eBay Changes Compensation for Affiliate Program

eBay will compensate its affiliates for driving new users to the site based on the users' “expected lifetime value” as opposed to strictly by the quantity of new users they drive to eBay. Each affiliate will be placed in a quality tier at the end of each month based on historical traffic. The tiers will range from $1 to $50, and the higher the expected lifetime value of the customers an affiliate sends, the higher the tier the affiliate will receive.

The change only affects compensation for new user registrations (ACRUs). Payouts for revenue share will continue on the same volume-based tiers for both new and old users. Existing affiliates will remain in the old pricing system until November 1, 2008.

eBay said the new value-based pricing system of the Partner Network is part of its ongoing effort to reward its best marketing partners and promote trusted commerce on eBay.

Meanwhile, Amazon.com is running a promotion for its affiliates to promote its Prime shipping program. Associates can earn $12 for each new Amazon Prime Free Trial member referred through October 31, 2008.