
Having just ordered a few warhol pictures for the office, I thought I would check the source code to check that the transaction had processed correctly with the affiliate network.
Here is the output.
<img src="https://tbs.tradedoubler.com/report?organization=1165557&event=73083&
orderNumber=A0036622286&orderValue=95.29¤cy=GBP&checksum=*&reportInfo=*">
The important part to take from the above TradeDoubler code is the order value of 95.29. This is the net value, i.e before VAT and Shipping has been added, and thus is the commisionable amount for the affiliate in this instance.
There is therefore an obvious benefit to affiliates to partner with those merchants who pay on a gross basis, however I'm not sure if the gross paying merchants actually shout about it enough or whether affiliates are even aware.
| Item Subtotal | £ 119.11 |
| Coupon/Discount | -£ 23.82 |
| Shipping | £ 20.39 |
| Total before VAT | £ 115.68 |
| VAT [product & shipping combined] | £ 20.24 |
| Order Total | £ 135.93 |
In the quest for ongoing transparency it would be great if merchants and their partner networks clearly stated whether stated merchant commission include VAT and / or Shipping, if it did in my example we would be getting commission on the gross value of £135.93 and not the net £95.
Brings me back to this thread nearly five years ago.
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Back in 1999 I founded affiliates4u to facilitate relationships between members of the affiliate marketing community. A community which helped shape the industry in a positive light.
Starting like many affiliates at home, by building a vast array of websites in sectors including gaming, finance and retail, I partnered with a number of freelancers which help to build value –add websites, often working through the night whilst juggling jobs, ranging from customer service at Orange to the local abattoir!
My work included organically listed SEO driven websites which were listed well within both Google and MSN search engines. We were once listed no.1 for the terms ‘shopping’ ‘loans’ ‘flights’ ‘computers’ and ‘finance’.
Through partnerships with those who complemented my skills we also developed in-house paid search technology to facilitate automated Google Adwords activity way before the Google API was established.
After dabbling with consultancy for start-ups in Affiliate Marketing, where I helped establish the first dedicated telephone tracking solution to stop leakage in 2002 and driving affiliates sales for one business to over 70% I founded Existem Ltd in early 2003. By the end of that year we moved into serviced offices in central Bristol.
Here we developed more technology driven websites within the loyalty sector and have steadily and organically grown the team to eight in our Bristol office.
In 2006 we established our affiliate marketing agency, Existem Affiliate Management. Later that year we partnered with Mark Russell and Bruce Clayton and still hold a good investment and involvement.
In 2007 we invested a six figure sum in the launch of a4uexpo.com, Europes very own Affiliate Marketing Conference & Exhibition. We still organise local networking events across the UK and Europe for the community, and look forward to exapnding these to Europe and possibly further afield.
As an entrepreneur and Managing Director I look after the talented team at existem who continue to develop value add websites, and are currently expanding our social networking sites across many niche verticals.
Company: Existem Ltd
Matthew Wood has written 61 articles
Why would someone do that when these are added costs?
Confused….
Then again I am small-fry.
Which means my views can be taken with a pinch of sodium chloride.
Being that I feel the merchant is selling "article" xyz, and the posting and packing of same is incidental.
He is paying you for the sale of xyz, not asking you to sell his packing stuff up and putting stamps on it, and paying the VAT man his pound of flesh.
If the merchant was to pretend to pay on gross, then all they need to do is offer less percent commission, and the total cost to them is the same, and you still only get the same commission at the end of the day.
So, be grateful for x% of £95 instead of (95/135)% of x% of £135 which is the same amount of dosh. Assuming the merchant does not want to pay more than that absolute amount whichever way they, or you, chose to describe its calculation.