Dixons Poor Commission Rates Discussed

[drivetowin]

Paul

Without seeing the figures for each individual sale then it's very hard to draw any real conclusion - if the sales were 23 cables @14.99 and the others 3 plasma tvs @2,500 you would still get an average sales figure of £300 - simply dividing total sales value by number of sales is not necessarily a good way of calculating the average.

Personally if I were you I think I'd be more worried that 18,763 clicks produced only 26 sales, by comparison Dixons for us is producing around 21 sales per 1,000 clicks and an overall epc across all sales of approx 13p - maybe you need to be better targetting your clicks towards the higher commission tier items?

ps: please don't take any of this the wrong way, I am trying to be constructive - I know your ppc skills are way way above mine so forgive me if I'm trying to teach you to suck eggs.

[Qui Gon Jinn]

Here we go again ....

maybe you need to be better targetting your clicks towards the higher commission tier items?

Don't worry Keith, I am doing just fine Jack. Once certain Out of Stock products were removed figures for other merchants went up, when Dixons were blocked / totally removed, they went up still further, but i think I have already said that somehwere before. PPC ain't everything, just the tip of the iceberg and all part of the mix.

My guess is there were quite a few console related sales

£44.94 / £0.20, £104.30 / £0.52, £143.99 / £2.88, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £292.94 / £1.40, £292.94 / £1.40, £294.99 / £8.68, £298.94 / £1.40, £298.94 / £1.40, £299.94 / £1.40, £299.94 / £1.42, £303.94 / £1.42, £374.94 / £1.82, £379.94 / £1.85, £379.94 / £1.85, £379.94 / £1.85, £379.94 / £1.85, £529.00 / £15.87, £588.93 / £2.85

As mentioned in blog, the benefit I have learned from this, as mentioned in blog, is that it has identifed other previously over looked merchants who have mutually benefited now & will do further in future at the expense of Dixons as real viable alternatives have been found. But you can still earn more from Dixons from other sources but on a CPC basis on 15p to 50p (better than the 13p). With the several threads running simultaneously, maybe this can be looked at as a case study if a reasonable resolution is found.

[km8]

Here we go again ....
My guess is there were quite a few console related sales

£44.94 / £0.20, £104.30 / £0.52, £143.99 / £2.88, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £289.94 / £1.40, £292.94 / £1.40, £292.94 / £1.40, £294.99 / £8.68, £298.94 / £1.40, £298.94 / £1.40, £299.94 / £1.40, £299.94 / £1.42, £303.94 / £1.42, £374.94 / £1.82, £379.94 / £1.85, £379.94 / £1.85, £379.94 / £1.85, £379.94 / £1.85, £529.00 / £15.87, £588.93 / £2.85

As mentioned in blog, the benefit I have learned from this, as mentioned in blog, is that it has identifed other previously over looked merchants who have mutually benefited now & will do further in future at the expense of Dixons as real viable alternatives have been found. But you can still earn more from Dixons from other sources but on a CPC basis on 15p to 50p (better than the 13p). With the several threads running simultaneously, maybe this can be looked at as a case study if a reasonable resolution is found.

I don't know what any of that means as you didn't explain it but if thoses are sales-value/commission pairs, I'd say you're sending Dixons an awful lot of USB-cable customers, most of whom only want to look at the cables and a few of whom buy something - thereby obeying the law of averages.

Maybe you need to work on targetting your traffic a bit better?

[hpops]

We appreciate your feedback and have already discussed a technical solution to the problem. Affiliates should have clear visiblity on the commission rate for products in the feed and the option to exclude products from the ShopWindow toolset should be made available. I would ask for your patience on this issue while we work out the most appropriate solution..

However, I think you hit the nail on the head when you said your point was over stated. We don't generate any revenue on products with 0% commission and it would therefore be commercial suicide to allow this to happen on a grand scale.

We carefully analyse the performance of the 0% and 0.5% commission groups and they account for just 3.13% of Dixons sales value. We will not allow this to creep up and we will actively encourage Dixons to look at better incentives on other product lines.

Adam

Many thanks Adam, I think patience for a technical solution is the answer here. I, of course, recognise that this directly affects you commercially and that a solution will be sought. I have to say that I think the percentage of sales value is immaterial. This is a principle of our channel which I think should be held on to. If 3.13% of a merchants sales were delivered through spyware on your network, I'm fairly sure it would be a concern. That said, I do think that this issue is being tackled by yourselves in the right way and I look forward to hearing further responses from both yourselves and the merchants involved.

[Qui Gon Jinn]

Own up .. which moderator got PC & changed the thread title.

[gadget]

Good point - I started this thread with a question in the thread title .. "Are Dixons Rubbish?"

I didn't say they were - it was a question!

Like all good debates, views are being expressed and opinions exchanged.

Also, as the debate moved on, more than "Dixons Poor Commission Rates Discussed" has been discussed so to change it to this new title at this stage is incorrect and IMO wrong.

Have Dixons got to someone?

[Qui Gon Jinn]

More stuff on Pleo'ssed Off Affiliate (s)

Dixons 0% On Toys

[moogie]

I do have some sympathy for AW as Dixons is a huge brand and one that is a feather in any network's cap. Electricals are always a nightmare as the mark-up from trade to retail is so tight. Dixon's over heads will be huge so I can see it from their point of view,

However........

0% commission items, big no no. I wonder if a smaller merchant would be allowed to do this? It really does send a bad message out to the affiliate community.

Choice is ours though, if we don't like it, don't promote them

[Frostie]

I've refrained from commenting on recent Dixons posts, not only as they were one of my better performers last year, but also because I had no real stats to show any real issues from my stance. THIS HAS NOW CHANGED! Sadly so far this year I am becoming more and more infuriated with them as a merchant and the problems we've (us affiliates) had.

Firstly let me say I do appreciate that AW have been busy trying to rectify these problems, but now I am starting to think enough is enough and I am seriously questioning whether I can be arsed promoting them at all.

This month I have received the following "donations" from Dixons, and I'm sure I would have received more by strumming a cardboard guiltar in the streets (Yes Liverpool does have its own Cardboard Charlie!)

Sale £169.00 = Commission £0.00
Sale £34.94 = Commission £0.00
Sale £21.98 = Commission £0.10
Sale £54.94 = Commission £0.25
Sale £69.98 = Commission £0.35
Sale £100.60 = Commission £0.50
Sale £34.00 = Commission £0.68
Sale £149.94 = Commission £0.72
Sale £151.00 = Commission £0.76
Sale £194.84 = Commission £0.95

So thats almost £1000 in sales that have generated a whopping £4.31.... less than 0.5%!

This may have something to do with the incorrectly assigned comissions/categories scenario or may have something to do with 0% on toys, but the fact this merchant, afaik, is letting AWin take all the flack is disgusting. I certainly wouldn't like to be the one at AWin who deals with Dixons, then having to face us affiliates with what must seem like constant bad news, while DSGi hide behind their sofa's.

[gadget]

On the basis that Currys are joined at the hip to Dixons on all things, has anyone had similiar experiences with Currys - and of course the other DSG brands?

[Julia Stent]

Firstly, both Dixons and Affiliate Window would like to thank you all for your input and patience. During this period we have been conducting a joint analysis of all sales in order to ascertain the impact of 0% commissions. To be clear, Dixons have been open and supportive of this so they could gain an overall perspective of the margin cost on these products and the value of combined higher margin product sales.

In conclusion Dixons have agreed to amend the existing structure which will see all 0% commission groups adjusted positively. Please find listed below the new commissions for the old 0% group.

Audio Cable : 1%
Batteries : 1%
Bluetooth Accessories : 1%
Cables - phone & modem : 1%
Cables and adaptors - other : 1%
Camcorder Bags : 1%
Camcorder Batteries : 1%
Camcorder Cases and Holdalls : 1%
Camcorder Tape : 1%
Camera Cases and Holdalls : 1%
CDR Disks : 1%
CDRW Disks : 1%
Desk Accessories : 1%
Diaries And Planners : 1%
Digital Camera Accessories : 1%
Digital Media Labelling : 1%
DVD RW : 1%
DVDR Disks : 1%
DVDRW Disks : 1%
Floppy Disks : 1%
Headphones : 1%
Home Safety : 1%
ICE Accessory : 1%
Inkjet Cartridges - Canon : 1%
Inkjet Cartridges - Epson : 1%
Inkjet Cartridges - HP : 1%
Inkjet Cartridges - Lexmark : 1%
Inkjet Cartridges - Others : 1%
iPod Accessories : 1%
Iron Accessories : 1%
Labels : 1%
Media Storage cases : 1%
Memory - Flashcards : 1%
Memory - Memory Stick : 1%
Minispeakers : 1%
Mouse Mats : 1%
Network Cables : 1%
Other Paper : 1%
Paper : 1%
Paper - cutsheet : 1%
Paper - labels : 1%
Paper - photo : 1%
Paper and Notepads : 1%
PC Accessories : 1%
PC Accessories (Universal) : 1%
PC Books : 1%
PC Cables : 1%
PC Care & Cleaning : 1%
PC Furniture - Chairs : 1%
PC Furniture - Desks : 1%
PC Gamepads : 1%
PC Laptop Cases : 1%
PC Security & Toolkits : 1%
Pers Port_CD Radio Cass : 1%
Portable Data Storage : 1%
Power Accessories : 1%
Power Supplies : 1%
Premium Cable : 1%
Rechargeable Battery : 1%
Remote Control : 1%
Software Storage : 1%
Solid state storage : 1%
Speakers : 1%
Surge Protectors : 1%
Telephone Accessories : 1%
Tripods : 1%
TV & Audio Leads & Accessories : 1%
TV Aerial : 1%
USB Device Cables : 1%
ViceVersa : 1%
Video Cable : 1%
Video Tape : 1%
Wall Bracket : 1%
Water Filter Cartridge : 1%
Water Filters : 1%

In addition to this, Dixons has also increased all of the 0.5% commission groups to 1%, such as Photography and Mobile Audio, and many of the 1% groups to 2%, such as PC Peripherals.

Dixons had already planned to revise some existing commission groups, so to ensure total transparency please find these additional amends below. Commissions exclude delivery services and extended warranties as normal.

<table border="1" cellpadding="8"><tr><th>Category</th><th>January Commission</th> <th>February Commission</th></tr><tr><td>PC Peripherals</td><td>0.5%</td><td>2.0%</td></tr><tr><td>PC Networking</td><td>1.0%</td><td>2.0%</td></tr><tr><td>PC Business Software</td><td>1.0%</td><td>2.0%</td></tr><tr><td>PC Games Software</td><td>1.0%</td><td>2.0%</td></tr><tr><td>PC Components & Upgrades</td><td>1.0%</td><td>2.0%</td></tr><tr><td>PCW Office Supplies</td><td>1.0%</td><td>2.0%</td></tr><tr><td>Photographic</td><td>0.5%</td> <td>1.0%</td></tr><tr><td>Mobile Audio</td><td>0.5%</td><td>1.0%</td></tr><tr><td>Camcorders</td><td>0.5%</td><td>1.0%</td></tr><tr>
<td>Large Flat Panel/DLP Projection/CRT TVs</td><td>2.5%</td><td>2.5%</td></tr><tr><td>DVD/Home Theatre/Digital Receivers</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Games Console Hardware</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Games Console Software</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Laundry & Dishwashing</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Refrigeration</td><td>2.0%</td> <td>2.0%</td></tr><tr><td>Cooking - Free Standing</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Built-In Cooking</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Integrated Appliances</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Floorcare</td><td>2.0%</td> <td>2.0%</td></tr><tr><td>Microwave Ovens</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Seasonal Appliances</td><td>2.0%</td><td>2.0%</td></tr><tr><td>PC Projectors</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Stand Alone TFT Monitors</td><td>2.0%</td><td>2.0%</td></tr><tr><td>GPS Navigation</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Hand-Held Computing</td><td>2.0%</td><td>2.0%</td></tr><tr><td>Fixed Line Phones & Fax</td><td>1.0%</td><td>1.0%</td></tr><tr><td>Small Kitchen Appliances</td><td>1.0%</td><td>1.0%</td></tr><tr><td>Personal Care</td><td>1.0%</td><td>1.0%</td></tr><tr><td>PC Printers & Scanners</td><td>1.0%</td><td>1.0%</td></tr><tr><td>Small Screen & Combi TVs</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Mobile Telephones</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Innovations & Gifts</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Apple Computers</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Personal Computers</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Mobile Office</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Direct Extended Ranges</td><td>2.5%</td><td>2.0%</td></tr><tr><td>Home Audio</td><td>3.0%</td> <td>2.0%</td></tr></table>

Dixons also offers affiliates the opportunity to earn additional commission on volume sales in the white goods product range:

Default commission rates: 2%
Tier 1 - over £10,000 per month - 2.50%
Tier 2 - Over £24,000 per month - 3%
Tier 3 - over £40,000 per month - 3.50%

Please note that these tiers work on a calendar month basis on confirmed transactions. Additional commission once you achieve a tier is added as a bonus payment at the end of that calendar month.

Overall we feel the February commission structure is a positive step and highlights the flexible nature of affiliate marketing and the value Dixons place on affiliate sales.

New commission levels will be active from 1st February and we are available to answer any questions or concerns.

Best wishes

Julia

dixons@affiliatewindow.com

[Frostie]

An improvement!

Sure it won't make everyone dance with joy, but I certainly ackowledge it is an improvement on what was there previously. I know it's not been easy so thanks Julia for continuing to persue this.

[Julie H]

I'd also like to thank Julia for all the hard work she's put into this. It's definately an improvement.

Jules

[getvisible]

I've thanked Julia offline too for her hard work on it!

I'm dissapointed that Apple PC's have gone down a bit (as I have a macbook site) but we can't have everything and for all affiliates I feel its a positive step forward.

Also it was done a lot quicker than I thought and means that I feel they'll be present on more affiliate's sites much sooner than it would have been without your intervention.

Ta Julia and Dixons for allowing the improvements to happen!

[Keith]

Certainly a positive move, it won't make me dash out and change all my links to Dixons however I will pay more attention to offer emails etc and action them up when appropriate.

Well done Julia and Dixons.

I just hope we don't have go through it all again next Christmas.