Multiple Referer Payment Model Questionnaire

Posted on 28 August 2008
Tags: Affiliate Marketing, Agencies, Search

A good friend of mine and affiliate marketing consultant legend Matt Brown is conducing a survey on the merits of a multiple referrer payment model.

This suggestion has been knocking about for a while, but as far as I know nobody has started running their campaign like this yet. (if anyone has experience with this please let myself or Matt know)

The basic premise, for those who are not aware, is that more than one affiliate receives payment for a sale if they were involved in the click stream.

I think this could be good for affiliate marketing, and welcome the change if testing proves successful. From a paid search point of view, statistics are everything, so if we are getting payments on more sales we can collect more statistics meaning we can work more efficiently.
There are some obvious problems with this system. Firstly cashback sites, I cant see this working for cashback, who lets be honest are one of the reasons this is being suggested. How can cashback sites offer £70 cashback on car insurance when they dont know how many other affiliates have been involved in the chain.

There is also the matter of deciding how much influence each click has had on the sale, will clients just pluck a number out of the air? Or will this be done on a more accurate basis.

I have put the list of questions below, if you want to email them over to Matt or feel free to discuss here.

What is your opinion on the current interest in multiple referrer payment models?
Do you think it would be fair to reward more than one affiliate?
Would you be happy to be involved in such a commission payment scheme?
As a Paid Search affiliate do you accept that your cookie often overwrites previous affiliate cookies, thereby rewarding you with last referrer sale?
Do you also accept that other affiliate cookies often overwrite your cookies, thereby rendering the sale obsolete (to you)?
Would you be happy to receive a lower commission per sale, but a higher number of commission payments?
What do you see as the biggest risks associated with this model?
What do you see as the greatest opportunities with this model?
Are you aware of any other merchant programs who have adopted this model?
Would you be prepared to operate an “open book” policy where a merchant would divulge commission splits, and name all credited affiliates?
How would you feel about this system being opened out to all of a merchant’s online advertising channels, rather than only affiliate?
Do you think affiliates will accept this model going forwards?
Do you have any other points you’d like to raise regarding this concept?