I was doing research on the sites which are mainly based on Employee Discounts Program (I know a few sites but not sure if I should post their names here). Does anyone know how the business model works for such sites? The basic thing is that the site provides discounted services/products to the employees of the member company. The only requirement is that the member company must have a minimum employee strength of some X no. of employees (the site I was looking at has requirement of minimum 35 employees). The question is how do they make money and track the sales made thru them?
Business Model - How does it work?
- Thread starter eastwood17
- Start date
Do you know if they are doing it via affiliate marketing? I'm trying to decide if I should move this thread if it isn't AM related?
Oh and you can post a couple of the sites so we can take a look. We don't have a problem with you mentioning other sites you just can't mention or link to your own.
Oh and you can post a couple of the sites so we can take a look. We don't have a problem with you mentioning other sites you just can't mention or link to your own.
I am not sure if they are doing it via Affiliate Marketing 
. The site names are as below.
workingadvantage.com
employeediscos.com
employeebenefits.com.au
Linda, please feel free to move this thread to an appropriate place. Pardon me for being naive and posting my question under incorrect sub forum.
. The site names are as below.workingadvantage.com
employeediscos.com
employeebenefits.com.au
Linda, please feel free to move this thread to an appropriate place. Pardon me for being naive and posting my question under incorrect sub forum.
No worries. General affiliate is our main forum so I try to keep it affiliate only questions. If it turns out these companies are using affiliate marketing I can move it back.
I don't have time to look and research but can tell you 2 ways it can be done. 1 way would be with affiliate marketing and I have had companies call me that wanted to do this. If their commission from a merchant was 10% they would credit the member back 5% or 8% of that as a rebate or savings and keep the balance. (Note: this is NOT a good model at all for a newbie to try. Even as a pro I would not do it for a wide variety of reasons.)
The other way it's done is the employee discount site negotiates group buying power discounts direct from the retailers based on volume.
In either case tracking would be done via cookies probably that report back to the discount site the amount of the sale and which member bought. But either way it would require expensive custom tracking.
I don't have time to look and research but can tell you 2 ways it can be done. 1 way would be with affiliate marketing and I have had companies call me that wanted to do this. If their commission from a merchant was 10% they would credit the member back 5% or 8% of that as a rebate or savings and keep the balance. (Note: this is NOT a good model at all for a newbie to try. Even as a pro I would not do it for a wide variety of reasons.)
The other way it's done is the employee discount site negotiates group buying power discounts direct from the retailers based on volume.
In either case tracking would be done via cookies probably that report back to the discount site the amount of the sale and which member bought. But either way it would require expensive custom tracking.
That makes sense.
Another question: If some of the discounts offered by the site are non-web based (e.g. showing a printed copy of the advertisement from a web page or newspaper adv. at the box office)… then how will the company track it and reconcile no. of sales made with the seller, if group buying is not in play?
Part of my sales may be similar in nature where the prospective customer would take a hard copy to the Point Of Sale. This could give my customers additional assurance abouts company's genuine and worry free service.
Another company which works in similar fashion is plumbenefits.com.
Another question: If some of the discounts offered by the site are non-web based (e.g. showing a printed copy of the advertisement from a web page or newspaper adv. at the box office)… then how will the company track it and reconcile no. of sales made with the seller, if group buying is not in play?
Part of my sales may be similar in nature where the prospective customer would take a hard copy to the Point Of Sale. This could give my customers additional assurance abouts company's genuine and worry free service.
Another company which works in similar fashion is plumbenefits.com.
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