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Just curious why some people charge for people to be in their affiliate program.


Latamier Longstaff
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Hello and thank you for viewing and replying.

I am a big time user of affiliate vendors for my places. What I have notices is that (what seems) more and more places charge $L 1000 to over $L 5000 for you to get their affiliate vendors.

I realize that it is their product and I know they have a right to do it - I understand that part.

What I wonder about is what are they getting out of it ? (besides the fee that they charge of course.)

Can anyone explain this to me please ?

Lat

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No one can guess the reason any creator does this.  Creators may have different reasons.

My guess is one reason that some creators may have.  Someone willing to pay to be an affiliate is serious about it,  They will try harder to sell the creators items to make back the fee.  The more an affiliate sells the more profit for the creator on top of the profit they get from the affiliate fee.

It a similar to RL in that in RL people buy a franchise to sell a companies products and then must pay a percentage of the profits to the company.

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Latamier Longstaff wrote:

What I wonder about is what are they getting out of it ? (besides the fee that they charge of course.)

You've already nailed it, the fee.

Although if you're paying for vendors, it's not unreasonble for you to expect a much higher % split.

(There is also one subtle thing too.  Say you're getting 50% of the sale, it's usual that the affiliate vendor won't give you that discount if you purchase from it as the vendor owner but there's nothing to stop you using an alt to buy the item.  Your main gets the 50% commission all the same.  If someone were to pick up free vendors and essentially just do this to obtain a discount then that's where paying a notionally significant up front amount can prevent this.)

 

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One thing that has crossed my mind, and I really hope I am wrong about this, is that the cost is making up for the sales that the creator isn't getting from their customers.

When I see some one asking for more than maybe $L1000 for their program, it really makes me think that maybe the items are not selling well for the creator.

I hope it's not true, but it would be a way of making some $L

 

I do agree with you about the showing of being serious. But you would think that just by buying the program (even if it's free) and taking the time to put it out, should do that.

Oh and another reason I guess I don't get why they charge - If I am putting out their vendors, I am already paying - the tier for the prims that I am using for them in the first place.

If there are any creators that are reading this that do charge - please give us the reason why. Inquireing minds want to know.

 

BTW- If there is any creators that have an affiliate program that they want me to use, please send them to me. I am more than happy to give them a chance in my flea market.

Thanks for taking the time to read this.

Lat

 

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OK. Here is another thought and I have no inside info nor have I ever used Affiliate Vendors as a seller or a buyer -- but.

When those vendors are free lots of folks pick them up. Lots of folks that the original creator might not really want as an affiliate (let's say going back in time to 2006 style shops?). This isn't helping the creator. When I see affiliate stores all over the place it doesn't impress me.

 

As an affiliate vendor SELLER I would much rather have ten good shops that actually might sell my stuff than 100 where many of them will come and go and likely never sell a thing. That would be MY primary impetus if I were the one selling the vendors. So the costs weeds out the folks that will never make it work (OK there might be a couple that would but you get the idea).

 

Of course I am not in favor of the whole process LOL; I would rather see the person making the items selling the items. If they want more exposure they can open up boutique shops themselves.

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Latamier Longstaff wrote:

 

Oh and another reason I guess I don't get why they charge - If I am putting out their vendors, I am already paying - the tier for the prims that I am using for them in the first place.

If there are any creators that are reading this that do charge - please give us the reason why. Inquireing minds want to know.

 

As someone else already mentioned, a lot of times people get the vendors for the sole urpose of getting a discount on the products themselves, rather than actually selling the merchandise. That happens more often than people want to admit, or realize. A vendor that is sitting out inside someone's home, isn't nearly as likely to be a successful business move as one that is sitting out in someone's store. A charge somewhat helps weed those people out, slightly.

Of course free advertising is usually a wonderful tool for any merchant, but you also have to look at the counterpoints. 

I'm not going to address the "I'm alreayd paying for it in tier/prims" point, as I find that to be one of the worst approaches to having vendors, and the least successful as well. It's bene discussed to death though, and my opinion doesn't seemt o be a very popular one on the matter :)

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Latamier Longstaff wrote:

One thing that has crossed my mind, and I really hope I am wrong about this, is that the cost is making up for the sales that the creator isn't getting from their customers.

When I see some one asking for more than maybe $L1000 for their program, it really makes me think that maybe the items are not selling well for the creator.

I hope it's not true, but it would be a way of making some $L

Some very popular brands have an affiliate program so I don't think this is true in many cases.   It is
also a way of getting your business out there if your just starting out.  It is up to you to do your homework and determine what success you will have.  Even if the business is pretty new, you can be successful if the products offered are unique and of great quality.  Getting affliate vendors from very popular brand stores may result in more people going to shop in the creators store rather than buy from you to get a better selection.

I do agree with you about the showing of being serious. But you would think that just by buying the program (even if it's free) and taking the time to put it out, should do that.

No.  People may grab a freebie affiliate vendor just to get the discount for their friends or alts. 

Oh and another reason I guess I don't get why they charge - If I am putting out their vendors, I am already paying - the tier for the prims that I am using for them in the first place.

Just like in RL the franchise holder has to provide a building in order to sell anything.  If the creator has to pay for the location, there would be no need to have an affiliate program.  They could do it all themselves.

 

 

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Thank you to all 4 of you that respoded to my question.

I was only asking to find out other peoples opinions so that I may evolve and understand why people charge for it. In doing this, I wouldn't think about it as being a bad thing - and therefore gladly pay what ever their affiliate cost is.


To Chic:

" lots of folks pick them up. Lots of folks that the original creator might not really want as an affiliate (let's say going back in time to 2006 style shops?). "
This makes sence since you are not only selling products these days, but also a brand. And that is harder to keep as something possitve.

"Of course I am not in favor of the whole process LOL; I would rather see the person making the items selling the items. If they want more exposure they can open up boutique shops themselves."

I do agree with you about this, but...
I do make original items and will have a room just for my stuff but I do really enjoy creating places for people to come to and enjoy and I use the affiliate vendors as a way to support these places.

The main reason I have brought up this question now is that I just "treated" myself (and my S.O.) to a whole sim and I am busy creating the place for people to visit and not so much products to sell yet.


As far as people using it to get discounts by thier alts:
I am glad to say that I am honest enough to would have never thought of that on my own. (and you people that are doing that - what's wrong with you, geez)


And thank you Amethyst for the great input on this one. Come payday I will add some extra $L to the list and pick up some of those vendors that charge.

Thanks again and see you on the virtual side :)
Lat

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I am a big time user of affiliate vendors for my places. What I have notices is that (what seems) more and more places charge $L 1000 to over $L 5000 for you to get their affiliate vendors.

I realize that it is their product and I know they have a right to do it - I understand that part.

What I wonder about is what are they getting out of it ? (besides the fee that they charge of course.)


Perhaps they want someone who is already successful at selling products, and not someone with a parcel jammed with affiliate vendors trying to make money?

 

I had a couple of affiliate vendors in my place - they were appropriate to the theme of the parcel and tastefully done, the products were excellent.  And I had ZERO sales ... so I deleted them.

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  • 1 month later...

While I can only guess at this I think I have some good ideas of why they might do this, even if it they are not correct or specific to a person, but they may be a good idea anyway.

1. You can use it to mystery shop at the stores and check how the vendors are workiing and to try and recreate bugs you find in vendors.

2. Less competition for the people who do buy one, they know that and may preffer this way.

3. If they insult someone and someone thinks it is YOU who runs that store, then you may lose a sale from a bad reputation. The cost may cover a few lost sales, overall.

4. If you wish to **bleep** it in the bud, you may make the vendors deletable or somehow redo the servers and vendors and then exclude the offending stores. This takes time, and you may lose a sale at places that don't rez the new vendors!

5. You may end up with tech support questions.

6. One in X people may figure out a way to rip you off somehow. Some vendors ALSO basically give a discount to the persons alternate accounts! So, they get a vendor and make a few sales to alts they own and BAM they get a discount!

My money is on the alt account discount as the reason, but I am not a gambler so...yeah, I have never asked any one about this.

 

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