Re: affiliate junk

From: John Gaskill <jg_at_info-central-usa.com>
Date: Tue 25 Sep 2001 13:24:19 -0500

PESACH LATTIN <plattin_at_spyretech.com> WROTE:

> "No one is making money off commission junction."

TO WHICH MICHAEL EHLENBERGER <michael_at_premiumnetwork.com> REPLIED:

>Without getting into a long debate with Pesach Lattin's
>angry attack on affiliate marketing I just want to give
>one stat for all to ponder.

TO WHICH GLENN SOBEL <YourWebURL_at_aol.com> THEN REPLIED:

>Commission Junction has something like 1500 merchants
>offering affiliate programs. As one of CJ's top partners
><see http://AffiliateAdvisor.cj.com> I think I had referred
>around 20 active merchants at one point (less than 2%
>of CJ's active merchant list) a few months ago and the
>commissions paid to affiliates by my merchants alone
>totaled over $200,000 for that one month.

>I'll let you do the math and draw your own conclusion.

MICHAEL EHLENBERGER <michael_at_premiumnetwork.com> THEN WROTE:

>I did the math, good or bad $200,000 divided by 1500 =
>$133.33 .

-------

Unless I am misreading Glenn's post, the $200,000 should
be divided by the 20 merchants he referred into the program.

That arithmetic produces a different outcome with $10K per
merchant vs $133.33, but the answer is still useless if you
are trying to calculate how much money the average
affiliate reseller is earning in commission.

I might pay a million dollars to salespeople in commission,
every month, but there is a big difference in their earnings
if the number of people I am paying is 12 or 1200 or 12,000
($83,333 vs $8,333 vs $833).

Assuming that CJ takes fifty percent off the top of that
$200,000; $100,000 is left to for the affiliate resellers
as their chunk.

One can see it is not a bad deal for CJ, but the question
of the hour is, "How many resellers is the pie ultimately
divided among?"

The value of one to one deals is that the middleman's
cut is eliminated. As you can see from the arithmetic
above, when the numbers are substantial, that number
is even more substantial.

Regards all,

John Gaskill
jg_at_info-central-usa.com
Learn to Make Your Own One to One Deals @
http://Info-Central-USA.com/OneToOne.htm



Received on Tue Sep 25 2001 - 13:24:19 CDT