Deals Direct lowers commission

King · #1 13-08-2009, 06:59 AM

I see DD has reduced commissions from 5% to 3%

This is a significant reduction - maybe affiliates are not a bit part of their marketing push and a reduction in commissions of this level certainly makes one reconsider the alternatives.

newbie · #2 13-08-2009, 07:09 AM

Quote:

Originally Posted by King

I see DD has reduced commissions from 5% to 3%

This is a significant reduction - maybe affiliates are not a bit part of their marketing push and a reduction in commissions of this level certainly makes one reconsider the alternatives.

There are plenty of affiliates who sell more DD than we do but I have sent my emailed complaint for what it's worth. Hopefully some of the more-active DD affiliates will do the same.

I do not think this is part of any "plan", it will probably turn out to be an accidental mistake on somebody's part, providing enough affiliates raise the issue with DD.

King · #3 13-08-2009, 07:12 AM

I don't think it is accidental at all. I imagine it is a business decision based on maintaining profits and the easiest way in this case is to cut commissions.

The markup on that stuff is huge....unlike electronics where margins are low. whats the email addy to send to?

newbie · #4 13-08-2009, 07:29 AM

Quote:

Originally Posted by King

I don't think it is accidental at all. I imagine it is a business decision based on maintaining profits and the easiest way in this case is to cut commissions.

The markup on that stuff is huge....unlike electronics where margins are low. whats the email addy to send to?

I cannot post it here Matt.

Why not try their live chat and ask to speak to their new affiliate manager?

Contact Us & Customer Service at DealsDirect Bargain Online Shopping

wch · #5 13-08-2009, 08:19 AM

that's a big reduction. on top of cutting cuts, they must be pretty confident with their organic traffic streams....

King · #6 13-08-2009, 08:24 AM

yes on a % basis it is HUGE. I'll not be actively promoting em other than a basis promo from now on.

I see CG are on the ball - still shows 5% commissions. I guess repeat sales will be dropped next.

newbie · #7 13-08-2009, 08:41 AM

Quote:

Originally Posted by King

yes on a % basis it is HUGE. I'll not be actively promoting em other than a basis promo from now on.

I see CG are on the ball - still shows 5% commissions. I guess repeat sales will be dropped next.

I reckon dropping them straight away would be a kneejerk reaction Matt. They are a top merchant with possibly the best converting cart I know.

It is much more likely to turn out to be an accidental error rather than a deliberate intent because otherwise we would have been softened up with a few emails before this.

File it in the "wait-and-see" folder. These are savvy guys who do not usually make mistakes.

King · #8 13-08-2009, 08:48 AM

Quote:

It is much more likely to turn out to be an accidental error

These are savvy guys who do not usually make mistakes.

Betting both ways I see.

Strange things happen when it comes to the bottom line and affiliate sales may only represent a small % of sales - so trimming some there, at risk of losing affiliates may be no big sweat to them.

Depends on who made the decision - the CFO of the AM.

wch · #9 13-08-2009, 08:54 AM

my site is a merchant and we too are looking at changing the payment scheme for our affiliates.... but purely because our vendors have changed the way they operate (no power for us, the broker).

this opens up the question...

what's the best way to communicate this to affiliates, in a fair and equitable way without losing them?

particularly when 30% of our business comes from affiliates....

King · #10 13-08-2009, 08:57 AM

I think honest and information disclosure is important. Affiliates are stakeholders, no different to traditional stakeholders. Treat them with the same honesty and respect and they will not react negatively.

"Hide no secrets - tell no lies"

newbie · #11 13-08-2009, 09:38 AM

Quote:

Originally Posted by King

Betting both ways I see.

Strange things happen when it comes to the bottom line and affiliate sales may only represent a small % of sales - so trimming some there, at risk of losing affiliates may be no big sweat to them.

Depends on who made the decision - the CFO of the AM.

Betting both ways? Give me an even break Matt, I am just applying logical thought.

DD is a slick operation run by smart people. People like that do not do things like this - or at least not in the way this happened. There would have been a warning of some sort.

I see CG is back displaying the full 5% already so it was probably just an accident. (Applying logical thought again - if it was not an accidental error it would not be back on so quickly - those guys aren't the type to scare easily).

Lots of strange things happen at 1am in the morning and that was when the emails went out.

I am thinking seriously of attaching an alco-meter logon to my own keyboard.

King · #12 13-08-2009, 09:40 AM

back on....c'mon, it would not have been taken off yet.....

newbie · #13 13-08-2009, 09:49 AM

Quote:

Originally Posted by King

back on....c'mon, it would not have been taken off yet.....

D'oh Matt.

Those emails are not sent out by human hands. They go out automatically to all signed-up affiliates whenever a rate cut takes place. (Another good reason to be a CG affiliate =)) )

In other words, by the time you read the email the rate was already reduced. Now it is back. You would have also got another one regarding repeat transactions.

King · #14 13-08-2009, 10:39 AM

no only the one notifying of reduced commissions. And no i don't think the system is smart enough that changing the commission rate triggers the email.

newbie · #15 13-08-2009, 10:50 AM

Quote:

Originally Posted by King

no only the one notifying of reduced commissions. And no i don't think the system is smart enough that changing the commission rate triggers the email.

Matt - as well as being an affiliate, I also manage five merchant programs for friends of mine. Sorry to rain on your parade but you will just have to take my word for it. I have never asked CG, it is just what I have seen happening. Why not ask them yourself?

If a merchant changes a rate down or up, or anything related to a cookie for that matter, it shoots out an email to all signed up affiliates.

Maybe you did not get the repeat sales email because you do not get repeat sales. I have no idea.