DISQUS

Pat Grady · 2 years ago

Good article, and I concur exactly. When I see poorly constructed tiers, with too many inflection points, I'm demotivated to some extent. Seems weird that someone who wants volume would construct things this way.

Additionally, when I consider what their profit curve looks like, knowing that my marginal sales increases cost them no new fixed costs, marketing or management or otherwise, I'm equally baffled. To set goals for people that sell for you, make them consistent with your own goals - that will generally motivate your affs well because it'll reward what both partners want.

I'm also left wondering when I see structures like these, if the merchant understands that when I push harder, my margins generally decrease - if you want astounding volume, just talk to me about what it takes to push more volume. And that's always a margin discussion, not a bonus spike.

Graph was genius Scott, thanks.

Scott · 2 years ago

Thanks Vlad.

You cannot go by CJ's EPC any more than a rough guideline.

First of all, that number is an average. There may be 1000 people getting an EPC of 10
and one huge affiliate getting an EPC of 100 causing the displayed average might be somewhere near 50, which nobody is getting.

That's an extreme example, but the point is, you need to test and discover your own EPC numbers.

Michael Coley · 2 years ago

Excellent analysis and explanation! I love the saw graph, as it brutally illustrates the point. I've long been opposed to tiers for this exact reason. I've never been quite as close as the "miss by $1", but I did miss a tier by $100 once and that miss resulted in $800 less in commissions.

I'm not opposed to a tiered structure that's attainable and fairly narrow (for instance, a base of 8% and a bump to 9% with $100 in sales and 10% with $1000 in sales). When the top tier is several times as high as the bottom tier, however, it's highly DEMOTIVATING. Many merchants have top tiers set high enough that no affiliate has ever reached the tier.

What amazes me is how many affiliates actually LIKE tiers. The question was asked at Think Tank, and about half of the affiliates preferred tiers.

Scott · 2 years ago

Thanks Michael and Pat.

I was in a similar situation, Michael, where I was about one $150 annual subscription short of a tier that would earn me $500 more.

So I bought one. ;) Those games shouldn't be necessary and you're right, totally demotivating.

Lord Matt · 2 years ago

You don't get graphs like that in statistics (my background) but I can read enough to know the the ECR pits after he third none zero peak to below the starting value. Is it me or that a punishment? Shouldn't the ideal graph for such a progression be an S shape? (I've livebookmarked your blog BTW as I don't want to miss out on anything else).

Scott · 2 years ago

Good observation, Matt, but it's not really a punishment.

I started the chart at $1000. Had I started it at zero, it would have started at 12%.

The ideal graph for me is a horizontal straight line with a fair rate. that's the most predictable.

Or, if there are bonuses involved, it should be a straight change in commission and a simple step up. The reason we get the curves here are because there's a flat monetary bonus at certain milestones and I'm applying them to the overall earnings to get an effective percentage rate.

Jason Pearson · 1 year ago

Thanks for your candidness with this subject matter. I think sometimes people try to play the martyr and not acknowledge the fact that they are trying to make some money.