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Has anyone ever taken an affiliate company to COURT and SUED them?

Discussion in 'Affiliate Programs' started by pucky, May 25, 2010.

  1. pucky

    pucky Junior Member

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    I was wondering if anyone has done this. I'm asking because i finally have all the proof i need to do exactly that.

    Now before i tell my story, i want to mention that the affiliate network i'm writing about is not "MARKETHEALTH", although i have a few stories about them left for another time.

    My Story
    --------
    Back in Nov 08, i was looking around for a comparable product from another company, in the same niche, and came across a product that i though may do well. I was running a Google adwords campaign for a Markethealth product and i wanted to push another product from another company along those lines.

    The company i found looked professional and they had only been in business for about 10 months. I figured what the hell, give them a chance, they are new and their product might be a good seller so i setup my adwords campaign and started running it. I only put $20 on the campaign to test and then forgot about it for 24hrs.

    24hrs later i checked my affiliate account and 8 sales on $20 spent i thought, this has some potential so i started ramping up on my keywords and daily spending.

    I started pushing it hard. The sales out did Markethealth's comparable product giving me anywhere from $300 - $500 p/d and after about 2 months i heard "Your one of our top 10 affilates". Ok, but not that there was so much competition or anything but the point is, i was making anywhere from 6 - 8k p/m spending less than $60 bucks a day.

    In March 09, 4 months after i started up with this company i noticed some strange statistical behavor.

    First, all my sales came to a grinding halt for 11 - 14hrs every day. Not one sale, not even by accident. Then after this huge gap i started making sales again, one after another. The strangest part of this whole deal was that after 11 - 14hrs passed the next sales receipt was 18 - 20 orders after my last receipt. How was this possible? No sales for 12hrs+ then the next sale i get is 18 - 20 orders after my last sale?

    I couldnt work it out. How was it possible that every day my sales came to a halt for 12hrs, then, when i got the next sale it was 18 - 20 orders after my last receipt? I tore my hair out trying to figure it out.

    You see, people dont stop buying product for 12hrs a day. Yes, sales slow during the sleeping hours of the night but it doesn't suddently stop and EVERY DAY?

    And who was getting those 18 - 20 orders during these 12hrs gaps? It sure wasnt me, there was no competition except for the company themselves who was advertising on Google. So where were all those sales going?

    You see, to this day, i can tell how many orders the company has had. Each order shows the receipt number eg 855 856 857 etc. So its not hard to tell how many orders the company has had before you get your next conversion.

    After seeing these 12hr gaps day after day i decided to email them. I suspected two things. In one month i counted 20 days where my sales stopped for 11 - 14hrs. Does this sound suspicous? Sure sounds unbelievable to me.

    They were either stealing my sales or
    Their shopping cart was going to sleep for 12hrs everyday.

    How was it possible, that after these 12hr dry spells as i call it, how was it possible that during the day i was getting almost every sale? Then, at 11pm PST USD my sales would stop till 11am the next day?

    I would get;

    Invoice; 1001
    1003
    1004
    1008
    1010

    and so on

    Also, my sales would stop at 8 sometimes 10 in one day and it would stop there till the next day rolled around. Suspicious?

    I think 14 sales in one day was the best i could do. But that happeend like twice in 6 months. Never more than 10 and usually 8 then STOPPED.

    Now any moron with half a brain would send off an email asking why. This is exactly what i did and the fighting via email started.

    I simply wanted to get answers and i was never given any. The fighting and the demands to know why were flying on a daily basis. I stated that none of these statistic made any sense and the owner never replied, not once to the question of why my sales stopped for 12hrs a day.

    After they threatend to suspend my account accusing them of stealing, i focused on the shopping cart they were using.

    Has anyone heard of ULTRA CART? If you have, you probably know which affiliate company im talking about now.

    ULTRA CART is an outsourced shopping cart used by this particular company. They are an outfit out of New York. I PUKE and SPEW CHUNKS all over their shopping cart.

    Maybe they are not stealing my sales directly but what i do think is that the shopping cart or the server where this shopping cart is hosted gets so overloaded with requests that it start misfiring and mis directing sales. Many times i'v tried logging into my account only to get PAGE NOT FOUND or very slow response.

    The end result is, loss of sales and angry affiliates. I told the owner that if his not stealing my sales then then the shopping cart is.

    Here is the thing, to this day, they have refused to correct, fix or admit that Ultra Cart is mis directing sales. Instead, they banned my email address after 9 months and suggested that if i had something to say that i should send my request to their customer support who will answer me within 24hrs.

    What a bad attitude. Instead of admiting im right or that there is a problem on the technical side of thing they ban my email address and refuse to communicate with me?

    Oh ok, so you know about the probem, refuse to fix it because it serves your purpose of making more money when Ultra Cart does not credit the right affilate? I see how that goes. Because you know people, it serves their purpose. You see, when i dont get the sale who else gets the sale? They do at 100%.

    Why do you think they have told me that they reset Ultra Cart twice a week? Well they do this because no matter how many customers you push to their site you will not see another sale till its reset. Isnt that amazing?

    Its been proven time and time again. Iv complained about no sales then emailed the owner to reset the system. Within an hour i am making sales almost 10 sales on that day after i complained mind you.

    In my mind, when you know there is a serious problem and you DO NOTHING ABOUT IT your guilty of STEALING SALES. Its called FRAUD!

    And it has served this company well. Last year i made 57k from their affiliate program but i can tell you i worked every emotional string in my body to do it. Stressed out to the max and fighting with these morons to every single day asking them to GET IT TOETHER. They havent!!!! They still continue to use Ultra Cart because it serves their purpose so well.

    Here is the thing, even today there are 12hr gaps in my sales and they continue to bank 18 sales before i get the 19th one. Then if im lucky ill see a few more sales and thats really about it.

    So last week they email me and ask me to send them my Google, MSN and Yahoo tracking code. You know that code you can copy and paste into your thank you page? I was very happy about that and thats exactly what they did. They pasted all my code into the thank you page, the final page that customer sees after running their credit card transaction.

    The results are in. Yesterday i had no sales according to my dashboard account but the tracking codes in Google stated i had at least 5 sales. The day before that Google says i had 4 sales yet i was only credit with 3. Today i sent that off to the company hoping for a resolution.

    This does not include the sales i loose on a daily basis from casual links from other locations other than PPC. Image the number of sales they are banking and not giving me credit for.

    This should be enough proof for them. The tracking only fires from the thank you page therefore they cant say that those results are false positives. There is no way it could be.

    Im ready to take these people to court and file a lawsuit that will make their head spin. Im about done with their bullshit and their stealing. 57k last year? Hmm add another 50k they stole from me.

    Oh, and MARKETHEALTH and Gary! Your next on my list of lawsuit! Rest assured you wont be left out!
     
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  2. pucky

    pucky Junior Member

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    Thanks for the info.

    I AM SICK AND TIRED of getting screwed from every angle. My methods are 90% white hat yet, in this business, you can be taken down by Google, banned by your affiliate network if they don't like what you have to say, screwed out of earning, have to deal with technical issues beyond your control and the whole nine yards. Everyone is out to get you and to make your life miserable. Its truly unbelievable.
     
  3. cyanide

    cyanide Junior Member

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    Well I say good on you for taking action. Keep us posted.
     
  4. dillfly2000

    dillfly2000 Junior Member

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    You nailed it on the head, Its such BS.

    No one likes walking on eggshells.
     
  5. mdhuezo76

    mdhuezo76 Newbie

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    It's unfortunate that you have to make descent bucks to realize the pattern. I think you need to pursue this heavily and help keep the integrity of the industry. I'm pissed off royally, i look at my Google Analytics and wonder.
     
  6. HoNeYBiRD

    HoNeYBiRD Jr. VIP Jr. VIP

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    if you really want to do it, then do it
    i also think you'll have a very hard time to prove what you said and if something is "only" suspicious it isn't enough proof in front of the court, adding to this they still doesn't have a clue how these internet affiliate systems (the whole IM) work so if you have some kind of proof, i'm not sure the court will accept it

    but of course GL and teach a lesson to these cheating & parasite companies, make a precedent ;)
     
  7. redmoon

    redmoon Regular Member

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    I'd go for it if you have screenshots of your cpanel and of your tracking code not matching up that might be enough proof. But if you're just throwing out a number without any concrete evidence of how much they stole that might be a waste of money.
     
  8. andy0hyeah

    andy0hyeah Newbie

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    welcome to the industry! this has been happening to me since 1998! the way i see it is that it isn't your money until its in your bank account. it sucks but keep on trucking.
     
  9. MrSmith

    MrSmith Newbie

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    ...And why haven't you moved on when you knew you were getting bumped for 18 sales/day. Clearly they're not the only network with such offer.


    Good luck with the cost of lawyers and providing the evidence to win this suit.

    And good luck trying to take Markethealth down. They'll make you remortgage everything you own just to pay for lawyer fees for the first year in court.
     
  10. facebookdude

    facebookdude Elite Member

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    Yup my friend had 200k in one account (from fb pages) and just before he was about to be paid the network banned him for using methods against tos. But why did they wait till the day before he was gonna get paid if they new he was doing shit against tos? Cause they're money hungry a**holes.

    It also annoys me that with any cpa offer if you make over $300 with it they blacklist you for low quality leads even though yours are about as high quality as you can get. So instead you have to make multiple accounts doing the same offer. Just fuckin dum.
     
  11. MrSmith

    MrSmith Newbie

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    Usually the advertisers who bump you on that one since they'll claim no quality leads and reverse payment, so the aff network need to adhere to this and remove your earnings too.