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JV Giveaways & OTO Policy
Filed Under (Uncategorized) by Mieke on 10-05-2008
Just yesterday I signed up to become a contributor in the Economic Stimulus Giveaway. For the first time ever, I upgraded my account. I wanted to check out such an upgraded area from the inside for a long time (I decided to set one up in the 2nd episode of The Niche Giveaway and want to see how others deal with it), but since I refuse to pay $77 or even $37 to get in, I never had the chance before.
The reasons I did upgrade this time were simple:
- Brad & co charge only $17
- Most certainly there will be a load of signups
- I’ve just released Hotsale 2, and all the extra traffic won’t hurt
;o)
Being able to add a second gift and getting direct access to all the downloads are nice extra’s, but of minor importance to me.
There’s one thing that bothers me a bit, though…
The ’special offer’ policy tells me this:
We’ll pay you 25% of the list price - the other 25% is split between the referrer (if not you) as well as 50% to site admin (David and Brad).
I agree with the fact that
- the giveaway manager must be able to profit from his efforts
- my offer will be seen by loads of people, which I never would have reached elseway
- promo efforts should be rewarded with affiliate comissions
My experiences with running a giveaway have taught me that - as a manager - you can earn good money.
There’s the upgrade fee, and the fact that you can include as many of your own offers as you want. On top of that, you are responsible for all advertising campaigns on the site. And that’s only the financial aspect. I won’t even go into the benefits of establishing your name as an expert here.
It puzzles me a bit why Brad & co (and others before them) have decided to also take 50% on all OTO sales and put it into their own pocket. Don’t get me wrong - as far as I’m concerned, everyone does like he or she pleases. I have the freedom to choose not to participate.
I only know that if I was a regular member, I don’t think I would bother promoting if all I could earn was 25% commissions…
I assume taking 50% of all OTO sales will need to compensate the low upgrading fee. But just because of this low fee, more contributors will upgrade their account, and there will be a lot more offers rotating. This means less exposure for everyone…
Like I stated before: every manager is free to do as he or she pleases. It’s up to me to decide whether I take the offer or not. And if you list all the facts, there’s probably not much to say against this 50%-25%-25% commission structure. After all, my offer will get loads of extra traffic…
No hard feelings - again: I’m free to choose to take the deal or not -, I just had to get this of my chest. :o)
All comments are welcome!
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I have to agree with you very much. I have just recently started to get massively involved with giveaway events. I think that the main reason that i have started to was because of the events which I have contributed to that were hosted by yourself and the ones that were hosted by guido naussbaum (sp?) and Odin Sorrensen (sp?). They were fantastically done and that is what had gotten me hooked.
I do not see the harm in the admin host receiving 50% of the offer, however i do not agree with the 25% to the referrer. the 50% to the host is understandable due to the fact that it is their site and the traffic to a well put together event will bring lots of traffic.
Well that is just my humble opinion. Thank you for the nichegiveaway event that you put together btw i hope to see you hosting more in the future.
Hello,
I agree that 25% to the referrer seems excessive. I do think the host/manager should get a percentage however, 50% is a lot considering they will be make numerous commissions.
I like giveaways except for the fact that some seem to establish rules and regulations that make it harder for the less well known marketers to do very well. I may stand alone with this viewpoint but I have been involved in a couple of giveaways that seem to penalize marketers with small lists.
I understand the concept of requiring contributors to promote the giveaways but it stands to reason that a person with a bigger list will likely refer more people. As long as the marketer has promoted the event to his/her list and perhaps a banner on his website it seems that he has done what is expected - that of promoting the event in the best way he can.
Whether one person or fifty people sign-up due to that promotional effort made by the marketer is - should be irrelevant. Some giveaways actually boot marketers out of the event if they have few or no referrals.
It’s a game of the rich (in list and subscribers) getting richer while the less known marketer may only slightly grow his/her list although both marketers have promoted the event in the same way. This seems unfair to me - but again, I may be the only one that feels this way. Okay, rant over! Sorry!!!
Thanks for your replies.
Debbie, you’re definitely not the only one that feels this way. For The Niche Giveaway, I’ve asked around what people thought about the removal of gifts when they don’t meet “the standards” set by the giveaway manager(s).
I had expected to see some discussion about this, but everyone seemed to agree it wasn’t a good idea.
You can read all the posts here:
http://thenichegiveaway.com/blog/?p=22
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