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01-28-2015, 08:22 AM #1
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Sponsorships Going Away & Replaced with Affiliate Coupon Tracking
Ever wonder what's behind those discount codes some of your Facebook friends are pitching for discounts on apparel, supplements etc while at the same time fewer companies are sponsoring athletes with actual paychecks?
Its called, "Affiliate Coupon Tracking" where the companies through software (often free) associated with their ecommerce software provide affiliate codes to individuals then send them out to be their company commissioned sales person.
"Affiliate Coupon Tracking" has actually to some extent eliminated the need for many companies to sponsor athletes as even if you are a highly recognized professional or amateur with a strong social following that following doesn't necessarily convert into a sales transaction. By companies linking payouts to and identifiable transaction associated to someone efforts they are better able to give credit where credit is do.
This point is made in numerous ways by companies like Muscular Development having difficulty coming to terms with contracts for their athletes and measuring the value added the company merely by having them under contract, etc. Even with companies like Muscular Development who claim dedicated to show coverage as their business model they rarely do videos of any amateurs prepping for contests rather like Flex & RxMuscle and where there is show coverage it is only of high profile huge events where there is an anticipated high public interest (or overseas where staff wants to having working vacations at the CEOs expense).
An upside to this technology if you dont want to be a salesperson is its readily available for you as a small business person to apply to your own website ecommerce activities. The landscape is ever changing relative to technology in our digital world. Prepare yourself to either sell someone else's product or your own regardless of whether you are a professional athlete, amateur or think you provide some other rare value to the company...its all about generating sales in the end.
Last edited by Musclepapa John; 01-28-2015 at 08:23 AM.
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01-28-2015, 10:09 AM #2
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I've done a lot of affiliate marketing over the years. I say, good for the affiliates. Athletes are kind of a dead weight at this point.
As for your graphic about merchants removing affiliate commissions, aka shaving, happens a lot in certain sectors (usually the high paying, cost-per-acquisition niches). Typically, we wouldn't see this happen much in straight-sale nutritional supplements where traffic is based off a percentage. Either way, it should never be tolerated. Hiring an attorney or serious jaw boning is the way to deal with it. Something to keep in mind is top affiliates do not get shaved; instead, they are awarded with higher payouts (bumps), lavish gifts, trips, and even women.
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01-28-2015, 10:10 AM #3HTWGuest
THis is what blackstone and prime nutrition do .
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01-28-2015, 10:18 AM #4
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Lots of companies do it now in this market DMX which is part of why paid sponsorships are going away and being replaced with a percentage off sales generated via social media etc affiliate codes etc.
Just one example from one of my Facebook friends doing this with apparel.
It takes the guess work out of the company needing to figure out the monetary worth of the sponsored athlete, brand ambassador, salesperson, whatever you want to call them.
Screen Shot 2015-01-28 at 10.14.57 AM.jpg
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01-28-2015, 11:45 AM #5HTWGuest
I don't mind however companies want to pay their people.. Buick pays shaq to market the car but has its people that work at various dealers sell their cars for commissions.. Pay the big dogs the money to use their face and name and pay the small timers commission for the hard work
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01-28-2015, 12:12 PM #6
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No company can afford the luxury of putting bodybuilding promotion above their bottomline. The financial underpinnings of journalism and entertainment oriented media companies generally is to produce and market content that will sell products. The athlete with the advent of social media and affiliate coupon tracking is the nexus of the content and sales vehicle. BIG MEDIA will not be able to compete with this model in any market over time as communications technologies continue to develop.
Note: The Motley Fool Investment program/website stated on Saturday that cable television is also dying even though currently a $3 trillion business. The past is not a predictor of the future:
http://www.fool.com/investing/genera...lix-and-s.aspxLast edited by Musclepapa John; 01-28-2015 at 12:14 PM.
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