Fighting Affiliate Fraud - Put Your Detective Hat On

[Rob_TID]

Julia - Agreed. As I said, a lot of an anti-fraud system can actually be coded by techies. That means that going forward, the human resources required to vet new affiliates can be minimal.

Affiliate networks are not going anywhere. If you minimise fraud (which is reasonably easy) then it's almost a no-lose proposition for a merchant. Very few (no?) marketing strategies can offer that.

 

[Mushroom]

Affiliate Networks Fading Away

Rob,

I am ageement, but the reason I mention the Networks will fade away is the same reason the Banner Networks faded away. Fade, not fall apart, and should the Affiliate Network make a change for improving ROI to the producer they stand a chance to not only stay but grow because they already have an established base.

Lack of fraud prevention on the part of the Network is only one of their problems, and goes mostly un_noticed.

Rob I am sure you remember Banner Networks were the hot ticket and the Merchants were willing to give them a try as a new method of advertising. Well the return on the dollar did not justify sending money on banner ads, and they withdrew. Party the cause of the crash of 1999/2000.

Following the fall of the Banner Networks (lack of ROI for Merchants) the Affiliates networks began to spring up, and although it was dismal for the Website Publishers the Publishers had no alternate method of selling traffic, and the Affilate programs were able to hang on, not that they were any good for the publisher it was not any other choice for the publisher. Now we have been seeing new choices like "Ad Sense", and others that operate based on PPC. PPC is good for the publisher and good for the merchant.

I really don't think any business operates long when only one side benefits.

These are just my thoughts based on my experience going back to 1994, and to add I really think the future looks bright ahead for the Publishers and Merhants. I also think we will see a hugh growth in video ads (another topic another day) .

Take Care

 

[Rob_TID]

As you say, Banners failed cos they weren't a good buy from the Merchant perspective. I agree.

But affiliate programs don't have that problem. As someone who managed a multi-million dollar PPC spend as well as a pretty good affiliate program, I can tell you that the affiliate program had the best ROI by a country mile.

But onto your point regarding the value of affiliate programs for the publisher - a very valid issue to raise.

I understand what you are saying, but I think you are really underestimating the earning potential of affiliate programs from a publishing perspective. I make a lot more from affiliate earnings than adsense and it's growing as I become more experienced as a publisher. Most of my new sites don't even have adsense or anything other than affiliate links. There are plenty of professional affiliates making a lot of cash from afifliate programs alone. A lot of them regard contextuals like Adsense as "page leak" and refuse to use it. From my own experience as a publisher, I have to agree with them.

For a webmaster who knows how to get targetted traffic, affiliate programs are usually a better option. For a webmaster who only knows how to get general traffic, then adsense and contextual options may be better.

 

[Mushroom]

Affilate Networks VS Ad Sense

I appreciate your input concerning Ad Sense programs compared to Affiliate networks.

I strongly agree with your comment:

"I can tell you that the affiliate program had the best ROI by a country mile."

Agree that for the Merchant the ROI is hugh, for the Publisher I find them a traffic drain. There is acceptions, one of my Merchants represents more revenue than all the others combined. The key is relevance, and my sites are not so good for say department stores, jewlery.. the affiliate programs are great for fiind that information about my traffic. Some trouble me because the click through volume seems good,. but no conversions.

As a result I have very little Affiliate links, and by keeping Merchants off my sites increases the areas where I do make money. Formula, look to the volume leaving your site(s) compared to the revenue recieved. Traffic is hard enough to get/keep so sending it off is not a good business decision for the Publishers.

I like this thread for the value of the input, and yours is greatly appreciated.

Best Regards

 

[Rob_TID]

Some trouble me because the click through volume seems good,. but no conversions.

As a result I have very little Affiliate links, and by keeping Merchants off my sites increases the areas where I do make money. Formula, look to the volume leaving your site(s) compared to the revenue recieved. Traffic is hard enough to get/keep so sending it off is not a good business decision for the Publishers.

But there is more than one variable in this situation and to blame it on "affiliate marketing" is a very broad brush stroke.

1) Where is your own traffic coming from? Is it targetted or general? Targetted traffic will always do well on an affiliate program whereas general web traffic won't. Building a site around an offer/s will work better than finding an offer for existing sites (most of the time).

2) Is the program you are promoting a good one? How does their conversion rate compare to other similar merchants? Do users have an incentive to buy? Is the merchant's sales copy ok? Are there any benefits like free shipping etc?

3)How are you sending the traffic away? Are you deep linking to a specific product or just throwing traffic at the merchant's front page and expecting them to find their own way to the product? Are you tricking them into clicking? Are you offering benefits? Are you preselling?

I am not saying it's simple, but the rewards are there if you do the work.

In the end, I became an affiliate because I saw how much money mine were making when I was managing them.

That, and it beats the hell out of going to the office each day!

 

[Mushroom]

Thanks Rob for your insight again, and as for my traffic it is general, but enough volume that it truely has a very wide range of demographics. Mostly commerical measured by the decline of nearly 20% over the weekends.

The creatives I use are from the Merchants, and include special offers to a general landing page.

You suggest hard work, and hard work has been applied.

My site(s) are profitable for me, and as you say it bets the 9 to 5 grind. I am happy with the revenue that is generated, and the affiliate networks are not contributing. That does not say that someone else may have a different experience.

I learned long ago to build on what works, and set aside what does not work.

Thanks again for your generous input

 

[MLJen]

Lots of good points are being made here. It is definitely important to get potential affiliates on the phone before approving them to your program. We do a pre-screening before an initial call is even made. This helps to weed out fraudulent applications before we waste our time on a call. Another good point being made is to attack fraud head on. If a merchant is concerned with fraudulent traffic, we have a responsibility to investigate the accused affiliate and if a problem does exist, nip in the bud. Fraud is something we take seriously as should every affiliate program. Most do a good job and some could do better.

 

[Linda Buquet]

I blogged about this in May but forgot to post it here.
More good info.

<a href="http://www.ianlarsen.com/for-merchants/phony-affiliates-prevention-guide-for-managers">Phony Affiliates Prevention Guide for Managers</a>

"After all your efforts around affiliate recruiting you should have listings on directories, in social networks, forums and through your network of friends and industry experts. You will also (or should have) affiliates clamoring at your door to get into your program. Now comes the make or break opportunity, who to let in and who to keep away from your affiliate program.

Affiliate marketing is prone to fraud due to the lack of quality management, unsophisticated tracking systems, invisible affiliates and the basic principals around your links and pixels. It is the affiliate managers job to follow through with due diligence and screen out the bad from the big fish. More..."