Cost of affiliate marketing programs

Cost of affiliate marketing programs

4 5 1 4 1 2 1 . Andy Teare, cost of affiliate marketing programs general manager of the Santa Claus Christmas Store, which caught a marketing problem early.

See how this article appeared when it was originally published on NYTimes. The Santa Claus Christmas Store, in Santa Claus, Ind. Unlike pay-per-click advertising, which charges merchants every time someone clicks on a link to their site, affiliate marketing costs nothing unless there is a sale — at which point a commission, typically between 4 and 20 percent, is paid. But affiliate marketing has a dark side: It can be a sure path to getting defrauded. Within hours of joining an affiliate network, the Santa Claus store had two dozen websites signed on as affiliates and claiming commissions. Andy Teare, the store’s general manager.

Teare and his staff looked more closely at their analytics and noticed a curious pattern. Over and over, a shopper would arrive at the checkout page and then disappear for several minutes before returning to make the purchase. These affiliates were claiming a commission on sales the store would have made anyway. Googling to see if any coupons were available. Because these new affiliates were advertising that they had special coupons for our store, customers were immediately clicking over there.

150 in commissions before figuring out what was going on. He hired an outside program manager to vet affiliates. Other companies, however, have not been so lucky. Hogan operated a network in which affiliates exchanged links and banner ads to help drive traffic to each other’s sites. The sites also agreed to host ads controlled by Mr. None of this is to suggest that all affiliates are dishonest or that merchants should avoid affiliate marketing. But it does call for vigilance.