Doug’s Mouthpiece – Droug.co.uk

Merchants and bribing affiliates to change links

Affiliate Money Grabbers written by Doug Scott

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In an industry worth billions how much money is being “bunged” around to get people to change links.

If I was a “streetwise” affiliate manager at a merchant, or even an affiliatenetwork, I would make sure I had some spare cash in a black swag bag or something to persuade affiliates to change links. Now I am not saying this goes on, but it’s a thought.

Lets assume I was a company with a large online presence with a large affiliate business. I had deals with the large affiliate networks to run some of my global affiliate business. This online affiliate business was worth hundreds of millions per year in sales and I am paying out 5% in affiliate commission, with a 20% management fee to the network.

So with a US$200 million affiliate business an affiliate network is making 1% on the total sales numbers , or $2 million per year. Over 90% of most affiliate business for any merchant comes from about 10 affiliates, and as a merchant I know who these people are.

One day as a merchant I may be tempted to persuade the affiliate to deal with me direct, hence I call up the affiliate and say:

• Fancy working with us direct?
• I can pay you a signing on bonus
• I can pay you more commission as I will not have to pay the affiliate network
• We can deal direct without those affiliate idiots in our way

Is that legal business or bribery?

Doug poor but trying to be honourable

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