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It's definitely concerning, but doesn't an affiliate link business model also have potential conflicts of interest? There's a direct financial incentive to rec
by sparky_z 10y ago
It's definitely concerning, but doesn't an affiliate link business model also have potential conflicts of interest? There's a direct financial incentive to recommend products from sellers with more generous referral programs, as well as a bias toward more expensive products (assuming the kickback is percentage based).
Hopefully the NYT is smart enough to realize that all the value is in the reputation and maintain an open and transparent hands-off editorial policy. Keeping the articles as detailed and comprehensive as they are is also important, but still leaves room for advertiser pressure through omission of viable alternatives while retaining the appearance of objectivity.
- the_watcher 10y agoI'm curious about this as well. Hopefully NYT realizes that the property can help the company build trust with consumers and focuses on that value, rather than the dollars that can be squeezed from it.
- stinkytaco 10y agoDoes the NY Times have a history of usurping acquisitions and milking them for money? This is a company who leans on its reputation a great deal, so I would think that they would recognize its value. But like you say, money will talk.
- cschneid 10y agoThe majority of links are to Amazon's product listing. Sometimes with alternate links (I've seen Jet.com and Homedepot.com type links). All reliable web stores. You're right that its percentage based, so there may be a slight bias toward higher priced items, but I haven't seen it. I bought a recommended non-stick pan off thesweethome yesterday, and they explicitly talk about price range being good to go a bit cheaper and just buy a new one more often, rather than a more expensive one (to minimize the effects of wear that hit even expensive ones). So they recommend a cheaper pan than they could have.
- sparky_z 10y agoYes, that's the point I was trying to make. They've cultivated a reputation for independence, despite possible conflicts of interest, but that's more difficult to maintain when your customer base knows you are exposed to advertiser pressure. Hopefully they can pull it off.
- AdamN 10y agoThe difference of a fixed percentage on a variable cost is very minor. If you're recommending a $100 monitor with a 4% affiliate fee, that's $4. A $150 monitor is $6. Making good recommendations (i.e. stuff people want to buy) will easily outweigh the payment difference. Still, it's important to have a policy about it and be transparent - which Wirecutter (and the NYTimes surely) has.
- sparky_z 10y agoThat's one way to look at it. Another is that, when affiliate fees are your only source of revenue, replacing all your $4 fees with $6 fees increases revenue by 50%. That's potentially huge. If you're running the company, you have to take it on faith that keeping your integrity will continue to improve word-of-mouth sales by more than 50% over the long run. And there's a constant temptation to change your mind, especially if your growth curve starts to taper off. I'm just saying the math isn't so cut-and-dry that we consumers don't have to remain vigilant.
- gnopgnip 10y agoYes you will notice that the related site thesweethome rarely includes Ikea products or any other company that does not have a lucrative affiliate program in the comparison.
- apendleton 10y agoI don't think this is true. Ikea is often included in Sweethome comparisons for which Ikea has products, but the overlap between what Ikea sells (mostly furniture) and the Sweethome reviews (lots of tools, small appliances, kitchen electronics, etc.) is not that great. But Ikea products seem to have been included in all the reviews related to mattresses or bedding, flatware, dishes, pots and pans, etc.: http://thesweethome.com/?s=ikea http://thesweethome.com/?s=ikea
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- etrautmann 10y agoI purchased the top bluetooth headphones reviewed on Wirecutter, and they were so preposterously bad that my only possible conclusion was that the reviews weren't objective. My friend had the same experience with same headphones (JLab Epic).