PepperJam Network vs CJ

By Vlad Zablotskyy March 6, 2008

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photo credit: pixel0908Some times you can’t help but to be a spectator. Just as Affiliate blogs began to calm down over Mr. Mahalo, a new controversy is brewing on the horizon. In fact according to Kris Jones the controversy was taking place during Affiliate Summit and maybe even during Jason’s keynote address. I find this to be very ironic. I was quiet strong critic of Calacanis’ keynote speech. However, listening to podcast I now can say that I took a lot of what Jason said out of the content.

In his speech Jason mentioned how the Internet was looked at as a “plain leveled field”; a great opportunity for anyone to succeed. Every one was equal, opportunities were wide open and the sky was the limit.

So how does it look for a perspective of a “nobody”. And by nobody I mean myself. Because when I look at both CJ and PepperJam, I feel like I am less than nobody.

I wonder how soon will the “Goliaths” begin to demand “exclusivity” of affiliates? Seriously. Imagine if one network would ask you to either work with them exclusively or get out. Would you feel like you are on a “plain leveled field”?

34 Comments

By Kris Jones, March 6, 2008 @ 7:38 am
Vlad,
Thanks for your comments.
There's no question here – Pepperjam is David and CJ is Goliath.
We started just like you and dreamed big. Yes, we are growing quick, but we are innovating even more quickly.
We are small compared to CJ and we could never win a fight against them.
CJ waged a war against Pepperjam and anyone else who one day hopes to grow and innovate, while remaining a partner of CJ.
If this situation frustrates you as much as it does me I strongly urge you to take a closer look and see what CJ's behavior means for the broader affiliate industry.
By Vlad, March 6, 2008 @ 8:55 am
Kris,
The good thing is that David did win the fight.
It is a shame though. Talk about dreaming big.
By Kris Jones, March 6, 2008 @ 2:38 pm
Vlad,
Thanks for your comments.
There’s no question here – Pepperjam is David and CJ is Goliath.
We started just like you and dreamed big. Yes, we are growing quick, but we are innovating even more quickly.
We are small compared to CJ and we could never win a fight against them.
CJ waged a war against Pepperjam and anyone else who one day hopes to grow and innovate, while remaining a partner of CJ.
If this situation frustrates you as much as it does me I strongly urge you to take a closer look and see what CJ’s behavior means for the broader affiliate industry.
By Vlad, March 6, 2008 @ 3:55 pm
Kris,
The good thing is that David did win the fight.
It is a shame though. Talk about dreaming big.
By Evan, March 9, 2008 @ 12:26 pm
Of course CJ is upset about Pepperjam launching their own network, why wouldnt they since Pepperjam manages several CJ programs and can easily pluck affiliates and merchants into their own network. We'll see if any further action results.
By Vlad, March 9, 2008 @ 12:47 pm
Evan,
Are you suggesting PepperJam is using CJ interface to “hunt” for the new clients? If so I think Kris is much smarter marketer than that. I also believe that he cares very much about his company.
Being listed twice consecutively in Inc 500 as a fasted growing company, they probably have enough leverage to bring in new merchants without without such extreme guerrilla tactics.
In his original post Kris clearly expressed that it all began over the merchants whose OMPs PJ was managing.
Of course there is no precedent in the past of one network managing OMP for a merchant from another network. But there is no excuse for the CJ behavior.
In the long run it will hurt them more. Specially the fact that they refuse to make any statements on the issue.
By Evan, March 9, 2008 @ 1:02 pm
Vlad good to meet you. I think Pepperjam would be more inclined to extract affiliates and encourage them to join their network. Merchants its not really an issue because of the non-exclusive agreement CJ has with merchants. Since CJ clearly has the best performing affiliate base in the world, I think this is the major issue here. I don't think CJ needs to make any statements, they have the right to tell their merchants to drop Pepperjam due to a major conflict of interest. Let those merchants just exclusively over to Pepperjam and they will lose their CJ performers.
By Evan, March 9, 2008 @ 6:26 pm
Of course CJ is upset about Pepperjam launching their own network, why wouldnt they since Pepperjam manages several CJ programs and can easily pluck affiliates and merchants into their own network. We’ll see if any further action results.
By Vlad, March 9, 2008 @ 6:47 pm
Evan,
Are you suggesting PepperJam is using CJ interface to “hunt” for the new clients? If so I think Kris is much smarter marketer than that. I also believe that he cares very much about his company.
Being listed twice consecutively in Inc 500 as a fasted growing company, they probably have enough leverage to bring in new merchants without without such extreme guerrilla tactics.
In his original post Kris clearly expressed that it all began over the merchants whose OMPs PJ was managing.
Of course there is no precedent in the past of one network managing OMP for a merchant from another network. But there is no excuse for the CJ behavior.
In the long run it will hurt them more. Specially the fact that they refuse to make any statements on the issue.
By Evan, March 9, 2008 @ 7:02 pm
Vlad good to meet you. I think Pepperjam would be more inclined to extract affiliates and encourage them to join their network. Merchants its not really an issue because of the non-exclusive agreement CJ has with merchants. Since CJ clearly has the best performing affiliate base in the world, I think this is the major issue here. I don’t think CJ needs to make any statements, they have the right to tell their merchants to drop Pepperjam due to a major conflict of interest. Let those merchants just exclusively over to Pepperjam and they will lose their CJ performers.
By Vlad, March 9, 2008 @ 2:56 pm
Evan,
You right, CJ could have done whatever they wanted. However I the light of how it was done, being silent is going to hurt them.
I have not made a penny with PJ as of yet and most of my income is from CJ merchants. But I would not hesitate to follow my merchants if they choose to leave CJ for PepperJam.
I think at the end it will be good for the industry. Without innovative competitors there will be no progress. I think that well established companies are not so secure about the future precisely because they are not innovative.
By Vlad, March 9, 2008 @ 8:56 pm
Evan,
You right, CJ could have done whatever they wanted. However I the light of how it was done, being silent is going to hurt them.
I have not made a penny with PJ as of yet and most of my income is from CJ merchants. But I would not hesitate to follow my merchants if they choose to leave CJ for PepperJam.
I think at the end it will be good for the industry. Without innovative competitors there will be no progress. I think that well established companies are not so secure about the future precisely because they are not innovative.
By Evan, March 12, 2008 @ 11:09 am
CJ and Linkshare have the best name-brand merchants and thats what tends to convert well for affiliates. I have seen the Pepperjam ads for their network and endorsements they have gotten from industry “heavy-weights” and I'm not suprised at all CJ has an issue, Linkshare probably will too if they manage any of their programs..
By Vlad, March 12, 2008 @ 11:21 am
Evan,
I am not sure if you had a chance to listen to Sam Harrelson interview with Kris Jones. In that interview Kris touched upon their relationship with LinkShare and other networks.
I think CJ is not benefiting at all by being silent. They may have their reasons not to comment, but the longer they withhold to comment the more convincing Kris' arguments become.
No other company had been in this predicament in the past. So this issu will certainly will be referenced in the future.
I also think it is healthy to have competition. To stay in the competition size and money often may stand on the way to innovation.
By Vlad, March 12, 2008 @ 11:22 am
Forgot to give you the link to Sam's interview:
http://www.revenews.com/samharrelson/revenews-c…
By Evan, March 12, 2008 @ 11:28 am
Yes I listened to the podcast and it was pretty weak argument-wise I thought, not to mention a painful to listen to. He has nothing to fall back on here, they launched a future competitor and then boasted about it ad nauseum…and they are the victim here? Cj is more the victim in my opinion of a company that picked apart their system and then designs their own while still intending to manage CJ merchants…the nerve! Anyways, thats my 2 cents and I'm happy to give it!
By Vlad, March 12, 2008 @ 11:37 am
Evan,
As long as CJ is silent I tend to be on Kris' side on this one.
I am not sure Kris' was that naive to expect manage these OMP forever. From the podcast it is clear they will be terminating such relationships.
CJ could have accomplish their goal in more civilized and professional manner.
There was no precedent like this in the past. Hopefully we all will learn from this.
By Paul, March 12, 2008 @ 11:41 am
Evan,
You honestly sound like a douche bag.
Making it sound like CJ is the victim is pretty funny.
I've seen you on other boards, including Digital Pointe and you seem like a car salesman.
Always pushing your stuff and talking poorly of others.
What bone can you possibly have with this pepperjam company – are they more innovative than you?
Just a guess, but most people find you to be a loser.
Paul
By Vlad, March 12, 2008 @ 11:43 am
Evan,
I just visited your website. It appears that you are managing some affiliate programs for CJ clients. Is that right?
By Evan, March 12, 2008 @ 11:53 am
Paul, I guess you dont have a website..I am well-liked in the internet industy buddy, many people consider me an expert in online marketing, what losers are you talking to about me? lol. Vlad I am managing several CJ programs and all of them are performing very well.
By Vlad, March 12, 2008 @ 11:59 am
Paul, cool it down bro. No name calling on my blog.
Evan. I am glad your programs are doing well. I am am not affiliated with any of the merchants so I can't offer my perspective , so I take you word for it.
But I can't help but wonder what if you grow big and down the road would create your own network. Don't you think you can find yourself in the same predicament as PepperJam?
By Evan, March 12, 2008 @ 12:03 pm
Vlad, I was actually going to launch a network 6 months ago but decided against it for this very reason. I don't think competition is bad but don't expect to manage another companies merchants while “growing” your own network has been my point on this topic.
By Evan, March 12, 2008 @ 5:09 pm
CJ and Linkshare have the best name-brand merchants and thats what tends to convert well for affiliates. I have seen the Pepperjam ads for their network and endorsements they have gotten from industry “heavy-weights” and I’m not suprised at all CJ has an issue, Linkshare probably will too if they manage any of their programs..
By Vlad, March 12, 2008 @ 12:10 pm
Evan,
With all due respect… It is not CJ's intention to protect their business share that is at issue here.
I think leaders in the industry are expected to act as such. Is that to hight of a standard to hold CJ to???
By Vlad, March 12, 2008 @ 5:21 pm
Evan,
I am not sure if you had a chance to listen to Sam Harrelson interview with Kris Jones. In that interview Kris touched upon their relationship with LinkShare and other networks.
I think CJ is not benefiting at all by being silent. They may have their reasons not to comment, but the longer they withhold to comment the more convincing Kris’ arguments become.
No other company had been in this predicament in the past. So this issu will certainly will be referenced in the future.
I also think it is healthy to have competition. To stay in the competition size and money often may stand on the way to innovation.
By Vlad, March 12, 2008 @ 5:22 pm
Forgot to give you the link to Sam’s interview:
http://www.revenews.com/samharrelson/revenews-cafe-podcast-with-kris-jones-of-pepperjam/
By Evan, March 12, 2008 @ 5:28 pm
Yes I listened to the podcast and it was pretty weak argument-wise I thought, not to mention a painful to listen to. He has nothing to fall back on here, they launched a future competitor and then boasted about it ad nauseum…and they are the victim here? Cj is more the victim in my opinion of a company that picked apart their system and then designs their own while still intending to manage CJ merchants…the nerve! Anyways, thats my 2 cents and I’m happy to give it!
By Vlad, March 12, 2008 @ 5:37 pm
Evan,
As long as CJ is silent I tend to be on Kris’ side on this one.
I am not sure Kris’ was that naive to expect manage these OMP forever. From the podcast it is clear they will be terminating such relationships.
CJ could have accomplish their goal in more civilized and professional manner.
There was no precedent like this in the past. Hopefully we all will learn from this.
By Paul, March 12, 2008 @ 5:41 pm
Evan,
You honestly sound like a douche bag.
Making it sound like CJ is the victim is pretty funny.
I’ve seen you on other boards, including Digital Pointe and you seem like a car salesman.
Always pushing your stuff and talking poorly of others.
What bone can you possibly have with this pepperjam company – are they more innovative than you?
Just a guess, but most people find you to be a loser.
Paul
By Vlad, March 12, 2008 @ 5:43 pm
Evan,
I just visited your website. It appears that you are managing some affiliate programs for CJ clients. Is that right?
By Evan, March 12, 2008 @ 5:53 pm
Paul, I guess you dont have a website..I am well-liked in the internet industy buddy, many people consider me an expert in online marketing, what losers are you talking to about me? lol. Vlad I am managing several CJ programs and all of them are performing very well.
By Vlad, March 12, 2008 @ 5:59 pm
Paul, cool it down bro. No name calling on my blog.
Evan. I am glad your programs are doing well. I am am not affiliated with any of the merchants so I can’t offer my perspective , so I take you word for it.
But I can’t help but wonder what if you grow big and down the road would create your own network. Don’t you think you can find yourself in the same predicament as PepperJam?
By Evan, March 12, 2008 @ 6:03 pm
Vlad, I was actually going to launch a network 6 months ago but decided against it for this very reason. I don’t think competition is bad but don’t expect to manage another companies merchants while “growing” your own network has been my point on this topic.
By Vlad, March 12, 2008 @ 6:10 pm
Evan,
With all due respect… It is not CJ’s intention to protect their business share that is at issue here.
I think leaders in the industry are expected to act as such. Is that to hight of a standard to hold CJ to???