How much % are advertisers paying coupon sites like Honey, Rakuten?

[tsaimllc]

I am an affiliate marketer of a large brand, but most of our affiliates are now just low effort coupon sites, trying to clean them up. Rakuten and Honey are the biggest revenue leachers. the commission was set really high, and I want to lower it because they are low effort sites.
I am curious if other advertisers here have insight into what other brands are paying these sites commission rate wise. Someone at Impact told me 3-5%. that would be amazing if I could lower their commission to that and they deal with it, but I fear some backlash.

 

[T J Tutor]

Coupon sites are not the best fit these days. They were great when they first came out. Keep in mind that coupon site hunters are trying to attract those that can help them pay the least on typically already low priced items. These sites attract the consumers that are seeking something for nothing.

 

[Graybeard]

Someone at Impact told me 3-5%.

I stay away from eCommerce because the margins as an affiliate are for shit TBH.
I don't want to waste my time and money fishing for mullets that will over-pay for eCommerce items at inflated prices so I can make 12%

So unless, you have the `magic` to do $100K per month in gross revenue

 

[tsaimllc]

Coupon sites are not the best fit these days. They were great when they first came out. Keep in mind that coupon site hunters are trying to attract those that can help them pay the least on typically already low priced items. These sites attract the consumers that are seeking something for nothing.

That didn't answer my question tho lol.
I manage a large brand, large brands already use Rakuten, Honey etc anyway. I'm just curious if anyone knows what % companies are paying them.
I deny all small coupon sites. And I wish people would stop running them. But companies still use honey and similar because of their audience sizes.

 

[Graybeard]

Coupon sites are not the best fit these days. They were great when they first came out. ...

Well that was 2003 20 years ago too

 

[tsaimllc]

I stay away from eCommerce because the margins as an affiliate are for shit TBH.
I don't want to waste my time and money fishing for mullets that will over-pay for eCommerce items at inflated prices so I can make 12%

So unless, you have the `magic` to do $100K per month in gross revenue

These large affiliates I mentioned know they arent providing any value, but they get a cut anyway because people ARE going to go to google and search for your coupons. Im just trying to figure out how much % to give them that they will accept. its virtually free money for them

 

[T J Tutor]

That didn't answer my question tho lol.

Yeah, true! I was having a moment. Just airing my opinion.

large brands already use Rakuten, Honey

Well, large brands are also in our affiliate networks and some with their own affiliate programs which generally opens the door for a better commision structure than trying to compete with Honey and the several dozen apps like them.

I'm just curious if anyone knows what % companies are paying them.

Well, Honey and Rakuten are affiliate partners with the companies they partner with. We have similar relationships on our Discounts Page. We negotiate a discount for the members and we get paid a commision for the conversions. Now, I can tell you that our commision structures with those on our Discounts Page are not publicised and never will be. I imagine it is the same with the coupon sites. We negotiate the discounts and the commissions, typically negotiated terms between companies in our industry are kept confidential. Since both of those companies have affiliate programs and partner programs, their terms can tell you a lot.

For example, Honey has a statement regarding their "Partner" commissions as follows:

What does it cost to partner with Honey?
Honey requires a minimum of a 3% commission in order to partner with us which is applied to each purchase a member makes on your site. Honey requires a minimum of a 5% commission in order to for us to enable Honey Gold on purchases members make on your site. Remember, all opportunities with Honey are performance-based, so commission is only paid to Honey when a transaction occurs, so ROIs will always be positive.

I'm sure this is similar at Rakuten.

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