Last week I received an e-mail from my Affiliate network with the request to transfer 3000 EUR (4000 USD / 2500 GBP) because my account had a negative balance.
At first I thought it was a mistake. I pay 13 % commission (10% for the affiliate and 3% for the network) so that would mean I had a turnover of 23,000 EUR (31,000 USD / 18,500 GBP) through the affiliate, while I normally earn about 6.000 EUR through them. Where did the extra 17.000 EUR (23.000 USD/13.500 GBP) come from?
I have to admit something. I am lazy and I can ignore something for a period of time. I try something out and when it is “automatized” I don’t look at it for weeks to make conclusions afterwards to see whether it worked or not. This is exactly what I did with the affiliate campaign for HangmatGigant.nl.
So when I got the e-mail I thought: This is either awesome news or something is going terribly wrong.
I quickly logged in to view my statistics, saw the impressive numbers and remembered: I gave a coupon code before going on holiday to Actiecode.nl and Kortingscode.nl. I just sent an e-mail with the unique coupon code and the link to our affiliate-programme.
Both placed the coupon code and generated 17.357,57 EUR turnover.
Now I am quite annoyed…
When I would have been a bit less lazy and would have viewed the statistics a bit earlier I could probably have provided extra codes and double the turn-over generated by coupon codes… 😉
I am not going to make it this year (well, that’s the disadvantage of a seasonal product like hammocks), but you can be sure that it will be in my diary for next season!
Do you also want to generate an extra turn-over of 17.357,57 EUR?
It of course sounds great when you can get an extra 17.000 extra turn-over but there are some things to keep in mind:
- You have to be subscribed to an affiliate network
- The subscription costs in my area were about 200-400 EUR
- About 3% of the generated turn-over is for the affiliate network
- You give the affiliate about 6-10% commission
- Plus, you give a coupon code to the affiliate which also takes a slice from your margin.
In the end you will have a plus or a minus at the end of the calculation. When it is a plus I would definitely do it! You will benefit from the following:
- You only pay when there are results
- Possibility of repeat buys
- A higher turn-over, so a stronger negotiation position with your supplier
And perhaps the most important part: Your online store is on speed and gains momentum. When you have gathered momentum you can move mountains!
This article focused on the advantages of coupon codes. Next week we will see that there may be some disadvantages to coupon codes as well.