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Here's What I Said ...

My Presentation to the Performance Marketing Summit on the topic of Predatory Advertising

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Presentation by Elisabeth Archambault, BuckWorks.com
to the
Performance Marketing Summit
The Yale Club
New York City
November 7, 2002


Hi. I'm Elisabeth Archambault. I come from Brandon, Manitoba, on the prairies of Canada. I'm no superaffiliate, but I sell enough things for enough merchants that affiliate marketing is my living. Aside from that, my main credential for being here today is that I've been yappy on assorted message boards!

I've been asked to bring the perspective of regular affiliates to this meeting. My comments are based on opinion papers that a number of folks submitted for this purpose, as well as thoughts gleaned from various forums, and my own experience.

There is anger in affiliate land. Much anger. I, and many people like me, are feeling abused and betrayed by networks and merchants who are supposed to be our partners.

We see software at work that we consider malicious and deceptive. We see it vandalizing our websites, diverting our traffic and stealing the commissions that our legitimate promotional work ought to have earned. And we see our partners, the merchants and the networks, endorse, assist and defend the very entities who are harming us. We feel betrayed.

These programs insinuate themselves onto users' computers in a variety of ways. Millions of computers! Sometimes users download them deliberately and by choice, but in waaay too many cases, they only tag along when the user really intends to download something else. Countless users have no idea that these programs have entered their systems. The programs watch where the user surfs, then do things that are triggered by something in the content of the web pages the user is visiting. These are NOT things that the owners of those web pages have agreed to.

That's what makes these programs parasitic: they use other people's content for their own benefit in ways that do not remotely resemble fair use. They might cover the site's own ads with theirs, spawn popup windows with more ads in them, overlay ugly links on top of target words in the text, or offer evvvver-so-helpful reminders that poach our traffic. The intent is to induce the surfer to follow the ad presented by the parasite. Some software doesn't even bother with inducements; it simply replaces the website's tracking codes -- or even the merchant's own links -- with its own tracking codes, to deceive the merchant into paying a commission that was not actually earned. When merchants learn that they're sometimes paying commissions on sales to what should have been their own traffic, they are seldom impressed.

We call these programs scumware, parasiteware, thiefware, stealware, and a host of other ugly names. We hate them, for they violate our work and steal the just fruits of our labour.

The details of how it's done hardly matter; the effect is that they pocket commissions they have not earned, and harm people they do not know. For no one's benefit but their own.


"I work hard on my site," says one affiliate. "I have made a site that people like to visit, I compete fairly in the search engines. I don't steal, or lie or cheat to get visitors or customers. When a person clicks on one of my links, it is fair and square.

I work hard on my site... The money I make goes to my family so we can have a better life.

Then one day I find out that someone has decided to steal from me. Instead of using what they know to do good, they use it for EVIL. They use it to steal from others. And, then they LIE about it, time and time again.

Instead of making their own site that people would like to visit, they use my hard work to make money for themselves. They decided to use their knowledge of programming to steal from me." [Source: Vicki Hadfield]

And (this is me talking again) you, the networks, have been letting them do it.

This is not what we signed up for. That is not what you told us would happen!

CJ says: When a visitor to a publisher's Web site makes an actual purchase online or fills out a form, that transaction is tracked and recorded by Commission Junction.

From Performics: Join our affiliate program and earn cash by promoting our brand and products on your site. Every time you direct a consumer from your site to ours, you earn money when that consumer makes a purchase.

(Unless there's a parasite in the neighbourhood ...)

BeFree: ... an affiliate partner promotes products and services on its website for a commission. ....

Linkshare says; If you have a website, engage in email marketing, or use browser extensions, you can become an affiliate. Linkshare says: Affiliates earn commissions from merchants in exchange for the traffic they drive, or the leads or sales the Merchant makes.

Woohoo! Sounds great, doesn't it?

But none of the networks tell the folks with websites or email lists that the browser extension crowd and other assorted critters will intercept an unknown percentage of their traffic and pocket the commissions that should have accrued to the website or email list. OR, if they say it, I couldn't find it.

Truth in advertising? NOT!

Regular affiliates have no easy way to know how much they're losing; they only know that it's happening. Some affiliates set up scripts on their sites to count the visitors who are infected with various undesirables. While results varied, a couple of the testers concluded that as much as one-fifth ­ one fifth! -- of their traffic was infected with software capable of diverting their visitors or stealing their commissions directly.

Others are more qualified than I to discuss the technicalities of how these things work. Hey, they're Windows programs and I'm a Mac user. But a point I want to make is that you don't always need to analyze every last detail to judge whether something is acceptable. In fact, too much focus on technical details can cloud the most important issues. In this discussion what matters most is not how it's done, but the harm that's done.

Imagine a travelling salesman who works hard at doing what travelling salesmen do. He finds and visits potential clients, presents his products well, and generates new sales for his company. Now, suppose someone else contrived to interrupt some of his sales calls just at the point where the customer was ready to order, so she could take over and close the sale. Or, imagine that someone got access to the paperwork for the salesman's customers, and changed a line in some orders so he would get the commission instead of the fellow who did the work. Is that a good thing? (no)

I talked to some people who work in offline sales, to ask how such situations might be handled in their company. What would happen to the person who did it? "They'd lose their license," said one. "We'd fire them," said another.

"I'll ask my brother," said one man. His brother brokers some Very Big Deals in the sports marketing business.

Here's his perspective:

This person, if it was PROVED to be true as outlined, would be fired. Their last amount of pay period would be deducted from their salary and paid to the damaged parties, and if the amounts were greater than that, the person would be held criminally responsible. (They would be criminally responsible anyway, but, well, there's such a thing as threshold tolerance.)

This type of behavior is criminal and has no place in a company like mine. If others feel the person should be brought to therapy, etc., fine, then do it on someone else's payroll. And may word get around that any other "criminals" within the company will be handled in the same way. This is the SAME THING AS ENRON, just on another level. ....

"And at that level of deceit," the brother continued, "trust is endangered... you have to leave. Immediately. We'll pack your belongings... come back Friday and pick up your stuff. You can take your coat, umbrella, car keys, but not a single piece of paper. Leave everything else... if it's yours, it'll be in the box on Friday. We don't trust you for another minute in this building. Security, please escort this person out. Immediately." [Jack Vincent, Focus Sports]

That's how commission theft is viewed in the brick-and-mortar world. Everyone I talked to in offline sales had a similar reaction. Such behaviour is despised, disparaged, and even prosecuted.

So, I ask the affiliate networks, why have YOUR standards been different? Why have you taken so long to start to begin to think about how to respond to what is, in essence, the same thing that would trigger instant dismissal in an ethical brick and mortar company?

Look around, and you'll see a crisis of trust. You are supposed to be our partners, yet you collaborate with, even celebrate those who steal from us. Y'know, CJ, the accolades you hand out to the link hijacker Ebates are a kick in the teeth to affiliates everywhere who have been promoting the same merchants in good faith, only to have their links over-written, their commissions stolen.

You say, "They're not doing anything illegal." (I'm not sure that's correct, but in any case I would suggest that merely being "not illegal" is a shaky ethical base.) You say, "It's not up to us to dictate who merchants should partner with." I say, "Does that make it right for you to break faith with the rest of us?" You have also said, by the slowness of your actions, that you felt little responsibility for warning merchants or affiliates that parasitic link placement just might be causing problems. Affiliates everywhere feel betrayed by your disregard for the simple ethic of being honest with those who partner with you. I suspect a few merchants do, too.

You, the networks, are alienating a lot of talent. As more affiliates become aware that their commissions are being stolen, and realize how slow you have been to even talk about it, let alone DO something, they're actively hunting for independent merchants to promote. You've been doing your merchants few favours, because this situation is driving capable affiliates into the arms of the competition. And of course, you lose your piece of the action when that happens, too.

I have no idea how big the issue of talent loss is. I have no way to know what portion of your business you're squandering this way. But the effect IS real. And it WILL grow ... unless you take action to make SURE that commissions on sales to OUR traffic end up in OUR pockets, not that of some last-minute interloper.

Here's an example. Mr. Crawford, Mr. Pullen, if you looked up my CJ stats for September, you'd see they were up from last year. Same with Performics. You might think the stats tell a happy story, but they don't. Not really. For several months, my crisis of trust has been leading me to work more with merchants outside the networks. In September, my commissions from one merchant added up to as much as my entire Commission Junction check. And there were others ...

You're alienating a lot of talent. You're experiencing a loss that you don't even see. You might think my stats look fine, but ponder the fact that if I had not felt betrayed, I'd have had little reason to look for merchants outside your system, and the sales you see from me could have been much higher. That's a loss your accountants won't see, but it's very real. Multiply that by enough people, and you'll kiss a lot of money goodbye. Maybe I should rephrase that -- you won't be kissing it goodbye, because you won't see it in the first place. Your competition will.

Here's something to think about: in numerous articles, I've seen parasites defend themselves by saying, "The user chose to have our software on their system. Therefore what we do is okay." I don't buy that line of thought, and I observe that the parasites themselves don't really believe in user choice anyway. They don't have enough regard for their own rhetoric to make their software easy to uninstall. Some of these applications are hard to remove even for highly experienced users. If these companies truly believed in user choice, their software would be equally easy to uninstall -- completely -- as it was to install. One click. But do they do that?

User choice should be user choice, not a life sentence!

My PC-using friends tell me that a PC infested with parasites is less reliable and more crash-prone. System performance suffers. If someone did something to my car that had comparable effects, it would be called vandalism.

Merchants and networks alike should consider the potential for harm to their hard-earned brand if they associate with this. I have read more than one frustrated person post on a message board that the only way they could get rid of the popups that plagued them was to completely reformat their hard drive. What do you think their opinion would be if they realize that this or that merchant supports the software that caused such grief? The brand-damaging potential should be treated at least as seriously as email spam. Certainly the harm it causes is just as real from the user's perspective.

Here's another thought: User frustration with excessive popups is causing the use of popup-blocking software to spread. Earthlink even offers a popup blocker as part of its sales pitch. Many users don't know that the popups they dislike come from programs hiding in their system. And even if they do know that, it's often easier to just install a program to block them, rather than clean them out. The trouble here is that such programs often block everything they identify as ads, and this takes out a lot more than just popups. This harms a lot of sites that depend on responsible advertising to help pay their bills. Banners or text links simply disappear when one of these programs is running... Including links to all the network merchants.

Ad blocking software is outside the scope of today's discussion, but I invite you to ponder how much sense it does NOT make, to support things which feed the frustrations causing these programs to proliferate. Everyone loses that way.

Sometimes people talk about "shopping bars" as tools for customer retention. Sounds good -- IF you don't think about it very deeply.

The problem with that theory is that if a visitor is on my site, or has clicked through to my merchant, for that space of time they are MY customer, not yours. The fact that they might have had some previous relationship with you, to get your toolbar, is irrelevant if the shopper is on MY site.

I'll bet lots of you sometimes shop at Walmart, and sometimes shop at Sears. Whose customer are you? If you have entered the Sears store you are a Sears customer, and Walmart must not interfere with that. And vice versa if you have entered the Walmart store.

If someone is on my site, or has clicked through to one of my merchants, no third party should be allowed to interfere or prevent MY sales process from unfolding naturally. "Ah," one of you might say. "I have a coupon that would give the customer a better deal." I say "Fine, feature it on your site, but DON'T intrude on mine." I would point out that if someone interrupts my sales process to offer, say, a ten-dollar coupon, that will reduce the merchant's profit by ten dollars. Which one of us is doing better for the merchant?

Affiliates everywhere are hoping that you, the networks, will emerge from these discussions with clear and unambiguous policies that will honour the contract we have with you -- to pay us commissions on business that WE generate for our merchants. We want a clear, unambiguous statement that you, or the merchants who use your services, will not reward organizations known to be intercepting commissions, however clever their schemes may be.

We want you to protect our commissions from being stolen by interlopers who poach other people's traffic. We want you to stop rewarding organizations that violate our copyrights and use our content to cause direct and deliberate harm to our businesses. We want you to use your communications infrastructures to notify merchants when an organization has been proved to be stealing traffic. We can expect to see more stealth systems trying to pass as legitimate affiliates, so we need to stand on guard together.

We need you to stand on guard, and enforce your policies when they are violated. Without enforcement, there are no standards.

The bottom line is this (and I credit Ralph Wilson for these words):

The advertising or affiliate link that brings the shopper to the merchant's site should be credited with the sale. No usurping software should be allowed to subvert this process and divert affiliate commissions to those who did not earn them by initiating traffic to the site.

We want you to commit to setting and enforcing ethical standards, so that we can continue to grow together. Pay-for-performance marketing can be a great system when everyone involved is behaving ethically.

Let's make it work!

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