[jaredmck]

Probably a good time to mention that Google Ventures invested in RetailMeNot.

I think keeping these kind of coupon codes as a %rev affiliate model rather than CPC ads makes it easier to justify the high level of spending (much of which is cannabilizing other marketing channels) - if it was more directly comparable to adwords & Product Listing Ads CPC-based costs, I think more large brands would move faster to cut the wasteful spending going on in these programs.

Right now many rationalize it as "4% of revenue is a great acq cost" - but it's not a true acquisition cost as you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen.

If you're a pure SEO built company, are you really betting it all on SEO? Without it you'd have no company, and if it weren't risky, there would be no opportunity left.

[beagle3]

> you already acquired many of these customers and if the affiliate sites didn't exist, 99% of these sales would still happen.

That's only true for a small number of vendors (those that are "unique" in a relevant way, such as clothing brands). For everyone else, it's a "Red Queen" style race, where you have to run just to stay in the same place : you have to do it, because someone else did; if no one or everyone does, nothing changes - but if only some do, those who do have an advantage.