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Snapdeal's affiliate network has been suspended


Snapdeal has reportedly suspended an incentive programme for customers that it previously employed through affiliates to conserve cash.

Generally large online marketplaces reportedly allocate around 20 per cent of marketing budget. Snapdeal, according to media reports, spent Rs 4-5 crore on its affiliate channels around Diwali out of an estimated Rs 200 crore marketing budget.
 

The company, which is negotiating with existing investor SoftBank for more money, informed its affiliate partners early this month that it will not be able to pay for orders and additional installations of its mobile application routed through them, effective immediately. 

Snapdeal’s affiliate network comprises coupons, deal and cashback channels as well as blogs that bring in potential customers to website and mobile app. It pays commissions to affiliates based on the number of people who end up transacting on the marketplace. 

Snapdeal has, till now, raised about $1.76 billion in 12 rounds of funding. The most recent one came in August 2016 from Luxembourg-based firm Clouse SA that ploughed in $21 million. It was valued at $6.5 billion after a fund-raising last year.

 

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