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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8 Comments:

  • At 11:47 PM, Blogger Unknown said…

    Great post and documentation of what is happening.

     
  • At 2:23 AM, Blogger Blog That Life! said…

    Thank you! We need to see an end to these shameful practices!

     
  • At 10:21 PM, Anonymous Anonymous said…

    It is interesting to see what kşnd of benefits they expect. Such practices often damage your reputation and your business in the long run; especially now that you have stronger competition.

    I am on a really slow connection so bookmarked your site to watch the videos later.

     
  • At 4:40 AM, Anonymous Anonymous said…

    Firms that wish to play all sides of the ball are indeed abandoning their role as the "trusted third party" in the name of a dollar. And that's fine I guess, but they need to know that once they cross that line there is no stepping back.
    I don't care what walls or boundaries are put in place, it is human nature to want to better one's self when possible and to be in this situation is to easily have that opportunity.

    I have a specific campaign that I have run on several different CPA Sub-Affiliate networks over the years. 100% of the time these campaigns have done well for the first few weeks or a month then they drop down to nothing. It is no coincidence that this happens as soon as the network is able to see where my traffic comes from and copy my methods.

    A certain OPM has been caught red-handed consciously competing with his affiliates on very tight niche campaigns and it has pretty well ruined his reputation.

    I guess at the end of the day it all comes down to how much value an individual or firm places on their reputation.

     
  • At 12:40 PM, Anonymous Anonymous said…

    This has tushed me in a possative kind of way I'm still new with this marketing and in what I can feel is that if someone who is real fresh in marketing reads it what will they think and how will they react? Will they just give up I think that thats not what should be happening we need to come together as best we can and make our marketing so strong that it will survive anything it comes against.Where there is a whill there is surely a way.I came into marketing for the money and for the thrill of being a part of something great I have found a world of wealth here not in money but in live I have learned how to write,and make a blog I'm learning about Marketing.I,m learning how to advertise what I'm saying is just like me everything is new to you in the begaining and intimadateing its sad to see stabing in the back type of actions when it is so much more perductive to work as a team on all levales helping each and everyone to be successful don't you think? I do!VickiQ122093

     
  • At 2:45 AM, Blogger Edward Moses said…

    Very interesting, My sponsor never called or e-mailed me, kind of falls in this category. I offer my people help and support, we are all in this together!

     
  • At 10:58 AM, Anonymous Anonymous said…

    I too have come over such kind of cannibalism, but this is rarely seen. Not all the affiliate networks make cannibalism. There are also some affiliate networks which work properly for the clients and increase traffic to them. So that the client feels safe in the hands of affiliate.

     
  • At 3:23 AM, Anonymous affiliate marketing expert said…

    Hi,

    Even though there are bad faces for affiliate marketing there are good ones too. It is just like every other invention. Some people use the darker side to get rich. But see the virtues too. After all it is not that bad too.

    Mark Robinson
    http://www.osiaffiliate.com

     

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