Case study: US v. UK magazine affiliate programs

[Azam.net]

One of my specialisms is magazine affiliate programs and I have sold hundreds of subscriptions online since I started in 1997.

In the US a typical commission rate for affiliates is 30% on magazine subscriptions. The stingiest magazine specialist stores might offer 15%-20% - but only the real suckers bother linking to those stores because 20% commission is considered an insult Stateside.

In the UK we have three magazine sites with affiliate programs: UKSubscribe (CJ), GreatMagazines (TD) and WHSmith (TD). Their commission rates are... 5% to 7%! Postal costs are higher in the UK, appreciate that, and therefore the profit margins are not as high, but there is a massive difference between 30% and 5% to 7%.

Not only that, but neither UKSubscribe nor GreatMagazines even have deeplinking options to individual magazines.

They only have about 200 magazines on their sites (WHSmith, far less). Most of the US magazine subscription stores have 1000+

And, oh yes, the EPC of UKSubscribe at CJ is one of the lowest for any affiliate program we belong to.

The US magazine subscription sites not only pay better and have far better conversion ratios, but they have deeplinkng options and dynamically-updated links which feature latest covers of each magazine. UK subscription sites often show cover of magazines from 2003.

I know people are interested in spyware etc. but you should also take action against how poorly we are often paid by many UK affiliate programs. 50p on a magazine subscription is a joke. Rip off Britain is still alive and kicking in 'affiliate' marketing! Fight for your rights and don't just be grateful somebody is giving you the honour of linking to their stores for 50 pence - if you generate a sale/their tracking works/order is not made via the telephone number plastered all over their site.

[UKsubscribe.com]

Hi Nadeem - as an affiliate I've worked with back in the old emagshop days and now through to consultancy for UKsubscribe I know of your frustrations between the UK and US subscriptions model

The US subscriptions market is far more mature and far greater than that of the UK, comparatively speaking. To grasp the size of the market in the US for subscriptions take a look at http://www.magazine.org/Circulation/...dbook/1318.cfm which shows 86% of magazine sales in the US are by subscriptions.

The UK magazine purchaser is far more tuned to buying with convenience from the local newsagent. Whilst UK publishers are investing heavily in the subscription side of their businesses there's no way that they can compete in a similar manner to the US (where subscriptions to mags such as FHM, Maxim cost less than $15 for a year).

With the size of the subs industry in the US the government is under far greater pressure to maintain cheaper and cheaper postage costs for magazine publishers, whilst in the UK there is hardly any difference between the cost of shipping a magazine by a publisher and Joe Public popping one in the post.

Enormously frustrating? Yes, but it's a catch-22 I'm afraid. However! Most subscriptions are now discounted by 20-25% dependent on the particular publisher, with even great savings on Direct Debit subs. The market is in transition, but it will take time.

UKsubscribe.com aim to keep all magazine covers as up-to-date as possible and we DO have a datafeed available at http://www.uksubscribe.com/catalog.csv.

Just give me a shout if you have any questions.

Thanks

Ian

[Azam.net]

Thank you for your feedback Ian. I know you've been in this field for a long time and know more about it than almost anybody else.

I agree that postal costs are higher in the UK and that's why I mentioned it in my original post.

Still doesn't justify massive differences in commissions between the UK and US. Before affiliate marketing I spent four years working as a journalist for a magazine. We would earn thousands of pounds for a b&w quarter page advert. Advertising is what pays the employees wages, not cover price. Many magazines you can been given away for free and they would still turn a profit. Companies like EMAP are making millions of pounds in profit on their magazine subscriptions. Therefore 5-7% commission on cover price, IF the sale goes through and tracks, for affiliates doesn't seem fare. We're not getting a big enough piece of the pie.

IMHO the magazine industry in the UK is too cosy and not dynamic enough. Need more people like you Ian. Like you say, they still haven't got their online subscription efforts into full gear. Many employees of magazines I know didn't get their jobs because of talent, but because they or daddy had a contact at a particular publication.

Still, if that's the going rate in good ol' Blighty then we'll focus on the US market. Choice A: 5-7% commisson, Choice B: 30%. Which one would most people put their efforts into?

One thing I must praise UKSubscribe for is the speediness of support for their affiliates. I emailed Ian on Sunday evening and got a reply almost instantly That's why we prefer UKSubscribe to the others.