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  1. #1
    ABW Ambassador Airstrip's Avatar
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    Zappos 20% Commish Whack
    How long before Zappos decides to bump our commish rate back up to 15%? It is too early to jump to conclusions, but using a 20% deduction from my previous commissions over the past year and looking at what is happening at present, the black is turning to red in my PPC campaigns. I am not a HUGE contributor to Zappos sales, but if I would have to drop my PPC programs with them, I think it would be noticed. My ads have always been very targeted, and I am not sure how much more I can do. Perhaps I need to whack everything except the big sellers and hope.

    I guess a divorce is a real possibility..

    Just needed to vent a bit...

    OUCH!
    The best things in life are not things at all...

  2. #2
    Moderator Nabz's Avatar
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    Zappos say that they have made this change due to Free Overnight Shipping. But I haven't seen much change in my conversions, So affiliates are not benefited from this feature.
    It will be really hard for those who rely only on PPC to succeed with Zappos, as 20% drop is not small change.

  3. #3
    Moderator MichaelColey's Avatar
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    Why not just drop your bids 20%?
    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
    ABW Ambassador Airstrip's Avatar
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    Quote Originally Posted by nabeelk
    Zappos say that they have made this change due to Free Overnight Shipping. But I haven't seen much change in my conversions, So affiliates are not benefited from this feature.
    It will be really hard for those who rely only on PPC to succeed with Zappos, as 20% drop is not small change.
    Understood, but if publishers have been making purchases from Zappos for the past couple of years, they would find that shipping was already being upgraded to overnight. As soon as you made a purchase, they would email you telling you the good news of how your order shipping has been upgraded. Any purchase I made during the week, over the past couple of years, I received the next day. So the only difference is, Zappos is promoting it.

    And Mike.. I will try lowering my bids 20% before I file for a divorce!!
    It has taken a lot of trial and error to reach the bidding frame I need to make a decent profit. Lowering may keep me from losing but it will also take me out of position.

    Poop!
    Last edited by Airstrip; April 5th, 2007 at 02:07 PM. Reason: Grammer
    The best things in life are not things at all...

  5. #5
    ABW Ambassador Airstrip's Avatar
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    And........

    maybe if enough publishers dump Zappos, our ads will get more exposure and stronger conversion rates.......... eh..MichaelColey?
    The best things in life are not things at all...

  6. #6
    ABW Ambassador ticketguyz's Avatar
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    Quote Originally Posted by MichaelColey
    Why not just drop your bids 20%?
    Lowering bids by 20% does not mean that position or actual CPC will stay even remotely the same.... or do you know a secret method?

  7. #7
    ABW Ambassador
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    They only whacked my commissions by 3%, 15% - 12%.

  8. #8
    ABW Ambassador
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    Lowering commissions from 15% to 12% is a 20% reduction in your commission.

  9. #9
    ABW Ambassador
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    15 - 12 = 3

    3% drop in commissons

    20% in the percentage of the rate drop. I guess it's how you look at it.

  10. #10
    ABW Ambassador
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    If you were formerly earning $15 on a $100 sale and now you're earning $12 on a $100 sale, that's a 20% reduction in your commission.

    Saying that the commission was lowered by three percentage points is accurate but irrelevant. Saying that the commission was lowered 3% is not accurate.

    I hope you'd agree that if a merchant lowered a commission from 20% to 17%, that wouldn't be a 3% drop either. It would be a 15% drop.

  11. #11
    ABW Ambassador
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    You're right. I was looking at it the wrong way, it would be a 20% drop.

  12. #12
    Moderator Nabz's Avatar
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    Just noticed, Zappos Overall 7 Days EPC dropped from $40+ to $28.59

  13. #13
    Full Member kea12345678's Avatar
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    It is bad. I dropped my traffic, and will drop it even more.

    I feel like commission drops might be like taxes, once they are implemented. They rarely go away. That is my inner speaking.

  14. #14
    Member
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    My deal is pretty simple, mathematically. Before, I was basically spending about 4k per month in order to make 5k per month. With the new deal, I am now spending about 4k per month in order to make 4k per month. It's great for the flyer miles on the card that I use to charge my CJ advertising expenses but other than that, I am no longer making a profit with the Zappos affiliate program. I was making a profit over the last 7 years but not anymore. I wonder how many other affiliates are in this same boat?

  15. #15
    Affiliate Manager PingoPrepaidCallingCards's Avatar
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    shoe affiliate program commission whack
    A comment at the last boston affiliate marketing group was to spread out your industry niche's so that you can waive the storm in any big changes that happen like this.

    Hang in.....shoe's online is said to be a strong category for affiliates.
    Brian Hawkins AM @ [URL=http://www.pingo.com/affiliate.do]Pingo[/URL] Earn up to $35 CPA for a [URL=http://www.pingo.com/p/onedollar/onedollar.html]$1 trial offer[/URL]!
    [URL=http://www.twitter.com/TelecomAgents]@TelecomAgents[/URL] [URL=http://www.twitter.com/telephonecard]@TelephoneCard[/URL]

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