Mar 10, 2009

Affiliate marketing commission reviewed

The flat rate commission has been applied for about 4 months now and it looks ok in terms of brining in new buyers to our site.

Some of our publishers did not seem to get used to the tiered structure we offer on Google Affiliate Network. We used to break the sales order amount into different levels and assign a certain percentage of commission to each level. On top of that, the commission paid to each level will be different based on the type of the buyer, i.e new buyer or old buyer. For example, for sales above $500, if it was placed by a new buyer, we give publishers 3%, if that's an old buyer, then it would be 1.5% . While such structure can provide experienced publishers with enough guide regarding on which field they should focus in order to drive the most revenues based on their own capabilities, some new recruits got largely confused in our partnership.

Now for the flat rate commission, which offers fixed 3% sales commission to all publisher and an extra $10 to those bringing new buyers, the image is clear for publishers and also makes us (as a merchant) easily develops a non-confusing customized offering to our hard-working publishers. This means that we can increase either the sales commission rate or the fixed amount given for generating publishers for some top-performing publishers. In additon, I must submit that the general enquires about our commission structure from publishers seem to have dropped, which allows us to pay more attentions to other key elements in our affiliate program.


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