Cashback - Problems

[stevieboy1101]

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Hi,

Not sure if this is the correct thread to post this but i was looking at Cashback scenerios not all merchants offer these, or do they do so sporiadically? is it a case Merchants and the Networks secretly dislike offering cashback to affiliates? I imagine its seen to undervalue their products/services and gives the customer i bit too much clout in terms of price expectation especially for future purchases, id like to hear from the networks / merchants offering this service. This is not Market research by the way im looking at the potential of CB websites.

[Ben C]

All of the networks work with the cashback sites already for some or most of their campaigns, so it's not up to the networks to 'offer' cashback services on a campaign, it's the Advertiser. Providing the Terms & Conditions for a campaign follow the guidelines of the IAB's Ethical Merchant Charter then Advertisers lay out whether cashback sites are permitted to operate on their campaigns.

Many cashbacks have loyal followings that will purchase from a competitor if you aren't offering a deal, so their sales may be considered entirely incremental. Alternatively cashback clicks have been known to occur during the sales process, indicating the sale may have occurred anyway, therefore cannibalising spend from elsewhere. So it varies from advertiser to advertiser and depends on their brand strategy. Some are dead set against and horrified at the prospect of price devaluation, while others appreciate the large volumes of sales that they can provide.

As it's a tricky situation where customers can get more than they pay out up front (ie mobile phone contract or insurance policy), there are often cashback-specific commission structures and/or commission validation procedures (ie validating only when a customer completes their stay at a hotel).

I would say the majority of clients permit it. A quick browse of the big cashback sites should show you the range of clients they work with.

Ben