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Charlie
Joined:
22 Aug 2003
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3305
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Posted: Sat Dec 13, 2003 1:46 pm
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Hello again.
| Quote: | | OK, I understand, companies wish to limit or eliminate their risk. That's understandable. It's equally understandable that affiliates would also like to limit their risk. They would prefer not to work for 2 months, and then hope a payment will be forthcoming. Everybody has risk, nobody wants to take a loss. |
When it comes to risk, affiliates don't take much, relatively. Most invest little more than time, yet have the capability to destroy a brand that someone has spent a great deal of money developing.
| Quote: | | As an affiliate manager I understand that some affiliate out there may figure out a way to steal from me. That's my risk, and my job to attend to. It's not a burden that should be totally passed along to my affiliates. |
Surely you are factoring that risk into the commissions you pay?
| Quote: | | They already have a risk, trusting me, and a job to attend to, knowing me well enough to make themselves comfortable with sending me traffic for 30 days on faith. 30 days is enough. After that, it's my turn to do something for them, imho. |
You are enabling them to make money from minimal investment (time or money). If they can't trust you enough for that, they can't have done much research.
| Quote: | | This isn't a burning issue for me, but as a philosophical point, I think the definition of "partners" should be that we find a way to share risk and profits, not we share profits and you take all the risks. |
I still think the merchant is taking much more of a risk than the affiliate is, in most cases.
Affiliate programs represent the least risk "business" model (as an affiliate) that I have ever seen.
| Quote: | | But an affiliate who is trying to learn to think like a real business person might benefit from the excercise of approaching the affiliate managers who want you to work longer than 30 days before you receive payment, and ask them, "why am I carrying all the risk here?" |
An affiliate who is trying to learn to think like a business person might like to realise that cash flow and fraud "insurance" has to be paid for one way or the other. If you want quick payment expect lower commissions to reflect this. (The merchant will have to write off a certain amount.)
| Quote: | | Affiliates are not employees, right? We don't have to just take orders from on high. |
| Quote: | | There are lots of other big companies out there who would like your traffic, you have leverage, use it if you're not happy with a particular situation. |
Exactly. Accept the best deal that's going. Vote with your feet and let "market forces" determine what commissions and terms merchants need to provide. How do you think it works with the super affiliates?
| Quote: | | This is a very competitive marketplace and none of us needs to just assume that because the company we promote is bigger than us that therefore they should make all the rules and dump their risk on us. |
Prudent measures are not the preserve of large companies. Any one man band with ambitions to survive should look at these fraud issues seriously.
Sadly most affiliates invest nothing and earn nothing for themselves or the merchant. Are they really in a position to be demanding anything?
If affiliates don't understand the reason for caution, maybe they should try starting a business where serious investment is required, rather than playing games with the black economy, as so many of them do.
I have a suspicion that the more productive affiliates realise the importance of preserving the financial position of the merchant for the long term. Residual income streams often work better that way.
Just my opinion,
Charlie.
P.S. I think I dislike big companies as much it sounds as though you do! 
_________________
"Before I speak, I have something important to say."
- Groucho Marx |
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Bobby
Joined:
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Posted: Sat Dec 13, 2003 5:58 pm
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Charlie,
After reading your post above I wish this board had a "Recommend It" feature.
In the past 3 days, I have received 2 offers by email to purchase a product. The offer was not sent by the merchant, but by an affiliate. The merchants terms clearly indicate they will not tolerate marketing by SPAM.
I wonder how much time the merchant will have to devote to responding to complaint email message, to tracking down and canceling this affiliate, and then wonder if the affiliate will sign up again under another name?
I'm surprised the barrier to entry into affiliate marketing is still so low.
Bobby |
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Charlie
Joined:
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3305
Location:
UK
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Posted: Sat Dec 13, 2003 8:54 pm
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| Bobby wrote: | | I'm surprised the barrier to entry into affiliate marketing is still so low. |
So am I, but as an affiliate I'm not complaining.
The problem is, many merchants are sold the idea of as an affiliate program as the perfect solution, when for many a series of carefully selected JVs (making a private affiliate pprogram) may be much more suitable.
The sad facts remains that even if affiliates do play by the rules and represent the merchant responsibly, many of them will cost more to support than they bring in.
All the best,
Charlie.
_________________
"Before I speak, I have something important to say."
- Groucho Marx |
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