Cashback Sites...Setting Commissions
Why do cashback sites exist? Cashback sites came about when affiliates realised that commissions were not getting higher, even though marketing spends online were, & programs with reocuurring commissions were thin on the ground. The cashback site model is an affiliates dream, as you have a chance to secure that consumer for good and encourage them to continue purchasing through offers & incentives.
As a merchant you should think carefully about your Cashback strategy, consider the following:
* Do you have your own rewards program? If yes then your priority will be to offer them the best deal. Work out the resulting commissions and ensure you cashback sites will give a lower % than through your own program. Remember the affiliate has to take a cut, it doesn't all go to the consumer.
* Are you offering a bounty payment for sign up? Think about how much a consumer has to put down and how much they will get back as a result. You are looking for long term customers not people after a £20 or £30 cash fix. Finance clients often pay bounties, however you may need to put a further condition such as account activation of £100. This way the activation is higher than the bounty paid out. The consumer will only win if they truely want that product or service.
* Offers, are you offering a discount voucher? Vouchers are a great mechanic to use in customer aquistions. You have to remember that this consumer is already getting a % back? Remember all these mechanics will hit on your ROI, a % commission and voucher?
If you have trouble retaining customers, Cashback sites could act as your own rewards program. In this instance you may want to consider giving them a higher commission% compared to standard sites in your program. You could review a bounty for % number of sales.
Remember a consumer will like Cashback sites since they can earn money from multiple sites, an offline example is the NECTAR model. I recommend working with Cashback sites, just think about how you set your commissions!
As a merchant you should think carefully about your Cashback strategy, consider the following:
* Do you have your own rewards program? If yes then your priority will be to offer them the best deal. Work out the resulting commissions and ensure you cashback sites will give a lower % than through your own program. Remember the affiliate has to take a cut, it doesn't all go to the consumer.
* Are you offering a bounty payment for sign up? Think about how much a consumer has to put down and how much they will get back as a result. You are looking for long term customers not people after a £20 or £30 cash fix. Finance clients often pay bounties, however you may need to put a further condition such as account activation of £100. This way the activation is higher than the bounty paid out. The consumer will only win if they truely want that product or service.
* Offers, are you offering a discount voucher? Vouchers are a great mechanic to use in customer aquistions. You have to remember that this consumer is already getting a % back? Remember all these mechanics will hit on your ROI, a % commission and voucher?
If you have trouble retaining customers, Cashback sites could act as your own rewards program. In this instance you may want to consider giving them a higher commission% compared to standard sites in your program. You could review a bounty for % number of sales.
Remember a consumer will like Cashback sites since they can earn money from multiple sites, an offline example is the NECTAR model. I recommend working with Cashback sites, just think about how you set your commissions!
0 Comments:
Post a Comment
Links to this post:
Create a Link
<< Home