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Old 08-21-2000, 08:27 PM   #1
Edwin
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Unhappy Affiliate program planning choices

I'm just looking for opinions here... which of the following is most exciting, and what could improve things even more?

A) An affiliate program that pays $1 per new newsletter subscriber, with a $5 minimum payout

B) An affiliate program that pays $1.20 per new newsletter subscriber, with a $25 minimum payout

C) An affiliate program that pays $0.75 per new newsletter subscriber, and $0.25 for second tier referrals (i.e. anyone who subscribes via an affiliate you recruit brings you $0.25) - minimum payout $5

D) An affiliate program that pays $0.80 per new newsletter subscriber, and $0.40 for second tier referrals (i.e. anyone who subscribes via an affiliate you recruit brings you $0.25) - minimum payout $25

E) Your idea?!

All feedback very welcome!

Edwin
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Old 08-21-2000, 09:15 PM   #2
zMan
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Hi Edwin,

Let's make your offer a little more appealing to webmasters.

- $1.00 per new newsletter subscriber.
- 25% of all income from their referrals.
- $25.00 minimum. (What's your minimum right now?)

25% = $0.25 ... This sounds much better and you will just be paying $0.05 more than you are in your offer #D & #B.

Or you can even make it 20% ($.20) if you want. ( Still sounds a lot but it's under the budget you planned. http://geekvillage.com/ubb/wink.gif )

Then maybe you can write something like this... "You will earn 20/25% of ALL income your referral generates. So even if your referral just brings in 10 subscribers everyday. You will earn $60.00/$75.00 every month!"

Whoa! I wish I can join your program. This even sounds good to me as 10 new subscriber a day isn't all that much and the referral commission really adds up. http://geekvillage.com/ubb/smile.gif - Too bad I don't have a webmasters related website. http://geekvillage.com/ubb/frown.gif

Anyway, just a thought...

- zMan
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Old 08-22-2000, 12:46 AM   #3
Edwin
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zMan, thanks for your comments. At the moment, we don't have the means to offer a 2-tier program, which is partly why I am starting the research now to evaluate what our options should be going forward. Our current program pays a flat $1 per subscriber, and there's I believe a $10 minimum if you join it via ClickXChange. However, since the 2-tier program would be administered in-house, we're probably going to need to raise that floor a little, which is why $25 sounded about right.

Anyone else? I'd love more input into this! Are we going to attract a lot of interest at the kind of rates we're talking about? Would you participate? What other improvements or considerations should we offer?

Edwin
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Old 08-22-2000, 01:12 AM   #4
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Hi Edwin,

I'm not interested in 2-tier programs.
Why ? because so far I've earned peanuts from them.
I have had a lot of reffered webmasters for zmedia or mailbits. I could hardly earn $100 monthly from referrals.
To be successful with referrals, you should be lucky and signup big sites under you ...
So I would go with option B) especially if you have yourself a high traffic site.
You'll make much more this way.
Of course this is my experience.
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Old 08-22-2000, 01:40 AM   #5
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Hi Edwin http://geekvillage.com/ubb/biggrin.gif

I go for option B too sinceit guarantees a steady amount of income. i never find referral programs useful since:
- most people type in the url of the main site instead of click on the referral link - meaning you don't receive any credit
- most of my visitors are just surfers, not webmasters
- if the person is a webmaster then he/she'd probably have signed up for the program unless it's new...

just my 2 cents ^_^

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Old 08-22-2000, 02:38 AM   #6
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Hi Edwin,

Here is my opinion

On a basic level what makes things "exciting" isn't just the pay rate - but the dream of earning a lot of money with a particular program. High pay rates obviously contribute to the dream, but they aren't the only factor.

Other things you could emphasize to build the dream include: how easy to get sign-ups, how much money a person/site could earn, what you top affiliates are earning, total commission paid out etc.

Referral programs also contribute to the dream, but in my opinion are more favorable to the vendor (in getting their program wide spread at minimum cost) than the affiliate. For a lot of affiliates referrals to any program are never a money spinner. My own experience (with a lot of referrals) fits this.

Regarding pay rates, minimum checks etc. Very low minimum checks and high referral percentages tend to attract lots of low quality affiliates, many of whom will produce minimal results, and eat into your management time, and give you more problems with fighting fraud (I am not saying all small sites are frauds, but you have to allow for the fact that some sites, especially smaller ones will give you this problem).

From your selection, I would say that (B) is the one most likely to produce leads [as it will attract bigger sites], but only if you put some serious effort into getting your affiliate program known [as it will only attract big sites if they know about your program]

HTH.

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Old 08-22-2000, 03:00 AM   #7
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So taking all the above responses into consideration, if we had a program that:-

* Paid $1.25 per signup
* Paid 20% second tier (i.e. $0.25)
* Had a minimum payout level of $50

Then the above would not scare away large sites, but would effectively sift out the very small affiliates which would be, *on average*, more likely to give us problems of one kind or another.

For targeted sites, the $1.25 would I think represent a significant payout.

For webmaster sites, affiliate program sites and so on, a second tier of $0.25 would prove quite appealing.

This is like playing hide-n-seek... am I getting warmer?

Edwin
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Old 08-22-2000, 04:52 AM   #8
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this is nice
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Old 08-22-2000, 07:34 AM   #9
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Edwin, you are bang on the money. It's perfect.
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Old 08-22-2000, 08:23 AM   #10
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Edwin,

Seems like a great program.

I'm curious - will you allow syndicated subscription boxes?

For example, a "Thank you for signing up - here are some other good newsletters"



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Old 08-22-2000, 01:48 PM   #11
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Since this is all still very much in the planning stage, nothing is cast in stone yet. However, what we will probably offer is an all-or-nothing set of subscription boxes i.e. people will be allowed to have the boxes as long as they show *all* our newsletters on their sites. We won't (never say "never", but...) go the route of letting people just choose a couple of publications to put on their sites, since we want to give people a chance to sign up for as many different newsletters as possible when they first subscribe.

As long as people stick to the above condition, we will *probably* let people put the signup form in a pop-up as well.

Edwin
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Old 08-22-2000, 01:54 PM   #12
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Also, what do you think of the viability of the following policy (for filtering out non-performing sites)

Sites will get paid once they reach $50. A site that has generated $50 of business or more since it signed up can get a "partial payment" if it chooses to leave the program at some point i.e. if I for instance earned $122.50 over the lifetime of being with this affiliate program, I could get a check for $7.25 when I quit the program.

BUT sites that do not make the $50 minimum get nothing until they meet that minimum. i.e. If you've earned $22.50 you're going to have to work to make up the remaining $27.50, before you see any money, but then you get paid and switch to the "friendly" system.

Thoughts?

Edwin
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Old 08-22-2000, 02:10 PM   #13
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That works,

Incidentally if you are looking for cool ideas - I think ClickBank has a pretty cool paycheck policy, but it's way complicated
http://clickbank.com/paychecks.html

- The "reserve" obviously shouldn't apply for an affiliate program

Things I like about their policy
- configurable minimums
- global express mail for large a/cs
- bi-weekly for large accounts
- check issuence fee. Controversial - but I think this is a good idea. If you are going to issue a zillion $5 checks - why should your better performing affiliates carry the overhead (in the form of lower rates) for this

obviously not on the page - but really great affiliate & merchant support. Copy this idea http://geekvillage.com/ubb/smile.gif - I'm sure you will anyways

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Old 08-22-2000, 04:25 PM   #14
Aaron Dragushan
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Edwin,

If someone signs up for 2 newsletters, do you pay $3.75 or does it stay at $1.25?
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Old 08-22-2000, 05:08 PM   #15
Edwin
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The $1.25 would be per unique subscriber. Frankly, we are counting on people taking multiple newsletters otherwise we could never justify such high payments!

Edwin
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