Barclaycard don't get affiliate marketing

[drivetowin]

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Having now had emails from Buy.at and Smart Quotes that Barclaycard campaigns are all being pulled as Barclaycard have run out of budget, it's obvious that Barclaycard just don't get affiliate marketing (or maybe it's their agency), either way someone needs to wake up and smell the coffee.

What also really grates with me about this is that it's now Friday and yet they've only just realised they are going to run out of budget on Monday - now unless there has been a sudden unprecedented rush of Barclaycard applications in the last three or four days, why (other than 'lets bleed every last minute of affiliate activity we can get/lets maximise our override' depending on who sat on the message) could this not be conveyed to affiliates earlier this week, last week or even a month ago - you knew there was a budget, you knew you were getting close to it but you chose to say nothing.....

Some of this could be forgiveable (just) if Barclaycard were new to affiliate marketing, but they're not, so surely by now someone would have said "ah, yes, affiliate marketing, pay on results, needs a flexible budget" - and, it would appear, neither network made sure there was a flexible budget either, tut, tut, big name blinding salesmen like rabbits in the headlights again.....

Lets hope that when Barclaycard come back in 2008 someone there will have learnt that affiliate marketing is not a fixed budget spend, and if not, that the networks will say - "we're sorry, but unless you allocate a budget which can vary depending on sales, we can't take you onto our network" - sadly the last bit is cloud cuckoo but lets hope someone can educate Barclaycard between now and next year - for crying out loud, setting an affiliate budget is hardly rocket science, if small companies can do it and get it right, why can't the big blue chips get it right too.

[aotagain]

Over the years I've noticed a few budgets running out in the few months just before Christmas. Practically I guess thats when panic might set in, given many budgets start in the new year. On a more paranoid note, I can't help thinking that sometimes affiliates work generating traffic in the quiet spells and then don't get the full benefit from the busy spells.

Some merchant I think has just put commissions down to a tiny fraction on Wii.
Presumably because everyone is selling out straight away and affiliates are driving too much traffic to a sold out product which looks bad ?

I wouldn't like to think it was because the Wii are 'selling themselves' and therefore the merchant doesn't want to lose commission 'unnecessarily', because so many affs. are pushing it that a huge percentage of those sold will carry a commission, as by the time they restock there are aff. cookies dumped all over the place. Perhaps more mild paranoia on my part ?

[Azam.net]

I hear you. It is incredibly incredibly frustrating. With just one program we're losing a high four figure sum in commissions per month because they've "run out of budget for the year". And this is a company not doing particularly well and desperate for customers.

It's an education process and pity that merchants just don't get it even in 2007... lets just hope things change in years to come. But by then I'll be dead with the frustrations of working in affiliate marketing

[Brett]

Some merchant I think has just put commissions down to a tiny fraction on Wii.
Presumably because everyone is selling out straight away and affiliates are driving too much traffic to a sold out product which looks bad ?

I wouldn't like to think it was because the Wii are 'selling themselves' and therefore the merchant doesn't want to lose commission 'unnecessarily', because so many affs. are pushing it that a huge percentage of those sold will carry a commission, as by the time they restock there are aff. cookies dumped all over the place. Perhaps more mild paranoia on my part ?

I saw this email (0.5% comission I think) but I doubt it's to do with budget and I doubt it's to do with too much traffic to a sold out product - I'm guessing it is because a) as you say the thing is low on stock so they will sell it anyway and b) I think the margin on Wii is v. low.

[tbp]

With just one program we're losing a high four figure sum in commissions per month because they've "run out of budget for the year". And this is a company not doing particularly well and desperate for customers.

It really is madness when you think that unlike other forms of advertising, affiliates only get paid when they've made sales. The money to pay them comes out of the sale itself, so its not like they have to find extra money from somewhere, they get the money first before they have to pay the networks.

Why you would put a stop to this is I don't know, especially at Christmas when affiliates can generate huge amounts of sales that the merchants wouldn't get otherwise.

[jonsp]

It really is madness when you think that unlike other forms of advertising, affiliates only get paid when they've made sales. The money to pay them comes out of the sale itself, so its not like they have to find extra money from somewhere, they get the money first before they have to pay the networks.

I don't think any merchant has a responsibility to run their program with an affiliates interests in mind. Selling credit cards isn't like selling widgets where there's an immediate cash inflow per sale - there's an upfront cost to acquire a new customer, both marketing and application processing, which hopefully will be repaid over the life of the customer relationship. I read last week that Barclaycard is currently rejecting ~55% of applicants - that would be a lot of processing to acquire a small number of customers which might not make financial sense for them.

The point is it will cost Barclaycard in the first instance to acquire a new customer - ie negative cashflow. If they don't feel their business will benefit from new customers through the affiliate channel at the present time are you saying they should keep taking customers just to please affiliates?

[Qui Gon Jinn]

Interesting that we are approaching the busier period for credit cards in a few weeks & this happens, but didn't Barclaycard irritate affiliates when it was on CJ before in August & November 2004, so perhaps it was on the cards. We learned our lesson then, so avoided next time around. Does anyone remember these time warp threads?

http://www.affiliates4u.com/forums/c...reversals.html

http://www.affiliates4u.com/forums/c...ing-laugh.html

[tbp]

If they don't feel their business will benefit from new customers through the affiliate channel at the present time are you saying they should keep taking customers just to please affiliates?

I wasn't actually thinking of the affiliates side at all with this. I`ve just seen the massive boost affiliates can give merchants in the run up to christmas, offering them huge amounts of exposure at a much lower cost than traditional tv or print adverts.

I suppose it is a bit different for barclaycard, it was more of a general observation. I would have still thought they would have benefitted from the extra exposure though, especially at a time when many people will be looking for credit cards.

[drivetowin]

If there was a business reason to do it then why not close it down in a controlled manner, give it a few weeks notice and honour the cookie - not cry 'the cupboard is bare' as if the end of the budget has taken them by surprise....

No one is saying a merchant should keep an affiliate programme going if it is losing them money, clearly that would be ridiculous, but at the same time affiliates should not be treated like an old toy that can be picked up and thrown down at will - affiliates are businesses too and need to be able to plan, not have their fortunes left to the whim of merchants who cannot be open.

Just a thought on capped programmes generally - why can't all the networks do what advertising.com do (and webgains have done when appropriate) and show how many actions there is a budget for - if this was updated (preferably in real time or at least once a week) then affiliates could make more informed judgements on what to promote.

[Shane]

Barclaycard don't get affiliate marketing

they never did, probably never will and probably don't care eitherway what we think.

I reckon the problem with huge brands is they get jumpy unless they are seen to be where they normally are despite the existence of channels that convert cheaper/more profitably, so when budget constraints kick in they cut the least visible channel out and still keep throwing cash at the visible "foothold still firm in the marketplace" channels such as TV, print etc.

stupid view I guess but then again it's up to them how to push and manage their cards.. just as it is up to us to put up with their crap behaviour or choose not to promote them.

They have always given little regard to affiliates and got away with it so they won't change whilst they can still get away with it IMO.

[aotagain]

they get jumpy unless they are seen to be where they normally are

Very true I reckon. Happens in niches as well - we get it in motorsport, where the big names turn up at Autosport exhibition, paying 20,000 or more for a couple of days on a stand. But when you talk to them about paying for advertising on a motorsport website, which already has their captive audience 24/7, you'd be lucky to get £500 for a whole year. Perhaps the net is a bit grubby for the big glossy brands ;-)

Unfortunately the smaller companies also turn up there for £5000+ in a corner of the room somewhere. No way will they ever justify that in payback, but they obviously feel they have to be there. Good thing is, they are actually very receptive to the idea of 'exhibiting' on the net all year for a fraction of the cost !

[MichaelOssei]

Hi All

Just to confirm Barclaycard informed all their affiliate networks at the end of October that November activity and budget was to be capped. This was due to Barclaycard allocating a smaller % of marketing budget to all their online channels. As explained above the process of credit card applications do take a little longer to process than standard online sales. The capped budgets were introduced to allow Barclaycard to wind down the programme over the festive season allowing the client to prepare for 2008 where they plan a few changes to the application process which should benefit all affiliates.

Please note that the networks should have kept all affiliates informed of this process and Barclaycard is saddened to hear that affiliates were kept in the cold about November activity.

As a good will gesture Barclaycard will be holding a draw this week for 3 pairs of tickets to Barclays Premiership games which take place on Saturday the 1st of December .

All affiliates who have made applications this November will be entered into the draw which will be held on Wednesday 21st November.

Please check your respective network to find out how many applications you have made this November which will determine your draw entries

If you have any questions about the Barclaycard programme please feel free to contact me Michaelo@walkermedia.com

Thanks

Michael
Tel: 0207-447-7529