I was pointed to a very interesting blog post by Jesse Owen only a few minutes ago by Moose Boy where by Jesse discusses a Crazy Idea - Alternative to Cashback sites. I will quickly summaries the main points Jesse makes, but be sure to go and read the full post!
Jesse focuses around discount codes and how recently many merchants have been removing them or changing their T&C’s ensuring affiliates only use authorised codes, or face the option of reversed commissions or removal from programs. He suggested that merchants take a look at offering the possibility of discount codes, in return for the affiliate taking a drop in commissions, and whether its plausible.
Well this is most definately possible, and many affiliate may well prefer this type of offering, in order to drive large number of sales and conversions. I already have struck a deal with a merchant that is on a UK Network, whereby I have a unique discount code and have agreed to take a drop in commissions in order to offer a discount code. To take it one step further I have also a unique deal with an inhouse programme, whereby my discount code earns me commission.
By this I mean that I publish “xyz1234″ that is a unique discount code to me. If any other website wishes to come along and copy it, paste it on their website or even post it in forums they are free to do so… infact I would welcome the prospect. This is because the merchant has agreed to track sales made using my unique discount code, and therefore I pickup the commissions generated by it no matter who sent the visitor.
To me this is fair and square as to many times I have gone to the trouble to obtain unique discount codes only to find them posted on forums and such like. I have even been in touch with MoneySavingExpert on numerous occasions asking them to remove my discount codes and copied context - hat off to them they have been quick in responding.
So taking Jesse idea one step further….
Last year you used to be able to configure an Accucard (Credit Card)Â to suit your changing needs by using little slider bars. If you increase the amount of time you wanted to have 0% interest balance transfer, your APR% also increased. Imagine having the same type of thing available for merchants;
Obviously there are problems to overcome such as managing tiers, network overrides and allowing min/max discount levels but it is certainly something merchants could in the future think about. If a network was to grab this idea and run with it, I am sure it would stand them in good stead for the future too.
Posted by Chris Frost on Monday, September 10, 2007
Filed under Development, Networks
Tagged with
I like the slider if it’s not in the control of the affiliates. If it was, in theory, this is what I could do. I’d have two sites minimum. One offering 4% discount. I’d also have another site offering the full 8% discount and receiving 0% commission, to stand out.
Then when my second site, with its high volume, quickly hit its sales targets and got boosted up the commission levels, I’d add more discount and keep some back as profits.
I like this idea. However, what if a non-affiliate copies the discount codes off your page and starts distributing them on his own webpage? The advertiser would potentially be giving the discount to people who were not even referred to them by an affiliate. That is, giving the discount away for free since no commission is due anyway.
So, only visitors who have actually visisted your website should be able to use your discount code. The problem is, how can the advertiser, at the time of purchase, know were the visitor came from? The affiliate network knows this, but not the advertiser. The advertiser can’t read the cookies of the affiliate network in realtime.