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Friday, 23 February 2007

Fraud on the other foot?

Is it me, or has the perception of affiliate fraud changed?

When I first started in this industry a few years ago everyone was saying that affiliate marketing was doomed because of affiliates fraudulently sending through leads that were false.

You had the perception that there were hundreds of spoty teenagers running incentivised sites putting false data or completely irrelvant leads through credit card, loans and other merchants - and taking a pretty nice sum for it.

For me it wasn't a perception, I knew people that completely ignored any sense of morals. I won't name the person in my mind, but I'm sure everyone will think of one person or another.

But now, I'm really worried about another type of fraud. I know I've got to be careful naming companies but for me virtually every affiliate could name transactions that just disapear.

Previously we've blamed people having cookies turned off, other affiliates over-writing the cookies with adware, network tracking being broken, mal-formed links, merchants deleting tracking code by mistake etc.

Today, I'm extremely worried about merchants illegimately rejecting legitimate sales as "fraudulant orders", "credit card not validated", "incorrect contact details" etc when in actual fact there's nothing wrong with the order.

In certain industries, such as consumer electronics and mobile phones we expect a percentage of orders to be rejected. But we never expect our own orders to rejected when the products have actually been recieved or dispatched.

I say this because I recently ordered a PC with Dell (on Tradedoubler) and the order I put through on the 16th Feb was in effect cancelled and a new one created on the 18th. I never recieved any notification or explanation from Dell saying why this happened. And I can't think of any reason why it would be.

I'm not saying it was an attempt to prevent affiliate commission being paid on the order. But with the current climate of suspission every merchant should attempt to be as transparent as possible.

Take for example Advanced MP3 Players. I had a shed load of rejections in one day - a few hundred quid. I contacted them and Josh got back giving me a full rundown of what happened and I was happy with that.

You've also got a possible problem with Currys where it has been mooted that the order was cancelled and then put back on with the telephone customer service's details against the sale. I personaly knew someone that worked as a GUS/Argos customer service person in Widnes and they frequently "have to" cancel web orders and put them back through over the phone. The conversation I had with them was about 3 years ago so I don't know the current situation, but I'm sure this is a massive problem for the affiliate industry.

It's about time the networks provided a thorough solution to this. Some merchants offer lifetime commissions based on an individuals account. To implement a solution will mean that merchants would have to update their backend systems to provide a solution whereby any sale from a particular name/address within a given time will garner affiliate commission.

There has to be a solution before the industry is destroyed, not by the unscrupulous, spotty oiks with an overactive desire to be rich; but by merchants that either have an unhealthy desire to meet "targets" or by the niave one's that don't think long term and don't think affiliates can collectively bring a merchant to it's knees.

It can and will happen if merchants don't buck up their ideas and play the game properly.

What I'm listening to: Kaiser Chiefs - I Predict A Riot! ;-)

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2 Comments:

At 23 February 2007 at 15:52 , Blogger Clarke said...

For some reason I can't post a comment on http://www.bumpzee.com/affiliatemarketing/entries/view/5879/ as wanted my comments to follow from the ones already posted on that so please take a look to fully understand my comments near the end.

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Coming from the Network angle I can fully agree and have proof that some Merchants have removed legitimate sales/leads… what do we do about them, we remove them from the Network if they are persistent offenders i.e. do it so many times it has become more than just the odd mistake it’s become either complete negligence or fraudulent. The dishearten part is these same Merchants just open up shop at another Network and the Affiliates you had promoting them and moaning at you suddenly show up promoting them at the other place.. You need to say to yourself WTF! You do the right thing and are stabbed in the back by the same people complaining.

I am afraid Affiliates like Lee who have principles and back bone and conviction to do something about it are few and far between.. Money is the loudest speaker in this market and shutting off the supply of sales/leads to crocked Merchants is the only language they understand. However I still don’t get with so many good above board honest Merchants, why do people still go back to the bad ones?

Granted mistakes will happen and the odd sale will get voided but the same thing happens with sales that should have been made void but got validated in error also so don’t automatically think every Merchant is a crook. Judge them on how they deal with the situation, what they do to resolve it and how the work with you in future. But please, please don’t go back to the real crooks, if you think you can’t trust them, you can not trust them.

Paid On Results is founded on our Affiliate Relationships, I do find it hard to believe we are the only ones who understand that it is the Affiliates who are paying the Networks, it just so happens that the money is sent to them from the Merchants but the Merchants wouldn't be sending any money if it wasn't for the Affiliates.. If you don't understand that you don't understand Affiliate Marketing.

Anyway it’s clear to everyone in the UK, who is Merchant only focused Networks are and who is Affiliate and Merchant focused so don’t need to point them out to everyone but there is only 3/maybe 4 of them I believe. The rest either blatantly fully Merchant focused and/or just give lip service to Affiliates… talk a load of bull that some people lap up and actually believe yet all there actions demonstrate the opposite.. All very frustrating when you see them making a ton of cash, for doing or supporting the wrong thing or just ignoring people, guess full page adverts saying you are great are more important than actually really doing something that is truly great.

 
At 23 February 2007 at 18:04 , Blogger getvisible said...

I really want to post a full reply to Clarke, thanking him for his comments.

Doing a quick one wouldn't do his response justice. But I'd just like to agree with him when he says that when mistakes are made (and of course they are) it's how a merchant reacts that determines how that relationship will continue.

I'd also like to support his plea for affiliates not to continue to support merchants that we don't feel treat us or the industry with respect. We have to educate the Noobies as to how to spot merchants to avoid sooner.

I also agree that it is all to easy to sport the networks that put the merchant first and the affiliate 1000th. I wish I could communicate my own views more clearly on this.

With all this, my black hat is still firmly in the closet and I don't see it coming out anytime soon.

Lee

 

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