Split Commissions - Rewarding First, Last and Middle referrers

Who should get commission the first or the last referrer, why not both? With MoreNiche's split commission technology our merchants can give credit to everybody in the whole buying process if they should wish.

Last Referrer Wins!

Almost all affiliate campaigns work on this principle, he who closes the sale earns the commission. This is fundamentally correct and in 90% of the cases we also believe this, the largest commission should certainly be paid to the person who managed to convert the surfer into a paying customer.

This principle is however undermined when you introduce the concept of brand bidding, cash back, incentive and voucher code affiliates.

Often voucher sites or brand bidders sneak in at the final stage in the surfers buying process and take the commission, leaving other affiliates who have helped build the brand without any reward. Most people still believe the last referrer should get the credit or some kind of split.

 

First Referrer Wins!

There is a strong argument to suggest that the affiliate who introduces the surfer to a brand should be rewarded in some way, often adding large value though generic PPC or Search Positions.

Affiliates who are driving large amounts of traffic through generic terms are clearly adding more value than brand bidders and we believe they should be rewarded for their efforts. Offering a split commission between the first and last referrer could be the perfect way to reward both types of affiliates.

 

Middle Referrers... and everybody in the chain?

Throughout the customer journey surfers will pass through lots of affiliate sites, all contributing to the surfer making up their mind on the right product/service for them.

There is an argument that each of these affiliates are helping to ensure the sale is made, crediting each affiliate will ultimately reward the hard working affiliates and ensure a 'fair' distribution of commissions paid.

 

So what's right? Who should get commission?

Actually there is no right or wrong way of assigning commission, everyone has their own opinion and that will greatly depend on their marketing techniques and product landscape. One industry is very different to another and therefore one rule cannot be applied to every affiliate program in a network.

At MoreNiche we offer the technology and enjoy consulting with our merchants to design the best commission structure for their industry, this often includes a mixture of the above.

Video Introduction - Monday 14th June 2010

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