Quote:
Originally Posted by cots
I see the point here. After all (as a sponsor myself) we give a 50% commission to affiliates, so giving the surfer the benefit of coming direct is a reasonable strategy. However there is a chance that you can kill the golden goose. We have seen the number of active affiliates we have go down by 40% or so, and sites are closing all the time. Pricing may be sensitive as you say, but if you only get the same from a direct sale, but in the process create a traffic void because TGP/Directory sites close, then there is no net gain. Not a clever way of doing things if the overall objective is to increase revenues and profits.
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The other factor in play when using that discount scheme is potential devaluation of your product in the eyes of the end user. My thoughts on discounts has always been that they should be a temporary and time limited.