Flying Pig moves to increase book-buying traffic

By Aimee McClinchy

Friday 24th March 2000

COMMISSION SALES: Stefan Preston aims for 10% increase in revenue

Online retailer Flying Pig is embarking on a commission-paying affiliate programme it believes will boost its revenues by up to 10%.

In the same way companies such as Amway pay salespeople to recruit others, the scheme aims to encourage other websites to send customers to Flying Pig by giving them a piece of the action.

Modelled on overseas sites including Amazon.com, the programme (found at http://affiliate.flyingpig.co.nz) allows any website owner to download free Flying Pig html links and graphics.

If they send a customer directly to buy a book from Flying Pig they earn a 15% commission on the sale; less direct referrals and commissions on other categories earn 5%, all to be paid quarterly by cheque.

Flying Pig will keep track of the transactions in online records (including if the site owner is GST registered) in what it is calling "money for jam."

Stefan Preston, chairman of Orion Ventures, Flying Pig's parent company, said the programme was focused on books - stock from shareholder company Whitcoulls - because they were its biggest product line and "the most applicable to many other sites."

He said the 15% still allowed profit and followed overseas models.

Flying Pig will not release sales figures but said books made around two-thirds of its sales. Mr Preston predicted total sales would be up 40% in March over February and would beat Christmas sales.

Flying Pig's marketing manager Kirsten Ford said the programme was based on a "self-drive" model, different from the structured relationship announced with Xtra.

Xtra and Flying Pig will work on developments together and are to share traffic flows across their sites, with Flying Pig becoming Xtra's preferred retail merchant.

But Flying Pig has created an affiliate partnership with TVNZ (NZoom.com) and other smaller sites.

"The benefit for us is [the affiliate programme] gives us access to relationships with customer groups we wouldn't have reached before," Ms Ford said.

"It also extends the range of products on the affiliates sites and gives them full e-commerce functionality."

Mr Preston said the company had taken three months to build the capabilities inhouse with partner Advantage. He would not put a figure on the development, calling it "a significant investment."

Flying Pig's staff numbers have grown significantly since its October launch. It now has around 38 staff and between 7-12 developers working on the site at all times, Mr Preston said.

Because Flying Pig did not stock pile, it had been able to place its fulfilment out of its inner-city Franklin Rd offices.

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