Next Affiliate Program - The Facts

[John Jupp]

Retail Sales Slow As Shoppers Tighten Belts In February |Sky News|Business

I think the pressure behind it all Jess is that High Street labels are suffering. Clothing for instance has fallen for a fifth month in succession despite massive discounting in January. Next has 400 stores in the UK plus others overseas under franchise. Over 50,000 employees. Of course they are feeling the pinch.

Stores without a significant High Street presence are able to weather the high consumer taxation better. Individually they don't turn over anything remotely as much but their overheads are significantly lower meaning commissions remain significantly higher.

Now a simple admission from the merchant that stormy waters were ahead of them would have cut more ice with affiliates, particularly when commissions were savaged at the high point of the sales drive, rather than the way things were handled. However what has been done has been done so now Next need to re-assess their marketing.

It'll be interesting to say the least, to see how they turn things around and what role the online marketing channel will have in reviving corporate fortunes. Their High Street presence is sapping their productivity and wealth. Store closures ahead?

[Qui Gon Jinn]

I don't know if we can draw any time lines or parellels relating the the share price over the past year & when chanages whether it be agency or commissions or fraudulent sales

NEXT Share Price Chart | NXT.L | GB0032089863 | Yahoo! Finance UK

Techworld.com - Identity fraud hits NEXT Directory site

It certainly hasn't been great since November, or whether is is reflective on the market or sector, even if so have others adopted a commission reduction trend? I don't engage in the dynamics of share prices.

[8601cam]

Dear all,

For purposes of clarity and to ensure there is a distinction between real affiliate concerns and the fact that this thread may bring less reputable affiliates out of the woodwork I would like to reply to Utterfly's (aka Denys Oshtashko) previous comments.

In short, no one questions direct type in traffic for domain owners. We do not however, expect an affiliate to serve pop-ups on these domains automatically dropping affiliate cookies for merchant programmes.

As one of our many communications to you explained:

"Popunders per se are not restricted by networks although may be restricted by merchants T&C's. In this instance you are not serving popunders containing your affiliate links to solicit engaging your traffic and thereby securing possible valid clicks and subsequent sales. Your popunders are forcing clicks and redirecting via your affiliate links to Next, thereby dropping a cookie on the users machine. This is against the network code of conduct. Not only does this approach violate network principles for valid affiliate traffic it hijacks genuine traffic and any subsequent sales that are either merchant direct or possibly belonging to genuine affiliates".

I think that kind of says it all really, your suspension from the network through this activity was inevitable. The 13K commission this generated for Next alone was naturally returned to the merchant.

Before you deny this activity or cite a one off incident perhaps others might wish to experience something similar from one of your parked domains, the format of which may be recognisable to those who have surfed the web. Pop up occurs with explorer.

lala.co.uk - complete Internet resource dedicated to lala

New merchant, new network, same old tricks.

Kind Regards

Mark

[Cheapdvds]

nice one busted

[John]

Originally Posted by John Fiona - Would you be able to provide a list of programs currently managed by i-level, so I don't accidently end up working with you on a different program?

Fiona, to give you the benefit of the doubt, you must have missed my question first time around - Is it possible to have a list of all the programs i-level manage?

[3wdl]

I wanted to say well done to Fiona and i-level for opening further communications on an open forum with people in the industry.

I've not been close to the program so am not going to comment about it but it can only be good news moving forward that dialog has been opened this way.

We are not always, as individuals, going to agree on everything but at the end of the day affiliates have the ultimate choice over who they promote and hopefully by communicating along these lines all concerned will start to see the program regain some of the respect that earnt it the a4u award in the first place. It seems this has already started by the form being changed to take out some of the intrucive parts that have raised the concerns in the first place.

[hpops]

Originally Posted by 8601cam I think that kind of says it all really, your suspension from the network through this activity was inevitable. The 13K commission this generated for Next alone was naturally returned to the merchant.

Many thanks for that Mark, I had thought it sounded somewhat incredulous. Odd that you're the only network posting. Particularly as its without self-interest. Looking forward to launching new programs with you guys soon

[mainlime]

Hi everyone.

I've been keeping out of this Next debate because I'm just a noobie and I obviously don't know what I'm talking about but there's a question that's been nagging me throughout and I thought I ought finally to ask it. I know I'm risking putting a large number of cats amongst a large population of pigeons but I'm hoping it'll be taken as an innocent question and I won't get torn limb from limb for it.

My background is as an employee for a merchant who launched (badly and unsuccessfully but that's another story) an affiliate programme. I know some of my less internet-savvy colleagues were a bit perplexed by this whole forum to start with ("funny" usernames etc) and thought it sounded a bit unprofessional. If they'd found themselves reading the dressing down Next have been getting I imagine them running away from spending any money on affiliate marketing. Why would they want to risk their name being dragged through the mud in the way that Next's has been?

So my question is this : "Does having this debate in public about Next and i-level harm the professional image of the affiliate marketing industry?"

PS Remember the bit about not ripping me limb from limb

[philhancox]

Originally Posted by mainlime So my question is this : "Does having this debate in public about Next and i-level harm the professional image of the affiliate marketing industry?"

Personally, I think it can only improve the image of the affiliate marketing industry as it is showing it is just that - professional. Merchants need to understand that affiliates are professionals, not kids in their bedrooms with a website or two. It can only show merchants that they need to be fair with their affiliates and understand that they are an extension to their marketing team, that they are experts who maintain enviable SEO and PPC positions as well as loyal users who trust the words of affiliates and buy what the affiliates recommend. Brands mean very little when you have a large amount of visitors/subscribers who will either buy from Merchant A or Merchant B - and that decision is up to the affiliate, not the strength of the brand. My two penneth.

[D-Mac]

Most people agree that 2% commission is insultingly low for a fashion merchant. However, we are frequently reminded that the programme converts very well, and therefore has a very good EPC. This does soften the blow of the poor commission rate.

Anyway, I thought I would check the maths.. (please ignore me if I have got the sums wrong)

Originally Posted by fionah Next’s average conversion rate is currently around 6% and has an average basket value of £110 which is very competitive for a retail program.

Average basket is £110, therefore at 2% commission, the average commission is £2.20. The conversion rate is 6%, giving an EPC of 13.2p (100 clicks brings in 6 sales, with a total commission of £2.20 x 6 = £13.20. Divide this by 100 for the EPC of 13.2p).

Originally Posted by fionah Next bonus affiliates £6 for directories ordered with flexi account through the transactional program. On average 8% of sales result in this bonus.

My 13.2p doesn't factor in the £6 bonus that is paid on 8% of sales. The true conversion rate for this is 8% of the original 6% conversion rate, giving a rate of 0.48%. Therefore for each 208 clicks, you get an extra £6. Divide £6 by 208 and you get an EPC of 2.9p

Add this 2.9p to the original 13.2p and you have a total EPC of 16.1p.

Originally Posted by fionah Next’s EPC is currently 34p with Buy.at which is 82% higher than major competitors.

This means that the major competitors have an EPC of 18.7p, which is actually about 15% higher than my calculated 16.1p for Next.

So is it 16p or 34p? It makes quite a difference.