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
Toolbar Wars - You don’t know the power of the dark side!
| I sense something… a presence I’ve not felt since… a very long discussion about the One Cause CPO (commission poaching object) at ABW. The force is strong with this one.
What is this power, this force, this magnetism? What feeds and energizes it? Could it be a frantic clamor to offset the ravages of a harsh economy? The plight of the street walkers? The destiny of the unprepared? This is YOUR destiny? You’re drawn, and don the cloth of the dark side, to cloak your true intentions, your hood pulled close around your face, your glare staring from the darkness within, stalking your next victim, ready to pounce. Spotted! The deliverer, the seller, the naive, hoping, working for nigh. You spring to snatch the prey from their grasp. The truth? The vast majority of affiliate toolbars, residing on Internet shopper’s computers, sit and watch for the shopper to happen by an affiliated merchant’s website, and either entices the shopper to click it’s own affiliate link, or sets it’s affiliate tracking cookie transparently. The result is a commission snatched from the grasp of the ones who did the work of delivering the buyer, by one who simply waits to spring. |
One of the last vestiges of the good side of the force, Share A Sale Inc., is preparing to More »
A BHO is a Toolbar is a Parasite is a Spy is a… CPO
First in a series of articles centered around affiliate software methods.
BHO is the acronym for Browser Helper Object. A BHO is a plug-in for Microsoft Internet Explorer that was introduced in 1997 as a feature providing the ability to More »
Merchant’s Perspective - AdSense or NonSense?
This just in…
Tool King Sprouting Leaks!
Tool King, an e-tailer marketing tools of all kinds utilizes the affiliate marketing channel to enhance their own sales efforts. AdSense ads began appearing on the ToolKing.com website enticing Tool King shoppers to More »
The Performance Marketing Alliance
A Top Down Organization in a Bottom Up Industry?
The long awaited formation of the Performance Marketing Alliance became official on December 29th and the doors are now open for More »
Affiliate Ponzi Schemes Kill Affiliate Programs
A notice crossed my desk[top] today about a merchant, Boca Java (bocajava.com) which has teamed up with TrialPay (trialpay.com) to offer a discount if the shopper attempts to exit their site without completing a purchase. A popup is utilized that the shopper must either click to leave, or proceed to learn more about a $15 Boca Java gift certificate that is offered if they proceed to TrialPay and purchase a More »
Fair weather seating, but when it rains?
Ah, the AT Sidewalk Café. The breeze is soft, the shade cool. Hushed More »
When Affiliates Unite
It’s a beautiful thing!
This blog post takes a departure from my routine rant about BHOs and ParasiteWare, with their unscrupulous methodology of snatching unearned commissions and thei
The Affiliate Trust opened for membership just a few days ago. A number of dedicated affiliates have already joined and are More »
New Years Call To Action
In the latter part of ‘08 the Internet marketing industry experienced an onslaught of ’cause’ affiliates working under monikers like A Good Cause, One Cause, Give Clicks, and others. Their methods are not new by any means, but their numbers are More »
Expediency Trumps Flawless Implementation
When I worked in the corporate IT world for a large national retail chain, a new philosophy emerged from the execs in their corner offices. The philosophy of expediency taking priority over flawless implementation was met with disdain by those of us who bore the burden of implementation. This spawned a lot of speculation about how we More »