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Capped affiliate programs

Capped programs occur for a small set of reasons, none of them very good. The first one is snootiness. Companies say things like "we only want to be assosiated with premium / high traffic volume websites".

This is usually seen from the sort of companies who think that the only sort of affiliate program is based on pay per click, and is Splat Advertising where the adds are not relevant to the content.

While there may be some genuine cases where not being advertised by hundreds or thousands of lower volume sites sending traffic to your site makes sense, I have yet to encounter a real one.

What I have encountered is on again - off again programs where they run out of money on the 25th of the month and have to close the program for a few days. This is just silly, because a merchant can easily run the program indefinately.

If you run a Select Advertising based program, with a decent affiliate marketing company, you should be charged primarily for actual traffic that converts to sales, plus possibly a flat monthly fee.

If you can do this, the cost to the merchant of another affiliate who doesn't generate any sales is ZERO, until that affiliate makes a sale, and then the cost is covered out of the commission on making the sale.

The following merchants are running capped programs:

  1. Apple Store at Tradedoubler
  2. Capital One Credit cards at Commission Junction
  3. Virgin Media at buy.at - denied