@TheGooner 206501 wrote:
It’s too simplistic to assume that if an affiliate makes a small profit – that it is also profitable for the affiliate program. If an affiliate also needs weekly help, and a monthly payment, then they may not actually deliver a bottom line profit after staff costs and banking transaction fees are considered.
Yes, affiliate programs may need to cut costs – but that does not give them any right to renege.
I understand what you’re saying all too well – and fully agree.
However, the “monthly” payment is usually covered by a minimum required amount before payment is issued. And if an affiliate requires weekly help, at the very least it shows they’re making an effort – who’s to say that the next player they bring in won’t be worth a few thousand a month?
The bottom line is – while it may not be profitable to keep supporting an affiliate with one player, there’s no telling when the next player is going to come in, and how much he or she will be worth – and after all, you did promise to pay a percentage for the life of the player – otherwise you might not have ever received the player in the first place!
If you’re going to implement a quota at all – it should be something along the lines of “at least one active player in the past 6 months” – that would be somewhat acceptable because a player who doesn’t come back after 6 months isn’t likely to come back at all. I’m not talking about referring one player – I’m talking about having one active player.
If the affiliate never promotes you again – you still have an obligation to honor the contract. Plus it doesn’t cost you anything because the affiliate isn’t likely to be requiring help from you weekly. Thus it should still work out to a net profit.
If you don’t want this type of affiliate – then set your minimums higher to begin with. But everyone else is automatically grandfathered under the existing terms and conditions that they signed up under.