RE: Affiliate Commissions - Multiple Visits

From: Joel Gehman <joel_at_irant.com>
Date: Wed 03 Oct 2001 15:13:05 -0500

NICOLE LEBLANC <nileblanc_at_home.com> WROTE:

>Can someone explain how Commission Junction and LinkShare
>handle commissions paid with multiple visits of a single
>user to the vendor site?

The short answer is "it depends." The issue is the
tracking method. Generally speaking, there are two
methods: session-based and cookie based.

With a session-based tracking method the affiliate will
be compensated for transactions that occur during a
browsing session initiated by the affiliate. What defines
a session is largely determined by the merchant. This is
generally regarded as affiliate un-friendly.

With a cookie-based tracking method the affiliate will
be compensated for transactions that occur within the
cookie duration window. What defines cookie duration is
determined by either the merchant or the affiliate
tracking provider.

For example, CJ has a default cookie duration of 45 days
(though merchants can change it higher or lower).
LinkShare recently announced its "Premium Partner"
program, which requires a minimum 7-day cookie duration.
Performics has a 90-day cookie.

In an interview with the Half.com affiliate manager
(http://www.affiliatehandbook.com/case/cc_20010322.html),
he remarked that Half.com is forcing almost all marketing
deals to be trafficked and paid through its affiliate
program at CJ.

"What sells them is the 45-day cookie. Our partners report
seeing 20 to 30 percent revenue increases, versus session-
based tracking offered by ad networks like DoubleClick."

Separately, one affiliate network I'm familiar with
reported that some 95% of all transactions within its
network occur within 24 hours. So while the exact impact
of session tracking on affiliate earnings is unknown,
clearly it is real.

As an aside, once a merchant has made the decision to move
from session-based tracking to anything greater than a
two-day cookie, it appears that it might as well go much
bigger.

For example, how many incremental transactions occur between
days 2 and 180? Probably very few for most products/services,
but the perceived value to affiliates of a 180-day or 365-
day cookie is huge.

We generally recommed (and get) 180-day cookies for all
our clients.

Joel Gehman
President, Perform First
Publisher, AffiliateHandbook.com
joel_at_performfirst.com
tel.610.792.9597
cel.610.564.7349
========================
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Received on Wed Oct 03 2001 - 15:13:05 CDT