Does this sound like good & fair?

Discussion in 'Affiliate Programs' started by Juls, Mar 23, 2005.

  1. #1
    I just convinced a small business owner to allow me to partner up with me. My initial plan was to start another online entity for her and get a cut of the profits generated from the sales i make. Kind of like a dropship agreement.

    I was going to develop a full ecommerce site to do this but she would rather process the orders through her own site.

    So i guess I will create a site and seo it but when a buyer wants to buy something they will have to process it through her site. Not the best way but the only way she wants to do it. Supposedly for inventory and other reasons.

    She is offering me $5(basically all the profit from each sale) for each new order/customer i generate. Her product is a monthly released product, which sells for $30. In order to track it all she wants to use comission junction.

    The margins in this industry are small and see her invoices I know this is her gross profit for her products.

    Her market is pretty saturated. I think I would need a pr5 and a lot of backlinks to rank decently.

    What do you guys think? Is it worth it and is it a fair deal for me? It basically is a CPA agreement for $5 per account.

    Let me know. I need your help to know if this is a good deal or not seeing as i am new to affiliate programs in general.
     
    Juls, Mar 23, 2005 IP
  2. Solicitors Mortgages

    Solicitors Mortgages Well-Known Member

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    #2
    no, crap deal.

    sell the products off your own site, endorsed with the owners permission.
    and then forward your sales to them, and let them ship the product and send you your cash.

    why pay a cut to cj?

    if the sales are made on another site (not yours)
    then its also dependent on your trust.

    trust = way too complicated business ethic :D
     
    Solicitors Mortgages, Mar 24, 2005 IP
  3. Juls

    Juls Well-Known Member

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    #3
    thanks for the info.

    maybe i should explain so more of why i am more interested in doing it her suggested way.

    i will just ask her to include cj fees with the amount, if possible.

    however her particular market is paper crafts where customers are extremely anal. for example this market has a high number of return orders due to their orders becoming slightly damaged during shipping. by damaged i mean creases or folds in the paper and running my own site to process the order would make me responsible in terms of dealing with these issues and others such as customer service about wismos(where is my order? emails and or calls)

    I trust her to some degree as her main office / store is across the street from me. :)

    So basically it comes down to Returns & Customer service vs. CJ fees, i guess.

    Given this new light on the deal, what do you think?

    Keep in mind that I am new to affiliate programs this so really i am still learning..

    thanks,

    Juls
     
    Juls, Mar 24, 2005 IP
  4. T0PS3O

    T0PS3O Feel Good PLC

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    #4
    Still sounds crap to me too. $5 is sweet F all compared to other deals out there. Just picture this. Building a website, processing orders and maintaining a business relationship takes the EXACT amount of time for products that make you $200 per order.

    The potential partner has high demands. Customers are anal and margins are crap. Plus it's saturated and you only get $5 a time and think you need a more than decent website.

    Add all that up and it's a no-brainer to me.
     
    T0PS3O, Mar 24, 2005 IP
  5. Juls

    Juls Well-Known Member

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    #5
    so forget about it?

    I mean i was thinking to just start up a very information based site ontopic with specific pages dedicated to talking about the benefits of her products with a buy now button, which forwards to her site.

    No processing order or what not and just make $5 per order that i refer to her.

    If it still sounds like crap what kind of counter offer should i go for or should I just try and find something else?

    My first affiliate type of deal and it originally sounded good. lol

    This shows how little I know. ;-)
     
    Juls, Mar 24, 2005 IP
  6. T0PS3O

    T0PS3O Feel Good PLC

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    #6
    The only way forward in this IMO is you take the sales but she handles all the issues. Like forward the customer service enquiries from your site to her. Pay her once a month so you get some interest rate advantage as well. But make sure it's worth some AdSense and Aff money as well so you don't rely on this one supplier to make this work for you.
     
    T0PS3O, Mar 24, 2005 IP