John Lewis long awaited lower commission rates

**shopandsave** · 05-02-04

From Tradedoubler today.

Dear affiliate,

On Monday 9 Feb, the John Lewis affiliate program will be going through a long awaited transformation. We've broken down the store into seven sales categories, each of which has its own new commission level. Along with allowing you to monitor which categories your best sales are coming from, this feature will also allow us to offer special rates on select categories on a seasonal basis.

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New Commission Categories
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The new categories will be as follows:

Audio/TV/Tech - 2%

Electrical - 4%

Furniture - 5%

Gifts and Other - 5%

Textiles - 5%

Toys/Nursery - 5%

Other - 2%

How on earth could these lower rates could be long awaited by anyone? This programme was paying 7% across the board. Another half decent programme going down the pan so to speak.

On another point does anyone who links to John Lewis through DGM2 rather than Tradedoubler find they are getting more sales or better conversion rate?

Regards,
Simon

Shop and Save - UK Shopping Directory

**999gi** · 05-02-04

Long awaitied by them I suppose

It does annoy me when I get these emails trying to put a positive spin on what is obviously bad news. Id be far happier if they said something like JL have reviewed their program and objectives and would like to thank everyone for its success in the past and hope that some will stay on under the new terms.

**Guswold** · 05-02-04

I'm absolutely gutted by this - I didn't know it was coming!

I've just started building a whole new part of a site around f'ing John Lewis because of their 7% commission... splitters.

It wouldn't be so bad if it was a 1% drop, but 5%! That's absolutely ridiculous - I'm fuming!

**aly** · 05-02-04

Bit vague

Gifts and Other - 5%

Other - 2%

Will it be 5% for gifts unless they decide the gift has a low profit margin in which case they will call it "other" and make it 2% ?!!

**KieronD** · 05-02-04

I have to say that 2% for Audio/TV/Tech is really low. That's exactly the same reason why I don't promote Unbeatable.

Big shame really as John Lewis aren't really that competitive in that department IMO so you think they could afford to give us some more commission.

I'll be removing their links tonight.

Kieron

**pistol101** · 05-02-04

John Lewis aren't really that competitive

They are when you go into their shops and tell them that the price is too high. Shame you can't negotiate online!!

**Azam.net** · 05-02-04

This is a big blow. 1 or 2% decrease would have been OK, but 5%?

WHSmith = commission decrease from 10% to 7% (despite whopping salary increase for managers)
John Lewis = commission decrease from 7% to around 2-5%

If you try playing the affiliate game with one-off payers, they'll usually beat you in the end. When many fat-cat merchants see their 'partners' starting to make decent money, they slash their commission rates.

Commission increases/decrease/bait-and-switch tricks: it all becomes a never-ending job adding and removing links and playing the search engine/PPC game.

Obviously there are some smart guys here making a killing from affiliate marketing and I take my hat off to them. But they are the exception. As all the press releases/articles about affiliate marketing go on about, it's practically a 'no lose' scenario for the merchant - but NOT the affiliate

That's why we're focussing on more long-term business opportunities...

**stevectaylor** · 05-02-04

The lower rates may be against cheaper prices, which you may see as a double whammy. or looking at the wider picture increase the sales base and hence increase number of sales. However, not really benifiting the affiliate greatly.