Affiliate Marketers Earn Undeserving Commissions by Deploying Adware

Ben Edelman, an adware researcher, published his new report on September 30, 2008 saying that few affiliate marketers are employing adware to earn commissions on product sales they never made, as reported by bizreport on October 2, 2008.

Ben Edelman said that he conducted tests by accessing VistaPrint, a firm that provides internet graphic services to businesses and consumers, on PCs using adware programs. He said that in some cases, the adware produced pop-ups for VistaPrint after he systematically navigated them separately. In those instances, Edelman said, VistaPrint paid to the affiliate entities that bought adware-served ads.

As per the report, this should ring alarm to examine how affiliates deploying adware to cheat the marketer as well as harm the end-user.

Further, if such problems are there, then the report suggests clearing of programs by removing the affiliates and starting auditing of the affiliates. This would help marketers to better understand the working of affiliate software, secure consumers' information and make sure that frauds do not occur.

Nevertheless, security experts stated that VistaPrint could set conditions for using adware, like not permitting affiliates to show ads when users are on the company's site independently. This would halt the adware practice.

However, according to Edelman, the real harm due to affiliate marketers is caused to VistaPrint, its shareholders as well as the public. For instance - in 2008, VistaPrint marketing consumed 31.9% of its revenue (over $125 Million), while profits amounted to only 9.9% ($39.7 Million). Meanwhile, defrauding VistaPrint also damages the interest of the common public. Consumers suffer from unnecessary deployment of spyware funded partially with extorted sums from VistaPrint, says the report.

Meanwhile, the affiliate tricks have come under scrutiny via the internet auction site eBay's lawsuit. In August 2008, eBay charged three affiliates because they carried out a kind of marketing fraud called "cookie stuffing" that involved placing of eBay cookies on users' PCs even though they hadn't opted for any eBay ad. The case is at present pending in San Jose's district court under the federal administration.

Related article: Affiliates of Rogue AV Programs Making Huge Earnings

» SPAMfighter News - 17-10-2008

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