Domino's Pizza - Grrrr!

[redspan]

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My site is sending them loads of traffic which is converting into sales but they only pay commission to new customers.

I'm giving serious thought to deleting them from my list of shops.

[dougs]

We have and the same for pizzahut

Doug

[Thekla]

Hi Redspan,

I am the account manager for Domino's on Affiliate Window.

Domino's clearly state that they only pay out on new affiliates on their sign-up page here.

As much as we would love for you to stay on the programme, the decision is ultimately yours.

Kind regards,

Thekla
thekla.pallaris@affiliatewindow.com

[redspan]

Thekla,

Your terms are clear enough. Nevertheless it seems a rather cynical exploitation of your affiliates when the only reward is for new customers when it's evident that our links are sending many, many repeat orders.

/Redspan

[jessnathan]

Hello,

I look after the Domino's campaign at Arena Quantum so I just thought that I'd drop you a note just to follow up on your posts.

After some similar feedback from affiliates earlier this year, we worked with Domino's to find a solution that would allow us to remunerate affiliates for returning customer traffic whilst also ensuring that the programme was cost-effective for Domino's. We felt the best solution for both Domino's and their affiliates would be to increase the commission we pay for new customer sales to 8% from 2.5%.

This commission increase was introduced in March and also means that Domino's are now the highest paying pizza advertiser in the affiliate channel!

I hope this clears things up? If not, please feel free to get in touch with either Thekla or me.

Jess

[dougs]

Cost of Pizza = £1
Sale price of Pizza = £10

[TomP]

I share your frustration on this.

I can understand domino's wanting to focus on new customers but, the program is giving affiliates no reason to promote to current user bases, as after the first sale...It's just free sales for Dominos.

There is no motivation for an affiliate to give domino's any extra promotion slots on sites, newsletter features, as with such a huge company, almost everyone is a returning customer. Upping the commission from 2.5% is really irrelevant, as the sales get declined anyway - I disagree that it's the best thing for your affiliates.

It would be a much better program all round, and I know we'd give it more exposure on our site and in comms, if it was a lower % of commission but on all sales.

Interestingly we find that if we remove promotions for dominos, the traffic does go off to pizza hut....so there is value in commission on return customers as without the promotion the sale goes elsewhere.

[jessnathan]

Hi Tom,

New customers is a key metric for Domino's and therefore increasing the commission paid on these sales, takes into account those repeat customer sales that you are also driving.
The increased commission was a result of a lot of internal work to align Domino's business focus of attracting new customers while renumerating affiliates for their work. This 8% was the most rewarding option for affiliates and ensured that Domino's could continue to run their affiliate programme.

Jess

[Travel Pixel]

Its a fair enough policy for them IMO. They have worked out a cost per acquisition. Certainly having promoted a similar food/takeaway program (just-eat) I can say there are a LOT of repeat orders. Its up to you to decide whether to promote Dominos I guess. Having looked at the program and seen they only pay out on new customers I would conclude it is a poor deal for any serious affiliates and wouldn't even bother.

[TomP]

Hate to come back to this, but thought it would be an interesting comment.

After looking at our stats, it works out that dominos real actual commision % is about 0.7% which equates to about £70.00 in commison for every £10,000 you generate for them, and obviously the more sales we create for you, the less we're getting paid for.

Last month it worked out we get paid about 0.2% commision if you average it out over the total sales generated and total commision we got paid. We generated several thousand pounds worth of business for dominos in june (without pushing them!) and got paid a grand total of £7 for our efforts.

It's worth noting these arnt stats based on tiny numbers, we've generated quite a large number of sales for dominos.

And we are supposed to lap this up and accept that this is the most rewarding for the affiliates promoting the program? were getting paid for less than 10% of the sales we create.

I understand Dominos are clearly taking advantage of the lack of competing programs for this, but they would benefit alot more from the affiliate community if they were offering a fair program, aside from that - it presents a nice opportunity for their competitors if they were to start offering commision on all sales.

[dougs]

We just gave up with the affiliate deals on pizza's

Doug

[TomP]

We just gave up with the affiliate deals on pizza's

Doug

Guess a few more people are gonna have to do this before they take any notice.

[Entrepreneur]

I can fully understanding the thinking behind Domino's only wanting to pay for new customers. It makes perfect sense for them.

However, from an affiliate point of view, it doesn't look so good.

The program obviously needs rethought so that both sides of the equation can benefit from the relationship.

[TomP]

I can fully understanding the thinking behind Domino's only wanting to pay for new customers. It makes perfect sense for them.

However, from an affiliate point of view, it doesn't look so good.

The program obviously needs rethought so that both sides of the equation can benefit from the relationship.

Of course it makes sense to them, why pay someone to promote you when you can not pay them and get promoted for almost free, especially when there is no alternative program (which is suspect if there was things would change quite quickly). It won't change untill everyone just says, ok enough is enough.

[jessnathan]

Hi Tom,

Please can you call me to discuss this?

Many thanks
Jess