Sep 2 2008

We’re Paying You Less Commission From Tomorrow!

Imagine if you were at work (not doing affiliate stuff) and just as you’re about to leave for home the boss quickly pops up from behind a corner and quietly mentions that “from tomorrow we’re going to be paying you a little bit less than normal - see you at 9am then”. You’re going to feel a little bit miffed aren’t you? Well, that kind of thing is all too frequent (in fact once is too frequent) in affiliate marketing and something needs to be done about emails like this, sent at 6pm today, from E.On via Affiliate Window:

E.ON would like to inform all affiliates that they are reducing the commissions from tomorrow 3/9/08 to the following levels: £15 Single fuel £30 Dual fuel

So, assuming tomorrow is after midnight that’s around 6 hours notice of a commission change to affiliates!

Now I can appreciate energy price issues and credit crunching and all the other economic climate milarky that goes on, but 6 hours notice of “we’re reducing your commission” isn’t good for anyone. If something like this needs to be done with such urgency then at least include an explanation in the email.

Better still though, give affiliates a decent bit of notice!

Networks should be protecting their affiliates from this kind of thing, as should agencies!

Whilst I don’t have dealings with this merchant it does concern me that commissions can just be dropped at a drop of a hat! I guess there may be some PPC guys out there who are budgeting using original figures as well as cashback sites that will need to make the necessary adjustments. I suspect they’re not going to be too appreciative of this short notice drop delivered after “normal business hours”.

As belts get tighter it wouldn’t surprise me to see margin on commissions reduced on other programs. If it happens then it happens, but networks need to make sure their affiliates are being given adequate notice by their merchants, because if you allow chopping/changing with just a few hours notice then you’re asking for a boatload of issues in the future.

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5 Comments on this post

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  1. Marc Gear said:

    Jason, While I quite agree that this merchant has not given adequate notice to affiliates, I don’t agree with your comparison of it to someone’s boss informing you of a reduction in your wage. Affiliates are not employed by merchants. The relationship between an individual and their employer is protected by certain laws, as well as the contract of employment. Employers cannot change your wage like that because employees are legally protected.

    The relationship between an affiliate business and a merchants business is different, but is also protected by other laws, and possibly by contracts, but unless your contract with the merchant protects your commission rate or guarantees a notice period, affiliates don’t have a leg to stand on. Its much more likely that the right is reserved by merchants to change the terms of business at any time and without any notice.

    Looking into these things before you agree to work with a merchant is clearly good business sense, but if an affiliate has agreed to promote a program on the basis that the commission might change at any time and with no notice… well they don’t really have much of a voice to complain do they - after all they agreed to the term that the merchant can change the rules at any time.

    Do your homework, read those T&C’s and work with networks that make it a contractual obligation for merchants to notify their affiliates in advance of these changes - otherwise, you’re always taking a risk.

    September 3rd, 2008 at 10:28 am
  2. Jason said:

    Hi Marc, true about the comparison and you’re right it wouldn’t happen under employment law.

    Although, that doesn’t take away from the fact that these kind of reduction notices should be done with more than 6 hours notice.

    I guess this does highlight just how unprotected affiliates are then - and even more so when the main line of protection, the network, allows it to happen.

    Just for the record E.on via Buy.at sent the same email today but gave affiliates until 8th September before implementing the decrease. A lot better than the case highlighted.

    September 3rd, 2008 at 4:08 pm
  3. Rajpal Bhogal said:

    Hi,

    Hope you are well.

    I currently work on the E.ON account as the Affiliatewindow Account manager - Rajpal Bhogal. The message which was sent out to all affiliates yesterday contained the wrong date, this was a genuine human error. The date of the reduction of commission is the 8th September 2008. As soon as this was brought to my attention I have amended and re-sent communication to inform all. I do offer my apologies for misinforming all and please be assured this will not occur again.

    Please do not hesitate to contact me if you have any questions or comments, I’ am more than happy to help. Thanks

    Contact details:
    Rajpal Bhogal
    Rajpal.bhogal@affiliatewindow.com

    September 3rd, 2008 at 5:03 pm
  4. Jason said:

    Hi Rajpal

    Thanks for the info.

    A week’s notice is a lot better than 6 hours :)
    Cheers

    Jason

    September 3rd, 2008 at 6:37 pm
  5. Rajpal Bhogal said:

    Hi Jason,

    Apologies again.

    Thats no problem at all. thanks

    kindest regards,

    Rajpal Bhogal
    Account Manager
    rajpal.bhogal@affiliatewindow.com

    September 4th, 2008 at 12:16 pm

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