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[edited by: BrandNewDay at 4:44 pm (utc) on May 12, 2008]
Just to tell you there was a guy who closed his business (declared bankruptcy). I was his affiliate. The payment threshold was $50 and I had made $44. I mailed him and told him since your business is closed there is no way I can reach that mark. And the next day he sent me a check. :-)
You may be correct, but it depends on with whom you are signing up. I do a proper research before agreeing to be an affiliate.
Regarding the small networks, some can have some a very tacky, questionable colllection of "merchants" on board (especially with a very low entrance required), while there's one fairly "tiny" one (who I won't name, of course) that is as solid as a rock, though they're fairly top-heavy in 1 or 2 niches. Even if a merchant were to turn out to be a scoundrel, the network would cover the affiliates' commissions due themselves, and they won't let merchants slide. But they're very particular in personally screening, both for merchants and affiliates.
KFish, I have a suspicion who this might be, and though I doubt it will do any good, it's due diligence to contact the network anyway.
[edited by: Marcia at 6:15 am (utc) on May 13, 2008]
But they're very particular in personally screening, both for merchants and affiliates.
There's exceptions even to that warning - I'm an affiliate for one scheme that allows almost anyone in, but the only risk to me is the most recent transactions, as it works on a drop shipping basis. And a few sales a month at $100+ where I get to keep 64% has to be worth a little risk!
But, in general, I'd go for schemes where I can respect their behaviour; I like them to be choosy.
[edited by: Quadrille at 9:41 am (utc) on May 13, 2008]
BrandNewDay I am in the affiliate business for 4-5 years and I had an absolutely smooth experience as far as payments are concerned. This is the first time someone is unwilling to pay.
Then you are either extremely lucky or much smarter than I am.
I have always been careful with chosing my merchants, but have been disappointed numerous times.
I also look for brand reputation of the company before applying to be an affiliate. Better reputed companies usually pay their affiliates on time.
I have given him time till 15th of this month, after which if he fails to pay I will start taking action.
Start gathering documentation, like sources of traffic, print-outs of network sales and earnings (and reversal) records, etc.
And a few sales a month at $100+ where I get to keep 64% has to be worth a little risk!
Quadrille never heard of this. 64% commission? The most people are willing to pay is 25-30%. Exceptions are downloadable products like ebooks etc. Is this a downloadable product too?
Marcia I will do that thanks.
[edited by: KFish at 12:26 pm (utc) on May 14, 2008]
I think it helps that the company have no web skills, so many affiliates (including me), rank better than they do. But they aren't about to starve on their 36% :)
But I've always preached that for the little guy (I'm 5'9"), niche markets are the only way to do well. That's why Amazon only pays me 6% (or thereabouts).
I threatened him with whatever I learned from this thread and the poor fellow go so scared that he paid me.
Thanks to all of you for your valuable comments/suggestions.
Thanks to the owner of WebmasterWorld too. Your site helped me to get my money.
BTW Quadrille 5'9" seems to be above average height. ;-)
Just to tell you there was a guy who closed his business (declared bankruptcy). I was his affiliate. The payment threshold was $50 and I had made $44. I mailed him and told him since your business is closed there is no way I can reach that mark. And the next day he sent me a check. :-)
You're very lucky if you haven't been an affiliate of a merchant who was under bankruptcy protection who did follow the law. There are many very large companies in the major networks who are currently under bankruptcy protection. Their affiliates will never see a penny of their pre-bankruptcy earned but unpaid commissions.
Fortunately, I've only had one merchant go bankrupt and that was Delta Air Lines.
Their affiliates will never see a penny of their pre-bankruptcy earned
If the employees can get their payments pre-bankruptcy, I don’t see an issue with affiliates not getting paid. If this is the law then it should be amended.
Quadrille I can pay but the amount will be so less that you will laugh at me ;-)
If the employees can get their payments pre-bankruptcy, I don’t see an issue with affiliates not getting paid.
In bankruptcy, there's two issues that apply here;
First, there's a certain order of priorities for payouts; employees are fairly high up that list, as the employer has duty of care - the employment contract suggests that if the worker works, then the employer pays. For affiliates, the contract is more 'one to one', a partnership. So the payout priority is lower.
Second, the official in charge of the liquidation decides who gets paid and when - the bankrupt is not allowed within 23.8 metres of the checkbook.
BTW, I am not a lawyer, and these details will vary a lot between countries, and your mileage may vary.
[edited by: Quadrille at 8:46 am (utc) on May 20, 2008]