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Merchants Perspective on Parasites

parasites

         

siteseo

10:49 pm on Dec 21, 2004 (gmt 0)

10+ Year Member



Haven't seen any threads on parasites in a while. Any affiliate managers/merchants here (besides myself) that have a take on the issue of allowing "parasites" into your affiliate program? Any hard data on whether they actually increased revenue, or just increased marketing costs?

siteseo

2:56 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



*bump*

GerBot

3:17 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



The problem is the attraction of the short term gain.
From a Network perspective, if you partner with spy ware you can pilfer commissions from another network, a very attractive proposition.
From an Affiliate managers view point spy ware does not hurt their revenue if it simply shift income between affiliates.
The only time you can get a short term profit focused affiliate manager to pay attention is if the spy ware is redirecting visits away from their site to a competitor.

Of course the above assumes the Merchant/Network has some idea what we are talking about. I fear the reality is that they don’t even get this much so they must be considered a lost cause.

Now I must stress all of the above is with a short term view, the reality is that if you move commissions from the rightful affiliate to the spy ware company you will eventually lose the affiliate and then lose the original source of your traffic. i.e. a Net lose!

The battle as I see it, is to convince merchants/Networks of the long terms goals - and possibly forgo some short term profit.
(I don't think this will be very easy)

siteseo

4:49 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



Yes, but do parasites actually generate their own revenue? My own experience with them tells me that they simply get credited with sales that the merchant themselves drove. Here's a typical scanario: we bid on or organically rank well for "widgets." Joe Shopper, who has parasiteware installed on his computer, searches for "widgets" in G or Y, and clicks on our ad link. The parasiteware sets a cookie on his computer, and when Joe buys a widget, the parasite earns the commission from the sale. It's clear in this instance that WE drove the sale - not the parasite. I've rarely seen instances where the parasite drove a sale through their own marketing efforts. Does anyone have experience to the contrary, where partnership with a known parasite actually increased revenue without stealing commission from the merchant?

Catalyst

5:12 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



We manage around 21 affiliate programs and have a strict anti-parasite policy for all programs. Reasons?

1) Principle. We believe in integrity and do unto others.
If we were affiliates in our programs, we would not want to have our efforts compromised or commissions stolen.

2) The Numbers. Yes the all important numbers. I believe if you know how to attract and keep all the good HONEST affiliate marketers that are out there, the numbers are better than caving into unethical marketers that steal honest affiliate's commissions.

Many of our programs were existing programs that we took over that had lots of parasites before we cleaned them out. Many of the parasites I have seen in programs drive a lot of traffic but sometimes don't even make that many sales. Some of them even are EPC killers. Once we have cleaned parasites out of programs I don't think we have seen a severe drop in sales, largely because we attract more honest affiliates and we almost always have dramatic INCREASES in sales, not a decrease.

Some say crime pays. I say honesty pays. ;-)

Linda

siteseo

6:42 pm on Dec 22, 2004 (gmt 0)

10+ Year Member



Thanks for the confirmation, Linda. Anyone else have similar or dissenting views/experiences?

old_expat

9:22 am on Dec 23, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hear, hear, Linda!

I can't *even* believe what I have been reading in this thread.

GerBot

6:19 pm on Dec 23, 2004 (gmt 0)

10+ Year Member



Totally agree with your 2'nd point Linda,
problem is, you're one of the smarter AM I've seen.

Most AM really don't fully understand the entire situation.

I guess my point is that convincing AMs to drop an affiliate who might be earning $10,000/month is not an easy thing to do - be it the right thing to do or not.

raywood

6:11 pm on Dec 27, 2004 (gmt 0)

10+ Year Member



siteseo, a parasite not only steals from other affiliates, it steals from you too. As you mentioned, the parasite can divert commissions from traffic generated by your own ads. Most can divert commission from url's typed in directly as well as links that are clicked.

If a parasite subsists primarily on usurping links, how can it possibly increase your revenue? The click you get from the honest affiliate is just as good as the one you get when a thief steals that link. The thief does not increase your traffic, it only intercepts traffic that would otherwise come through honest clicks and substitutes it's own id.

In addition, affiliate webmasters are increasingly aware of the thiefware problem. I, for one, will not promote a merchant that deals with parasites. If a merchant is willing to cooperate with thieves, how can it be trusted to treat me fairly?

raywood

6:16 pm on Dec 27, 2004 (gmt 0)

10+ Year Member



siteseo, one more point. A parasite will not ususally increase your traffic or your revenue. But if you use a network processor, you are paying the commission and the network service fee or commission. Therefore, the networks have little incentive to eliminate the parasites, because they get revenue even on links stolen from your ads or url's.

markus007

2:18 am on Dec 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



siteseo, one more point. A parasite will not ususally increase your traffic or your revenue. But if you use a network processor, you are paying the commission and the network service fee or commission. Therefore, the networks have little incentive to eliminate the parasites, because they get revenue even on links stolen from your ads or url's.

Most major affiliate programs have a HUGE spyware component. There are a couple of spyware/parasite vendors that can bring you 60,000+ uniques per hour.

siteseo

3:46 pm on Dec 28, 2004 (gmt 0)

10+ Year Member



Just to reiterate - we don't allow parasites into our program, and we are on an independent platform (not a CJ or LS) so we don't have a large problem of parasites applying to our program. I'm mostly interested in the experiences of other Managers - from an inside perspective. I have my own opinion of course, as I've already stated, but am interested in input from other managers as to whether parasites can, in ANY scenario, actually increase sales for a company...and can they be constrained to legitimate marketing channels such that they are prohibited from overwriting or presetting cookies through pop-ups. I'm not talking about the shadow companies here - I'm referring to legitimate businesses that offer member incentives, discounts, etc., but that also are known to employ parasitic tactics.

raywood

3:46 pm on Dec 28, 2004 (gmt 0)

10+ Year Member



markus007, I'm trying to learn all I can about this. Do you mean that the parasites will bring large increases in traffic to a merchant?

If they do, then the extra network fees would be worth the cost. Both the merchant and the network make more money, and would be reluctant to dump the thief. There is no good way to combat this situation.

siteseo

9:12 pm on Dec 29, 2004 (gmt 0)

10+ Year Member



*bump*
Any other merchants care to weigh in?

patient2all

6:40 pm on Dec 31, 2004 (gmt 0)

10+ Year Member



Some say crime pays. I say honesty pays. ;-)

Linda,

Hope I have the good fortune to join your affiliate team someday, if I haven't already :)

patient2all