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Old 05-05-2001, 05:37 PM   #1
Ted S
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Unhappy Opinions Wanted: Ultimate Auction Affiliate Program?

Hey there,
Right now Iím working on developing an affiliate system for a large auction site. Basically Iím trying to figure out what profit system would most entice webmasters. Unlike most companies, I believe a 50/50 split is perfectly acceptable but I am still a little uncertain how to determine the payout methodology. Basically Iíve been thinking of paying based on item listings, not user signups, not visits. While this will certainly lower affiliates conversions rates, I think the payout will be far higher. For example, an affiliate who refers a user that never sells an item makes nothing but if they refer a user who lists 50 items a week as is commonly done by many sellers, they make 50% off that userís basic listing fee for life. Some other possible payout systems Iíve been thinking of include a small fee for confirmed registrations, a percentage of referred affiliate accounts and Ďauctions ownersí (another part of the system).

Basically I think this model of equal payouts forever beats the current cpa/cpc models hands down. After all, what good is $0.10 for one click if you can have $0.50 for every listing ever made by a user. But then again, thatís my opinions and obviously what matters is the people that could/would be using it. So, my question is thisÖ if you could have any semi-reasonable affiliate program for an auction site, what would it be and how would it work.

Thanks for your time!

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Theodore Sindzinski
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Old 05-05-2001, 07:18 PM   #2
ch3m
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I think it's a great idea, but it will scare off many people because:

a) It will take quite a while ( and many signups ) before affiliates can build up a lot of money in their accounts
b) Because of this, it may scare off people who will have to stay in long term before they get their checks ( ie, the company may go under and they may only see a few dollars out of the hundreds they may be able to make months down the road )

Also, can affiliates only earn money referring sellers and not buyers?

I think the best way to do this at this point in time would be by a signup basis, just my 2 cents.
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Old 05-05-2001, 08:34 PM   #3
RoadRash
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How about a combo program? $.50 per signup + 25% of all auction listing prices, upto say, $2.50 per item (ie, there not going to get a $50 commission if they list there house)

I would sign up http://geekvillage.com/ubb/smile.gif
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Old 05-06-2001, 03:42 PM   #4
Ted S
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Hum... i was thinking more like a $.10 per signup rate since a good deal of signups will never lead to bids or listings. Additionally, there is no direct profit made from bidders but I see both your points. thanks for the ideas...
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Old 05-06-2001, 03:49 PM   #5
WildComputer
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I think the obvious concerns have already been said: will the company be there to pay.

Another issue is who your target affiliate's are. For example, I would expect that an auction-related-site webmaster would probably desire different things in the program from a general webmaster who runs auction banners.

Another additional idea might be to allow some degree of co-branding (kinda like the old utrade system). I could imagine that if you already had a popular site, a plug-in auction service could be a pretty "hot" item

------------------
Sunil Tanna
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Old 05-06-2001, 04:58 PM   #6
Ted S
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WC - great minds must think alike as I'm already working on just what you mentioned http://geekvillage.com/ubb/smile.gif

As for stablity, thats a dan good point.
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