
Commission
Junction
(CJ) has grown over the last year to be one of the largest
affiliate program networks. They boast over 320 merchants at
the time of this review (12/10/99), and are adding new
merchants on literally a daily basis. There are a variety of
reasons why CJ
has been able to grow so quickly.
First, they offer very competitive
pricing for their merchants, compared to competing networks
like BeFree and LinkShare. This has allowed CJ
to not only sign up some big-name web properties, but also
attract dozens of more smaller, more targeted, niche
merchants. Second, CJ
has continuously improved their own affiliate program to
provide more benefits to affiliates, and encourage them to
help grow the CJ
network. It CJ's
own affiliate program that we will look at for the purpose
of this review, however we will also touch on many aspects
of CJ
that carry over to all of their merchant partners.
The foundation of the CJ
affiliate program is what they call their 5-1-5
commission plan. What this means is that as an affiliate,
you are able to earn commissions in three ways for referring
new webmasters to the CJ
network. First, you earn $0.05
for each click-through you deliver to the CJ
web site. Then, if the person who clicks goes on to join CJ
(either to promote CJ
directly or one of hundreds of merchants), you will earn a $1
referral bounty.
Then, thereafter, for as long as that person remains a CJ
affiliate member, you will earn 5% of the commissions they
generate for themselves. It should be noted that the
referral bounty and 5%
residual commissions
are only applicable for new affiliates that you refer to CJ.
If they were already CJ
members, you will not earn these commissions, although you
will still be eligible earn the $0.05
per click-through.
As an example, if 40 people clicked
through from your web site, you would earn $2
in click-through commissions.
Then, if 10 of them signed up to be a CJ
affiliate, you would earn $10
in referral bounties.
Lastly, if those 10 affiliates went on to be active and
generate $50
each in commissions each month, you would receive $25
in second-tier commissions on a monthly basis. Although this
might be a slightly optimistic example, you can see the
power of the CJ
program. In this example, referring 10 active affiliates to
the program would net you $312
over the course of a one-year period.
CJ
offers a variety of other benefits to affiliates. First,
unlike many of the other affiliate networks, commissions
earned from all merchants are pooled together in one check,
and you are paid monthly by CJ
directly (not by the merchant). The advantage here is that
if you sign up for, say, 10 different CJ
merchant's affiliate programs, and each one earns you $5,
you will be paid the full $50 you earned. With many other
affiliate networks, you would have been paid nothing since
you would have not reached the normal minimum check sizes
they set (generally $25-100 per merchant). Additionally, CJ
offers centralized online commission reports for all
merchant programs.
A second advantage of CJ
is that just as
their own affiliate program is two tier with the 5-1-5
commission system,
all other merchants in their network are also, by default,
two-tier. The 5% second-tier commissions apply to all
merchants in their network, and not just the CJ
affiliate program itself.
Lastly, CJ
offers a wide variety of affiliate programs that you can
promote on your site. Since they have attracted many smaller
merchants, many of them are highly targeted, focusing on a
particular niche. This is very useful if your site is also
very targeted, since it will increase the likelihood of
finding a merchant that is appropriate for your audience.
Programs in CJ
also range across all types of affiliate commission models,
including pay-per-click, pay-per-lead and pay-per-sale.
So, what kind of feedback has been
received about CJ?
From a merchant's point of view, I have only received
excellent feedback, and from numerous sources. CJ
offers a well-designed, well-implemented solution at a
reasonable price. From an affiliates point of view, I have
received slightly more mixed feedback. Earlier in CJ's
history there were some reports of missed commissions or
suspected inaccurate tracking. However, a quick look at my
email archives doesn't show a complaint in the last 6
months, so it can be assumed that CJ
has ironed out any possible problems they have had. I have
in the last 6 months received several pieces of good
feedback, including many reports that CJ
always pays on time and accurately. With a poor payment
record generally being the major source of complaints for
any affiliate program, I am confident in recommending Commission
Junction at this
time.