Tuesday, January 13, 2009

To What Extent are Cashback Sites Hurting Affiliates?

It was not long after the birth of affiliate marketing CashBack sites began to appear. These are sites that offer consumers the return of what they buy, through the use of affiliate schemes. For example, if a trader runs an affiliate program, offering affiliates a 10% commission on all sales, a site could CashBack offer consumers anywhere up to 10% discount on your order. From a market standpoint, it is still worth paying a commission as a refund to the buyer, where the results in a sale. At first glance, this seems to be a system that benefits everyone. Merchants get more sales, more affiliate networks, commissions, and consumers get a better deal. The person who loses out is the subsidiary that the client might have already referred.

If a review site funded by advertising and affiliate revenue PPC to get traffic, then not be out of line to expect that if any of its visitors came to make a purchase based on the comments, they should receive a commission. However, if at the point where the visitor is about to make a purchase that went through a cashback site, which overwrite the most recent round of cookies. This means that the subsidiary has passed all of the work of getting the customer to the point of sale for the CashBack site to take the credit. Evidence suggests that people just use CashBack sites at the point of purchase. The EPC for some traders are up to 5 times higher for incentivized traffic, suggesting that only pass through the CashBack site where they intend to make a purchase. Is it correct that members are being denied commissions CashBack be a more attractive incentive to buy?


tags: affiliate programs directories, affiliate network program, mortgage affiliate programs, affiliate tracking program

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