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Old 01-28-2001, 04:05 PM   #1
Aaron Dragushan
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Unhappy CJ changes terms for merchants

Just got an email from Commision Junction with a few changes to their terms for merchants. This isn't directly relevant to affiliates, but indirectly it will be, since it will reduce the number of merchants who can work with the system.

Smaller merchants to abandon their CJ efforts, and their higher access fee will discourage new merchants from signing up to try it out, since it's now much more expensive to get in.

Here's a summary of the changes:

* The Network Access Fee (NAF) is increasing from $795 to $1295.
* The minimum escrow amount is increasing from $250 to $500.
* There is a new minimum monthly transaction fee of $250.
* There is no longer an annual renewal fee of $595.

For all active Commission Junction Merchants, the increase of the Network Access Fee from $795 to $1295 does not affect you. In addition, merchants who pay out $1250 or more in aggregate monthly commissions to affiliates are not affected by the $250 monthly minimum.

However, if your program only paid out $1000 in aggregate commissions to your affiliates in one month, Commission Junction would collect 20% (or $200) via the network transaction fee and you would be charged the remaining $50 to equal the $250 minimum monthly transaction fee. ($1000 x 20% = $200 + $50 = $250). Regardless of the amount of commissions paid out to affiliates, merchants who do not meet the $250 monthly minimum transaction fee will be charged the difference.

For merchants who have joined the Commission Junction Network on or after December 1, 2000, there is a 3 calendar month grace period from your live activation date, for you to meet and/or exceed this new monthly minimum transaction fee of $250. For example, if your live activation date is January 5, 2001, you have until April 5, 2001 to pay out $1250 or more in monthly aggregate commissions to your affiliates ($1250 x 20% = $250).

For those merchants who have difficulty reaching the $250 minimum monthly transaction fee, we believe that by following some proven guidelines on launching and managing a successful affiliate marketing program, most merchants can meet and exceed this minimum fee on an ongoing basis. For suggestions on how to achieve this result, please review the "The Merchant's Roadmap to a Successful Affiliate Marketing Program" located in the "How to Use CJ" section of the CJU tab within the Commission Junction Members Area.
<A HREF="http://"http://www.cj.com/applicationwide/New_Merchant_Service_Agreement.html"" TARGET=_blank>The agreement in full</A>.

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[This message has been edited by Aaron Dragushan (edited 01-28-2001).]
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Old 01-28-2001, 04:38 PM   #2
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I got an e-mail about "New Affiliate Service Agreement" from CJ.

Can someone who understands legalese tell us what the important points are for the new affiliate service agreement?

BTW, are adult sites allowed to use CJ? The word "adult" or "porn" is not in the agreement, but it does say it does not allow "obscene" sites; what is their definition of "obscene"?

[This message has been edited by demae (edited 01-28-2001).]
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Old 01-28-2001, 05:51 PM   #3
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For most affiliates, no significant changes. IMO, overall, a slight improvement.

[This message has been edited by emailer (edited 01-28-2001).]
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Old 01-28-2001, 08:18 PM   #4
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$250 minimum monthly is the big hole if you're starting out as a merchant... Small biz tends to hate running costs with no guarantee return. $1200+ setup can be forgiven as I guess you could consider it a capital cost.

Fundamentally I have no problem with $250 minimum per month, if (a) CJ is reliable, and (b) You can change commissions on existing affiliates [I still have difficulties with this].

I will be calling CJ next week to check on some of this, and also to deal with the issue of whether we want our new (coming soon) per-sale program to be with CJ or not.

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Old 01-28-2001, 09:08 PM   #5
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Hi Aaron, I emailed you a couple of days ago with a question, my superTAF account is 1001ff, can you please reply. Thanks Jason
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Old 01-29-2001, 10:57 AM   #6
Aaron Dragushan
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Jason - will do. Apple-oggies, we've been really swamped lately.
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