Archive for February, 2009:
Just the facts ma’am…
Observation - Analysis - Testing - Reporting
 In the midst of an ailing economy, the Internet marketing industry is abuzz with activity. Much of that activity revolves around tuning affiliate programs and trying new methods to glean every possible sale from that vast cloud of potential Internet shoppers. Many merchants and affiliates alike are beginning to exploit affiliate marketing methods that have existed for years, but have been continually railed against by some in the affiliate community.With a recent proliferation of new toolbars that pop, drop, flash, beep, and change color to entice shoppers to pick a coupon, get a deal, receive cash back, donate to their school, or any number of other reasons to click, affiliates involved in conventional search engine marketing are feeling the squeeze. Many are expressing their distaste of such methods in belligerent dialog through their favorite forum venue. This distaste manifests itself in the form of insult, name calling, and threats toward a many times hapless affiliate manager who turns out to be clueless of the negative impact certain affiliate marketing methods may have on his program. And there are times that the vigilantes, after beating up on an affiliate manager and her program, will learn that steps WERE taken to protect the marketing efforts of the merchant’s other partners, which results in egg on their faces. I suppose intimidation is one way to skin the cat, but there must be a more effective way than this seat of the pants approach of discovery, accusation, intimidation, and hope. |
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Affiliate Trust is taking a more systematic approach than your typical intimidation vigilante forum… Observation When suspicious activity is reported or observed, rather than calling in the dogs for a free for all, Affiliate Trust is nearing completion of a merchant alert mechanism that will notify merchants of potentially detrimental methods reported by their marketing partners. They will be invited to join the discussion. Analysis Information learned from the merchant will serve as input to analyze their technique and determine it’s process. Testing AT will then test the method to ascertain the validity of the analysis. Reporting The recording and documenting of tests will serve as input for accurate reporting of findings. Reports will be published and posted. A favorable outcome would be that the merchant would decide to forgo using the methods of concern. In that case, the merchant will be added to the AT Trusted Merchant List. Otherwise it will be added to a list disclosing the detrimental methods in use. Simple as that. Affiliates may just happen to refer to that list and decide not to join with merchants utilizing certain marketing methods. So if you prefer the emotionally charged approach, AT is probably not for you. If you’d like to take a more objective, Joe Friday “just the facts ma’am” systematic approach, visit AffiliateTrust.org, have a look, and join right in… |
Affiliate Marketing TOS - Anarchic or Tyrannic?
| My favorite method of analysis is to look at the extremes of opposite positions. That doesn’t label me as an extremest as the hypothesis always lands somewhere in the middle. Let’s apply that method to a question that was posted in the AT forum a few days ago; “How could the merchant demonstrate that the affiliates were ethical?” Now, the extremes; Either run an anarchic program with no rules, which eliminates the question of merchant/affiliate ethics altogether, assuming that the rules define ethics in this case, or disallow all methods that breed unethical behavior such as PPC, software, and incentives. Neither may be a good choice from the merchant’s point of view. The problems with anarchy seem obvious, and there are also problems with the opposite tyrannical approach. As we’ve been seeing, merchants are clamoring for so called “super affiliates” who leverage the methods of the “force”. As we know the force has a good side and a dark side. So by disallowing all use of the force, merchants who are so desperate for sales in the current economic environment may be throwing the baby out with the bath water. How can merchants employ the force while preventing methods of the dark side? |
First the merchant must put a lot of thought and effort into composing their TOS (terms of service) agreement, making certain that all bases are covered. Those bases include (but are not limited to) tracking, compensation, marketing methods, infractions, and consequences. Then, when affiliate compliance issues arise they can always refer to agreed upon terms and act accordingly. The TOS is the merchant’s constitution and should be revered as such and never wavered from.
The biggest challenge will not be enforcement. With a comprehensive TOS agreement, enforcement is a piece of cake. The biggest challenge is policing the program. Effective discovery and investigation are difficult at best and require resources and continual monitoring.
So, the more rules you implement, the more difficult policing will be and the more resources will be required. The fewer rules, the less effective and profitable the affiliate marketing program will be. Resources required for more rules eat profits, but on the other hand, affiliates using unscrupulous methods in anarchic programs steal profit. Is there an acceptable measure of loss as with credit card providers that accept a given amount of theft as a business expense? Where is the middle ground? How can we expect merchants who are in the business to sell products and services, to operate an effective affiliate marketing program at all?
Use the force, but find that balance where the rules outlaw abuse while policing is manageable.
Ed Byerly
AffiliateTrust.org
Forum.AffiliateTrust.org
Blog.AffiliateTrust.org