Deciding how much commission to pay your affiliates is one of the most important decisions you can make as a merchant. Unfortunately there is no simple answer to the question but there are numerous factors to be considered during your decision process. [Read more…]
Voucher code and cashback affiliates attract traffic to their sites by offering users cashback for making a purchase with one of the advertisers on their site, or by offering voucher codes for use on advertiser’s site. To encourage loyalty these sites tend to make their visitors sign up to their website. This ensures they must be logged in to receive access to offers, which means they can be tracked.
There has been an increase in interest and use of these sites – with the mainstream press advocating the use of such sites to the savvy consumer. The market for cashback and voucher code sites is massive. As Neil Durrant of Submission Technology states (in an interview with e-consultancy) “If you aggregate all of the key players in the cashback space, you will probably get up to around 2m to 2.5m UK consumers. I guess the activity rates of those consumers will be around the 35% to 40% mark.”
As discussed in my previous blog post there are a number of advantages to the merchant of using cashback and voucher code affiliates. These advantages centre around the increase in audience exposure to your product/brand and potential for increase in sales.
Why use Cashback Affiliates…
Cashback sites have been responsible for delivering large volumes of sales and increasing the number of consumers who are exposed to the merchant. Cashback Affiliates have a loyal following and attract a strong and vocal community, which means the popularity of your website can be dramatically increased. If you are looking to increase the traffic visiting your site, you may like to consider giving Cashback sites a promotional offer in order to generate more interest and sales for your brand. However, the use of Cashback Affiliates in your affiliate programme does have drawbacks and it is worth considering these before you take any action.
Potential drawbacks of using Cashback Affiliates…
- Losing out on margins:Consumers are becoming increasingly confident in the validity of these sites, with newspapers and other opinion leaders advocating their use, so are actively checking these sites for deals. Cashback Affiliates try to lock in user’s loyalty to the site by having a threshold in place, which users must reach before they can withdraw their earnings. This is where problems for merchants can lie. Users of these websites tie in users and further purchases may come through the website rather than customers going directly to the merchant’s site, therefore costing them the commission. Can you be sure you are not wasting money on giving away margins in your discount when people would be buying anyway? This depends on your product and how loyal people are to your brand, as well as how price conscious they are. Financial services, for example, are popular with Cashback users as the brands do not have the same emotional connection with customers.