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Yes, 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
by sparky_z 10y ago
Yes, 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.