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A recession is coming - affiliates business to explode
So it’s all doom and gloom out there…well good bye to the marketeers and welcome to the world where the salesman who brings in the cash gets greatly rewarded.
If I was a traditional merchant I would be cutting back on all my marketing “fluff” now and focussing my energies on the salesmen in my organisation who are purely commision based.
Even better I would pay the salesman who are commision based and don’t work for me.
Doug amused
Merchants and bribing affiliates to change links
In an industry worth billions how much money is being “bunged” around to get people to change links.
If I was a “streetwise” affiliate manager at a merchant, or even an affiliatenetwork, I would make sure I had some spare cash in a black swag bag or something to persuade affiliates to change links. Now I am not saying this goes on, but it’s a thought.
Lets assume I was a company with a large online presence with a large affiliate business. I had deals with the large affiliate networks to run some of my global affiliate business. This online affiliate business was worth hundreds of millions per year in sales and I am paying out 5% in affiliate commission, with a 20% management fee to the network.
So with a US$200 million affiliate business an affiliate network is making 1% on the total sales numbers , or $2 million per year. Over 90% of most affiliate business for any merchant comes from about 10 affiliates, and as a merchant I know who these people are.
One day as a merchant I may be tempted to persuade the affiliate to deal with me direct, hence I call up the affiliate and say:
- Fancy working with us direct?
- I can pay you a signing on bonus
- I can pay you more commission as I will not have to pay the affiliate network
- We can deal direct without those affiliate idiots in our way
Is that legal business or bribery?
Doug poor but trying to be honourable
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