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Commission
Junction
Commission Junction (CJ) has grown over the last year to be one of the largest
affiliate program networks. They boast over 500 merchants at the time of this
review (3/25/00), and are adding new merchants on literally a daily basis. There
are a variety of reasons why CJ has been able to grow so quickly.
First, they offer very competitive pricing for their merchants, compared to
competing networks like BeFree and LinkShare. This has allowed CJ to not only
sign up some big-name web properties, but also attract dozens of more smaller,
more targeted, niche merchants. Second, CJ has continuously improved their own
affiliate program to provide more benefits to affiliates, and encourage them to
help grow the CJ network. It CJ's own affiliate program that we will look at for
the purpose of this review, however we will also touch on many aspects of CJ
that carry over to all of their merchant partners.
The foundation of the CJ affiliate program is what they call their 5-1-5
commission plan. What this means is that as an affiliate, you are able to earn
commissions in three ways for referring new webmasters to the CJ network. First,
you earn $0.05 for each click-through you deliver to the CJ web site. Then, if
the person who clicks goes on to join CJ (either to promote CJ directly or one
of hundreds of merchants), you will earn a $1 referral bounty. Then, thereafter,
for as long as that person remains a CJ affiliate member, you will earn 5% of
the commissions they generate for themselves. It should be noted that the
referral bounty and 5% residual commissions are only applicable for new
affiliates that you refer to CJ. If they were already CJ members, you will not
earn these commissions, although you will still be eligilbe earn the $0.05 per
click-through.
As an example, if 40 people clicked through from your web site, you would earn
$2 in click-through commissions. Then, if 10 of them signed up to be a CJ
affiliate, you would earn $10 in referral bounties. Lastly, if those 10
affiliates went on to be active and generate $50 each in commissions each month,
you would receive $25 in second-tier commissions on a monthly basis. Although
this might be a slightly optimistic example, you can see the power of the CJ
program. In this example, referring 10 active affiliates to the program would
net you $312 over the course of a one-year period.
CJ offers a variety of other benefits to affiliates. First, unlike many of the
other affiliate networks, commissions earned from all merchants are pooled
together in one check, and you are paid monthly by CJ directly (not by the
merchant). The advantage here is that if you sign up for, say, 10 different CJ
merchant's affiliate programs, and each one earns you $5, you will be paid the
full $50 you earned. With many other affiliate networks, you would have been
paid nothing since you would have not reached the normal minimum check sizes
they set (generally $25-100 per merchant). Additionally, CJ offers centralized
online commission reports for all merchant programs.
A second advantage of CJ is that just as their own affiliate program is two tier
with the 5-1-5 commission system, all other merchants in their network are also,
by default, two-tier. The 5% second-tier commissions apply to all merchants in
their network, and not just the CJ affiliate program itself.
Lastly, CJ offers a wide variety of affiliate programs that you can promote on
your site. Since they have attracted many smaller merchants, many of them are
highly targeted, focusing on a particular niche. This is very useful if your
site is also very targeted, since it will increase the likelihood of finding a
merchant that is appropriate for your audience. Programs in CJ also range across
all types of affiliate commission models, including pay-per-click, pay-per-lead
and pay-per-sale.
So, what kind of feedback has been received about CJ? From a merchant's point of
view, I have only received excellent feedback, and from numerous sources. CJ
offers a well-designed, well-implemented solution at a reasonable price. From an
affiliates point of view, I have received slightly more mixed feedback. Earlier
in CJ's history there were some reports of missed commissions or suspected
inaccurate tracking. However, a quick look at my email archives doesn't show a
complaint in the last 6 months, so it can be assumed that CJ has ironed out any
possible problems they have had. I have in the last 6 months received several
pieces of good feedback, including many reports that CJ always pays on time and
accurately. With a poor payment record generally being the major source of
complaints for any affiliate program, I am confident in recommending CJ at this
time. Rating:
( Best,
) Commission
Junction
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