There are a few reasons that a store might not want to participate. Not all stores have in-depth affiliate reporting - some don't break it down by order, they just provide general tallies. We need certain features in the affiliate reporting to be able to track kickback orders. Some stores use outside developers - which means it would cost them money to get the programming done on their end. The store also has to be able to issue gift certificates.

A couple stores have shown no interest in the program. I have no idea why. The only thing that will make them see the value in the program is if their customers email them and let 'em know they want kickbacks :)

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For the stores that it won't cost money: my guess is that they don't want to be locked down to one affiliate. The net result of providing one affiliate with a better incentive program is to make the others look bad. Even if it comes out of ADT's pocket, the other's may be less willing to assist one affiliate grab a bigger slice of the pie.
IE: Ebates Vs Brands For Less comes to mind.
If a store builds one affiliate up too much, then decide that they've built up a large enough customer base and stop using such promotions, it would cause a backlash for those getting some of their money back (the kickback).

That was my guess, I could be totally wrong.

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ADT buys the gift certificates from the stores at full face value, i.e. the store isn't losing out on any revenue by issuing a Kickback gift certificate. However, a store may choose to provide additional incentive for a user to redeem with them. They may want to issue a $15 gift certificate for $10 in Kickback credit, kinda like offering a $5 off coupon for Kickback redemptions. There's a lot of different things they might do. There's a limited number of ways to promote a store and attempt to attract new customers. The Kickback program provides a very targeted way of attracting new business and/or incentivizing repeat business from people that buy a lot of DVDs.

I've talked with a few other stores about the program and they have expressed interest but the feeling I get is that they must think there is some type of catch to the program. Most of them don't understand that their only costs are the development time (which could be significant even with the sample source code I provide) and their regular affiliate commissions. They have a hard time beleiving that we are giving away half of the affiliate commission. They think there must be some kind of hidden cost or something. They also have no idea how successful the program actually is at generating business. I issued a gift certificate last week for $60. In order for someone to earn $60 they would have had to purchase $1200 through the program. That's a customer any store would like to have.

Also, the concept of pissing of one affiliate by providing what appears to be preferential treatment of another has occured. The bottom line is that stores are looking to find new customers and turn them into repeat customers. The Kickback program is the best mechanism of doing just that. I think most stores don't really care who refers the customer to them. It costs them their standard affiliate commision rate either way. However, I do think that most stores have a greater appreciation for affiliates that work hard to earn their commisions by providing unique services. (Other stores just look at these programs and scratch their heads trying to make sense of it all. I actually had one of our advertisers call me up recently wondering when we added reviews to our site. They were so surprised. They had no idea we have had reviews on the site since November of 99.)

Edited by - Drew Black on May 27 2001

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I know that several of the stores have enjoyed my business-and will continue to do so-although of late, most of my buys have been via auction, from individuals, and second hand (I feel like I'm making a market sometimes). I spend a lot and expect a lot from them in return. I will be buying some stuff in June via the kickback program (5 star and Advantage will drool to hear this) too.

"Also, the concept of pissing of one affiliate by providing what appears to be preferential treatment of another has occured." I recalled the discussions and that's why I thought it might be a factor. It's also why I made it clear that I only buy from stores that are affiliates with ADT. I'm just one consumer out of many but every bit of pressure helps.

Affiliates that work for the money: ADT is tops from what I've seen. The two of you are dedicated to working with the stores, consumers, and production studio's while many just provide a link or two (or 20). Since the Price Search's inception, I've seen a number of imitators but they have all paled to what you provide. Is it any wonder that ADT is becoming increasingly popular?

Stores: I strongly advise any stores to regularly read this site and participate if possible. If they do, they'll see why their money is well spent. I can't imagine a store not knowing ADT's has reviews (over 1400 BTW) since they are on the front page and a link is on every other page...

PS: I'm not the official cheerleader at ADT-just a pretender to the throne-but he's busy today!

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