Item — HN Reader

The difference of a fixed percentage on a variable cost is very minor. If you're recommending a $100 monitor with a 4% affiliate fee, that's $4. A $150 monitor is $6. Making good recommendations (i.e. stuff people want to buy) will easily outweigh the payment difference.

Still, it's important to have a policy about it and be transparent - which Wirecutter (and the NYTimes surely) has.

1 comments

That's one way to look at it. Another is that, when affiliate fees are your only source of revenue, replacing all your $4 fees with $6 fees increases revenue by 50%. That's potentially huge. If you're running the company, you have to take it on faith that keeping your integrity will continue to improve word-of-mouth sales by more than 50% over the long run. And there's a constant temptation to change your mind, especially if your growth curve starts to taper off.

I'm just saying the math isn't so cut-and-dry that we consumers don't have to remain vigilant.