Truth in Affiliate Marketing

by Scott Jangro on 03 December 2008

truth.pngRecent attention to loyalty and charity affiliates using browser plugins has had me reviewing the different network terms and codes of conduct.

In May of 2007, Commission Junction updated their code of conduct to include a new section for Advertisers, in which there are some great points to consider.

There are several, all of which you should take the time to review, but in light of recent events, this one is my favorite:

Competing Channels, Catalogs, Coupons. Advertisers must fully disclose any conditions or restrictions that would negate publisher commissions. Such conditions may include: use of a coupon code by the end-user, use of a catalog code by the end-user, the status of the end-user as a prior customer, or the end-user contacting the advertiser through a Web site promoted phone number.

It is sort of a dirty little secret that some activities that merchants themselves do can negate affiliate earnings, particularly return days.

For example, if an affiliate refers a visitor and that visitor signs up for a newsletter, that merchant may send that user a newsletter and then give themselves credit for converting that user and not the affiliate who may have otherwise had 30 days to get credit for a sale.

Or a merchant may give special treatment to particular coupon codes where if used, the sale will be credited to a different channel, or another affiliate, and the referring affiliate commission not reported.

And by that same token, how is it that partnering with loyalty sites that have their browser plugins installed on millions of user browsers is not something that should be disclosed in the same manner?

Since the Advertiser section appeared in CJ’s Code of Conduct a year and a half ago, I can’t say that I’ve seen a whole lot of full disclosure appearing anywhere around competing channels.

For merchants that I work with, I want to see this disclosure of channels to where commissions are due to me may be directed elsewhere, including loyalty publishers that use software plugins.

How much commissions that are due to me are being directed elsewhere and why?

I want to see accounting on these commissions that are being directed to other channels. How much am I losing? Is it 1%? 10% 50%?

Is Truth in Affiliate Marketing too much to ask for?

  • Thanks Scott! I'm hoping that articles like this will reform the affiliate market community. Affiliate marketing can be so profitable, it's a shame that some companies are using less than honest tactics.
  • I am sure there are other loopholes in affilliate comissions as well. I have always been wary of affilliate systems for some reason. At the end of the day we can never have full control over waht happens after a user leaves our site. There can be all sorts of ways in which the final comission can be reduced. For this and otherreason I tend to prefer PPC, CPC or other forms where the payments are more well defined less ambiguous.
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