AAA as Affiliate Partner?

[NicoleAtTF]

One of the guys in our Affiliate Marketing department came around today to ask if I could put a query here to all of you about AAA. We hear that they might be a partner of FTD's, is that true? If they are a partner, is it bringing in business to your shop?

Would it be worth it to you for Teleflora to pursue an affiliate relationship with AAA?

Thought I'd put that out there. I know affiliate relationships aren't always looked on positively, though I will say the note that ASPCA sent out the other day is certainly generating some buzz online. I've responded to at least 10-15 people re-tweeting the link so their friends/followers know to use Teleflora's network for Valentine's Day. That doesn't sound like much, but for every person who actually goes to the effort of posting something, there are many more who read it.

Thanks for any/all feedback!

 

[RWK]

One of the guys in our Affiliate Marketing department came around today to ask if I could put a query here to all of you about AAA. We hear that they might be a partner of FTD's, is that true? If they are a partner, is it bringing in business to your shop? The question should be - Is it bringing business into FTDI and FTD.COM and the DIRECT SHIPPERS affliated with FTD ?

Would it be worth it to you for Teleflora to pursue an affiliate relationship with AAA? How would this partnership affect flower shops INSTEAD of Teleflora and Teleflora.com ?

Thought I'd put that out there. I know affiliate relationships aren't always looked on positively, though I will say the note that ASPCA sent out the other day is certainly generating some buzz online. I've responded to at least 10-15 people re-tweeting the link so their friends/followers know to use Teleflora's network for Valentine's Day. That doesn't sound like much, but for every person who actually goes to the effort of posting something, there are many more who read it. Will Teleflora be sending FULL VALUE and FULL DOLLARS to the network shops or will they be sending the DOLLARS to ProFlowers?

Thanks for any/all feedback!

Your fellows need to look at potential partnerships as to HOW THEY WOULD DIRECTLY BENEFIT the florist.

I can't see how this would benefit the independent local florist Nicole.

 

[NicoleAtTF]

We always send florists the same value for a bouquet, whether it's gone through an affiliate partner or Teleflora.com - this wouldn't decrease or negatively impact what the florist receives in any way. But if it does bring more orders into the network for shops to fulfill, isn't that a positive thing? I hear from many florists that what they'd like to see from the network is more orders coming in to their shop - if a partnership with AAA would help create that, I think it would make many shops happy, which is our goal with affiliate partnerships. The more orders in our network, the better off we are, it's true, but also the more business the member florists have, which is a win-win situation as I understand it.

Do you think AAA's the right kind of partner to do that?

 

[BOSS]

Do you think AAA's the right kind of partner to do that?

So called "partners" are what has gotten us into this mess in the first place. Partnerships with BloomsToday, Wesley Berry, Best Flowers, and yes AAA. Anything that removes any value between the consumer and the delivering florist is counterproductive to a healthy retail environment.

And yes, I do believe that FTD and AAA have formed another unholy alliance.

 

[Hal Conklin]

I am sorry can we correct you we see you do not have much history behind your thought process. The last thing florists need is companies putting more middle men between them and consummers. You are correct its a win-win not a win-win-win. Your companies as is the others is; better us than them thus causing the decrease in value to florists as you 3 fight for volume. Its really quite simple. I can't for the life of me figure out why you would come here seeking approval. Thanks for sharing...

 

[theRKF]

Nicole's in a very interesting position - balancing the needs and directives of corporate HQ while networking with the troops who have "boots on the ground."

Rick asked some good questions - and one misguided one. TF provided fulfillment for ProFlowers, but they don't feed orders into the ProFlowers system. So, an agreement of the sort Nicole is proposing would not benefit ProFlowers - but if TF doesn't make the agreement, ProFlowers might and then all the AAA (in this example) orders would go into the ProFlowers system with only a few trickling into the TF system to florists.

It's the reality in which we live that groups like AAA and many others look to affiliate agreements to generate revenue AND add value to their clients. They are going to sell flowers, and they are going to funnel them through someone ... and it won't be individual local florists. The paperwork on these agreements can get quite complicated; why do it a few hundred times with lots of individual florists?

So lets turn the conversation around! How can we constructively deal with the reality that there are large corporate interests that need mass order fulfillment?

 

[BOSS]

How can we constructively deal with the reality that there are large corporate interests that need mass order fulfillment?

A shift in the profitability dynamic of "generated" orders.

There should be a different scale applied to non-florist generated orders. Perhaps passing on the collected 7% would be a good place to start, followed by a real dollar (undiscounted) delivery charge that would give the florist true value, while allowing them to service the order (customer) at a profit higher than break even or worse.

 

[Hal Conklin]

Ryan I truly appreciate your candor and professionalism however the facts don't change. It tis true the wire services do offer many things that can assist florists in a great way its a matter of finding whats right to use for your business. All the big OG have done is make it look ok for them(Wire Services) to do the same as they have been around longer. Smoke and Mirrors at its best. ok done thanks, and this is not meant in anyway shape form or fashion as a personal insult to the poster. JUST FACTS
Thanks Ryan keep up the awesome work on this fine tool you have here in Flowerchat

 

[theRKF]

Ryan I truly appreciate your candor and professionalism however the facts don't change. It tis true the wire services do offer many things that can assist florists in a great way its a matter of finding whats right to use for your business. All the big OG have done is make it look ok for them(Wire Services) to do the same as they have been around longer. Smoke and Mirrors at its best. ok done thanks, and this is not meant in anyway shape form or fashion as a personal insult to the poster. JUST FACTS
Thanks Ryan keep up the awesome work on this fine tool you have here in Flowerchat

I appreciate that, Hal - thanks

I'm not lobbying for the wire services, just challenging the widely accepted mindset that every customer should order from a local florist, all the time. This just doesn't mesh with everyone customer's reality. So, if we accept that fact, the question becomes how do we grow business and acquire new clients in this circumstance? Can we afford to be completely independent and ignore clients of this size? Do we wed ourselves to the wire services hoping that big mama will send some nourishment down the pipe? Or are there other options? We're all supposed to be creative people, here, how can we address this?

 

[RWK]

We always send florists the same value for a bouquet, whether it's gone through an affiliate partner or Teleflora.com - this wouldn't decrease or negatively impact what the florist receives in any way. But if it does bring more orders into the network for shops to fulfill, isn't that a positive thing? I hear from many florists that what they'd like to see from the network is more orders coming in to their shop ( More orders into the shop at discounted prices you mean - and depending on the dollar value of the order itself - coupled with the member fees, transmission fees, and other expenses associated with getting that order - that incoming order might be helping to put that shop OUT OF BUSINESS ) - if a partnership with AAA would help create that, I think it would make many shops happy, which is our goal with affiliate partnerships. The more orders in our network, the better off we are, it's true, but also the more business the member florists have, which is a win-win situation as I understand it. ( Some might argue that a percentage o something is better than a percentage of nothing........but if the fees cost more than the percentage of that incoming order - then is a minus percentage really helping )

Do you think AAA's the right kind of partner to do that?

In other words Nicole - Is it a good thing to get those orders if it costs more to get them than the orders are worth?

 

[theRKF]

Would it be worth it to you for Teleflora to pursue an affiliate relationship with AAA?

I think one of the biggest concerns with arrangements like this, from the florist's perspective, is the discounting involved in getting the agreement. By offering 10-20% off to members of a group, and typically a kick-back to the organization as well, it makes florists appear to be greatly over-priced. After all, if we can give up 20% + kickback, pity the fool who pays retail We know the realities, but it becomes a matter of perception.

So another question: How can we change that perception, while still making these deals viable? (assumes the deals are going to be done anyway, in one form or another)

 

[theRKF]

In other words Nicole - Is it a good thing to get those orders if it costs more to get them than the orders are worth?

That's something that has to be determined by each florist. We've gone round and round with the WS math, on how incoming orders can benefit or hurt. Most recently, Royer advised keeping WS incoming at 15% of your revenue.

TF has 18,000 (or so) clients, and they need to keep those clients happy. If the clients are demanding more incoming orders, should TF make deals to get more volume? It's still up to the shops to determine if they want incoming via a wire service, and how many.

Or, should TF take a different approach and start educating florists on how to better market themselves, how to make deals like the AAA example on a smaller local scale, and try to fill their pipeline with more florist to florist orders? That's a LOT more work, but it could pay off in longevity and PR with their clients. Thoughts?

 

[BOSS]

Or, should TF take a different approach and start educating florists on how to better market themselves, how to make deals like the AAA example on a smaller local scale, and try to fill their pipeline with more florist to florist orders? That's a LOT more work, but it could pay off in longevity and PR with their clients. Thoughts?

Um... yes....

It would/could/has the potential to...propel Teleflora to the top of the pile, and make the others irrelevant and dead.

 

[RWK]

You're right there Ryan - Each shop has to determine for themselves how much effort, cost, fees, dollars, etc.....to get that incoming order.

Teleflora bills itself as a partner of the florist wanting to help the florist succeed - Your third option WOULD go a long way in helping that boast be a greater reality. After all, Actions do speak far louder than words.

 

[Hal Conklin]

I'm not lobbying for the wire services, just challenging the widely accepted mindset that every customer should order from a local florist, all the time. This just doesn't mesh with everyone customer's reality.

Agree

So, if we accept that fact, the question becomes how do we grow business and acquire new clients in this circumstance?

Larger percentages passed to florists based on support of partner(wire service)

Can we afford to be completely independent and ignore clients of this size?

Absolutely not see above

Do we wed ourselves to the wire services hoping that big mama will send some nourishment down the pipe?

We pick and choose our partners based on value added to our businesses. We manage and control our businesses.

Now I ask this question ? This issue has been ongoing (almost 20 years) has anything changed ? Yes it has the playing field has changed drastically. Now it's the pressure of incoming orders and free technology.Wire Services dictating to a vast majority of small florists across the country who are not paying attention to surroundings and baseing the value of the relationship on the amount of orders that come thru the pipe for them. Whats missing is BUSINESS EDUCATION

 

[theRKF]

Now I ask this question ? This issue has been ongoing (almost 20 years) has anything changed ? Yes it has the playing field has changed drastically. Now it's the pressure of incoming orders and free technology.Wire Services dictating to a vast majority of small florists across the country who are not paying attention to surroundings and baseing the value of the relationship on the amount of orders that come thru the pipe for them. Whats missing is BUSINESS EDUCATION

If only there were an independent resource available at a low cost that had a mission to educate and network florists ... <ducks again>

Sadly, when times get tough it's marketing that is the first line item cut by most florists, and the WS is often the last thing to go.

I can't say that WS should be first or last - that's up to the florist - but cutting marketing in tough times is like eating your thigh for dinner. It might get you through the night but it's a crappy long term strategy

 

[RWK]

One thing is for sure - You'll get no arguement from me on the need for good proper florist BUSINESS education. Lord knows I'll take all the education on the FLORIST BUSINESS I can get.

 

[Bigted]

Sorry but I view this thread as much ado about nothing. Big organizations have lots of buying power through their members and they naturally want the best deal they can get. No amount of "education" is going to change that. The affiliate agreements are probably a much cheaper way to get orders than ppc or other internet advertising. There is nothing sinister about them (unless there are secret kickbacks)

 

[theRKF]

Sorry but I view this thread as much ado about nothing. Big organizations have lots of buying power through their members and they naturally want the best deal they can get. No amount of "education" is going to change that. The affiliate agreements are probably a much cheaper way to get orders than ppc or other internet advertising. There is nothing sinister about them (unless there are secret kickbacks)

You're absolutely right. I think the question is, are florists in a position to make and benefit from these deals, or do we have to rely on the WS to do it for us?

 

[Hal Conklin]

Sorry but I view this thread as much ado about nothing. Big organizations have lots of buying power through their members and they naturally want the best deal they can get. No amount of "education" is going to change that. The affiliate agreements are probably a much cheaper way to get orders than ppc or other internet advertising. There is nothing sinister about them (unless there are secret kickbacks)

I agree with you both with exception to education...The florists do need to be educated. Not on big organizations(The Wire Services) and how they(The Wire Services) get business, but the bussiness they(The Wire Services) are getting and what costs are being passed to them(The Retail Florist) thru drastically discounted orders..