Snapnames sent out a notice several days ago, announcing a fundamental change in its affiliate program which means only one thing, less money for affiliates.
Under the current program, if a customer clicks on an affiliate link, a cookie is set on that customers computer, and the affiliate receives a 20% commission on every sold domain’s net proceeds (e.g. the margin) for 90 days, unless that customer clicks on another affiliate link during that time, in which case the cookie get overridden by another affiliate link.
Under the new program which actually replaces the current system as of November 20, 2009.
The payout structure will change to a two tier system:
Tier one 20% for new customers and Tier two 5% for existing customers.
So basically for most of the clicks you are going to recieve your payment just went from 20% to 5%, a 75% reduction.
Moreover even if you get a “new customer” of snapnames, (and who in the domain business does not have a snapnames account?) there stay new for just 90 days. After 90 days they become an existing customer and your commission goes back down to 5%. Of course within the 90 days if that customer clicks on another affiliate link than your cookie will be overwritten and for the affiliate that grabs that customer they will no longer be new, and they will only receive 5%.
You also should note that you will need to sign up for this program again and get a new affiliate code, as the old affiliate codes will not work after November 20th.
Of course Snapnames.com has the right to do anything it wants with its affiliate program but I sure wish they didn’t announce this change with the following language:
“””We are pleased to announce the new and improved SnapNames affiliate program!”””
New and improved, for whom?
Snapnames.com
The announcement makes it sound like its great news for affiliates, but in actuality there is no upside and basically a 75% cut in revenue for all but “new” customers and for them only for 90 days (unless still overwritten by another affiliate link).
Here is the official announcement:
“””””Dear Affiliate Partner,
We are pleased to announce the new and improved SnapNames affiliate program!
IMPORTANT NOTICE:
As of November 20, 2009 the current program will be replaced by our new robust online system. In addition to the new tools below, the payout structure will change to two tiers: tier one – 20% for new customers and tier two – 5% for existing customers. Please be sure to sign-up prior to November 20th to prevent any disruptions as the old links will not carryover.
Powered by the patented Essociate Virtual Affiliate and Affiliate Builder software, the new program provides user-friendly online tools to track and optimize your SnapNames.com campaigns.
· It’s trusted: 100% leak-free network with online reporting, encrypted links & sub-campaign tracking.
· Easy-to-sell: Choose from a robust selection of media rich campaigns including banner ads, sliders, peels, RSS feed, search widget and more.
· We are here to help: Proactive account managers are available to help you optimize campaigns and conversion.
· Most importantly, great payouts: 20% for new customer referrals and 5% on existing customer referrals over 90 days (payouts based on net proceeds).
Sign-up now at: Essociate.com
Questions: affiliates@snapnames.com”””
I don’t think I’m going to even sign up for the new program. Guess it’s time to change the “Expiring Domains” link on my blog’s header 🙂
5% does not work for me!
As you said Michael, everyone has a SnapNames account.
A couple things that I can add:
Old affiliate links will now be mapped to the new affiliate program. Essociate wanted this, snap did not…
Essociates is working hard to get Snapnames to keep the affiliate program the way it is now (20% for all)… will this happen, we will see. If it doesn’t, the vast majority will simply stop using the program IMO.
I think Snapnames by saying “new and improved” were talking about the “tools” Essoicate is providing compared to only links and banners offered before.
I agree the new program with the 5% is going to KILL the good of the program that it currently is and will not be worth promoting the program.
For those who have already been trying the Essociate program and provided a fair amount of traffic with the Snapnames program with $0.00 earnings.. there was an error they found in the reporting system and are working to get these stats imported to Essociate. I was told they are importing data already, but with what has been imported for me so far is not looking good! All 5% numbers and are low.
anyone made any money with the old program?
Ebay has done the same thing with their new and improved aff program. Brought me down to near zero.
That is a bad move by Snapnames – affiliates are a great way to get people to promote your service and this is going to do the opposite!
no comment
Morgan
I agree with you.
Most of the blogs promoting the program will be pulling it down on November 20th
First off let me say I am not agreeing with their move, but maybe looking at it from other areas, they felt they needed to.
Michael like you say “Who does not have a snapnames account ?”
So and this is just a hypothetical.
Let’s say you write a blog article about snap drops, Rick Schwartz clicks through your link, even though he is an accomplished domainer and probably already checked snapnames for the day, But he wants to throw you a commission. I think that’s cool, but Snap might be looking at it saying we just gave away 20 % on a transaction where the guy who bought is a big time domainer and did not need the assistance of an affiliate.
or
Scenario #2 I think we all have good friends in this business and two guys providing a 20% rebate to one another could work easily.
When you buying use my link, when I get paid I will give you the 20% back and when I buy you do pay me back.
Companies generally want new customers and not to pay for the ones they already have.
I think personally 5% is a joke should have made it just straight 10 % old or new. Again IMO
Second try: Anyone made any money with the old program?
Everything.tv
Here is Scenario #3
Rick Schwartz an accomplished domainer does not watch every expired domain auction (which in fact he does not) and sees a post on a great domain expiring on my blog, that he would otherwise not know about, licks on the link, bids on the auction and spends $20K to buy the domain.
Without my post he would never have known about and would never had bid on.
This is actually much more realistic than your two examples and there are tons more.
Bottom line snapnames move is going to cost them business in the long run.
mmmii
Sure I was making around $1K a month before, and $250 I guess after the change, but no one is going to promote the new program, meaning everyone is going to make less including snapnames
Man, Snapnames needs new guidance, period. This is a lame move, and it seems every move they make (or don’t make), just keeps pushing them further and further down the ladder of interest from domainers. My Snapnames banner ad will be coming off my blog shortly.
Don’t say I didn’t warn them 20 times… (no lie). It looks like the accountants have finally sealed the fate of Oversee’s success by dictating the company’s interest… the biggest mistake of any large company before they fall.
I hate to say this because I’m a huge SnapMon fan, but they continue to do counter-intuitive moves and ignore my suggestions and many other snapname users tips.
Who IS in charge at Snapnames?
SnapNames is greedy, which is going to cost them the whole business!
SnapNames should be called SuckerNames
I never pulled out specific names like you did Michael with all of those affiliate links. It looked like a lot of work to me….to add your affiliate code to each and every hyperlink. I mean, was it even worth the $1,000 a month?
I do hyperlink SnapNames with affiliate code when I write about it, though. Doesn’t amount to much, though.
Michael not sure why you were knocking me, I agree its nonsense but was putting forth a possible scenario for the company.
Andrew
Yes for me to put up a post once a month highlighting some good domains at Snapnames was worth a $1K.
We didn’t put a lot of effort in to singling out domains or sending newsletters with specific domains, but I had a few good months with Snap too . . . all it takes is one big spender.