Affiliates And Their Rose-Tinted Glasses
I was going to call this "You don't need a brain cell to be an affiliate, but it helps".
I constantly see affiliates moaning about drops in commissions or when merchants stop them brand bidding, ppc'ing direct to merchant, removing the use of discount codes or paying less commission for them.
Fine, they're unhappy when they're earning less - that's natural.
But what amazes is me is when other affiliates think they're immune to the usual scrutiny that other marketing channels face.
If a merchant is PPC'ing and the agency aren't meeting targets then they're pulled up on it. They may have to close it down or tweak it.
If SEO isn't working, the agency will expect to brought to task and get their backside in gear.
Just because an affiliate is driving sales - it doesn't mean that it is in the merchant's best interest to keep that relationship going in the same context.
Many affiliates will think WTF! This is because affiliates don't think like merchants. They don't really care to be honest - as long as they're getting their nice BACS payment at the end of the month all is good in the world of affiliate marketing.
From a merchant's point of view they'll tweak and modify their marketing channels until they obtain the desired return on their marketing spend. This may entail reducing commissions, stopping direct to merchant ppc'ing, changing how discount codes are used, or whatever they feel will achieve it.
It amazes me that affiliates that drive sales by creating certain types of discount code sites unwaveringly feel they're adding value when the first time their site or cookie enters the consumers world when they're sat in at the merchant's checkout with their credit card in hand, knowing exactly what they're buying and why, after spending a fair while on the internet researching the merchant and product, then spending more time (may be half an hour) in the merchant's site - oh then they see this box when they're 95% through the whole research and buying process that says "Enter Discount Code".
The user searches "merchant name discount code" and is met with a voucher code site that may or may not have any live/usable codes and a cookie is dropped.
You don't have to be a fecking genius to work out that in this instance the affiliate hasn't added any value what-so-ever to the whole research and buying process.
In my mind the user had already been "marketed to". In the next 30 seconds no more external marketing should affect the deal. The customer is sold to, they're there, they've got their plastic out, they're putting their numbers in!! HELLO BIG WAVING HAND!!!
I'm not saying there's only one way of being an affiliate. That's patently untrue. What I am saying is that affiliates shouldn't criticise merchants for wanting to make this channel work for them.
Just like affiliates measure and gauge the performance of PPC, SEO, link building, content creation etc. Just because affiliates analyse their EPC from different merchants and select which to work with, IT DOES NOT MEAN that merchants should not also analyse what works for them!
If merchants are happy for affiliates to take commission in the last 30 seconds of the sales process then that's fine for them. But for affiliates to say "we're getting you sales - so shut up" those merchants should ask "at what cost?"
Update: At least Ray is trying to add value/earn his commissions!!!
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9 Comments:
Spot on.
This is so true. I'm pleased people are starting to be more honest about the way we all work!
Leeeeee, it's not just Ray adding value to the visitor experience. We have a number of site elements on DCTV which adds value for our visitors.
That box at the checkout scenario could be easily removed - just like those merchant phone numbers at the top of some store pages - yet as a code affiliate I'm still prepared to send them traffic in the full knowledge there's going to be leakage.
As I said elsewhere, users love codes, merchants are happier than ever to release them (with notable exceptions) so the die is cast, it's all part of the 2008 affiliate marketing mix and I'm happy to work with all merchants, agencies and networks to make sales and land that BACs cheque once a month.
That's not rose-tinted - it's just reality and I've had to adapt and suck up so many commission losing changes since 2000 I don't feel too guilty if a visitor finds our site while sat in a merchant checkout on google.
Even then it's not all one way traffic, I'm often asked to promote a merchant and if the visitor that found my code while sat in a store checkout subscribes to our site they are going to get those messages, collectively that's another win for the merchant and another way to deliver their message where it counts.
There are many shades of rose-tinted glasses ;)
By the same token, I hear where you are coming from, but is it much difference from using the word "sale" and replacing "voucher code" or "discount code" with this. Shoppers go crazy during sales because they either buy items they wouldn't have previously purchased or waiting for the right moment to buy. Thus voucher codes in one instance can be a way of flipping the customer from comtemplating to definitly deciding. Where networks are in a fortunate position, is analysing how soon cookies are overwritten, but that is assuming the customer clicked on a link on a link preceding the site with a presell in the first place. Perhaps non content sites shouldn't reveal to much information but maybe a button saying "click for more info" or better still don't reveal the price but instead have "click to visit merchant website & see the latest price". I am just trying to put a slightly different slant on it, and not taking sides. Also I don't think we can compare with merchants restricting display urls on generic terms, it's a different kettle of kipper.
Many people are making a killing and no one seems to care.....do they????
Totally agree.. the technology is there to make the system more equitable .. last click wins regardless of the circumstances of the click is not a good system.
As you say Lee "In my mind...".
I do care about merchants, and often advise and am asked for my input into certain things by a merchant.
We ALL care about what goes in to our bank accounts... affiliates, networks, agencies and merchants.
BIG HAND HELLO!!!!!
Now go an ask the end customer, the one who saved 10% as to what value a discount code website added to their shopping experience.
Any affiliate who says "shut up we're getting you sales" should be dropped, or remove themselves from the programme. I have done that in the past and will continue to do so!
If people think there is a massive amount of leakage from their sites, why don't they change their sites and add a discount code? I've asked this many times, but know one has given an answer.
Controversial viewpoint maybe but I think we as affiliates sometimes need to take a step back and remember that no merchant ever set up an affiliate programme to make affiliates rich
To be quite honest, we issue voucher codes because our competitors do and also to increase throughput at the cost of margins, there is also the point that if we buy at higher levels then we in turn obtain better prices from our suppliers.
I would rather issue unique codes to specific affiliates and only pay when they direct the buyer to our site but we would then be at a disadvantage compared with the merchants in our sector that blanket code all year round, some of these codes are so widely publicised that they amount to almost a compulsory discount for the merchant, this cannot be financially healthy in the long term.
John Ayres, Prezziesplus
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