Good Merchant, Bad Merchant (Waitrose Entertaining)

The world of affiliate marketing has a long way to go before it reaches maturity. On one hand there are fantastic merchants like Buyagift who have just announced an amazing affiliate promotion with VIP trips to Las Vegas on offer.

However on the other hand I got this email from Waitrose Entertaining which is the worst piece of affiliate marketing management I have seen for a long time.

We are writing to announce the temporary suspension of the WaitroseEntertaining affiliate programme. The programme has been incredibly successful over the course of this year and we have been delighted with the results. However, we need to suspend the service in favour of our in store Marketing activity as we move into the Christmas period.

We ask that you remove all of your links and banners to WaitroseEntertaining by COB Tuesday 24th October at the very latest.
Sales from cookies dropped before that date will be honoured during the cookie duration of 60-days, but no new cookies or sales will be paid out.

We hope to resume the programme early in the new year and we would like to thank you for your continued support.

So let’s get this straight. Waitrose have had an “incredibly successful” affiliate program all year long but now it’s approaching Christmas shopping season and the time for affiliates to be truly rewarded for their hard work all year round the program is being closed. This is the time to offer extra incentive to affiliates to promote you not the time to close down and do your own thing. Affiliate marketing isn’t like switching a light switch on and off. Affiliates invest time and money in getting good search results, well optimised PPC, ethically run mailing lists and when an affiliate program pulls the plug like this a lot of that effort is wasted.

I wasn’t actively promoting this program but I really would urge all affiliates not even to consider promoting it when they come crawling back in January. If an affiliate marketing relationship isn’t good enough all year round then I don’t think they should bother with it at all.

Update It looks like I’m not the only one that feels this way

http://www.onelittleduck.co.uk/2006/10/waitrose-leave-affiliates-not-entertained.html
http://www.here.org.uk/2006/10/waitrose-how-not-to-treat-affiliate.html

Hopefully Waitrose Entertaining & the network will take note.

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Nadeem (Azam.biz)
Oct 14th, 2006 at 1:00 pm | #

Good piece. Well said Fraser.

Hero
Oct 15th, 2006 at 10:10 am | #

It’s like they’re saying “we value your business only in the slow months of the year; Christmas we can do it on our own”…
The bad thing about big names moving in online marketing is that they treat it like traditional marketing, where they run short-term campaigns prior to their peak season, during which they do nothing but reaping the rewards… that’s not how affiliate marketing works though. It’s a middle-to-long term exercise and you need to commit to it, not switch it on and off depending on the season.
However I feel that this is just the first of many to come, unfortunately, as more big names move to online. Until they understand how it works and that they cannot enforce offline techniques; will they be able to get away with it because of their name and brand? We’ll see :-)

Paul Wheatley
Oct 17th, 2006 at 8:10 pm | #

The silence from Tradedoubler is almost deafening … or is it beneath them now to respond.

The backlash also has to be laid firmly on the step of the network, Tradedoubler in this case, to firstly permit this to happen (though a merchant can close at any time), but mainly even considering allowing the merchant to relaunch the program after the christmas peak period.

It’s another prime example of where this networks priorities lay, which is appeasing the whims & desires of recognised brands and/or agencies without a thought to an affiliate who are more disposable assets.

Having chatted with a couple of Tradedoubler merchants this week, a common thread from both of them without any prompting seemed to be that they (meaning Tradedoubler) seem to be rule unto themselves with little concern for anybody except themselves & the service they are receiving it not adequate enough. Does this suggest Tradedoubler are control freaks and closed shop arrangements all spun very nicely to their clients.

So what does Tradedoubler do to earn their override?

Lets say, hypothetically speaking, last year we earned about £500k in commission via them. As an override (working on a 30% rule of thumb) that would be about £166k to Tradedoubler, enough to pay for about 6 peoples wages full time.

I would be lucky if we had received half a days decent dedicated support in that whole period .. translated I have probably had about £40 worth of affiliate support.

For those kind of earnings would it be reasonable to expect a fully dedicated account manager?

Next topic I will come onto under Tradedoubler are these indepth tender requirements for closed group bidding & highlighting the NUMEROUS discrepancies in their keyword policy information reports across their platform.

I don’t expect any posts to improve the service for us as an affiliate as we realise Tradedoubler are impervious to any comments, but I can add two other networks to this same categorisation & that is DGM and CJ.

Dio
Nov 1st, 2006 at 3:51 pm | #

That’s dreadful behaviour. I really hope everyone of the affiliates that helped them with their sales completely drop all participation in the programme come the new year. Then let them talk about how much they value the affiliates hard work.

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Fraser Edwards has been involved in affiliate marketing for more than 5 years after starting out in business as a website developer.

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