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Beachnumb

Cashback Middlemen Go Bust, 1999-2010 Rip Dgm

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They ain't happy on MSE: http://forums.moneysavingexpert.com/showthread.php?t=2600107&highlight=cashback

But Topcashback says they will not let members suffer and pay even though DGM are in admin:-

Hi,

We wanted to keep you informed of an important event which has happened very recently. On Friday 16 July 2010, one of the major tracking networks (DGM), which is used by all major UK cashback sites, was put into administration. This is obviously a major issue for our business and potentially for our members, as it makes it very likely that a large amount of cashback commission will not be forthcoming for retailers who operated via DGM.

To explain in a little more detail, all of the retailers on cashback sites have their commissions tracked and invoiced by various different tracking networks. It is these tracking networks that then pass over the commission to us - at which point we pass all of it over to you as cashback. This particular tracking network runs many programs - so many of the merchants accessible via cashback sites would have been tracked and billed via DGM.

At Top Cashback, it is important to us to always remember our Fair Play policy and put our members first. We have therefore decided, in line with our Fair Play policy, that it is more important to look after our members than it is to maintain certain other non-essential expenditures.

We have therefore identified marketing budget which we can use in this instance, to make sure that none of our members lose out as a result of this affiliate network going into administration. In other words, where due you can expect your affected transactions to proceed through to Payable status as normal. If you were due to receive a bonus Top Cashback Top-Up on these transactions (up to 10% extra), then that should also be included as normal.

Remember, Top Cashback is here for the long-haul to provide the best possible service and cashback deals to our members. We work with many other tracking networks and we have already been working to move the affected merchants over to our other partner networks. In other words - it is business as usual!

In return, we would like to ask just one favour of you, our members (which we would see as you Playing Fair with us :) ).

We simply ask you to talk about this gesture and our site on forums and with your friends, neighbours, colleagues and, well, anyone who will listen! As mentioned, we will have less budget left for our marketing as a result of this gesture - which could put us at a disadvantage compared to our competitors... So wouldn't it be great if we felt that our members had supported us in return and made sure that we didn't lose out - both in the short term and in the months to come as we build up towards Christmas.

Thanks to all of our members for your loyalty and for continuing to recommend Top Cashback.

http://www.topcashback.co.uk/blog/cashback-industry-news

Marketing spends being reduced all over the place, a pioneering firm that has been going since '99 has popped, and the real cuts haven't even started yet.

beachnumb

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so they collect "clients" earned cashback, and spend it themselves.

a proper and upright company.

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All of a sudden seems to be a new rash of things going into administration. Just had four emails today from administrators trying to offload inventory of suppliers gone bust (very surprised by one that had gone under actually).

Edit to add: I'm very dubious about how much genuine value these sites/cashback/voucher code schemes deliver to consumers and also retailers, in terms of genuine new business.

Points schemes like nectar might be preferable but, again I think they suffer from a similar problem. I always go on to ebay through nectar.com to collect the points but, it plays no part in choosing to buy on ebay as a channel or whether I buy something at all.

Also, not forgetting anyone can obtain 100% cashback by not buying something at all.

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Also, not forgetting anyone can obtain 100% cashback by not buying something at all.

or shoplifting the item you want B)

Edit to add: I'm very dubious about how much genuine value these sites/cashback/voucher code schemes deliver to consumers and also retailers, in terms of genuine new business.

I've spent years looking at voucher sites and cashback sites and I really don't think they add anything when it comes to new business. They may impact repeat business but I even doubt you could successfully argue that point.

Mind you as the cashback sites are slightly weak at the moment I finally actually launch my variation on it. There you will get a chance of 100% cashback some of the time. Most of however you'll get nothing.

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All of a sudden seems to be a new rash of things going into administration. Just had four emails today from administrators trying to offload inventory of suppliers gone bust (very surprised by one that had gone under actually).

Edit to add: I'm very dubious about how much genuine value these sites/cashback/voucher code schemes deliver to consumers and also retailers, in terms of genuine new business.

Points schemes like nectar might be preferable but, again I think they suffer from a similar problem. I always go on to ebay through nectar.com to collect the points but, it plays no part in choosing to buy on ebay as a channel or whether I buy something at all.

Also, not forgetting anyone can obtain 100% cashback by not buying something at all.

Its an affiliate model which has been quite successful. People buy through the rebate site who are affiliates for a product or service. What is quite new is for the affiliate network, DGM in this case, to go bust. The rebate site pays the customer out its commission.

Not entirely sure why the affiliate network has gone bust. Its possible they have not been paid by their advertisers, so other affiliates will probably be out of pocket too. Its one of the risks of being affiliate, spending out a lot on say internet traffic, perhaps using PPC or placing banners and not getting paid. Occasionally an individual advertiser has gone to the wall, but up till now, rarely a whole network.

Also two affiliate networks have merged, Zanox and Digital window. The big daddies of the affiliate world are people like Commission Junction and Tradeboubler.

It had always been my impression that no affiliate got paid until the merchant paid up, with the network taking a cut.

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Its an affiliate model which has been quite successful. People buy through the rebate site who are affiliates for a product or service. What is quite new is for the affiliate network, DGM in this case, to go bust. The rebate site pays the customer out its commission.

Not entirely sure why the affiliate network has gone bust. Its possible they have not been paid by their advertisers, so other affiliates will probably be out of pocket too. Its one of the risks of being affiliate, spending out a lot on say internet traffic, perhaps using PPC or placing banners and not getting paid. Occasionally an individual advertiser has gone to the wall, but up till now, rarely a whole network.

Also two affiliate networks have merged, Zanox and Digital Window. The big daddies of the affiliate world are people like Commission Junction and Tradeboubler.

No the two elder statesmen of the industry are commission junction and Tradedoubler. Digital window were probably the biggest even before the Zanox merger which is really a tidying up scheme by the multinational joint owners of Zanox (focused on France and Germany) and Digital Window (owner of Affiliate Window and Buy.at).

You are right that affiliates now only get paid when the merchant pays the network. some networks used to pay before receiving payment but Woolies and a couple of others put paid to that method.

As for why DGM disappeared the starter of the firm was pretty damning in a comment on Affilates4u earlier today.

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No the two elder statesmen of the industry are commission junction and Tradedoubler. Digital window were probably the biggest even before the Zanox merger which is really a tidying up scheme by the multinational joint owners of Zanox (focused on France and Germany) and Digital Window (owner of Affiliate Window and Buy.at).

You are right that affiliates now only get paid when the merchant pays the network. some networks used to pay before receiving payment but Woolies and a couple of others put paid to that method.

As for why DGM disappeared the starter of the firm was pretty damning in a comment on Affilates4u earlier today.

Got a linky? Trying to find out a bit more as I'm trying to find out if David Lees was still Chairman. He was still Chairman of Deal Group Media in 2009.

Had the misfortune to once work for a another company taken over by him and remember him coming into the office and threatening us all! :lol:

Looks as though the administrator is trying to keep it going and the website is still up.

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Got a linky? Trying to find out a bit more as I'm trying to find out if David Lees was still Chairman. He was still Chairman of Deal Group Media in 2009.

Had the misfortune to once work for a another company taken over by him and remember him coming into the office and threatening us all! :lol:

Looks as though the administrator is trying to keep it going and the website is still up.

post 2 here

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  • 140 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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