Web Affiliate Marketing Blog

Sadly DGM have announced that the 30 odd JDW programmes will be suspended as of next Thursday, and understandably a lot of affiliates are disappointed by the decisions.

What has really surprised me is the reacion on the A4U Forums and how people, some of them long standing in the industry, are missing the blindingly obvious. Initially when a programme is suspended as they have “run out of budget” it is very hard to understand, as the majority of affiliate marketing works on a per sale basis.

In the normal scenario, a merchant will only pay an affiliate when a sale is made, and this is a very simple win win business model. However it is important to remember that not all programmes operate in this way.

JD Williams business model is somewhat different. In the majority of cases, they do not generate any money when an affiliate makes a sale because they are acquiring a debt as they are a “on credit catalogue”. For this business model, the normal scenario doesn’t apply to this, and a handful of other merchants.

I’m disappointed by the initial knee-jerk reaction by affiliates in the thread, where people are having a pop at the network involved. Sadly some of the posts have been made without reading the announcement in full. First of all some people are complaining that a weeks notice hasn’t been given by email - only for a few minutes later (7 days before the programme ends) and email arrives.

I think sometimes (and I’m just as guilty at times as others) we need to take a step back, think about it, absorb all the information before we go hell for leather. In this case, DGM are 100% not to blame so why have a poke at them?

Over the past few months after winning the contract from CJ (thank goodness), they have worked long and hard to ensure cross tracking for all 30 programmes worked. This not only takes time and effort, but the amount of money and resources required doesn’t come cheap either! Then the merchant goes and drops you in it, despite trying numerous alternatives in order to keep the programme live.

DGM aren’t going to be happy with the outcome after everything they have done, but sadly DGM are not the Chancellors of the Exchequer and so couldn’t not have predicted the credit crunch and how it may impact the AM industry. Sadly, people have questioned DGM, question the advice given to JDW when it is obvious to me, they don’t understand the business model the merchant is using.

Think about this from a network point of view;
- As a network you spend time and money winning a programme who then decides that with the credit crunch and the current financial cock-up, they wish to pull out of the AM industry. Would you try EVERYTHING possible to retain the programme?
YES

- If the merchant still decides to pull out of AM should the network be blamed?
NO

So why have a pop at a network?

Some are saying that DGM are their last resort for a network. So what? Personally I don’t give a toss! I have my last resort network and I’m sure out of a sample of 100 different affiliates, then “last resort network” will be evenly spread! However action by a merchant shouldn’t reflect badly on a network.

Lets remember we still have a 30 day cookie which hasn’t always been the case!

<–Rant over–>
During the making of this post, no DGM back handers were received. DGM are not my favourite network nor are they my last resort network.