Results 1 to 8 of 8
  1. #1
    Full Member deepestblue's Avatar
    Join Date
    May 6th, 2005
    Posts
    116
    Question Doing direct deals with merchants
    I am looking to do direct deals with a couple of merchants who do not currently have affiliate programs. Do you think that before I get things set up I should have a legal document drafted that protects me as an affiliate from future reversals, etc?

    Though i am planning to have an agreement drawn up, I can see 2 sides of the coin: One one hand, there are the standard Terms & Conditions that you agree to in the networks but on the other hand a referral is sort of like a one-time transaction, not much unlike buying a pack of gum and last time i was at the convenience store I don't remember having to sign a Legal Agreement to buy a pack of Trident. Any thoughts?

  2. #2
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
    Join Date
    January 22nd, 2007
    Location
    West Covina, CA
    Posts
    8,443
    But if you agree with 7-11 that if you convince J. Doe to shop at their store and he buys a pack of gum, then 7-11 owes you 5¢, you better have that in writing.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
    "If you don't have time to do it right, when will you have time to do it over?" -John Wooden;
    "Raj, there’s no place for truth on the internet." -Howard Wolowitz[/SIZE]

  3. #3
    Member stellarseller's Avatar
    Join Date
    July 1st, 2007
    Location
    Seattle
    Posts
    124
    Thumbs up Protection
    Everything in writing, all the time. Especially if you are entering a new arena. It has been my experience that if someone is not agreeable to drafting/signing a written contract, then they have something to hide or not 100% confident with the venture in the first place, and therefore not wanting to commit. Agreements/contracts are easy to draft. In your case this may be the perfect opportunity to begin a new relationship from the ground up.

  4. #4
    Classic Rocker Mack's Avatar
    Join Date
    January 27th, 2007
    Location
    Lower Left Coast
    Posts
    1,167
    A verbal agreement isn't worth the paper it's written on.

  5. #5
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Location
    Mansfield, TX
    Posts
    16,232
    But what are you going to do if they don't pay or if they don't report properly? You have to know what action you're willing to take. An agreement is meaningless if you're not willing or able to enforce it.

    I have a few merchants where I have direct deals, and it's dumbfounding how many of them are dishonest. For instance, I have had a couple that were Yahoo Stores. Yahoo provides a very easy way for them to create a "tracked link". The "reporting" for it stinks (it's just a yearly graph, basically), but the merchants have ways to run reports internally. The ones I've worked with directly, I've asked that they send me numbers (# of sales and total sales dollars) and check monthly. Both regularly gave me numbers that I know were low. As an example, the chart could clearly show that sales were over $1,000 per day each and every day of a month, but the total sales that they report for the month might only be around $10,000.

    It's not just indies, though. I have two CJ merchants who reverse almost every order over a certain dollar amount.

    I drastically lower placement or totally remove merchants like that, but sometimes there's not a whole lot of choice if you want to provide a good selection for your customers.
    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

  6. #6
    Member stellarseller's Avatar
    Join Date
    July 1st, 2007
    Location
    Seattle
    Posts
    124
    Angry
    Both regularly gave me numbers that I know were low.
    Sounds like some merchants will go ahead and report low hoping the affiliate is not smart enough, or not paying attention.

  7. #7
    Full Member deepestblue's Avatar
    Join Date
    May 6th, 2005
    Posts
    116
    Thank you everybody, this really helps a lot. I agree with everyone's remarks, especially M.C. with regard to the area of enforcement. Probably the main concern that I want to get into the document is protection against them claiming reversals after payments have been made.

  8. #8
    Member stellarseller's Avatar
    Join Date
    July 1st, 2007
    Location
    Seattle
    Posts
    124
    You could take a look at a few advertisers who have an affiliate program and look at their terms and conditions to get a sample of what you might write up for your official agreement.

  9. Newsletter Signup

+ Reply to Thread

Similar Threads

  1. direct deals vs. networks
    By Celicaphile in forum Midnight Cafe'
    Replies: 1
    Last Post: August 11th, 2003, 05:15 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •