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New Study Shows Many Affiliates Are Never Paid

Discussion in 'BlackHat Lounge' started by The Scarlet Pimp, Jul 21, 2017.

  1. The Scarlet Pimp

    The Scarlet Pimp Senior Member

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    from pacedm... this is why i create my own affiliate programs! :D

    A survey by payment automation company Tipalti of 150 publishers and affiliates has found that the majority have faced some form of payment issues with an advertising network.

    69% of respondents are currently ready to drop an advertising network, or have already dropped one, due to problems with payment.

    Publishers and affiliate marketers operate in a competitive and crowded marketplace, where there are over 500,000 different media buying destinations for advertisers. This also means that publishers are increasingly able to switch networks if they are unhappy.

    51% of publishers reported that current payment processes need improvement.

    Key findings

    It is perhaps unsurprising that 95% of publishers expect to be paid on time to ensure their loyalty. Only 38%, however, reported being completely satisfied with way their payments are being handled.

    Opening up the range of payment method options is a desire held by many publishers. 76% want to be able to use payPal and ACH, while most non-US entities wanting to pay in their local currency.

    “As advertising networks around the world battle to compete with Facebook and Google for market share of the digital media landscape, the quality of those networks’ publishers and affiliate marketers becomes their essential differentiator,” said Chen Amit, CEO of Tipalti.

    “Publishers and affiliates have an abundance of network choice, and networks must clearly step up their payments offerings to attract and retain the best partners. Those networks that settle for low quality partners will likely not survive.”
     
  2. MisterF

    MisterF Jr. VIP Jr. VIP

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    This is one of the downsides of relying on affiliate networks.

    I had a hosting affiliate a few years back who I had 5 sign ups in the first month, was well over the threshold yet when it came to payment time announced that all the sign ups had later gone on to cancel....
    I could have believed this if I didn't know 2 of these personally who assured me they were still using the hosting.
     
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  3. blogzandstuff

    blogzandstuff Elite Member

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    I've just dropped one network and removed their ads, they weren't counting visitors properly and disputed payment
     
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  4. honestIM

    honestIM Regular Member

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    Affiliate network need to improve on their payment frequency. Some networks are still primitive and go for net30 or even net60. If you are doing media buying such payment terms will never work out. So these networks are just opening themselves to getting spammers to spam their offers around in the hope to get conversion.

    Nevertheless one of my industry associate told me that big names CPA network like to set high payout threshold as 80% of these affiliates will never hit it. And they can avoid paying them for above amount before the threshold. Though amount maybe small, but just imagine if you have 1000 of new affiliates signing up and not hitting threshold. For some that did hit the threshold, their traffic quality are then place on monitoring to ensure conversion for advertisers. If quality of conversion is poor they will find ways to suspend that affiliate or come up with reasons not to pay even though advertisers already paid upfront for these advertising cost.
     
  5. WebTG

    WebTG Jr. VIP Jr. VIP

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    When i bought hosting from Hostgator, i used a coupon of my friend to support him as he had started a new blog in web development niche. It was surprising that he was not credited any sale or commission, although, hosting plan which i bought is still active and a few of my sites are currently running on the same hosting.
     
  6. divok

    divok Senior Member

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    i remember , when i was at digitalpoint , I scored 3 hostgator signups . but they didn't pay me. Then i messaged user hostgator who was a member there. He said my signups had cancelled. 17 year old my thought he was saying truth. I accepted his reply. He said " thanks for being so understanding" .

    Till now I have prevented atleast 10 users from hosting their site over there .
     
  7. The Scarlet Pimp

    The Scarlet Pimp Senior Member

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    advertised affiliate programs are for me a total waste of time. i just made several thousand dollars with my homemade, zero competition, affiliate program.

    if things go well i should do at least as well next month. :D