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Bassackwards Affiliate Managers

by InternetMarketingIQ
2 replies
I can't even begin to understand the Moronic thinking behind the current trend to drop affiliate commissions and raise thresholds in a downward economy. How is screwing your free workforce out of their hard earned commissions improve the chances of company profitability?

This is a very dangerous trend. I am getting more and more companies changing the terms of their affiliate programs and dropping commissions. How is that an incentive to make me want to work harder to promote their products?

Yesterday I dumped two more programs who sliced commissions another 40%.

Yeah it would be great to only work with affiliates that made you $100,000 a month but that's like saying it would be great if everyone could date a supermodel. There are damn few of them and they can be extremely selective.

So to all you affiliate managers who think you'll make more money by dropping commissions maybe it's time you get behind a PC and do the work yourself.
#affiliate #bassackwards #managers
  • Profile picture of the author CDarklock
    Originally Posted by InternetMarketingIQ View Post

    So to all you affiliate managers who think you'll make more money by dropping commissions maybe it's time you get behind a PC and do the work yourself.
    Well, let's do some math.

    You have 5,000 affiliates at 75% commission.

    The top 50 generate 80% of your sales.
    The next 500 generate 10% of your sales.
    The rest generate the other 10%.

    You drop your commissions to 25%.

    Chances are, the top 50 will stay right where they are - they may be making only a third as much, but that's still a lot.

    So let's say you lose three-quarters of the rest, which is about 15% of your sales. Sales go down to 85% of normal, so for every $1,000 you used to get, you get $850.

    Now you pay your commissions. Where you used to pay $750 out of your $1,000 to leave $250 in your pocket, you now pay $212.50 out of $850 to leave $637.50 in your pocket.

    Looks like more money to me!
    Signature
    "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
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    • Profile picture of the author jasonl70
      Originally Posted by CDarklock View Post

      You drop your commissions to 25%.

      Chances are, the top 50 will stay right where they are - they may be making only a third as much, but that's still a lot.
      I am a "top" affiliate for a few products.. if I experienced this, I would NOT stay. I would go talk with their competitors and see what I could work out with them. I've done this twice this past year.
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      -Jason

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