Affiliate Program
- Thread starter johno69
- Start date
Mark
Top Contributor
We are no longer accepting new affiliate sign ups, and are looking to shut the service down soon. The rewards for both affiliates and Netfleet has been tiny to be honest - so it's just not cost effective to maintain.
We will be sending full details to all affiliates tomorrow
Thanks
Mark
We will be sending full details to all affiliates tomorrow
Thanks
Mark
Chris.C
Top Contributor
(Note: I always seem to be bagging something about NetFleet, I hope you guys know I'm really only doing it offer some feedback that might give your some insights as to how you might be able to further refine your great service)
I don't remember the finer details of the program, but from memory it was a one time 10% commission... that was never going to be enough to get people to really start promoting your service with gusto.
At the end of the day the affiliate program may have been based on a flawed concept...
From my perspective at least, you guys tried to get domainers to undercut themselves by getting people to bid against them at the very auctions they buy cheap domains from for only a 10% commision....
For example lets a domain that is dropping is worth $750 retail, and I'm willing to pay $150 on Snapper for it, but because competition is low, I win it for $75. I now own a domain worth $750 which I can develop or sell to a retail client for a $675 profit.
With the affiliate program you were encouraging us to advertise the snapper auction, and you'd pay us a one time 10% commission.
So instead of making $650 I'd tell the retail client about the domain, and they'd be willing to bid $750 for the domain, but instead they just out bid me and win it for $150, and you guys expected that I'd be happy with a $15 commission rather than owning the domain?
Of course this doesn't even consider the fact that every domain in the niche in the future would be won by the new retail client for which I'd making no commission and would also not win the domain...
So anyone who buys domains on Snapper would have been shooting themselves in the foot to promote the NetFleet affiliate program.
Now if you affiliate program had of been, "we'll pay 25% commission on all revenues generated by any referred customer for life" you would have then had my attention.
Given that the variable costs for NetFleet are minimal, this style of affiliate program should still be very profitable for NetFleet, given that every extra buyer on the Snapper auctions from what I have seen tends to make a significant increase in the bidding price. Ie, one buyer turns up the domains sells for reg fee, two buyer rock up and you normally see the domain sell for between $11 - $30, three bidders rock up and that domain is almost certainly going north of $30, if four people see value then I find it hard to believe that it wouldn't be reaching $50+ and it doesn't take a mathematician to realise that if 4 or 5 people see value in a domain that there is a good chance that it's going to produce some quite competitive bidding.
So by my logic, every extra bidder at an auction increases returns quite substantially, so even if NetFleet has to pay an affiliate 25% commission, it would still be better off than if that bidder isn't at the auction:
1 bidder - $0 (NF profits $0)
2 bidders - $15 (NF profits $11.25)
3 bidders - $30 (NF profits $22.50)
4 bidders - $50 (NF profits $37.50)
5 bidders - $100 (NF profits $75)
I really don't think the figures I have thrown out there are all that unreasonable, and I know you guys at NetFleet should easily be able to work out what the marginal value of an extra bidder is at a Snapper auction in general, I wouldn't be surprised if your figures suggest that you guys could well afford to offer even a 30% or 40% commission to referrals.
And every time that buyer rocks up to one of your auctions they are going to be increasing your returns, and best of all is that even if they don't win the auction they are still going to increase the compeition for the domain which will increase your returns would costing you a cent, and if they do win the auctions, there is a good chance you are still going to make more money than you would have otherwise anyway.
So I don't understand why you didn't really sweeten your affiliate program and offer a commission rate for the life of the referral membership to at least encourage those who were shooting themselves in the foot to even promote your services?
There is even merit to encouraging affiliates to promote the AMA as well, you could even of something like 2.5% on all domains bought on the AMA and once again NF would very likely still make more money, despite needing to also pay the commission.
And lets face it most people who have never bought a premium domain before don't rock up to a snapper auction with a few hours remaining and decide to throw thousands of dollars at a domain.
It's takes people/businesses weeks and months to warm to the idea that there might be value to spending more than $20 on a domain. So the chance of making a one time commission are just so hard that it was never going to be worth it.
Anyway... once again this is just my two cents - it's not my business how you guys run your business, but it might be food for thought.
Not to be too critical, but if the rewards to affiliates were tiny, that's why the rewards for NetFleet were tiny...
I don't remember the finer details of the program, but from memory it was a one time 10% commission... that was never going to be enough to get people to really start promoting your service with gusto.
At the end of the day the affiliate program may have been based on a flawed concept...
From my perspective at least, you guys tried to get domainers to undercut themselves by getting people to bid against them at the very auctions they buy cheap domains from for only a 10% commision....
For example lets a domain that is dropping is worth $750 retail, and I'm willing to pay $150 on Snapper for it, but because competition is low, I win it for $75. I now own a domain worth $750 which I can develop or sell to a retail client for a $675 profit.
With the affiliate program you were encouraging us to advertise the snapper auction, and you'd pay us a one time 10% commission.
So instead of making $650 I'd tell the retail client about the domain, and they'd be willing to bid $750 for the domain, but instead they just out bid me and win it for $150, and you guys expected that I'd be happy with a $15 commission rather than owning the domain?
Of course this doesn't even consider the fact that every domain in the niche in the future would be won by the new retail client for which I'd making no commission and would also not win the domain...
So anyone who buys domains on Snapper would have been shooting themselves in the foot to promote the NetFleet affiliate program.
Now if you affiliate program had of been, "we'll pay 25% commission on all revenues generated by any referred customer for life" you would have then had my attention.
Given that the variable costs for NetFleet are minimal, this style of affiliate program should still be very profitable for NetFleet, given that every extra buyer on the Snapper auctions from what I have seen tends to make a significant increase in the bidding price. Ie, one buyer turns up the domains sells for reg fee, two buyer rock up and you normally see the domain sell for between $11 - $30, three bidders rock up and that domain is almost certainly going north of $30, if four people see value then I find it hard to believe that it wouldn't be reaching $50+ and it doesn't take a mathematician to realise that if 4 or 5 people see value in a domain that there is a good chance that it's going to produce some quite competitive bidding.
So by my logic, every extra bidder at an auction increases returns quite substantially, so even if NetFleet has to pay an affiliate 25% commission, it would still be better off than if that bidder isn't at the auction:
1 bidder - $0 (NF profits $0)
2 bidders - $15 (NF profits $11.25)
3 bidders - $30 (NF profits $22.50)
4 bidders - $50 (NF profits $37.50)
5 bidders - $100 (NF profits $75)
I really don't think the figures I have thrown out there are all that unreasonable, and I know you guys at NetFleet should easily be able to work out what the marginal value of an extra bidder is at a Snapper auction in general, I wouldn't be surprised if your figures suggest that you guys could well afford to offer even a 30% or 40% commission to referrals.
And every time that buyer rocks up to one of your auctions they are going to be increasing your returns, and best of all is that even if they don't win the auction they are still going to increase the compeition for the domain which will increase your returns would costing you a cent, and if they do win the auctions, there is a good chance you are still going to make more money than you would have otherwise anyway.
So I don't understand why you didn't really sweeten your affiliate program and offer a commission rate for the life of the referral membership to at least encourage those who were shooting themselves in the foot to even promote your services?
There is even merit to encouraging affiliates to promote the AMA as well, you could even of something like 2.5% on all domains bought on the AMA and once again NF would very likely still make more money, despite needing to also pay the commission.
And lets face it most people who have never bought a premium domain before don't rock up to a snapper auction with a few hours remaining and decide to throw thousands of dollars at a domain.
It's takes people/businesses weeks and months to warm to the idea that there might be value to spending more than $20 on a domain. So the chance of making a one time commission are just so hard that it was never going to be worth it.
Anyway... once again this is just my two cents - it's not my business how you guys run your business, but it might be food for thought.
soj
Founder
You write a lot of words for two cents ..........
Can I get some articles done for a couple of my sites at the same rate?
Just kidding.
Mark
Top Contributor
Sure is - that's at least 5 bucks!
For info, the commission on snapper was up to 30% of the high bid. For the AMA's it was 50% of total profit.
Anyhow, appreciate your feedback Chris, and these points are all things we will reassess if we look to reopen the program
Thanks
Mark
For info, the commission on snapper was up to 30% of the high bid. For the AMA's it was 50% of total profit.
Anyhow, appreciate your feedback Chris, and these points are all things we will reassess if we look to reopen the program
Thanks
Mark
johno69
Top Contributor
Hi Mark,
Got your support ticket reply, thanks.
Is there anywhere we can see current/previous data relating to the program? As you mentioned, you are going to be closing it down, that to me says it hasn't happened yet. Can't say i'd have made much, just wanted to see the data if it was available.
Cheers.
Got your support ticket reply, thanks.
Is there anywhere we can see current/previous data relating to the program? As you mentioned, you are going to be closing it down, that to me says it hasn't happened yet. Can't say i'd have made much, just wanted to see the data if it was available.
Cheers.
James
Top Contributor
Just got this email....
Dear ,
Firstly, thank you for signing up to our affiliate program on Netfleet. Our aim for the program was of course to incentivise you to promote Netfleet and increase our client base, and share the rewards with you for doing so.
Unfortunately, the process of maintaining and managing the program have proved no longer cost effective, so we have taken the decision to close the affiliate program down at the end of this year.
We will calculate all outstanding commissions and referrals at the start of December, and again, for the last time, in early January.
Thank you again for signing up as an affiliate with Netfleet.com.au.
Best wishes,
The Netfleet Team
To be honest I think this is a bit on the questionable side from an affiliate perspective, if you sign some one up it should be for life, or you should have a higher payment fee on the initial sign up and no on going commission. This is how all affiliate networks work especially in the sports betting area.
Dear ,
Firstly, thank you for signing up to our affiliate program on Netfleet. Our aim for the program was of course to incentivise you to promote Netfleet and increase our client base, and share the rewards with you for doing so.
Unfortunately, the process of maintaining and managing the program have proved no longer cost effective, so we have taken the decision to close the affiliate program down at the end of this year.
We will calculate all outstanding commissions and referrals at the start of December, and again, for the last time, in early January.
Thank you again for signing up as an affiliate with Netfleet.com.au.
Best wishes,
The Netfleet Team
To be honest I think this is a bit on the questionable side from an affiliate perspective, if you sign some one up it should be for life, or you should have a higher payment fee on the initial sign up and no on going commission. This is how all affiliate networks work especially in the sports betting area.
Last edited:
johno69
Top Contributor
I'd still like to know where I check the stats for current/previous referrals etc.
My support ticket response didn't answer this part.
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