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The big, ugly affiliate marketing scam

venturebeat.com

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Re: The big, ugly affiliate marketing scam

#31

Post by avalaunch »

gkoberger wrote: post #24
eps wrote: post #21

I don't follow. Where did the extra $200K in sales come from and why is he not happy about it? It sounds like there is a pool of customers that will not finish the purchase unless they can google "kogan coupon" and hit few coupon sites beforehand (even if to leave these sites emptyhanded). So the affiliates appear to help convincing on-the-fence visitors and push sales to completion. If anything, it's a clever hack.…

There is no extra $200k (which should have been the first sign -- "we're making $200k less, but the affiliates are making $200k more!"). And since they don't actually give out a coupon, it's doubtful it helps anyone but the affiliates.

But he never says that. He doesn't indicate whether revenue increased, decreased, or stayed the same - something that would have been really nice to know.

Re: The big, ugly affiliate marketing scam

#32

Post by antr »

scottrblock wrote: post #6
psycr wrote: post #3

So it sounds like there's an opportunity for someone here. If you read to the end of the article, you'll note that the actual scam is in spinning up discount code sites. We need a Rapgenius for online discount codes. Right now, it's full of scummy, crappy sites (just like lyric sites), but could be easily improved with a simple interface, minimal advertising, and collaboratively sourced content.

You mean http://www.retailmenot.com/ ?

I've tried to use RetailMeNot in the past, and their coupons have never worked. I think they are part of the author's "big ugly affiliate scam"

Re: The big, ugly affiliate marketing scam

#33

Post by the_ed »

Even though it seems like your setup is not really good, (as others have remarked here) I think the central question you posed here still holds up to some extend: "where do they get their traffic from?".

When getting involved with aff-networks I have noticed that there are quite a lot of 'low quality' (of course depending on your needs) networks around that basically lure people into visiting your site, other than referring truly interesting people to you. That seems like business 1-0-1, but it really amazed me how many large networks use shady landingpages with obscure lotteries and other 'prizes'. (This was a about 2-3 years ago, but still..)

Always do a small run first, track what's happening and why and always be suspicious about people 'selling' you other people's data/attention (data-pushers, is what I used to call them) because that's basically what is is, to some extend.

Re: The big, ugly affiliate marketing scam

#35

Post by rwhitman »

iopq wrote: post #12

You have a discount code at your checkout? So basically instead of capturing the sale you're ASKING the buyer to google for discount codes. Think of a sneakier way to give people discount codes that doesn't show it RIGHT THERE ON THE FORM. It makes me feel like I'm getting ripped off when I see discount code and I don't have one.

When you have paper promos and rewards cards floating around it complicates the usability of the alternatives a bit. You end up with asking people to go to custom URLs etc which results in user confusion

Re: The big, ugly affiliate marketing scam

#36

Post by aaronbrethorst »

rwhitman wrote: post #35
iopq wrote: post #12

You have a discount code at your checkout? So basically instead of capturing the sale you're ASKING the buyer to google for discount codes. Think of a sneakier way to give people discount codes that doesn't show it RIGHT THERE ON THE FORM. It makes me feel like I'm getting ripped off when I see discount code and I don't have one.

When you have paper promos and rewards cards floating around it complicates the usability of the alternatives a bit. You end up with asking people to go to custom URLs etc which results in user confusion

Discount codes shouldn't be highly usable.

edit: downvoted, sigh. ok. I'll elaborate. When you give me a discount code field on your checkout page, I automatically open up a new tab and Google around for "your site name discount code". If I can find one that works, you're just losing money for absolutely no good reason. I would've happily checked out without ever thinking of saving 5% on my $50 purchase. (c'mon, $2.50? That's not even a latte!) But, now, I'm obsessed, and I go back into 'bargain hunter' mode. If you're really unlucky, I'll find another site that undercuts you without a discount field, and just use them.

Save yourself the trouble. Apply a coupon via a cookie from a special landing page. I'll feel excited and grateful if one is applied for me at checkout and I won't even think of shopping around any more if I don't have one.

Re: The big, ugly affiliate marketing scam

#37

Post by makomk »

psycr wrote: post #3

So it sounds like there's an opportunity for someone here. If you read to the end of the article, you'll note that the actual scam is in spinning up discount code sites. We need a Rapgenius for online discount codes. Right now, it's full of scummy, crappy sites (just like lyric sites), but could be easily improved with a simple interface, minimal advertising, and collaboratively sourced content.

I know http://www.hotukdeals.com/ have branched out into discount codes at some point, but they're obviously UK-only I'm not sure how many people use that section of the site.

Re: The big, ugly affiliate marketing scam

#38

Post by megfitz »

the_ed wrote: post #33

Even though it seems like your setup is not really good, (as others have remarked here) I think the central question you posed here still holds up to some extend: "where do they get their traffic from?". When getting involved with aff-networks I have noticed that there are quite a lot of 'low quality' (of course depending on your needs) networks around that basically lure people into visiting your site, other than re…

But I think that's the point - the traffic is effective the merchant's own. They're not driving spammy visitors or buying false visits; they're just redirecting the customers who would have already been browsing the site back to the checkout funnel - they'd just get the benefit of the affiliate tracking code added to the order.

Re: The big, ugly affiliate marketing scam

#39

Post by megfitz »

The major red flag for me in this article was the line "He couldn’t really answer the questions, but I agreed to run a small trial. Based on our results, that marketing consultant is no longer with us." It really colored the rest of the article for me - making me incredibly skeptical of the manager and his instinct, opinions and judgement. It was no surprise then when the reason he was "scammed" was because his checkout process had the form equivalent of a big red call to action saying "leave my site" in the discount code box. I always Google for discount codes when I see those boxes.

If anything, this should be read as an educational piece for consumers about who is really making money when you search for discount codes online, rather than outrage at the affiliate marketing world.

Re: The big, ugly affiliate marketing scam

#40

Post by joosters »

If you visit the site, put stuff in your cart and get all the way to the checkout page, you must know by that point who sent them to your site. If the customer then goes away and googles for voucher codes, it shouldn't change the source. When (if?) they return, you should know they are the same person, from the same original source.

How did the affiliates manage to steal these customers? It seems to me like your referral tracking is massively broken.

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