Internet marketing resources, ecommerce web site design tutorials and  just for fun - free cell phone ringtones!
  Taming the Beast - quality web marketing and ecommerce development services

Affiliate managers beware

Posted by Michael Bloch in web marketing (Monday January 30, 2006 )

Up until now, while some companies running affiliate programs state a “zero tolerance” spam policy in their terms, the unwritten guideline has been “let ’em spam until we get complaints”. Companies happily pay affiliates until such time that someone objects and then they suddenly terminate the affiliate account.

The recent action by the FTC may put an end to this practice, and in this particular situation, I’m totally behind the FTC. Either you have a zero tolerance stance or you don’t – simple.

The down side of all this is that as usual, the honest merchants will cop it in the neck. The affiliate marketing industry has experienced massive growth over the last few years and is pretty much unregulated. This case is probably a warning from the FTC of what is to come in terms of the systems that all merchants will be required by law to have in place if they run an affiliate program.

Learn more about affiliate management and recruitment

-->

A recent action by the FTC against a group of adult site operators is sending chills down the spine of many companies that operate affiliate programs.

According to the FTC complaint, under the CAN-SPAM Act, the site operators were liable for the spamming carried out by an affiliate. The settlement for the 4 parties involved came to over $600,000.

The settlement also directed the defendants to carry out more intensive monitoring in relation to email campaigns carried out by affiliates including a requirement for the names, addresses and telephone numbers of affiliates, how they acquired the email addresses, sampling of new subscribers who sign up as a result of an email campaign and a well defined complaints process.

Up until now, while some companies running affiliate programs state a “zero tolerance” spam policy in their terms, the unwritten guideline has been “let ’em spam until we get complaints”. Companies happily pay affiliates until such time that someone objects and then they suddenly terminate the affiliate account.

The recent action by the FTC may put an end to this practice, and in this particular situation, I’m totally behind the FTC. Either you have a zero tolerance stance or you don’t – simple.

The down side of all this is that as usual, the honest merchants will cop it in the neck. The affiliate marketing industry has experienced massive growth over the last few years and is pretty much unregulated. This case is probably a warning from the FTC of what is to come in terms of the systems that all merchants will be required by law to have in place if they run an affiliate program.

Learn more about affiliate management and recruitment



 

 
Comments for Affiliate managers beware

No comments yet.

Sorry, the comment form is closed at this time.