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Cant buy KWs on Google, Overture, Lycos or Looksmart.

Anyone know the reasons why some of CJ's advertisers do that?

         

FromRocky

6:41 pm on Feb 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Some of CJ's advertisers will not pay commissions by purchasing keywords on Google, Overture, Lycos or Looksmart, although they buy KWs on these sites. They do not want us to compete with them and pump up the CPC on their KWs. Are there any other reasons? I know one of advertisers has abandoned this policy due to the lost of sale.

hannamyluv

7:21 pm on Feb 1, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



Because it's too easy to do. Frankly, I can pay somone to do it inhouse, why should I have an affiliate driving up the price?

There are instances where I could see allowing an affiliate to bid on KW, but even then I would only allow a limited number.

Those ads reflect on my brand. The last thing I want is for inexperienced, get rich quick types flooding those very visible spots with bad ads for MY product.

ska_demon

11:32 am on Feb 3, 2004 (gmt 0)

10+ Year Member



Theres nothing stopping you bidding on keywords to drive people to "your" site and then relying on people clicking thru to the aff pages.
Ska

happyallday

2:40 am on Feb 23, 2004 (gmt 0)

10+ Year Member



Will these advertisers refuse you when you apply?
or they just refuse to pay the commissions at the end of the month?

skibum

2:49 am on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The biggest drawback to letting affilaites bid on AdWords is that you lose complete control of the creative. If your affiliates are competing with you and driving up bid prices chances are they are all losing money because they are working on much smaller margins and cannot afford to bid as high as the merchant. If they are losing money, their ads won't be there very long.

If a company doesn't let its own affiliates bid on keywords, affiliates of a competitor will occupy the spots anyway and the competitor will get the sales at a fixed payout.

FromRocky

3:24 am on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



<Those ads reflect on my brand. The last thing I want is for inexperienced, get rich quick types flooding those very visible spots with bad ads for MY product.>

But, you are in control anyway. You can refuse when they apply or you will not renew the contract...

<Will these advertisers refuse you when you apply?>
No, they won't.

<or they just refuse to pay the commissions at the end of the month?>

No, they did not.

I saw the conversion ratio on their products in my account is high and I want to drive more traffic to their sites but I cant because of their TOS.

<If a company doesn't let its own affiliates bid on keywords, affiliates of a competitor will occupy the spots anyway and the competitor will get the sales at a fixed payout.>

Yes, they're not alone.

One of advertisers that did not allow me (its affiliate) to buy some certain KWs so I dropped it without cancelled and signed with its competitor. A month later, I was informed that it has dropped the "KW disallowable" policy. I did not return. It's too late.

skibum

3:56 am on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Tecnically the merchant is in control over the ads in that they can accept and reject affiliates, but knowing what affiliates do is almost impossible to keep on top of.

Google is not likely to approve ads that are inaccurate, disparaging or otherwise not appropriate for a site. Merchants can often learn a lot from the ads affiliates put up because they have to be ROI positive. In order to stay up, (assuming the affiliate is in business to make money & not just give the merchant free publicity) the keywords, bid prices, and creative have to be spot on.

ebizcamp

4:48 am on Feb 23, 2004 (gmt 0)

10+ Year Member



Do them claim it in CJ? If they do not allow affiliates to promote their products through google adwords? Thanks

(which advertiser£¿£©

hannamyluv

2:04 pm on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I can understand a company that doesn't have a decent amount of help to let their affiliates bid on KWs, but for a company like mine, where I have an inhouse staff who maintains lots and lots of ads, why would I want competition from my own affiliates?

Despite that, I think that having a few affiliates with permission to bid on KWs is fine, but I would never let them do it wholesale. No matter if I get 25 spots for a KW filled up and make a million bucks in three weeks, it looks so spammy, that it would still affect my brand (and sales) in the long run. Unfortunatly many affiliates are not in it for the long haul (I said many, not all) so they really only care about their short term gains. I, as a merchant, have to think about my long term standing.

You may think that you are hurting a merchant by dropping them, but really, if you are using systems like CJ and the others, there are 10 more affiliates waiting to take your place. If you really want a merchant to value your services, start looking outside the affiliate services like CJ for some inhouse affiliate programs.

mfishy

3:22 pm on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



<<If a company doesn't let its own affiliates bid on keywords, affiliates of a competitor will occupy the spots anyway and the competitor will get the sales at a fixed payout. >>

Bingo. Either way, they are competing with the very same affiliates. May as well at least get the sales :)

<<You may think that you are hurting a merchant by dropping them...>>

We work with one particular merchant in which we send $2,500,000+ per year. This is a very significant number for them. If they lose us, they can get all the cj affiliates they like and it will not make a dent...

hannamyluv

5:39 pm on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



But mfishy, I find it hard to believe that you are working through the networks. ;-) A good private affiliate is worth its weight in gold, which is what I implied by saying look for outside programs. You will be more valued by the merchant if you are working with them privately.

Your average affiliate through a network is not worth that much. We just took on a new site and they have a program through CJ. They have over 1000 affiliates and I will not care if 995 of them drop us. Sure, there may be a few that I would like to keep, but for the most part the threat "I'm gonna drop you" will get a shrug.

Not always, there are those 5 who mean something. But if you are doing only KW bidding for me, I definatly won't care. It doesn't require that much talent to do KW bidding. Anyone can do it, no matter what you think. It's not the same as building a good site that gets traffic.

And I did say I wouldn't mind letting a few do it, to fill up a few of those spots, but too many affiliates, like too many cooks, can spoil the CPC pot.

mfishy

6:51 pm on Feb 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I would agree with much of what you are saying hannamyluv, it's just that your insight far exceeds that of most merchants who just figure, "I don't need affiliates to compete with me". And, of course, most who use networks are simply using them as an ad network.

We don't really use PPC much anyway but do deal with merchants that make way too many rules. Often, I understand their position and am pretty sure they understand mine when we bolt. If you get good traffic, it's easy to sell and there's little need to haggle with picky, arrogant buyers