1..Commission is a method of rewarding customers for spreading the word about products they believe in and that they feel could help others.
2. Many of our customers are linked in some way to other customers, and many of these customers become affiliates and encourage others to become affiliates.
3. If we allowed commission to be paid on an affiliate’s own purchase, there is a high probability that affiliate is already linked to another affiliate as their customer.
4. This situation then means that not only would commission get paid to the purchasing affiliate, but a commission is also raised for the affiliate they are linked to.
5. If you then extrapolate this scenario to include a third affiliate: affiliate number 3 makes a purchase and earns commission on it, affiliate number 2 gets a commission raised from the sale, and affiliate number 1 gets a tier commission raised on the sale too. This would lead to no profit left for Good Health Naturally and possibly a loss being made on the sale.
6. Although we endeavour to give our affiliates fair rewards, if we make a loss on sales we would not be operating as a business and not fulfilling our duties to our loyal customers to make quality supplements available to them at affordable prices.
All affiliate programs are designed to reward people for successfully bringing awareness of the products to a wider audience, that awareness leading to sales and those sales raising commission for the affiliate. Although we do not allow commissions to be paid on an affiliate’s own purchases, this discussion has prompted me to think about creating a Buying Club in which members would receive sizeable discounts on purchases. These discounts would be up to 40% in some case depending upon the purchase. This does, of course, pose a another dilemma, because customers buying through a buying club at heavily discounted rates would mean there would not be enough left in the pot to pay commissions on these sales to an affiliate if that customer was linked to an affiliate.
This is an option that is under consideration.