Affiliate Marketing Blog by AMWSO

Affiliate program Tips, support, bonuses and news from merchant affiliate programs managed by the AMWSO Affiliate marketing team.

Saturday, November 29, 2008

Crossing the Line

I'm often asked by people "Why don't you make a network?" and "Why don't you be an affiliate and promote your own clients more?" and certainly we have considered it, but it always comes down to a key issue : conflict of interest. And I'm sure we could boost our revenue rather nicely if we started playing all side of the business, but at the same time we very well may destroy our trust amongst our affiliate partners.

Firms such as Pepper Jam have progressed through the business from merchant, to affiliate, to affiliate managers to Network. The mixed reviews and acceptance they get, shows that it is not an easy path to travel, and a very difficult one to do while keeping everyone happy.

One of the most debated roles in the industry is that of "Affiliate Network", the"Trusted Third Party" that is meant to remain neutral and ensure that everyone is working in a fair field of play. It's not an easy task as everyone has a different opinion on what is a fair field of play.

My personal opinion is that a fair field of play consists of these qualities
  • affiliates add value to the consumers purchase cycle
  • affiliates drive new customers to a merchants site
  • affiliates don't intercept consumers already in the act of going to a merchant's site
  • affiliates don't cannibalize other marketing channels
  • affiliates don't cannibalize each others traffic
  • requires a direct consumer interaction with the affiliate marketing being run
  • no adware, bhos or malware
  • that all parties work within their defined roll be that Network / Affiliate / AM or Merchant
So when a "Trusted Third Party" Network such as LinkShare not only allows an affiliate to actually ignore most of these qualities but actually owns it too, then you have to wonder where the "Trusted Third Party" bit has gone. Affiliates can argue back and forward on whether BHOs (Browser Help Objects) should be part of the affiliate channel and how they should interact with the consumer, but the real argument has to be, why is LinkShare now operating as an Affiliate? It is, without a doubt, wrong at all levels.

Certainly they aren't the first, but as they like to state, they are a market leader, so why is a market leader going out of its' way to cannibalize it's affiliate base? Already multiple tests have shown that not only is the LinkShare owned BHO failing to follow LinkShare's own Terms and Conditions but it is also going beyond BHOs the likes of Ebates and overwriting tracking that is meant to be protected by the afsrc=1 code.

A couple of example videos below on how this LinkShare owned affiliate BHO is cannibalizing Walmart traffic, please allow the videos time to load.
If this is the way Networks are going then I think we can throw the "Trusted Third Party" label our of the window, perhaps go with "Affiliate and Merchant Cannibalization Network" instead?

As a merchant ask yourself? Do you want this kind of "marketing" to be cannibalizing your sales channels, and as an affiliate, do you want to be promoting merchants that allow your traffic to be cannibalized for someone else's profit?

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Tuesday, October 02, 2007

Incentive Browser Plug-Ins / Add-ons Deceive Merchants, Rob Affiliates and Damage the Affiliate Marketing Industry

I was prompted to write this post upon reading about a fairly new Firefox browser add-on called CashAddOn. It was especially distasteful since I am an avid fan of Firefox and open source software, and users have the mistaken impression that his type of add-on is being endorsed by Mozilla and Firefox or that it’s gone through some kind of ethical / good behavior test.

Scott Jangro has an excellent write-up on the bad practice of Cashaddon operates.

From a consumer perspective, the idea of getting some cash back in addition to any regular coupon or discount is very attractive. Many consumers are not overly concerned that a nameless/faceless webmaster might have had his earned commission stolen due to the bad practice of this particular browser add-on.

The merchants that this add-on targets need to be made aware, that this is costing them money, sacrificing goodwill amongst knowledgeable affiliates, and providing NO added value in return. A comment in this discussion from Alex truly brings to light the lack of knowledge about how this add-on operates. The comment expounds the belief that merchants are HAPPY to have this kind of affiliate since it is driving added traffic to the merchant site. However, Cashaddon drives no traffic and adds no value at all. It simply leaches off the traffic ALREADY headed to a site, either via PPC, affiliate link, or simply natural search.

Partnering with affiliates that bring added value to your customer interactions provides the best way to really bring long-term prosperous benefit and growth to an affiliate program. Getting rid of these leaches from a program will not only benefit the bottom-line, but also help to build excellent positive relations with true affiliate partners that have a common interest in parallel success.

AMWSO and many other OPM firms have long promoted ethical and value-added affiliate marketing. If your affiliate program is overridden with parasites, and your other marketing channels are being cannibalized, contact us for a service review and let us apply our value-added principles to cleaning up your program and expanding your bottom-line.

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