Snapdeal Stops In­cen­tives to Cus­tomers of its Af­fil­i­ates in Bid to Con­serve Cash

In­forms af­fil­i­ate part­ners that it won’t pay for or­ders & ad­di­tional in­stal­la­tions of app routed through them

The Economic Times - - Companies: Pursuit Of Profit -

Payal Gan­guly & Biswarup Gooptu

Ben­galuru|New Delhi: Snapdeal has abruptly sus­pended an in­cen­tive pro­gramme for cus­tomers that it em­ploys through af­fil­i­ates, high­light­ing the on­line mar­ket­place’s strug­gles to con­serve cash as fresh in­vest­ments get tougher to se­cure.

The com­pany, which is ne­go­ti­at­ing with ex­ist­ing in­vestor Soft­Bank for more money, in­formed its af­fil­i­ate part­ners early Fri­day that it will not be able to pay Part of mar­ket­ing bud­get that typ­i­cally goes in af­fil­i­ate pro­grammes

for or­ders and ad­di­tional in­stal­la­tions of its mo­bile ap­pli­ca­tion routed through them, ef­fec­tive im­me­di­ately.

Snapdeal’s af­fil­i­ate net­work com­prises coupons, deal and cash­back chan­nels as well as blogs that bring in po­ten­tial cus­tomers to web­site and mo­bile app. It pays com­mis­sions to af­fil­i­ates based on the num­ber of peo­ple who end up trans­act­ing on the mar­ket­place.

“The Snapdeal af­fil­i­ate pro­gramme is be­ing re­cast to make it more ef­fec­tive and to drive higher (re­turn on in­vest- on af­fil­i­ate chan­nels on mar­ket­ing

ment),” a Snapdeal spokesper­son said. “New plans will be shared over the next few days.”

Snapdeal’s bud­get for its af­fil­i­ate pro­gramme is con­ser­va­tive as com­pared to that of other on­line mar­ket­places.

Ac­cord­ing to in­dus­try data col­lated from var­i­ous agen­cies and pub­lish­ers, Jasper In­fotech, Snapdeal’s par­ent com­pany, was the sec­ond-high­est spender on print and tele­vi­sion ad­ver­tis­ing in the same pe­riod, next only to Ama­zon In­dia.

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