DGM gone into administration

[redbird]

I only use one merchant at DGM but it's still an average of £300 p/m. Based on the assumption that where the merchant has paid DGM for commission earnt, I guess I'll probably not see much, if any of it.

I know networks operate differently and I don't know how DGM operate, some I think require prepayments from the merchants whereas others only get invoiced a month in arrears so what happens to the commission due that hasn't yet been paid to DGM by the merchants?

Could this mean we could get recent commissions from the merchant/receiver direct?

Dave

 

[dougs]

demise of networks

The ppc guys spending £100K per day spread the risk by mixing with different networks, but also the major merchants doing direct deals.

The direct deals reduces the chance of a network going down owing you money that the merchant has paid on your behalf, but the main reason is cashflow as it means you get paid much quicker, due to having to deal with only one accounts department.

My prediction has always been that the smaller networks will die/merge and the large affiliates will effectively become semi networks in their own right, running their own direct deals and accounts systems. Once a large affiliate expands it is logical to then run affiliates via it's sytems.

Hence with large affiliates being networks also, why would a small affiliate or merchant deal with a company who is only a network (effectively a tracking/accounts company) who has to beg large affiliates to work wth them.

So we will end up with:

Networks only - these will manage 1000's of small affiliates and 1000's of small merchants and some large ones

Combined networks/affiliates - these will control their own channels to market, will have deals with their major merchants and will have affiliates for these major merchants. They will use the "networks only" when the merchants are minor.

Hence watch this space as the networks merge more and they try to acquire large affiliates, or visa versa.

Doug

 

[Americar]

Middle Men the Movie

http://www.youtube.com/watch?v=RQP4PUsBKKo

 

[julian]

Can't see any of your traditional aff network surviving against adsense long term, except maybe AWin, and CJ but they will have to have a serious shake up also.

Sometimes I almost feel sorry for the small merchants that are being raped by the above.

You get the email come through that says 'Sign Up to Little Merchants affiliate program now earn 1.2% commission!' - anyone can see within 1 nano second it will be a failed business within 6 months - and I almost think it so cruel that AWIN and the like can take money of these guys to basically set them up to fail.

 

[rob]

Depends on your model.

If its long term sustainable you will not rely on a single 'supplier'.

I know of people who have spent big on names and sites only to see the merchants and networks cease. Not fatal if they go direct, but that might be beyond some or a little too much like hard work