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  1. #1
    Newbie
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    Can an Affiliate run an Affiliate program?
    Recently, I announced a new Affiliate program through SAS on ABW. I am now in the process of finding and recruiting appropriate affiliates. I am finding that many of the sites that could sell my client's products also have affiliate program. In other words, they appear to be both an affiliate and a merchant.

    Is it appropriate to BE an affiliate AND a merchant?

  2. #2
    Kung Fu Master Eathan's Avatar
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    Most merchants would likely not be interested in promoting your program on their merchant site, especially if they run affiliate programs of their own. That would create leaks for their existing programs, and send their potential customers away. Not what any merchant is looking for.
    Eathan Mertz

    Black Cat Mining - Gold Prospecting & Rockhounding Equipment

  3. #3
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    Eathan;

    I thought the same thing, which is why this is so perplexing. The "merchant" site(s) to which I am referring, are selling products as an "affiliate"--but they themselves have an affiliate program.

    Thanks,
    Greg

  4. #4
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    Quote Originally Posted by gsanderson
    Eathan;

    I thought the same thing, which is why this is so perplexing. The "merchant" site(s) to which I am referring, are selling products as an "affiliate"--but they themselves have an affiliate program.

    Thanks,
    Greg
    Do you mean.....like an affiliate program to sell an affiliate site?? Like pyramiding??
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  5. #5
    ABW Ambassador
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    More like merchants who have affiliate programs but also have affiliate links on their "merchant" site. Basically leaky merchants. Ones I stay away from.

  6. #6
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    Witzer;

    Here is the scenario: I have found a web site that would be a good site on which to sell my client's product. That site, sells many different products from many different companies. They are an affiliate, participating in a number of different programs in a number of different merchants affiliate program's. In addition to being an affiliate, they also have an affiliate program. So they are acting both as a affiliate (for other merchant's products) and as a merchant.

  7. #7
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    As I understand it, folks who join their affiliate program are driving traffic that will (potentially) be diverted to the "merchants" affiliate links which in turn will create (possible) sales from which their affiliates will get nothing.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  8. #8
    Member TonyCafaro's Avatar
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    This is fitting because I've run across sites that seem to drive revenue only from affiliate campaigns yet they offer an affiliate program, so I always thought of them as pyramid schemes.

    I manage a program and we do look to put our affiliate program on other merchants sites. We sell expensive communication hardware that all of the business world and majority of homes use my greatest revenues come from merchant service providers who want to offer their customers a direct recommendation to purchase equipment online.

    In this light the merchant benefits from an affiliate program because we provide the hardware and they don't have to flex their business models. However the downside is the b2b approach sometimes discourages me from looking for the grinding affiliates who want to build pages and sites for the product. Whatever you do GANDERSON don't let a site discourage you no matter if they are a merchant. The biggest downside merchants see is the returns that normal affiliates are so happy with never seem to be enough for their capitalist models

  9. #9
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    I'll try to get a little bit more specific without trying to sell my program.

    My client (the merchant) makes a product for allergy sufferers. In searching for affiliates, I have discovered lot's of shopping malls that sell a myriad of products for people with allergies. These products on their site are from many different companies....the affiliate appears to be participating in a number of different affiliate programs.

    The same website also OFFERS an affiliate program, and operates as a merchant. Why would a site like that want to sell my client's product? Is it possible that the shopping mall's affiliate program only applies to certain products? If one of their affiliates purchases from my client, to whom do I end up paying commission? My affiliate? their affiliate? both?

    I just want to be careful about who I contact, and I want to make sure that I don't get caught paying double commissions.

  10. #10
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    I would suspect that the affiliates of this site will not make any money from clicks on the merchants affiliate links. If they are lucky, they may earn some commission on any actual sales of the merchants own product line provided that there is a product line that really exists.
    You must climb this mountain. There is no elevator. ---- Don't stick your finger in the liquid nitrogen.
    Carolina China

  11. #11
    Outsourced Program Manager Stephanie Harris's Avatar
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    Have you contacted the website owner directly to ask him who he is getting commission from and how his business model works? I would have the same concerns as you in terms of paying double commissions. However, I have seen a few other instances of merchants of specific verticals also becoming affiliates as a way to add content to their site and get revenue for inventory that they don't want to or can't currently themselves stock. In this way, the website owner feels that they are still able to provide as you said a "myriad of products". They will most likely only be getting commissions on their own products, but it is definitely something I would call the merchant about and see if you can verify the information.
    Stephanie Harris
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