Nov 25, 2008

Commission Structure Updated

I have finally finished the update of our commission structure. It has been changed from a tiered structure back to a flat rate again, but this time the difference is that we can add an extra fixed amount of money to those who bring in new buyers.

The reason behind such initiative is easy to understand, that is, to drive in more new buyers. When a company has an efficient clients service team, the focus on continuous growth in sales amount by using affiliate channels seems not to be aligned well with a company's expansion in a highly competitive market. Usually the accumulated sales figure has been largely contributed by old buyer who repeatably use coupons or other promotional incentives. In this case, affiliate should play an offensive role rather than a defensive one.

Although having been advised that separating new buyers and old buyers is not a common practice, I believe that the strategic focus of a company is the determining factor. A website's affiliate program is often a good reflection of the company's attitude towards its market.

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