Affiliating with cashback sites

**StaceyA** · 22-10-07

Hello all!
I have a meeting on Friday with some of the big boys in the building. The topic, joining a cash back site as a merchant in the finance sector. I'm very keen to hear everyone's views on the subject i.e the PROS and CONS before attending. I've been reading a few posts today on the topic and most feedback seems to generally be quite good, although I would like those of you to come forward if you have experienced a problem just so I know what to watch out for. Also which is the top cash back site to be on and how difficult is it to sign up and get your product out there?

I look forward to your comments.......

**KevinEdwards** · 23-10-07

Hi,

Establishing a definite set of T&Cs is crucial. If your programme pays on application you shouldn't be in a position where you try and claw back commissions should you decide the quality of the applications is poor.

I'd be wary of offering a per application model on cashback anyway - these are open to obvious abuse. With cashback/incentive traffic I'd recommend a harder action. That's not to say cashback sites offer poor quality, in general this is quite the contrary, but it's naive not to have a policy on working with incentivised traffic.

Quidco is without doubt the cashback success story of 2007 but you'll need some compelling, unique offers to secure preferred placements in their on-site promotional areas.

**chrismockford** · 23-10-07

Hi Stacey,

For cashback sites I believe the PRO's very much outweigh the CONS which with tight restrictions can be made negligible.

I would suggest that one of the biggest PRO's of affiliating with cashback sites is that if you are not appearing it is likely your direct competitors will be and they will in return be receiving increased traffic

In terms of limiting any possible problems particularly for financial merchants perhaps consider using an extended payment terms period - this means that the less ethical consumers out there cannot take the product/ policy and cancel shortly after still expecting the cashback.

As Kevin rightly put to get the best positions on the bigger sites you will need to offer something that they feel will be compelling to their customers.

Cheers

Chris

_____________________
Chris Mockford
Affiliate Development Manager
buy.at
chris.mockford@buy.at
02072998393

**StaceyA** · 23-10-07

Thanks for your comments guys I think I'm starting to get an idea.
There is one thing I'm quite concerned about though.......
The company I work for has quite a large database of affiliates and we are also with 4 aggregators. I'm worried that the consumer will research else where then go to the cash back site to buy. Is there any way to avoid this happening? Do you think we would be cannabilising sales we would have generated anyway?

**drivetowin** · 23-10-07

To turn your question on its head, isn't there a danger that people will buy via the cashback site anyway, but finding that you are not there, buy from one of your competitors instead?

**StaceyA** · 23-10-07

Agreed definitely when you turn it around.

**Shane** · 23-10-07

as keith alludes to, I think the focus isn't so much merchant orientated it's more user orientated.

you are either a cashbacker or you aren't and a big percentage of those that are make their buying decisions with a high "can i get cashback and if so how much" factor to it so yes.. they'll see a product and service they may need even in print, tv, or hear it on tv or radio and then zip along to their cashback site of choice (or search for "product name cashaback" and join one)

whereas non cashbackers think it's hassle or too good to be true etc.. so just don't bother and base their buying decisions on price, quality, service, brand etc...

so I'd say it's more a case of being visible on another channel than it is diluting sales you would already have got. as you probably wouldn't make a large percentage of those sales to those that use cashback sites anyway as their mentality is "get something back for everything" orientated.

**StaceyA** · 23-10-07

[QUOTE=chrismockford;349220In terms of limiting any possible problems particularly for financial merchants perhaps consider using an extended payment terms period - this means that the less ethical consumers out there cannot take the product/ policy and cancel shortly after still expecting the cashback.]

So other than the less ethical consumers trying to cancel an order or policy and still claim the cash is there anything else I need to be aware of? Just so I'm prepared for every scenario.

**sgpratley** · 23-10-07

That's about it really, as long as your CPA is tied to actual revenue generating activity (i.e. a sale of some sort), then the only other issues are ones you'd experience with any other affiliates.

One thing to note is that cashback sites live off their member bases, and that means they drive a lot of their business through email marketing.

Make sure you have something suitable they can just top & tail which complies with all the legal regs for advertising your product. Give them approved copy and creative for the site also.

All the big sites work with credit cards, insurance, and other financial products so they'll be well used to it.

**Tel** · 23-10-07

Afternoon,

Not sure if this has been hinted at, but I would ensure that the actual commission payment that you make, works back to your target CPA. The quality across different affiliate types can vary and therefore your CPA (or CPwhatever) should vary too. For example Lead Gen in finance can sometimes (waiting for the lash back...) be of a lower quality and your commission payment should reflect this. This may also be the case for Cashback affiliates.

However if your commission is fixed by quality and different cashback sites give different percentages back to users, the user will go to the cashback site who pays the most. Hence the success seen this year by some affiliates in particular...

Col.

**StaceyA** · 25-10-07

Hello Again
There is a really interesting article in the NMA (18.10.07) pg 23 about Cashback sites! Anyone else read it?

**StaceyA** · 25-10-07

Does anyone know if the average cashback site user sticks to one site and becomes a loyal member or if they join several sites and shop around before purchase?

**dalejg** · 26-10-07

Hi Stacey,

As a user of one cashback website i tend to stick to it only because im abit lazy to look at all the others. I heard good things about quidco and most sites say it gives the best cashback so i tend to use only that one.

Most people tend to stick with one unless they cannot find for what they are looking for on that site, then they might sign up with others to see if they have the product they are after.
If i was in your shoes, try and get with the ones you think are most popular and go from there.

Dale