Merchant not tracking returning visitors!

How much does the affiliate lose?

[zeb]

I read somewhere that out of ten sales nine are made by returning customers, and only one sale during the first visit to a site. The returning customer of course goes directly to the merchant site and if the merchant doesn't use cookies for tracking, the affiliate that referred the customer does no get a cent.

The figures above were given by a merchant that uses cookies, so they may be biased.

Has anyone here switched from a merchant that doesn't track returning traffic to one that does? How big was the difference.

[fathom]

hmmm... it's very true that return "visitors" buy more often, as very few people buy from a new merchant (that they don't know and have no experience with).

This don't mean though that these are return customers -- just that they have been to the site before. (according to the cookie, that is).

[Grumpus]

Hi Zeb.

Those figures sound about right. In fact, in some cases, it wouldn't surprise me if it was tilted even more in favor of the merchant.

Back when the affiliate model was new, it was, in fact, the intentions of the merchants to use the affiliate programs to generate "new customers" through the affiliate program. In fact, Amazon.com, for example, even used to come right out and say it. (Hence the "you can't buy from your own Associate ID" clause in the agreement - they want new customers and fully expect them to come back to their site for subsequent purhcases). It's a good part of the reason why I've always felt that Associates' Fees were obscenely low. The merchant is looking for a new customer, not for a sale in particular. The fee they are paying, in their minds, is not so much a sales commission, but a finder's fee.

As time has gone by, though, many merchants are realizing that despite their efforts to the contrary, Affiliate sites are broadening and developing some loyal visitors of their own.

Many are slowly coming around. There are the long-term cookies that you've mentioned - though more than several days is still quite rare. There are also some of the big players getting into the "let the Affiliates keep the customers and we'll keep the sales" mindset, though. Of Note:

Amazon has has browse based and keyword "Recommends" links for some time, now. A line of code produces a specific item or a group of items within a particular theme - all with current pricing, availability, and even pictures. They've even gone further and released their Web Services program which has enabled me to virtually mirror Amazon.com's entire product line which I piggyback onto my own content. In many cases (though I'm still working on new programatic methods of getting it all done) in which my listing for an Amazon product is more informative and useful to a visitor than their own listing.

Half.com, through Commission Junction, is offering a first generation version of Amazon's "Browse Recommends Links". Not nearly as versitile as Amazon's, but for a first try, it's pretty good. And, I'd expect that since it's built atop the CJ program, that it'll soon be available to other merchants, as well.

E-Bay, too, is working on something and I'm expecting it to be revealed in the next several days. I doubt the first generation will have the complete line of features, but it looks as if E-Bay's working toward having you create a "phrase" to define the theme of your page and then fill up your page with current auction listings for items that fall within that theme. In other words, if your page is on Antique Lithuanian Widgets, you'll get a list of Antique Lithuanian Widgets auctions with current bids and such. Much of this is speculation, but from what I've been reading, it seems pretty accurate a guess.

True, though, for the most part, most affiliate programs are set up not so that the affiliate site acts as a sales rep, but rather, that the affiliate finds new customers and sends them to the merchant never to be seen again. The 24 Hour Cookie, which is the most common form if any cookie is set at all, is a step toward making it worth the associate's time to post the links in the event that the person comes back the next day to actually place the order, but you're right, it does absolutely nothing for the customer that returns next month (nor for the customer that comes back on pay day to place their first order).

G.

[Robber]

In the UK a few merchants offer long cookies upto 9999 days but Im not too taken with these I'd rather have a 60 day cookie and higher commision rate as I very much doubt my cookie will still be around much after this, and certainly not after 9999 days. Just about every site you visit these days sends you a cookie and the browser will only store so many.

Cookies are a big plus point but they aren't always the main consideration.

[jomaxx]

I've seen one set of statistics that showed a 50%-100% difference in tracked sales when using longterm cookies vs. session cookies.

This will vary quite a bit from merchant to merchant for all kinds of reasons, so consider this as one data point only.

[1Lit]

Those companies that Robber mentions from the UK that have 9999 day cookies are not worth promoting solely for the residual element. For example, we gave one of them tens of thousands of impressions (I Want One of Those) and then DGM2 closed down their UKAffiliates site, forcing their affiliates to switch to new tracking software, making our referrals worthless for future commission.

Plus cookies are often deleted, people use different computers etc. Therefore it's better to dig out affiliate programs that track repeat sales via database matching.

Does anybody know about any reliable, long-standing affiliate programs which pay residual income without relying solely on cookie-tracking? Companies like BlackStar in the UK who pay on ALL sales made for somebody you refer to their DVD/video store forever. They only give 4% after tax is deducted, but it's good to know that you don't only get paid for the first sale generated by somebody YOU are referring to their store.

Thanks :)