Coupon sites and their advantages and challenges

In this article we will answer the common questions or concerns with regards to the working with coupon affiliates.

Common Concerns Resolution/response
How do coupon sites add value to my affiliate activity?
  • Many coupon sites have a broad reach and large user bases helping to target new audiences
  • Coupon users are typically young, affluent and educated* – a target group you might want to build a relationship with early on
  • Coupon sites can help increase the AOV of an advertiser by setting up coupons with a maximum spend higher than the current AOV
  • Coupon sites can help to sell old inventory 
A key KPI for me is new customer acquisition, can coupon affiliates help?
  • Consumers will often break their usual shopping patterns in order to get the best price for a product*. A coupon can help attract new visitors.
  • Coupon sites have big databases and social media following, which can be used to reach new audiences – some of our partners are driving more than 20% new customer orders for specific advertisers
  • Advertisers have the ability to set up specific commission rates for coupon sites or set up a higher commission  rate for new customers
Aren't coupon affiliates cannibalising sales that I would have received anyway?
  • 76% of users abandon the shopping cart. The most common reason is that the extra costs are too high (e.g. shipping)**. If those users find the product cheaper at a competitor who might be offering a discount for free shipping, that user has been lost to competition.
  • While there will always be orders with multiple touch points in the user journey where the coupon affiliate appears last, there will also be a % of conversions where they are the first touch or a contributor to conversion.
I am concerned about coupon code leakage to other sites on the internet if I work with coupon sites.
  • Advertisers can create unique one time use codes for their affiliate offers ensuring that leakage cannot occur.
  • If an advertiser is tracking coupon in the Commission Factory conversion tracking, they can set up an exclusive coupon so only that affiliate will earn commission from sales where that coupon is used.
Offering a discount as well as CPA will erode the margin on conversions
  • The commission is calculated on the discounted price, not the full price.
  • Advertisers can set up a coupon that has a minimum spend or product exclusions or even category specific codes and bundles to ensure margins are protected and aim for higher AOV

* Reference

** Reference 2

We recommend considering all affiliates you wish to work with and evaluating all affiliate methods. You can find a glossary of affiliate types here. An option to consider if you are still unsure is to start a trial working with one or two coupon affiliates and evaluating over time, then open up to others if the results are positive.