30% jump in affiliate transactions without 30% increase in turnover, what's going on?

[Orchid]

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Hi

A client's site is showing a 30% increase in Affiliate transactions without a corresponding 30% increase in turnover, Turnover has increased but not by 30% probably closer to 10%. This change has taken place over a couple of months. Programme has been running about 6 months.

What's going on? It's like we are paying out on sales that would have won anyway - but I don't understand why.

Brand Bidding is restricted to one co-operating partner who is willing to share stats and prove that he reinvesting some of the Brand profits back into generics, generics are open to all, and the client allows brand to be shown in the display URL of all ads.

The campaign is running on Affiliate Future. Does anyone have any suggestions as to what is going on?

[Keith]

any number of things can effect sales, without knowing more about the sector the site is operating in any feedback would only be speculation

one possible answer is that the past couple of months is a traditional slow period for the merchant and they wound normally be on 80% of average turnover but the 30% rise in affiliate generated business has actually resulted in an increase in turnover

[Orchid]

I see your thinking but I don't think its that - the sector is gardening supplies and therefore this is the busiest time of the year.

Should perhaps explain that in this sector because it is so season - increased turnover isn't compaired month on month - but this month this year against this month last year.

ie turnover is up 10% on the turnover this time last year but affiliate transactions are making 30% of total transactions - however we don't think Natural Listings have decreased any on last year.

Perhaps this is all too speclative - so I'm going set up google analytics to try and figure out whats going on - but thanks for the input anyway

[affiliatehealth]

What you have just said is not the same as your original post - so what you are saying is turnover is up 10% and affiliates make up 30% of the turnover - not what you originally said which was that affiliate turnover was up 30%

I think that while the 10% are incremental sales, it is possible that you have seen some canibilisation from other channels by affiliate sales - you don't say where your affiliate sales come from but if say they are primarily pay per click, and your client previously did their own pay per click, is it that affiliates are now getting the clicks that were previously going through your clients own pay per click campaign? - in which case have your client's pay per click costs gone down?

Without a lot more information it's only possible to make rough outline suggestions

[Orchid]

We've worked out what's going on there is a new affiliate that seems to be creaming a third of our sales. The only thing this new guy seems to be doing is putting in ads where we have existing listings and saying "www.blah.co.uk: latest offers on this type of product click here"– where blah is the client's name unfortunately though for the customer it does not go through to a latest offers page for the clients products of the type suggested but just a general one.

This seems to us to be scurrillous as he is in effect claiming to be offering our latest offers when he isn’t. Even if the customer clicks back and goes for a more relevant ad – i.e. our natural listing – he still gets the sale. All he’s interested in is providing the most eye catching ad (whether info on it is accurate or not).

We feel that we don’t want this guy working with us and don’t want to pay commission to him. However the network are warning us that if we cancel his commission they believe that the guy will flame us here (or on other forums) and damage our reputation. What do you chaps think?

[pistol101]

However the network are warning us that if we cancel his commission they believe that the guy will flame us here (or on other forums) and damage our reputation.

We just said that you can't take commission away from someone when they haven't been breaching any PPC terms and conditions. Give us a call back if your still confused.

[hpops]

Sounds like he's just doing direct to merchant PPC, which shouldn't be a problem for you - unless you express so in your terms - if you want to lose a load of sales, forbid use of the merchants url in the display url. If you want to get the guy to work better (the good option) send him some direct links, keyword lists and suggest he uses them with more creative copy. Or you could PM someone with your program who would deeplink with great ads as a matter of policy, and get them to take over his positions. - Perhaps with an additional commission bonus to establish profitability quickly. If you think your site converts - we'd be interested.

[hpops]

Pete beat me to a post, if you want to cancel his outstanding commissions, you're in the wrong game, he's spent money generating sales for you, its plain wrong taking his return away unless he's breaking the rules. Implement new rules with a decent notice period by all means (again, you will lose volume but you may decide on balance that you are comfortable with that)

[morleymouse]

What do you chaps think?

Talk to him? Get an email address or phone number, drop him a line, let him know how you feel and try and work out a compromise. If your not happy about it, but dont actually have any T&C's saying he cant do that you need to find a solution that wil lwork for both of you rather than just cancelling commission and losing potentially an affiliate who can do a lot more for you if you try and work with them

[pistol101]

Get an email address or phone number, drop him a line,

Don't worry the affiliate is going to call you later today to discuss.