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Commission being cut.

     
2:01 pm on Jun 7, 2005 (gmt 0)

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My best selling product line is cutting their commission in half. I have been selling them for over a year and just noticed they are cutting it tommorrow. This product line has paid a lot of bills. I plan on reducing my bid prices and waiting to see what happens in the next few days.

Does anyone have experience with this? Any advice?

I am hoping others will drop the company leaving less competition and possibly it can remain profitable for me. Your thoughts would be appreciated. Thanks

2:22 pm on June 7, 2005 (gmt 0)

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If you are selling loads of their products then why not contact them directly to try and agree a better commission than what will be offered, if they value your sales channel then they may agree to better terms for you.

Let them know that halving commissions will mean you, and others, will have to stop actively promoting their products as your margins are thin as it stands. It depends how savvy they are, they may not realise that their sales will be badly affected.

3:24 pm on June 7, 2005 (gmt 0)

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I have already done that. I came on when they were offering the higher commission and they recently told me it was just a test to see if sales would increase. They say sales did not increase so they are going back to the lower commission rate. Also they started their test right when Google changed their policy about showing two ad for the same company at the same time in January. I know that has to have had an effect on the sales. I pointed that out to them also. So as it stands I can't convince them to do anything else. Just stuck with what they now have to offer. Time will tell.
4:39 pm on June 7, 2005 (gmt 0)

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It seems like a few programs are doing that lately... The fact that some of their better affiliates stop promoting them might make them think twice about the changes in some cases.

Making money through PPC promoting affiliate programs can be tough to do but you've obviously figured out a way to make it work!

I'd recommend taking those skills to start promoting another program/product while you test what the changes mean with this one.

 

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