You are here: Home > Affiliate Networks > MoreNiche Launches Split Commissions
Monday, 14 June 2010
If there's one big noticeable change in affiliate marketing on the horizon this year, it has to be split commissions. This is the concept where if more than one affiliate is responsible for a transaction then they are all rewarded rather than on the 'last click wins' basis.
Today MoreNiche are launching the ability for their merchants to reward multiple referrers. Merchants can choose whether to pay on first referrer, last referrer, everyone in the middle or a combination of all three.
Initially they are working with Proactol who will continue to offer the same commission for the last referrer (currently 30% commission) but also offer a bonus £3.50 for the first referrer as a thank you for introducing them to the brand. In the case of Proactol, 39.46% of all sales have more than one referrer in the buying chain. The longest chain they've seen consisted of a colossal 15 affiliates, of which only one affiliate takes credit under the current 'last referrer wins' system.
So how does this new Split Commissions system affect affiliates?
To me, it sounds good. As a content affiliate, I should see some reward for the effort that I put into generating a sale. For example if I write a post about blue widgets and on the back of that visitors decide to buy from ABC merchant, I could lose all commissions if that visitor uses a voucher code or cashback intermediary.
Under the new system (assuming I promoted Proactol in the above example), I would see £3.50 where as before I would see nothing.
Obviously this will impact cashback and voucher code sites in some shape or form and not everyone will be happy if the end result is that existing commissions will be split, rather than appended to as with the Proactol/MoreNiche concept.
Time will tell how successful this is but it's definitely an innovation in the affiliate arena. This comes from the company that also offers the chance to win a boat! For every $5 (USD) equivalent earned in commissions over the lifetime of your network membership, you earn one MoreNiche point. Bank these and you can choose which prizes you claim. This year they've already given away an iPhone and two digital cameras although the 2 Week All Inclusive Premium Cruise sounds like the ideal prize in my books :-)
This is a great concept especially for us freebie-loving affiliates and one I hope catches on. As for Split Commissions, I've seen a few individual merchants work on this but I've yet to see another network to roll this out but again, this will undoubtedly catch on.
MoreNiche also have further developments in the pipeline so this is only just the beginning of a series of affiliate network innovations. Find out more at MoreNiche.
You may also be interested in reading:
Comments are manually approved and hence can a while to appear. Questions, informative posts, and feedback comments are gladly accepted. Spam is deleted. Spam-type comments have their links removed (Comment Policy)
Hi David,
An interesting development and one that has been discussed for over three years now with little practical movement away from last click until now.
I've personally changed my opinion in the last twelve months away from multi-attribution to more of a 'value' attribution model. I presented on this at the Expo last year and how I feel merchants need to be better educated before they make any fundamental changes from the 'least worst' option of last click.
Value attribution could be many things but what it should do is show advertisers how elements such as average order value, contribution in a sales journey, new vs. repeat customers as well as a number of other metrics, can better inform commission choices and therefore build their confidence in the channel and in turn the resource and money they spend on affiliate marketing.
It's this type of information that starts 'joining up' data, completing the circle of information that should exist between affiliate and merchant.
This also moves away from a click as being the arbiter of value and reward.
Nevertheless I'll look forward to seeing how this one pans out and congratulate MoreNiche on their innovation.
Written on Monday 14 June 2010 at 21:36:09 GMT (Permalink)
I think that's a great news Dave, but may perhaps need a more visible approach, knowing that it's still new. This will probably be a new trend for this year for affiliates, and I do think everyone else may follow this particular system. Though I'm starting to get confused lately -- and it's clearly about the technology that are fully blasting this year.
I was also about to try pay-per-call recently, though this split commission system might also change that plan :) Very interesting and this really makes me want to try it out for myself, so I may be able to share it with others as well.
Regards,
Jason
Written on Tuesday 15 June 2010 at 08:02:26 GMT (Permalink)
An interesting move no doubt, and one that may work for some of the smaller merchants with whom Moreniche are working. However I think it is incredibly naive to take the view that you can simply assign value based on where in the chain a click takes place. This also doesn't take into account the influence that other online channels impart.
Whilst last click may not be ideal, it is the most clear and transparent, and ultimately fair way of rewarding that we have at present.
Written on Thursday 17 June 2010 at 07:09:46 GMT (Permalink)
2010:
Andrew Slack
Thanks David, I believe many more networks will also start to experiment with this type of technology moving forward, we also released a video on YouTube to help explain:
http://www.youtube.com/watc...
Written on Monday 14 June 2010 at 09:19:56 GMT (Permalink)