Comments on: The Case For Decreasing Affiliate Commissions https://www.tune.com/blog/affiliate-commissions-budget-immune/ Performance Marketing Platform Thu, 08 Nov 2012 21:06:00 +0000 hourly 1 https://wordpress.org/?v=6.7.1 By: Jake Ludington https://www.tune.com/blog/affiliate-commissions-budget-immune/#comment-2101 Thu, 08 Nov 2012 21:06:00 +0000 http://www.hasoffers.com/?p=8347#comment-2101 In reply to Graham.

HasOffers doesn’t have any visibility into how profitable any given affiliate program. We track conversions, but it’s up to the individual program to do their own analysis of what is an acceptable cost of acquisition.

Also, HasOffers pricing isn’t based on how much commission is paid out to affiliates.

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By: Graham https://www.tune.com/blog/affiliate-commissions-budget-immune/#comment-2099 Thu, 08 Nov 2012 20:14:00 +0000 http://www.hasoffers.com/?p=8347#comment-2099 Perhaps one could reduce the amount they pay Has Offers per month in relation to the profitability of their Affiliate channel? Could be simpler that annoying a few hundred hard working affiliates.

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By: chazborn https://www.tune.com/blog/affiliate-commissions-budget-immune/#comment-2097 Wed, 07 Nov 2012 19:16:00 +0000 http://www.hasoffers.com/?p=8347#comment-2097 nice explanation – thank you. It’s the age old problem that many hands often make a sale – and that raises commissions. So there are reasons – I’ve experienced them in other sales channels – see your point. Now – the solution! Will be interesting to follow that discussion.

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By: Alistair Lattimore https://www.tune.com/blog/affiliate-commissions-budget-immune/#comment-2095 Wed, 07 Nov 2012 00:00:00 +0000 http://www.hasoffers.com/?p=8347#comment-2095 Great explanation Jake.

I can appreciate the issues a business faces with managing their affiliate program but I’m not convinced adding all the additional complexity into the system would yield a long term benefit.

For example, while on paper using weighted attribution or some other method to better allocate commission to the relevant participants – the longer term view is that overall system complexity increases.

A business might find that while on paper it makes sense, that long term is is detrimental to the affiliate program at large as existing or new affiliates are scared away or are reluctant to sign up because they don’t know what they’ll earn for their efforts.

Trying to explain to two quality affiliates that affiliate A earns more per sale because they were further up the funnel compared to affiliate B who was further down the funnel would be difficult at best, nigh impossible and trying to be transparent with that would also be quite hard.

Next up I’d imagine that very few ecommerce platforms would support paying commissions to several or potentially unlimited participants in a transaction, if you were to walk the weight attribution path.

What experience have you had trying out different possible solutions to this problem?

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