?Rob Palmer
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November 15th, 2006, 05:51 AM #2
- Join Date
- January 18th, 2005
- Nunya, Business
Your thoughts on the matter > Your PPC managers thoughts on it
Look at it this way. You have people out there spending their own money to send traffic to you. And they want to make money so they're going to try their best to send you targetted, converting traffic. Why would you forbid such a thing?
November 15th, 2006, 05:54 AM #3
- Join Date
- January 17th, 2005
- Mebourne, Oz
If they are using landing pages, and you are above them, they could be making you pay more than you would otherwise.
If they are linking directly to your site, only one ad will show, and if your ad is showing then it will be costing the same as if the the other ad wasn't in the system.
If they are linking directly to your site, and out-ranking your ad, then either you aren't bidding enough or they are losing money - ultimately your ROI on ads has to be better than theirs.
November 15th, 2006, 07:13 AM #4
- Join Date
- May 31st, 2006
- Houston TX
trust & enginez brought up good points.
Froma a merchant's standpoint, i would not do it. If they are not doing anything wrong (trademark, misrepresentation, fake coupons, etc) and earning a honest living, and not to mention sending you more sales, why deprive yourself from that?
If it is a generic term, and you prohibit that, they will just redirect their traffic to your competitor's site.
At the end of the day, what is a customer worth to you?
It's like a post somebody posted a month or 2 ago. CEO found out that the SEO is ranking lower than their affiliates on certain terms. After a couple of tries to get their SEO better ranked than the affiliates + doing a few other things, they were not successful. What they did was to unplug their affiliate program. <<Not a smart move>>
What did the affiliate do, send the traffic to the competitors.
Now, that can happen to you too
Competition is good
November 15th, 2006, 07:30 AM #5
I think if they are not using it against you, to promote competitors for example, or like Eric said promote fake coupons, I agree that they are only helping you and they are spending their own money to make money for you.
November 15th, 2006, 10:20 AM #6
In our business, I cannot ever imagine restricting what affiliates can bid on, outside of trademarked terms.
Not only is it wrong from a "being nice" standpoint, I think it would be a very bad business move...you will lose a lot of affiliates I would bet.
Heck, I still think that affiliates who do PPC have a better profit margin than our own PPC. Why? A. They are better at it. B. When they test something that does not work, we don't lose a dime. They take on all the risk.
November 15th, 2006, 10:35 AM #7
An interesting related point to consider is brought up by user Bluesx in this thread:
An unrelated context, but, a point to consider.
November 15th, 2006, 11:06 AM #8
I think you've got to work together with your affiliates to get the most out of PPC. For trademark terms (ie, your brand), I'd say it is a good idea to restrict the affiliates. If a user types in your brand, they want a direct link to your page, not an affiliate site first. They are already targeted by your branding efforts, so I'd say they are your customer.
For other terms, lessen the competition! If a particular affiliate does really well with a particular keyword (and lets face it, they won't do well for every keyword), then I'd say give it to them. And if you do well for some others, keep it for yourself. This kind of cooperation can really lower your overall PPC costs.Jason Rosenbaum
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