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RNC Pays 30% Commissions to Affiliates Phillip E. Honstein July 8, Boston, Mass: If you have ever wanted to make money in politics, 2004 may be your year. The Republican National Committee is offering a 30 percent commission on donations received through links placed on affiliate websites. On Tuesday, July 6, the RNC launched an affiliate-donations program through Commission Junction, a leading online "affiliate marketing" company with offices in Marlborough, Mass. and Santa Barbara, Calif. CJ tracks statistics and manages commission payments from advertisers such as the RNC to Website owners who place advertiser links on their sites. Donors to the Bush Agenda may find the details of the program unpalatable, however. Commissions and fees have the potential to siphon off 39 percent of funds donated through affiliate website links, based on CJ rates published online. The RNC failed to return calls for program details, and CJ declined to discuss the specific details of the RNC program. However, one CJ representative described a high-volume website that is charged lower-than-standard fees, suggesting that "a nonprofit such as the RNC" could enjoy lower rates than those published online. In the RNC program, there are limits on the amount an affiliate can earn from a given donation. Commissions are "capped" at $300, according to another CJ representative who attempted to clarify an ambiguous description that could also be interpreted as capping commissions at $90. Donations that result from paid links on search engine pages do not qualify for commissions. According to the CJ site, the CJ Access program requires advertisers to pay a network access fee of $2,250 and an annual maintenance fee of $250. Per-transaction fees are 30 percent of the commission paid, or 30 cents, whichever is greater. Moreover, a minimum of $500 per month in transactions fees must be paid for the duration of the contract, a potential challenge considering that eight months will remain on the contract after the election. Based on these rates, a $100 donation deflates to $61 after the affiliate commission ($30) and transaction fee ($9). With startup fees factored in, $50,000 in donations of $900 or less becomes a mere $28,000 (56 percent of the gross), while $100,000 drops to $58,500 (59 percent). At $500,000 and greater, the percentage retained by the RNC stabilizes at 61 percent. In spite of the loss of 39 percent of the revenue, the RNC-written text gives the impression that becoming an affiliate is a patriotic act: "We need your help to continue the advancement of the bold, responsible Bush/Republican agenda for a better tomorrow for every American. We cannot do it without the help of concerned citizens like you." Democratic National Committee press secretary Tony Welch wondered whether donors were aware of the commissions paid to affiliate sites; our investigation suggests that the decision to inform donors is entirely in the hands of Website operators. "Why anyone would donate to the Republican Party at all is beyond me," Welch responded. "Especially if they care about the direction of the country." Welch was clear in saying that he knows of no plans at the DNC for a similar program. "There are going to be ways to raise money which we've never thought of before, and how they take off will be the postscript of the 2004 election," he said. Reactions of affiliate marketers have been mixed. In the "Politics come to affiliate marketing" discussion on the ABestWeb forum, there was both enthusiasm and dismay. The first comment suggested such programs were not needed: "Republicans that care about politics should already have a link to the GOP." The second comment was more about profit: "Where do I sign up for this program?" Criticisms ranged from the general: "I guess GOP supporters are used to having money siphoned off without their knowledge," to the humorous: "I think it's the new 'Trickle-Down' Economics." Once the Bush and Kerry campaigns accept about $75 million in public financing following their nominations at this summer's conventions, fundraising responsibilities will fall squarely on the shoulders of the Republican and Democratic national committees. In a campaign already marked by record-setting fundraising on the Internet, Republican webmasters seem poised in 2004 to skim record profits from compassionate, but unsuspecting, conservatives. Related Web Links
About the Author Phillip Honstein is a freelance writer and content developer who provides services through netVeyance Development (http://www.netveyance.com) and satirical commentary at ShareTheSatire.com (http://www.sharethesatire.com). He holds a masters degree in writing, literature, and publishing from Emerson College in Boston.
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