News Source: http://www.revenews.com
Published: Dec 19, 2008 - 05:33 am
Story Found By: Sugarrae 1149 Days ago
Category: Affiliates
14 Comments
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News Source: http://www.revenews.com
Published: Dec 19, 2008 - 05:33 am
Story Found By: Sugarrae 1149 Days ago
Category: Affiliates
14 Comments
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Comments
Any predictions on how long the last past circuit city? I say store closings start in 2 years
I hope they manage to make it through. Thier AF program was the first I ever tried, almost 10 years ago, it would be a shame to see it get wasted in this economy. Hopefully 00Joe is wrong, and Best Buy is able to correct mistakes, and pull through. If they were smart, they would focus more on the low over head online business options like AF, and not these crazy expenseive "Magnolia Home Theater" stores.
My concern is more about this setting a tone that in tough times, the salesforce should be the first to take a hit... bad for affiliates and bad for the merchants...They’d have much more of a cost savings affect not bidding on generic non converting terms like "tvs" http://www.google.com/sponsoredlinks?q=tvs&hl=en&pws=0&um=1&ie=UTF-8&sa=N&start=12 then they will telling the people who are only paid when they actually SELL their products that they’re the ones taking the pay cut.
Haha, I love it when people do stupid things like stop investing in their future. If you’re in a crunch the place to cut is your brand advertising, not your direct response. It’s not a line item.Although, you never know how their affiliate program is going...
Agree tone is a big issue. Many larger merchants don’t truly understand the sales force within the affiliate channel. This was the type of move done by someone not managing the day to day, who just felt that commission could be simply cut on top items not understanding that it would damage relationships with the publishers. Bad for the merchant and definitely bad for affiliates if other merchants pick up this trend. Affiliates can respond by a) contacting Best Buy and b) sending their valuable traffic to merchants who will pay a fair commission. Just seems like such a ridiculously unnecessary move on Best Buy’s part because of the high ROAS inherent to the affiliate channel.
>>>If you’re in a crunch the place to cut is your brand advertising, not your direct response.very sweetly said.
I can’t believe it was 1% before... i am getting 8.25% on Amazon (video games) and 4% on amazon for all other electronics.... and people complain about Amazon being low!
They won’t be the last doing this that’s for sure and as Sugarrae it’s setting an unfortunate tone that others may choose to follow without thinking through what they are doing.
Typical merchant behavior, cut commisions. I was pushing products for a company that had 20% commision and $20 pay out. Well, they cut payout to 5% and up the minimum before they cut a check to $200. Now, they want $1000 min and cut commision to 4%, so you have to sell $25,000 before you get a check.
Unfortunately it’s tradition in business to cut ad budgets first then wonder why sales get even worse.. Smart business people look for new ad opportunities in tight times and come through them strnger than ever as the guys that cut ad budgets slowly vanish..
Yea.... I’d say if this were a strategy for growth.. definately not a good move. However if they are worried about staying afloat altogether and are trying to cut costs then maybe that explains it - I remember just before bradlees went out and I worked there, they stopped picking up the film for development first and quickly thereafter they stopped inviting the cleaners to come in to clean the bathrooms! a week or two later they filed for chapter 11. A sign of the times?From my perspective as an affiliate it SUCKS... in fact one of my core programs I make oh about 50k from a year is going away at the end of the months. just POOF... gone! It freaking sucks! But oh well on to bigger and better things.
Lets hope most of their affiliates realise very quickly they are being screwed and use their web real estate to promote another business - one that actually cares.
Certainly a bad move. I can’t imagine they will keep serious affiliate at those rates. If anything, they should increase affiliate commissions given the low overhead vs. the potential sales.