Quote:
Originally Posted by Lynx-lynx
Pardon my ignorance, but what does that mean - affiliate fees?
And the fact they're being lowered?
And my guess is that sales have grown so much because of the 40% off codes ....  |
It's the amount they pay affiliates for referrals (like a commission).
I suspect that the 40% off coupons both grew their sales immensely and also put some pressure on their bottom line when added to the fee they paid affiliates (I don't make much there, but I'm sure some do). They were probably losing money on every sale and you can only keep doing that for so long.
There was some news late last year about venture capital, which is probably what they've been burning thru, trying to get market share. Then again, just before Fictionwise sold itself to B&N, they offered massive rebates and steep discount coupons (100% rebates plus huge coupons and essentially free memberships for further discounts), pumping up their sales to look good for anyone prospective buyers.