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
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.