When a Reserve Isn’t a Good Thing

Slayers and pretend to be Slayers, it has been quite a while since the last official rant on RickyAhuja.com.  What can I say, the Affiliate Slayer’s services and skills have been in high demand.   In other words genius’ I have been busy and I still am busy, so consider yourself lucky once again for the opportunity to embrace this rant.   So like all other rants of mine, they aren’t well thought out.  I know it’s difficult to imagine that dueto my skill, my rants aren’t planned.  So truth be told, rants are inspired by something that happens suddenly and unexpectedly, such as the subject of this fine rant- Commission withholdings of 15%.

That’s right, there is an advertiser who withholds 15% every pay period to prevent against fraud.   This is what they refer to as a “Reserve”.   Ok so you are always supposed to look at the fine print, however that freakin’ 15% is basically our profit margin and some cases more than our profit margin.   WTF,   this is a first as they are withholding 15%. It’s not a pub’s revenue; it’s just an overall temporary 15% scrub.  This is never communicated to us in the first place and I am quite surprised this is done.   Normally when we pay commissions, it’s 100% earnings based upon an agreed billing cycle.   So here is how one scenario would go if we knew going into this biz relationship that there would be a withholding.

Advertiser:  “So we want you to run our offers, but we are going to hold 15% for an extended period of time to make sure we don’t get screwed with your traffic or anybody’s traffic.

Me: That sounds like a fantastic freakin’ deal.  Thanks for the privilege of allowing me to get screwed and basically work for free.   Will our commissions at least include some Vaseline to make it a little less painful?

Advertiser: What do you mean free?  You are still getting paid 85% of your commissions.

Me: Wow thanks your generosity is overwhelming.   So basically you are hanging onto our profit margin.   Traffic and managing your offers doesn’t require any time nor resources.   My company isn’t a charity… Thanks but no thanks…

Advertiser:  Ah well this is a great opportunity for you and our offers convert very well…..

Me:  No thanks, this would also be nightmare for our accounting dept.  Managing a network is difficult let alone managing what 15% withholding is from what month that we would eventually see. “

So here we have it.  There is a reason why you don’t see this type of pay schedule,
because who in their right mind would knowingly go along with the type of scenario?  Certainly not me and I am fairly certain Ricky Ahuja wouldn’t.    This is the performance based marketing industry and because it is solely results driven, the advertiser has to have little skin in the game.   There are no guarantees that every bit of traffic is going to back out, but if leads are generated ethically and within the parameters of the campaign, the publisher should be paid 100% for that billing cycle pure and simple.

Give me my money Biatch.

Top Related Posts:


Posted in:
About the Author

Ricky

Ricky Ahuja is the founder of Affiliate Venture Group and provides strategic corporate and functional marketing consulting services to early stage companies.

Leave a Reply


*

CommentLuv badge