Voucher Codes. Merchants Read This.

[drivetowin]

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i think there are plenty , but keep out of the discussion due to the fear of others that just rubbish their comments

I would hope that no one is just rubbishing others comments - but equally people can't post an unfounded diatribe and not expect a reaction.

There is a valid argument to be had, but it needs to be based on fact and not conjecture.

Noticeable as well that in all these threads, networks (and most agencies and merchants) are distinctly absent from the conversation - come on guys (and gals) let's hear your views on this too.

[loquax]

Just seen this from Dotty P

Dorothy Perkins have taken the decision to reduce commissions for voucher and discount code affiliates to 2.5% from the 1st July 2008. Dorothy Perkins do want to work with voucher and discount code affiliates, however it is no longer viable to pay full commission for a high volume of sales where a discount code is used.

Anyway we can argue who's ethical, honest, unrevealing and revealing until we're as blue as a Smurf version of Roy Chubby Brown, but unless a network(s) decide to comment and clarify what's good/not good then the issues will not be resolved.

Jason

[Cheapdvds]

Noticeable as well that in all these threads, networks (and most agencies and merchants) are distinctly absent from the conversation - come on guys (and gals) let's hear your views on this too.

thats easy , voucher sites make networks too much money for them to rock the boat

[hpops]

Anyway we can argue who's ethical, honest, unrevealing and revealing until we're as blue as a Smurf version of Roy Chubby Brown, but unless a network(s) decide to comment and clarify what's good/not good then the issues will not be resolved.

Jason

And thats the reason why I'm not commenting on these threads - I can't understand why no network has really weighed in here, it is a big big issue.

[Barry]

I must admit, I do earn a fortune in comparison to what salaries are available in my area, I can afford employ my mum and my girlfriend (I will not underpay anyone who works for me!!!) on the money I make from my voucher code site. And I can also afford to improve the quality of life for many more members of my family and close friends.

Its obviously not good for me as a voucher code site to hear that Dorothy Perkins (especially as they never have allowed codes outside the affiliate channel,) like many other sites are reducing or eliminating the commission available for voucher affiliates, but it also doesn't address the leakage that many content affiliates feel they are suffering.


Like I said in another thread maybe to stop this 'leakage' merchants could set the last referrer before customers enter the checkout stage? I am sure this would be a happy medium would it not? There for if a content affiliate initiated the sale and the user tries to look for a voucher (when prompted at the checkout stage) then the original affiliate still gets the sale. But if a voucher site sends a user over armed with a voucher initially then they are rewarded the bounty as normal.

Ta

Baz

[befuddle]

Hi Jason, several merchants offer a reduced commission for discount code sites. What I will be keeping my eye on here with Dorothy Perkins, is what happens after July when the discount code has expired.

If a discount code is not being used to send traffic to a merchant then they should receive the same commission as someone who sends traffic via a Wordpress blog.

I'm currently successfully promoting the Dorothy Perkins Sale and just because I've got the word 'code' in my 'shopcodes' domain, shouldn't be punished for that.

Here's where some of the traffic arrives

1. free delivery dorothy perkins
2. dorothy perkins sale
3. 50% sale
4. dorothy perkins
5. dorothy perkins shop sale
6. money off dorothy perkins
7. discount dorothy perkins june
8. dorothy perkins free delivery
9. dorothy perkins money off
10. free delivery for dorothy perkins
11. free delivery from dorothy perkins
12. £5 discount at dorothy perkins
13. 10 % off dorothy perkins
14. 20% discount at dorothy perkins in june
15. dorothy perkins .co.uk
16. dorothy perkins offers
17. dorothy perkins online uk
18. dorothy perkins recent discounts
19. dorothy perkins sales
20. dorothy perkins summer sale in store

I could easily not promote their sale and just ignore all their end user offers.

Thomson Holidays reduced their commissions from 5% to £5 for code sites, which was a 90% decrease in commission, far worse than anything other merchants did. They also didn't provide any codes, it was just a blanket reduction in commission.

Webgains and their voucher manager tool can manage invalid code use. They specify say that if particular codes are used that weren't intended for the affiliate channel, then the sale will receive 0% commission.

[stu-art]

Like I said in another thread maybe to stop this 'leakage' merchants could set the last referrer before customers enter the checkout stage? I am sure this would be a happy medium would it not? There for if a content affiliate initiated the sale and the user tries to look for a voucher (when prompted at the checkout stage) then the original affiliate still gets the sale. But if a voucher site sends a user over armed with a voucher initially then they are rewarded the bounty as normal.


Baz

Very good point. Would also encourage code sites to target visitors earlier in the buying process.

[Barry]

Yeah was well gutted about Thomson here, I sell about 3 million of holidays for them a year - and not all through my voucher site, however because I have a voucher site in my profile it was 30,000 grand down the drain.

Still the nice big expedia advert on their page seems to do quite well in pushing traffic to a more profitable destination.

Must add though, I did get a couple of hundred bonus off them this month though its still locked at the moment.

Ta

Baz

[befuddle]

Very good point. Would also encourage code sites to target visitors earlier in the buying process.

See my above point about Dorothy Perkins. I promote their sale, as do the larger code sites. Code sites ARE adding more content.

So code sites are receiving healthy converting traffic for code AND non-code content.

That's why I encourage content site owners to do the reverse.

[loquax]

I'm currently successfully promoting the Dorothy Perkins Sale and just because I've got the word 'code' in my 'shopcodes' domain, shouldn't be punished for that.

I fully agree with this - and I've emailed Awin for an answer as I have a discounts section - but also other sites that may promote a sale or lingerie or whatever.

If my user is using a discount then ok sort out commission accordingly, if they're not then pay the full amount - that should be feasible I'd have thought?

[Barry]

If they only allow us to promote vouchers in the affiliate channel anyway can they not work it into their profit margins in order to still make money?

Maybe the shareholders need a little more pocket fluff.

Ta

baz

[stu-art]

See my above point about Dorothy Perkins. I promote their sale, as do the larger code sites. Code sites ARE adding more content.

So code sites are receiving healthy converting traffic for code AND non-code content.

That's why I encourage content site owners to do the reverse.

Some code sites are adding more content. Some just stuff more keywords.

I see where you are coming from Ray but that's not really what I had in mind when i said "earlier in the buying process". I was referring to visitors who don't yet have a store or brand in mind yet. This is the point at which many content affiliates (in their various sectors) add value, advice and money saving all in one hit.

Early in the buying process (within the context of this thread) for me personally means "discounted clothes and fashion" not "Dorothy Perkins sale".
Stu

[monkeynuts84]

I think you're missing the point - merchants are paying out a lot of unnecessary commissions for sales they were going to get anyway.

without thought nor favour for the many hard working affiliates out there[/QUOTE]


No, I'm not missing the point. I worked in a marketing department for a large high street chain with multi-channel marketing. The average budget for advertising was around £170,000 per month for one channel alone. We move from traditional methods to using affiliates which reduced the cost to £65,000 per month. Regardless of what you think about commissions, affiliates bring high traffic at a low cost. Companies are getting savvy to this and are prepared to take a hit on lost commission when it comes to saving thousands of pounds in advertising.

That said, I totally agree with your point about advertising codes, setting a cookie then sending the potential buyer to a page with no discount info on it. I saw this happen on one of the UK's biggest sites today.

[Hero]

blame the networks for not participating to the 5 page long thread - do you know how much time it takes to go through all these pages?

This thread very much reminds me of another thread back in a wet October 07 weekend, only in reverse - a newcomer was an avid supporter of voucher sites and their dodgy tactics - of course, it wasn't a newcomer but just a new alias. Oh well

Who says that networks don't give a damn? Who sat down at last year's a4uawards to discuss with affiliates? Who discusses these issues at network roundtables? Who develops new tools to address as many of the issues surrounding voucher use? Who advises the merchants on how to best work with voucher sites?

The vast majority of networks have taken a stance - click to reveal offer when no offer is available/has expired is not acceptable (provided an expiry date has been provided). Iframes and pop unders are not acceptable. Popping the merchant site when clicking to reveal the code is examined on a case by case basis.

For everyone's information - networks get paid an override on the affiliate commission. Voucher sales tend to be paid on lower commission. Therefore, we actually make less money per sale. Sure, volume might balance it out, but so would breaking ppc policies, allowing spyware etc. No network with self respect allows for these to happen so they can make money.

As for the analysis done without any backing or proof - I can claim whatever I want about any topic I want. Unless I can prove it, my gut instinct does not mean a thing. My gut instinct tells me that merchants lose sales when a code is not valid. Can I prove it? Well, I sure know that when I find a code for the same product from another retailer, I do shop from the other retailer. There's your proof. Was I looking for a code after I made up my mind on where to buy from? No, I decide what I want to buy and then find the best place to get it from. So, the voucher site who gave me the code has actually influenced my decision (but that's just me, I'm obnoxious)

That statement "sales you would have got eitherway" makes my stomach turn - I hear that a lot by merchants who don't engage in their own ppc brand activity as well. I have resolved in nodding with a smile nowadays and move on.

Here's a thought for everyone out there disputing the importance of customer incentive sites - why are all retailers so looking forward to the sale season? By the aforementioned logic, the customer is determined to buy from them eitherway and yet we see a soaring number of sales during the sale period... same for vouchers - merchants offering them do better nowadays than those who do not. Why? Cause people aint stupid any more

:scared

[fizzbird]

As I've said though, people will visit code sites, use their codes and not click links.

Surely not? Whatever next - people browsing in shops and walking out without buying anything?