Question

Topic: Advertising/PR

How Are Affiliates Paid For Printable Coupons ?

Posted by Anonymous on 12/2/2012 at 9:29 AM ET 90 Points
I am starting a site where I will be offering printable coupons, with coupons of local vendors, however I am having trouble with the pricing. <br /><br />how do I charge vendors? for coupons like say - 10% off on purchase above 50$ or 15 % off on a camera. How am I supposed to charge them? <br />I thought of charging them a fixed standard fee,(5$) each time a coupon is printed. and if they wanted to promote it then further promotional charges on the website, does this model make sense?<br />If you have any suggestions/ other models, please do give your opinion.
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RESPONSES

  • Posted by Gary Bloomer on 12/2/2012 at 4:59 PM Accepted
    Charging per printed coupon is unreasonable because it fails to take into consideration the percentage of coupons that are printed and never redeemed. As low a rate as a $5 fee per $50 sale might seem, to many retailers, a fee that's perceived to eat into each transaction by $5 may be enough to scare them off. Affiliates are probably paid based on a code buried in the coupon's redemption bar code, with that payment being made once the coupon has cleared the redemption process and been passed back to the issuer as proof of purchase and use. The affiliate then gets paid once the coupon has been used, NOT when the coupon is printed.
  • Posted by peg on 12/2/2012 at 8:45 PM Accepted
    A better plan is to charge vendors as if they were advertisers. Their coupon appears on your site for (say) 30 days at a rate of $X per month. You can charge a somewhat higher rate if you can demonstrate that you are driving people to your site and to their coupon. In this model, you are not dependent on whether a consumer prints or submits a coupon -- nor should you be, because you can't control that part of your business.

    In an advertising model, your rate relates to the size of your audience, so you can spend your energies building your business rather than micro-managing local vendor's coupon content. In the long run, this is what businesses want -- exposure to larger audiences.

    I'm not sure you mean "affiliate" in the sense that marketers generally do. But if you do, then Gary addresses that point and I'll add only that, from an affiliate's point of view, a printed offer is hardly worth the time. Affiliate business has to be efficient, so it is driven by electronic coupons and links.

    Good luck to you.
  • Posted on 12/3/2012 at 2:18 AM Author
    @Gary Bloomer @peg. Thanks for your response.
    I do know that, affiliates are paid once the coupons are scanned in store, However Don't you think that this model relies on the honesty of the store owners? I mean they could take the coupon from the customer and not scan it to show the coupons we promoted have resulted in no sales? I mean if not all stores at least a few might cheat in this way. so I thought of an upfront model like this.
    Moreover I am starting up small, so I don't really know as to how I can track coupons in store, I mean whether they have been used or not.
  • Posted on 12/8/2012 at 12:48 AM Author
    Thanks for your response.
    I do know that, affiliates are paid once the coupons are scanned in store, However Don't you think that this model relies on the honesty of the store owners? I mean they could take the coupon from the customer and not scan it to show the coupons we promoted have resulted in no sales? I mean if not all stores at least a few might cheat in this way. so I thought of an upfront model like this.
    Moreover I am starting up small, so I don't really know as to how I can track coupons in store, I mean whether they have been used or not.

    Read more: https://www.marketingprofs.com/ea/qst_question.asp?qstID=40480#ixzz2ER849WE...
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