What to do?

[Matthew Wood]

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Michaels advice is actually quite sound. Though I do feel the network in question has let you down somewhat, I wonder if the 2nd network knows about their non payment to you.

I would try both the network and an email to the MD before going To the small claims court for the 'confirmed' commissions at least.

[lethal0r]

any luck scriptmonkey?

[scriptmonkey]

Ah, yes, despite an unusual enormous rejection rate, I got just over half of it, which is better than a kick in the teeth

[lethal0r]

are you going to keep quiet on naming them? did you have to do all the work yourself or did the network help?

[scriptmonkey]

It's not going to make any difference naming them, the network helped me in badgering the merchant.

[MonetiseDave]

I think there is one thing missing from this thread - credit insurance.

We cover all of our main advertisers with credit insurance so, if the worst happens, we can at least still cover affiliate payments (and we do this to normal timescales - not wait for the insurance payout).

Other advertisers are either pre-pay (so, no issue), or are running pretty low balances that we would cover ayway (althought these are credit-checked too).

This way, we guarantee affiliate payouts are made 100% of the time, and without delays regardless of advertiser payment status.

So, the question is, does the network have credit insurance on the advertiser/merchant in question?

[Hero]

We cover all of our main advertisers with credit insurance

But not all advertisers then?
Credit insurance tends to either cover off a certain amount, or be quite expensive to be unlimited, which makes it unaffordable even for large networks.

Additionally, and this is where things get tricky, if the network contract is with an agency rather than the client, and the client goes bust, what happens then?

Credit insurance also does not cover off circumstances where the client hasn't gone bust but, for whatever reason, they're not paying their invoices to the network. So in the specific case that opened this thread, it wouldn't kick in.

Everyone credit checks the client before they go live and there's frequent updates on their financial credibility - but are they actioned on time before things get out of hand and with a view to protect the affiliates, that is the question.

[MonetiseDave]

But not all advertisers then?
Credit insurance tends to either cover off a certain amount, or be quite expensive to be unlimited, which makes it unaffordable even for large networks.

Additionally, and this is where things get tricky, if the network contract is with an agency rather than the client, and the client goes bust, what happens then?

Credit insurance also does not cover off circumstances where the client hasn't gone bust but, for whatever reason, they're not paying their invoices to the network. So in the specific case that opened this thread, it wouldn't kick in.

Everyone credit checks the client before they go live and there's frequent updates on their financial credibility - but are they actioned on time before things get out of hand and with a view to protect the affiliates, that is the question.

Hi Hero,

No, we do not generally credit-insure very low-volume advertisers, but still offer a 100% guarantee of payments (and on-time payments) to affiliates because we are happy to swallow any issues at that level (if they haven't pre-paid).

We use the largest credit insurer in the world (I believe), and although it is a cost, it is a cost we can factor-in to spread any risk from the advertiser side. Can't see why this can't be scaled effectively to larger networks, but I am no insurance expert - it is simply a cost we are prepared to pay as a network to ensure that our affiliates are covered.

Also, our policy does cover any eventuality where a advertiser doesn't pay providing they have agreed cover and the collection procedure has been adhered to - a company does not have to go into administration, etc to be able to make a claim.

I am happy to provide details of the company we use by PM if you would like to check them out to see if they can help you too.

This is how we can guarantee that our affiliates get paid (you wont find a single affiliate of Monetise who hasn't been paid for valid traffic).

If we have an agreement with an agency, then it the agency who enter into the contract and who are liable for payment instead of the advertiser - it shouldn't be the affiliates who end up paying.

Hope that clarifies how we work and why I sometimes think networks can do more to cover affiliates.

Thanks,

Dave

[Hero]

I sometimes think networks can do more to cover affiliates.

I agree

I wasn't directing this specifically for Monetise to explain what they do, btw. I just do not believe that there's any protection against a company the size of Tesco's as an example going bust. Most networks have paid significant money out of their own pockets covering payments to affiliates, which are not known or acknowledged but taken for granted - especially those prepaid accounts are high risk for networks' bank balances if not monitored tightly and vigorously.

I will ask you this though Dave: "our policy does cover any eventuality where a advertiser doesn't pay providing they have agreed cover". What prevents the advertiser from abusing this and not paying invoices knowing you'll recover the money either way?

[MonetiseDave]

I will ask you this though Dave: "our policy does cover any eventuality where a advertiser doesn't pay providing they have agreed cover". What prevents the advertiser from abusing this and not paying invoices knowing you'll recover the money either way?

Thanks for your reply Hero (and I know that Webgains are very good when it comes to payments), although I still have to disagree on the Tesco example. In my opinion, if you have a huge client accounting for a large proportion of your revenue, insurance and cashflow-cover should be in place with a continuous assumption that one day, the worst could happen.

Moving on to your question, well, I guess you could ask this of any company who aren't prepared to pay invoices, but I would start with:

- losing traffic capacity relatively early on in the collection process through the campaign being deactivated and the advertiser suspended

- loss of reputation within a very small industry

- collection (and possibly legal) costs added to their accounts

- possible defaults/black-marks against their credit history

- ending the business relationship with Monetise

- the hassle of dealing with our debt-recovery and legal team

etc, etc

It wouldn't be a very forward-looking way to operate!

Dave

[Hero]

I know that Webgains are very good when it comes to payments

I'll pass the compliment over to them. It's been a year since I left

edit - hmmm, I seem to have lost my signature... it was there last week, it's there in my settings, any mods available to help out?

[MonetiseDave]

I'll pass the compliment over to them. It's been a year since I left

edit - hmmm, I seem to have lost my signature... it was there last week, it's there in my settings, any mods available to help out?

Yeah, I blame the lack of signature!

Sorry about that - will keep an eye on your sig to see where you have moved to..

Cheers Hero,

Dave