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The Secret Shady Practices of Affiliate Marketing


You've probably heard it a hundred times...affiliate marketing is a great way to make money online.

What if I told you affiliate marketing was basically unethical or that the field is dominated by shady practices?

You disagree?

Well let's explore affiliate marketing from the merchant, affiliate and customer viewpoints.

Affiliate marketing is a revenue sharing partnership between a web merchant and one or more affiliates, where the affiliate is paid a commission for referring clicks, leads or, most often, sales to the merchant.

The affiliate signs up to the affiliate program via an online application form, receives an affiliate link, and can then promote the products and services of the web merchant via his own website, ezine, pay per click search engines or other advertising means.

The affiliate's role, then, is to introduce the potential buyer to the seller acting as a kind of middleman.

In return he is paid a commission of any sales resulting from referrals.

But haven't we always been taught to cut out the middleman where possible?

Well, yes, but in affiliate marketing the customer pays the same price regardless of whether he arrives at the web merchant's site directly or via the affiliate's link.

Or at least that's how it should be.

How does the web merchant benefit from running an affiliate program?

The main advantage to the web merchant is that via his affiliate program he can recruit a large sales team of affiliates at zero cost and make many more sales in a way that his website alone could never hope to do.

How does the affiliate benefit?

The advantages to the affiliate are that he can make money in a business where he doesn't have the upfront costs of creating his own product, and doesn't have to worry about ecommerce, bookkeeping, or customer support because that's all handled by the merchant.

How does the customer benefit?

The customer gets a solution to his problem (provided the product or service does what it says it does) that he may not have found without the affiliate's help and does not have to pay extra.

So it's a win-win situation for everyone involved.

Or at least it is in principle.

However in the real world both affiliates and affiliate program owners can be involved in some shady practices.

Shady Practice #1

Unscrupulous merchants close down programs without warning and without paying commissions or tempt new affiliates with high commissions then drop those commission rates dramatically a week later.

Affiliates - protect yourselves from this situation by selecting the affiliate program carefully.

Ask yourself these questions.

Has the site existed for more than a year? Is it clear what the site is providing and are the terms and conditions of the affiliate program explained clearly and comprehensively in simple language? Are there good online reviews of the program in websites or discussion forums? Does the program provide realtime commission stats online? Are ready-to-use affiliate marketing tools available?

Shady Practice #2

Affiliates are sometimes guilty of misleading or false advertising - making claims or promises about the product or services which are totally untrue or greatly exaggerated.

Shady Practice #3

Illegal use of logos, trademarks or other branding. This includes infringement of intellectual property rights and violation of copyrights.

Shady Practice #4

Spamming.

While legitimate affiliates are jumping through hoops to comply with the can-spam laws, the shady characters continue to find their way around it.

Shady Practice #5

Affiliate link hijacking is the replacement of your affiliate id with the hijacker's in the affiliate link.

You don't get your rightful commission - the hijacker gets it instead by buying through his own affiliate link.

It's best if you can avoid displaying your affiliate link and affiliate ID in the browser address bar.

One technique uses a zero-frame or invisible frame to make it appear you are sending visitors to a page on your website when, in fact, you are really sending them to your affiliate link.

To prevent the hijacker from viewing the web page's source code to see that you've loaded an affiliate link, use javascript encryption to scramble the page code or software to prevent the source code from being viewed.

Make no mistake about it...

In any area of human activity, particularly where there is money to be made, there will always be people who try to cheat, exploit the gullible and do harm.

The proper way to engage in affiliate marketing is to act ethically, build a relationship of trust with your prospects and customers then provide value by consistently exceeding your customers expectations.

And this applies to any business either online or offline.

Keith Rougvie is an ethical marketer. To get the free ebook "How To Pick And Promote Affiliate Programs" and other free resources, advice and recommendations visit http://www.make-money-online-website.com


Todays News by officejax surplus outletMORE AFFILIATE REVENUE RESOURCES updated Wed. May / 19 / 2021

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Bojoko urges fairness as report uncovers affiliate revenue share as low as 8%  iGaming Business

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Two More United Ways Combine  The NonProfit Times

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How much money finance influencers make from affiliate marketing  Business Insider

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Global Affiliate Marketing Tracking Software Market Growth Overview and Forecast by 2028 | Everflow, LinkTrust, AffTrack, Hitpath – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

Fashion Companies Fighting Over Affiliates? SimilarWeb & Admitad Affiliate Report - PerformanceIN
Fashion Companies Fighting Over Affiliates? SimilarWeb & Admitad Affiliate Report  PerformanceIN

Perrigo, Gov't Square Off Ahead of $163M Tax Refund Trial - Law360
Perrigo, Gov't Square Off Ahead of $163M Tax Refund Trial  Law360

Global Affiliate Market – Rising Investments in Research & Development Activities Worldwide to Propel Growth – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Global Affiliate Market – Rising Investments in Research & Development Activities Worldwide to Propel Growth – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

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How to Make Money Online Using a Blog: 9 Strategies that Work  Business 2 Community

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Global Affiliate Program Software Market Leading Companies Strategies & Miscellaneous Revenues (2021-2028)| QualityUnit, Tipalti, LeadDyno, Offerslook – The Manomet Current  The Manomet Current

Affiliate Program Software Market Size, Demand and Technology Acquisitions 2021-2027 – KSU | The Sentinel Newspaper - KSU | The Sentinel Newspaper
Affiliate Program Software Market Size, Demand and Technology Acquisitions 2021-2027 – KSU | The Sentinel Newspaper  KSU | The Sentinel Newspaper

Fitch Affirms Discovery's 'BBB-' IDR Following WarnerMedia Merger Announcement; Outlook Stable - Fitch Ratings
Fitch Affirms Discovery's 'BBB-' IDR Following WarnerMedia Merger Announcement; Outlook Stable  Fitch Ratings

Stay Connected and Drive Performance by Establishing a Solid Affiliate Programme - PerformanceIN
Stay Connected and Drive Performance by Establishing a Solid Affiliate Programme  PerformanceIN

Better Collective's revenue grows in Q1 as Atemi deal diversifies income - iGaming Business
Better Collective's revenue grows in Q1 as Atemi deal diversifies income  iGaming Business

Wirecutter Debuts New Sections, Styles and Trends, to Capitalize on Ecommerce Boom - Adweek
Wirecutter Debuts New Sections, Styles and Trends, to Capitalize on Ecommerce Boom  Adweek

Disney+ Subs Fall Short of Latest Expectations - TV Technology
Disney+ Subs Fall Short of Latest Expectations  TV Technology

MGM Springfield casino revenue dips; Plainridge, Encore Boston Harbor post gains - MassLive.com
MGM Springfield casino revenue dips; Plainridge, Encore Boston Harbor post gains  MassLive.com

Kolmar Korea: Solid Revenue Growth in China Outshines Disappointing Earnings - BusinessKorea
Kolmar Korea: Solid Revenue Growth in China Outshines Disappointing Earnings  BusinessKorea

New Jersey gaming revenue rockets in April - AffiliateINSIDER - AffiliateINSIDER
New Jersey gaming revenue rockets in April - AffiliateINSIDER  AffiliateINSIDER

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Taking advantage of some of the best sports betting affiliate programs  Pragativadi

Fox sees Q3 profit gain despite sales dip after 2020 Super Bowl - New York Post
Fox sees Q3 profit gain despite sales dip after 2020 Super Bowl  New York Post

Chinese Tech Firm Baidu's Q1 Revenue Rises 25% - Baystreet.ca
Chinese Tech Firm Baidu's Q1 Revenue Rises 25%  Baystreet.ca

How content publishers can leverage the affiliate channel - Business Insider
How content publishers can leverage the affiliate channel  Business Insider

ViacomCBS Adds 6M Global Streaming Subs in Quarter, Driven by Paramount+, to Reach 36M - Hollywood Reporter
ViacomCBS Adds 6M Global Streaming Subs in Quarter, Driven by Paramount+, to Reach 36M  Hollywood Reporter

Why Mark Zuckerberg Wants Influencers To Get Rich - Forbes
Why Mark Zuckerberg Wants Influencers To Get Rich  Forbes

'Fight for health freedom': A look inside the affiliate marketing network cashing in on vaccine 'disinformation' - Stars and Stripes
'Fight for health freedom': A look inside the affiliate marketing network cashing in on vaccine 'disinformation'  Stars and Stripes

ViacomCBS Reports Q1 2021 Earnings Results - Yahoo Finance
ViacomCBS Reports Q1 2021 Earnings Results  Yahoo Finance

AMC Networks Misses Q1 Revenue Estimates as US Ad Sales Drop 7% - TheWrap
AMC Networks Misses Q1 Revenue Estimates as US Ad Sales Drop 7%  TheWrap

Better Collective buys Action Network for $240 million in a bid - Awful Announcing
Better Collective buys Action Network for $240 million in a bid  Awful Announcing

Affiliate Channel Partner Program Market 2021 Dynamics Analysis to Grow at CAGR with Major Companies and Forecast 2026 – The Shotcaller - The Shotcaller
Affiliate Channel Partner Program Market 2021 Dynamics Analysis to Grow at CAGR with Major Companies and Forecast 2026 – The Shotcaller  The Shotcaller

Baidu revenue jumps 25% on ads, cloud boost - Yahoo News
Baidu revenue jumps 25% on ads, cloud boost  Yahoo News

The Power of Optimising Your Affiliate Onboarding Process - PerformanceIN
The Power of Optimising Your Affiliate Onboarding Process  PerformanceIN

The New York Times Reports Strong Growth in Q1 2021 - Subscription Insider
The New York Times Reports Strong Growth in Q1 2021  Subscription Insider

Alibaba Posts First Loss Since Going Public After Antitrust Fine - The Wall Street Journal
Alibaba Posts First Loss Since Going Public After Antitrust Fine  The Wall Street Journal

KT Corporation (KT) Q1 2021 Earnings Call Transcript - Motley Fool
KT Corporation (KT) Q1 2021 Earnings Call Transcript  Motley Fool

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How to Make Money Blogging  Small Business Trends

Increase sales for your business or generate significant online revenue as a content creator! - GlobeNewswire
Increase sales for your business or generate significant online revenue as a content creator!  GlobeNewswire

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The State of Affiliate Marketing & Campaign Management with Adam Riemer [Podcast]  Search Engine Journal

Fox News Expands Menu to Steel Itself for Cord-Cutting’s Bite - Variety
Fox News Expands Menu to Steel Itself for Cord-Cutting’s Bite  Variety

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display, the Social That Pays, Announces 'displayFest' to Kick Off Consumer Launch with a Month of Free Live Concerts and $2 Million in Trivia Cash Prizes  PRNewswire

Bojoko Asserts 'Contractual Security A Must' In Study On Fees Applied To Affiliates - Inkedin
Bojoko Asserts 'Contractual Security A Must' In Study On Fees Applied To Affiliates  Inkedin

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HyreCar Inc. (HYRE) CEO Joe Furnari on Q1 2021 Results - Earnings Call Transcript  Seeking Alpha

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Fox: Greater Uncertainty Enters The Picture  Seeking Alpha

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I Remain Bullish On ViacomCBS  Seeking Alpha

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Kwik.insure rolls out affiliate program for Filipinos – The Manila Times  The Manila Times

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Affiliate Channel Partner Program Market Projection By Key Players, Status, Grow  Fractovia News

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Global Affiliate Marketing Tracking Software Market 2020 Analysis, Types, Applications, Forecast and COVID-19 Impact Analysis 2026 – Clark County Blog  Clark County Blog

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Electronic Learning Toys Give VTech an Earnings Boost • The Toy Book  The Toy Book

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Affiliate Market to Witness Growth Acceleration by Top Key Players – HostGator, Avangate, Wide Markets, ShareASale – Clark County Blog  Clark County Blog

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Google UK reports its 2020 financials: the transfer pricing implications – MNE Tax  MNE Tax

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Bauer's bet on making print a major part of the e-commerce funnel  The Drum

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‘We’ve barely scratched the surface’: How publishers are thinking about affiliate commerce in 2021  Digiday

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CARS Reports First Quarter 2021 Results  PRNewswire

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Hawking disinformation | National News | salemnews.com  The Salem News

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Cambridge-Lee Holdings Consolidated Results of Operations for FY 2020  StreetInsider.com

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What could a new system for taxing multinationals look like?  The Economist

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Regulators may be doing Alibaba a favor after all - The Japan Times
Regulators may be doing Alibaba a favor after all  The Japan Times

LiveWire Ergogenics Reports Q1 2021 Financial Performance - GlobeNewswire
LiveWire Ergogenics Reports Q1 2021 Financial Performance  GlobeNewswire

Live Streaming Can Drive Affiliate Revenue - Practical Ecommerce
Live Streaming Can Drive Affiliate Revenue  Practical Ecommerce

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Vice is finally entering the affiliate space, but is drawing a firm line between edit and commerce  Digiday

US Cable Network Affiliate Revenue Down For The First Time In Q2 08/19/2020 - MediaPost Communications
US Cable Network Affiliate Revenue Down For The First Time In Q2 08/19/2020  MediaPost Communications

Money Doesn't Grow on Trees. Affiliate Marketing Is the Next Best Thing - G2
Money Doesn't Grow on Trees. Affiliate Marketing Is the Next Best Thing  G2

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New x50Wheel game launched by BetConstruct - AffiliateINSIDER  AffiliateINSIDER

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Form 424B2 CITIGROUP INC  StreetInsider.com

Comprehensive Report on Affiliate Program Software Market 2021 | Trends, Growth Demand, Opportunities & Forecast To 2027 | QualityUnit, Tipalti, LeadDyno, Offerslook – Test & Measurement - Test & Measurement
Comprehensive Report on Affiliate Program Software Market 2021 | Trends, Growth Demand, Opportunities & Forecast To 2027 | QualityUnit, Tipalti, LeadDyno, Offerslook – Test & Measurement  Test & Measurement

Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue – Folio: - Folio Magazine
Publishers Look Beyond the Buy Button to Capitalize on Affiliate Revenue – Folio:  Folio Magazine

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After-Hours Stock Movers 05/17: (ULBI) (CNCE) (MBIO) Higher; (EVFM) (DM) (XONE) Lower (more...)  StreetInsider.com

With Its Curated Affiliate Program, Vice Prioritizes Identity Over Profit - Adweek
With Its Curated Affiliate Program, Vice Prioritizes Identity Over Profit  Adweek

Affiliate Marketing Merchants: How to Generate More Profit - G2
Affiliate Marketing Merchants: How to Generate More Profit  G2

MultiBrief: How the changes in Amazon's affiliate program impact businesses - MultiBriefs Exclusive
MultiBrief: How the changes in Amazon's affiliate program impact businesses  MultiBriefs Exclusive

Publishers and Commerce 2021 - Insider Intelligence Trends, Forecasts & Statistics - eMarketer
Publishers and Commerce 2021 - Insider Intelligence Trends, Forecasts & Statistics  eMarketer

Using Affiliate Marketing to Increase Sales. How Does it Work? - Business 2 Community
Using Affiliate Marketing to Increase Sales. How Does it Work?  Business 2 Community

First Ever Affiliate Marketing Guide For Marketers Now Available - GlobeNewswire
First Ever Affiliate Marketing Guide For Marketers Now Available  GlobeNewswire

Affiliate Market 2021-2026 Detailed Analysis and Growth Strategies, Regional an - Business-newsupdate.com
Affiliate Market 2021-2026 Detailed Analysis and Growth Strategies, Regional an  Business-newsupdate.com

Hyundai Q1 profit triples, to adjust May auto production due to chip shortage - The Edge Markets MY
Hyundai Q1 profit triples, to adjust May auto production due to chip shortage  The Edge Markets MY

GGPoker Cuts Off Vanessa Kade Affiliate Revenue Over Anti-Bilzerian Stance - PokerTube
GGPoker Cuts Off Vanessa Kade Affiliate Revenue Over Anti-Bilzerian Stance  PokerTube

Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront? - Nieman Journalism Lab at Harvard
Publishers love getting affiliate revenue from their reviews. So is it okay for Amazon to pay to get more of those reviews upfront?  Nieman Journalism Lab at Harvard

What Is Affiliate Marketing? A Guide To Success - Built In
What Is Affiliate Marketing? A Guide To Success  Built In

How Wired leveraged Cyber Week readers to increase subscription revenue - Digiday
How Wired leveraged Cyber Week readers to increase subscription revenue  Digiday

Airbnb ends affiliate program as it ramps up host recruitment marketing campaign - CNBC
Airbnb ends affiliate program as it ramps up host recruitment marketing campaign  CNBC

Do affiliate links undermine the marketing value of holiday gift guides? – RetailWire - RetailWire
Do affiliate links undermine the marketing value of holiday gift guides? – RetailWire  RetailWire

Affiliate marketing: How publishers earned in the pandemic - Press Gazette
Affiliate marketing: How publishers earned in the pandemic  Press Gazette

Publishers see higher traffic to commerce sections, but also face affiliate fee cuts - Digiday
Publishers see higher traffic to commerce sections, but also face affiliate fee cuts  Digiday

Amazon slashes commission rates for program that gives publishers a cut of sales - CNBC
Amazon slashes commission rates for program that gives publishers a cut of sales  CNBC

Affiliates, Amazon's Forgotten Marketing Channel - Marketplace Pulse
Affiliates, Amazon's Forgotten Marketing Channel  Marketplace Pulse

Image: Brand Affiliates 101: What Is Affiliate Marketing? - Business 2 Community
Image: Brand Affiliates 101: What Is Affiliate Marketing?  Business 2 Community

ViacomCBS Reaches 19.2 Million U.S. Paid Streaming Subs, Ad Revenue Grows - Hollywood Reporter
ViacomCBS Reaches 19.2 Million U.S. Paid Streaming Subs, Ad Revenue Grows  Hollywood Reporter

BuzzFeed Starts Selling Products Directly to Consumers - The Wall Street Journal
BuzzFeed Starts Selling Products Directly to Consumers  The Wall Street Journal

ViacomCBS Reports Q3 2020 Earnings Results - Business Wire
ViacomCBS Reports Q3 2020 Earnings Results  Business Wire

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Beyond the boom and bust cycle: How The Sun grew and stabilized its e-commerce revenue haul  Digiday

ViacomCBS Reports Q4 and Full Year 2020 Earnings Results - Business Wire
ViacomCBS Reports Q4 and Full Year 2020 Earnings Results  Business Wire

We Are Living In An Affiliate World - Forbes
We Are Living In An Affiliate World  Forbes

How 2020 Will Shape Future Affiliate Growth - PerformanceIN
How 2020 Will Shape Future Affiliate Growth  PerformanceIN

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How a new order of commerce is increasingly coming to the rescue for publishers with advertising challenges  Digiday

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Better Collective Q3 revenue up as non-affiliate income offsets low margins  iGaming Business

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‘Marketing at maximum intensity’: Publishers ready for rocketing ad spending from streamers in 2021  Digiday

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