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    Cashback and affiliate networks

    The 3 cashback sites I use effectively provide the same cashback for merchants they have in common, even though the sites have drastically different numbers of members (and hence transactions). This suggests that the affiliate networks don't base cashback on throughput.

    3 questions:
    Do affiliate networks base cashback on throughput?
    Do the merchants base cashback (to the affilaite) on throughput?
    What sort of cut do the affiliates take?

    Sorry to be lazy and not look this up myself, but I'm hoping there's someone out there with inside knowledge.

    5 Comments

    No, the affiliate networks tend to give around the same amount of cashback as the likes of quidco etc. It has nothing to do with throughput. (As far as I am aware when I researched all this ages ago)

    even though various cashback sites have the same cashback rate and vastly different traffic, does not necessarily mean rates are the same for everyone. they could compete with others by taking a hit on sales they make to keep the rate competitive, which would drive in more sales and in turn would allow them to meet the threshold to offer that higher rate.

    i think the merchants have the say in how much commission is offered to the affiliate when sales are made, afterall they pay the money.
    some merchants have different commission groups, levels and that, where if you exceed a certain amount of generated sales you can get higher commission %age. amazon is one that does that.
    affilliates take a %age similar to what cashback sites offer.

    Original Poster

    But Quidco, for example, keep saying that they don't deal with the merchants, they deal with affiliate networks. Clearly the affiliate networks must be making money out of this.
    Also there was an interesting situation last year when one of the affiliate networks was claiming that a particular cashback site was not being honest about 100% cashback. The argument appeared to be that the affiliate network paid some kind of bonus (clearly out of their profit) to cashback sites under certain conditions.

    They all have to make money somewhere.

    100% of the cashback doesn't mean they can't be paid an overall bonus for performance. It's all in the wording!

    anydiscount;8806198

    But Quidco, for example, keep saying that they don't deal with the … But Quidco, for example, keep saying that they don't deal with the merchants, they deal with affiliate networks. Clearly the affiliate networks must be making money out of this. Also there was an interesting situation last year when one of the affiliate networks was claiming that a particular cashback site was not being honest about 100% cashback. The argument appeared to be that the affiliate network paid some kind of bonus (clearly out of their profit) to cashback sites under certain conditions.


    They dont deal with merchants, they deal with the network who deal with the merchants. money in the end comes from merchants who pay the network who pay the affiliate.
    this affiliate stuff is one type of promotion a company can use.
    my guess is a merchant pays the %age and pays a fee to the network, which is where the network would make their money rather than merchants pay network a higher %age and the network offer affiliates a smaller %age.
    just as merchants give the network codes to offer to the affiliates to publish.
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