The first affiliate program launched in 1996, Amazon Associates Program.
E-commerce has grown majorly over the years, so the affiliate space has too.
Affiliate marketing gives businesses the opportunity to expand their customers through partnerships. It’s definitely proven to be a great customer acquisition channel.
As with everything these days, bad apples have to come in and intentionally mess things up for the good trying to do right. Some believe it’s easier to fraudulently make a living than to just work hard for your money.
The population of affiliates have grown over the past decade because of social media marketing and self publishing tools.
Campaign tracking tools allow for better decision making and supports a wider variety of methods to promote items.
Transparency is expected now and drives stronger practices by affiliates. Welcome to the Dark-side of affiliate marketing!
Once again, knowledge is everything. If you can stay one step ahead, you can win the game. There are some issues that advertisers and sellers should pay close attention to.
If you are selling a low-cost product, the affiliate marketing model that you would use is CPC or “cost per click”. The company will get return for every “click” that the advertisement gets. Also, they have to stay in the website for a certain amount of time. With the “Load-Time Click” fraud, when the visitor reaches the malicious website, it will automatically load the page on the background, which will fraud the time that the visitor sees the advertiser page.
Growing high yield have made fraudsters attracted to affiliate marketing. It simply poses risks to growing businesses.
They use spam email and all it takes is for one customer to make a purchase. Spam causes legitimate companies to take a hit on their reputation.
Cloning legitimate websites direct traffic away the vendors web domain, causing the genuine merchant to lose sales.
Fraudulent purchases are a problem when a stolen credit card is used. Merchants pay commissions to affiliates pretty quickly, so if the sale is refunded, the fraudster is long gone with their commission.
Affiliate fraud prevention is when you can spot and stop affiliate fraud. There are practices that merchants can implement into their system to avoid the fraud.
1. Make sure that affiliates are using their real names by checking their Facebook account or Instagram.
2. Don’t allow the system to automatically approve new affiliates.
3. Have communication with the affiliates on a regular basis to make sure that their business is legitimate.
4. Make sure the affiliates website relates to their products.
5. Enable cookies to track clicks. This will allow merchants to identify click fraud from the IP address.
There are endless amounts of fraud prevention programs that can be implemented into the program that is being run by your company. This will help track IP addresses, monitor the affiliates and keep your customers safe from fraudsters.