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I run 2 affiliate programs. One for www.classifiedsubmissions.com and the other for www.coolmarketingsoftware.com. I have always managed my affiliate program using an old script from Groundbreak which is written in perl which has been incredibly reliable.
However, when I started my affiliate program for my software site at www.coolmarketingsoftware.com I decided to outsource the affiliate management system. The idea is that I wanted to spend less time managing the affiliates and more time promoting.
One of the most time consuming tasks with running an affiliate program is paying affiliates. It seemed like JVZOO had a relatively seamless and efficient method of paying affiliates. I thought this would save me time and would be worth the 5% fee they charged.
Also, it would take some rather tedious programming to get my affiliate script modified for the software program and I thought that JVZOO, with it’s ready to go platform would save me time and hassle. Plus I thought I would get some affiliates who would find me directly through JVZOO and thus get some extra sales.
However, after I set everything up and started selling I started running into some problems. Here they are:
Reason #1 Why I Dumped JVZOO- Affiliates Have to Be Approved For Each Individual Product With JVZOO.
I have many products at my software site coolmarketingsoftware.com. I want affiliates to be able to sign up, get one link, and get credit for anything they sell off my site.
This is not possible with JVZOO unless they individually register for each product, including each product version, and then I have to approve them for each product.
I had to create an entire page explaining this process. Because if affiliates did not register for each product and product version if one of their referrals decided to purchase a version which the affiliate did not register for they did not get credit.
With My Current System Affiliates Are Paid on Sales For All Products on My Site From Just One Link
So my affiliates would be sending me traffic but not getting full credit for all sales. Even though I explained the system in detail on my affiliate page many affiliates did not sign up for all products. This is a very cumbersome process that most forget to complete and in my opinion the affiliates are getting ripped off.
Now my affiliates sign up for one link and if their referrals buy ANY product they get credit. Much better. I want my affiliates to get paid because they will be more likely to keep promoting if they get paid. Makes sense!
I think many affiliates for many products on JVZOO are getting ripped off because they are not getting credit for other products being sold my merchants on the same page.
Reason #2 Why I Dumped JVZOO-
Affiliates Get Paid Commissions on Sales to Themselves and You Have to Ban Them From The Program to Stop This
If I want to give a discount then I will give a discount. An affiliate program is set up not as a discount program but as a way for affiliates to find new customers. I want affiliates to promote my site, get people to join my affiliate program and get sales from people other than themselves.
This is impossible with JVZOO unless you BAN the affiliate. Yes, if I see that an affiliate makes a sale from his link I have to ban them. They get a nice email from JVZOO saying that they have been BANNED! That is my customer they just banned. I want to treat my customers and my affiliates with respect not alienate them!
With my current system I can simply delete sales the affiliate make to themselves and they can go on being happy customers and hopefully real affiliates who refer other customers.
With JVZOO I either have to be content having my affiliate program be also a discount program or alienating both my affiliates and customers by BANNING them. Ridiculous.
Reason #3 Why I Dumped JVZOO
If Customers Charge Back You Can Get Double Charged Essentially Paying Your Customer Your Product Price
I had one customer charge back. Something which is never necessary with me because I always honor the 30 day money back guarantee. However, what happened is that JVZOO refunded the payment plus I was debited by Paypal. So I double refunded the customer. When I talked to JVZOO they were unable to solve this situation. Not good!
Reason #4 Why I Dumped JVZOO
JVZOO Spams Your Customers With Offers Diluting Your Customer Base
When people buy from your JVZOO link they are automatically signed up for the JVZOO mailing list. Your customers are now getting related offers, maybe even from your competitors, because you brought them to JVZOO. So instead of JVZOO bringing me customers I am bringing them customers and distracting my list with other offers.
Reason #5 Why I Dumped JVZOO-
JVZOO Acts as Your Affiliate and Charges You Commissions on Sales From Their Website
I noticed some immediate commissions going out and I specifically had put my settings at delayed commissions. When I contacted JVZOO they said that my product was in their “Marketplace” and that I was paying commissions to them for acting as my affiliate. However, when I looked at the customers these were already people I had sold products to before using JVZOO.
So I am both sending my customers to JVZOO then they charge me commissions for selling my products to my preexisting customers. This is on top of their 5% commissions and Paypal fees. Not a good story!
Reason #7 Why I Dumped JVZOO
JVZOO Did Not Really Bring Me Any New Affiliates The Affiliates Were Mainly From My Existing Contacts
One of the advantages of being with JVZOO is that you are listed on their sites and that you will get additional affiliates. I did not find this to be true. Most of the affiliates who produced were already part of my contacts and if anything I brought them way more customers than they brought me.
After seeing all the downfalls of dealing with JVZOO I decided to use my tried and true system for managing affiliates and it is working out much better. Affiliates sign up with one link and get credit for all products. I can delete commissions to self, I can give refunds easily when needed and I am not building anybody else’s list.
Sometimes you just have to suck it up and go through the tedious process of setting things up yourself to do things right.
I would love to know what your experiences have been with JVZOO. Please let me know if the comments area and if you liked this article please share on social media. Thanks!
Matt
