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Commission Explosion

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I recently read another timely article on Perform Insider about Pinterest a popular and fast growing website where according to their website “People use pinboards to plan their weddings, decorate their homes, and organize their favorite recipes”.

Nothing really new about the service that hasn’t been tried before by similar community share platforms but why is Pinterest suddenly raising eyebrows? Apparently, their practice of automatically replacing any user generated product or retailer links with affiliate links of their own.

From Perform Insider: “Several blogs have questions this, not only as being deceiving but a possible violation of FTC rules that require that disclosure when content is disguised as an advertisement. Pinterest’s argument could be that they themselves are not actually promoting the product, they are changing the code and thus it’s not a real placement. Either way, its something they need to address because the FTC has already shown they don’t appreciate when people hide advertising in content without telling users about it.”

My overall concern is built on the whole user-generated ‘content’ aspect. I can appreciate website monetization challenges but I believe I am right in my assessment that the practice without notifying your users in clear language throughout is wrong in my own personal opinion.

Pinterest responded to the building criticism on their blog: “Online communities need ways to generate revenue to support their operations, and the preference is always to earn this revenue without disrupting their users or detracting from their UI with flashy advertisements. Creating a beautiful, user-friendly site, as Pinterest has done, mandates a non-intrusive way to make money.”

Now that that’s aside let us move onto the service they purportedly use called Skimlinks (affiliate link). Datafeed programs and javascript offerings tried in the past (albeit not exactly like this) have been around for a number of years, mostly small operations with a few dozen merchant offerings like Goldencan (who you still have to have an established merchant relationship with).

No program as far as I know has the reach of Skimlinks with a stated merchant program base of 18,000+ merchants and 32 affiliate Networks. Another enticing feature is that as a publisher, approval into Skimlinks then gets you ‘instantly approved’ to promote so many different merchants with just ‘one’ simple javascript placement. The cost to use the service is a straight 25% revenue share from any sales resulting from your publishers link.

What is your opinion of Skimlinks. What about the disclosure process? Even more important does it work for your website, blog and your content type ? What about the programs transparency? Do you feel confident sending your traffic through them as a provider? Do you only send select traffic or go all-out?

+Nick J. West

Beginning this month many business owners will be surprised when they start receiving new tax forms issued by their credit-card and online-payment processors which are intended to keep businesses from hiding income.

Of course, the amount on your statements likely don’t account for the actual amounts received, less fees, credits and chargebacks. It’s going to be a confusing nightmare no-matter how you look at it but the law it is so we will adapt.

Going forward be aware of this new challenge and adapt accordingly. A wonderful reference article from Business Week about the new tax form that I found insightful can be found by clicking here.

If you have had your existing web server for more than 2-3 years you may want to double check to insure you are receiving the best value you can. As computer and server prices drop, new server equipment is brought online and competition builds among webhosting companies prices are dropping to historically low prices.

In a recent check our own server would be $70.00 a month less if we simply provisioned a new server account with our existing host Blue Bayou and migrated the domains from the old server or, we could get an entirely new Linux server offering nearly four times the storage space, four times the RAM and a significantly better OS core for about $6.00 a month less then we are paying now. For us, an upgrade is in-order (so look for a faster Commission X) soon.

As an affiliate you know how much speed is a factor. Lest we forget that Google also considers page speed as a major factor according to search engine land.

Most webhosts that I checked with were unable or unwilling to offer any type of re-rate staying put so you have to be prepared to actually leave or to provision a new server. Hinting I might leave got me nowhere, though Blue Bayou did offer me 15% off my purchase to upgrade to a new server.

The time to migrate to a new server can run as little as 60-90 minutes depending on how much data needs to be transferred but it’s basically an automated task with the Plesk Migration Manager assuming you are migrating from a server with a recent version of Plesk installed as well.

When was the last time you compared your server to current product offerings (even from your current webhost)? What do you consider a wide enough dollar gap to go through a new provisioning and migration?

+Nick J. West