Affiliate program situation

[ldcdc]

Hello!

It's been a long while since I last posted here. I think it's time for that trend to change so here I am posting some thoughts and questions spaked by a recent decision of a certain hosting comapny that shall remain unnamed.

Things go like this: The company used to have a certain pricing and a certain level of commissions. The company experiemented with a special plan that was obviously cheaper than their regular plans, and was supposed to be only a temporary offer. A special commission level was set for this plan, that was roughly one third of the original commissions offered by this company.

Later they've decided to keep that special, and at the same time cut all the commisions, for all plans, to a third of the original value.

What do you think, do their affiliates have any chances of receving similar total sums at the end of the month? Mathematically that would mean they would have to sell 3 times as many packages as they used to.

How much cheaper do you think the new package would have to be (compared to the old ones) for it to determine a three fold increase in the number of sales?

If you were their affiliate, what would be your reaction to this change? Also, what would be your feelings about the situation?

Any other comments you might have would be appreciated.

[crislem]

I'm sure that company presented things as if they are something good for the affiliates. All the time a company presents a downgrade of the company in a positive light trying to keep "the mob" calm. Of course for an affiliate that is a big step backwards. I'm sure they thought the affiliates are going to send many more people that are going to buy from them, but it's like saying: "Hey! You will send three times more clients to us! And the good news is that you are going to make the same amount of money!! Isn't that great?"

I doubt the new program/special is going to be such a hit (to raise the sales three times than they were before), since the hosting industry has a limited number of customers (it's not like there is an infinite number of customers and when they see a very good offer they all jump on it to get it).

For somebody who is making a living by promoting that certain company, it is a hit in the monthy income and I find it natural/normal that that person tries to find another company to promote (a company with similar features and qualities) but who pays better. I don't think there is anything to blame about such a move. An affiliate has a certain number of clicks in a month and a certain number of clients that they sent to that company. A special offer created by the company they refer to won't change that number by much. (even if a news is spread over the web and everybody is talking about a great new offer that certain company might have)

To try to answer all your questions... How much cheaper does the new package have to be in order to send three times more customers from an affiliate? I think without aiming it, I already answered. I don' think that can happen even if the new package is three times cheaper than the original one or more than that. Why? Because of that limited number of customers an affiliate can send in a month.

If I were their affiliate, I would probably think that I am kind of ripped off. As stated above, depending on the situation I am in, I would probably consider promoting/referring to another company that is just as reliable/famous/etc as the first one. That requires some work and time and it would probably frustrate me even more.

I hope, for the sake of their affiliates, that the company you talk about changes their commisions to the original amount.

[specialk]

I am not too sure you can do anything to them unless you have a substantial conversion rate with them, then you might be able to force them to have a rethink.

[leighmcc]

Sounds to me like they took a grab for making more money out of their programs and passing less through to you. Which affilliate program is it?

[ldcdc]

It's been so long ago, I don't really remember. It must have been Site5. Funny thing, they've recently more than quadrupled their commissions.