I don't exactly know how to put this, but wouldn't a merchant go down the line of taking on board top PPC affiliates and narrowing the competition they create?
For example, a merchant disallows PPC for their program, however they look through their stats, find out who the top PPC were, work with them on delivering PPC as well as doing their own, that way whilst reducing the fight for their own PPC placings, they're actually maximising the service affiliates do for them, reducing costs and maximising target traffic.
They wouldn't employ the top ten, simply concentrate on working with them, perhaps paying bigger bonuses for their time and on the sales they create. It's an option rather than completely denying affiliates or the expense of taking it all inhouse.
The above is for specific merchant site traffic on key words, other affiliates would still be free to bid on other keywords to their own landing pages, they would just be offered an updated list to adhere to. Would that work if it came to denying affiliates or does that already happen?
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