Cashback Fight Back - Bring On The 110percenters!
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As a huge fan of 100% cashback sites you can imagine how delighted I was to read that two of the biggest non-100% cashback sites Rpoints and Greasypalm have jumped into the arena in an apparent attempt to fight back against the might Quidco. Of course whilst they’re battling away amongst themselves for 100% supremacy it does now mean that your ordinary non-cashback affiliate now has 2 additional competitors to consider. Oh joy!
In my Affiliate Marketing - 2008 - The Year Ahead I suggested that a “new cashback site is launched called the 110percenters”, well it seems that it’s already been created in all but name. According to Wepromiseto from Greasypalm they’re going to be paying out the “additional bonuses other 100% cashback sites keep for themselves”!
Rpoints version, called Cashback Kings guarantees to pay the highest cashback rates - but if Wepromiseto are offering out their bonuses that surely means Rpoints must have to pay out more to maintain their guarantee?
Another issue that’s been bothering me is this - how many of you signed up to Greasypalm’s revshare program? Now let’s say your users are now cashback savvy but like the service GP offer… do you think they’ll stay put or move to the new 100% service one they get wind of this new site? Will GP be advertising the new cashback to their current and subsequent new users? If your revshare referrals move to a 100% offer, that doesn’t leave much lifetime revshare for the affiliate does it!
So what’s next? Will these cashback giants be paying out the interest they earn on the accumulated commission they receive? Or perhaps they’ll offer the commission that never gets claimed? It will be interesting to know just where things will go next and how much they impact on each other and non-cashback affiliates.
3 Comments on this post
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Shane said:
Thought provoking post Jason, the 100% cashback model is something that’s been bugging me for a while now so any advance on that is just insane, I’ve been biting my tongue as what I think will not be well recieved so I won’t go too into here but these 100% sites are haemoragging commissions out of the bottom end, making a small slice of cash off the top whilst the networks, agencies and merchants, happily bank the same as they always did.
But there is at least one loser (at times) in the cashback side of the affiliate game as SOME of their sales are at the expense of other affiliates sites, pay per click bills, email marketing etc. as in some cases a sale made there is due to other affiliate action on PPC, Email or Content where the seed of a sale is planted and then the cashback member pops off to login and buy via their chosen site.
Prompted by your post, I’ll bash my thoughts into coherent paragraphs over the next few days and upset the 100%/ cashback site owners glorious dolby surround sound then methinks
February 26th, 2008 at 3:00 pm -
Winston said:
It’s all getting a bit silly! At some point a critical mass of internet buyers will start using the sites and they become a pain rather than a help. Customers will have an extra step in any internet transaction. Rather than go straight to the merchant we all have to go via the cash back sites to get the expected price. At that point I’ll start using merchants that just lower their prices by 5% percent (or whatever) from the go. Bring back one click shopping!
September 3rd, 2008 at 10:28 am
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