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    Is it safe to pay affiliates via free signup?

     
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    limitup



    Joined: 21 Apr 2004
    Posts: 115

    PostPosted: Thu Oct 14, 2004 1:34 am    Post subject: Is it safe to pay affiliates via free signup? Reply with quote

    I'm thinking of starting a small affiliate program and paying a fixed amount for signups/subscribers. Say 50 cents for name and email. Most likely it would be double opt-in where the user will receive an email and
    have to click a link etc. to "activate" their account or whatever.

    Basically I will have a little affiliate program where people send traffic to my site, and then they go through my little "presentation" which exposes them to multiple clickbank products for which I am an affiliate. I figure this might be a good way to get traffic rather than constanting looking for new places to advertise, etc.

    I'm at the point now where I'm trying to decide if I should offer this via a network, or just do it myself. I don't have a problem with the tracking or payments, etc. I'm mostly concerned with fraud.

    I don't trust the "sophisticated anti-fraud prevention mechanisms" touted by most of the small networks so I'm thinking of just doing it myself. I figure, how much worse can it be. If I go with a double opt-in model, is it still possible for unscrupulous affiliates to rip me off with bogus signups?

    From a technical standpoint I can require the user to click a confirmation link in an email, and I can track IP addresses. Is this enough to curb fraud? Most likely I will only offer this to select sites that I pre-screen, people I know, etc. which should help to because scammers who I assume go looking for these types of programs won't be able to just signup at my site and start getting paid.

    Anyone have any input, suggestions, ideas, words of wisdom, etc.?
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    Seedstream



    Joined: 27 Jun 2004
    Posts: 269

    PostPosted: Thu Oct 14, 2004 2:27 am    Post subject: Reply with quote

    It could be a good idea. I guess you would have to calculate your effective CPC to figure out your profitability. Of course, you are going to get fraudulent affiliates who take advantage of free sign-ups, since these types of programs are the easiest to circumvent. So you should be prepared for a certain level of fraud. But I think you can curb it with certain measures like the IP address tracking that you mentioned. As long as you actively monitor the situation, it could pay off.
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    Mega



    Joined: 18 May 2004
    Posts: 48
    Location: On the beach

    PostPosted: Thu Oct 14, 2004 12:54 pm    Post subject: Reply with quote

    Paying money for free signups will be a magnet for fraud.. be very careful.. use geo-targeting to restrict to certain countries only, watch out for proxies, be aware that ip's can be forged.. use dynamic image with random code to prevent scripted signups.. you might want to exclude known free email providers also..

    Log *everything* and watch your logs obsessively for any suspect activity..
    _________________
    MegaCGI.com - Datafeed scripts for art.com, clickbank and now Overstock!
    MegaCGI affiliate program is now live - paying 55% using clickbank, link to any page, great conversions!
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    limitup



    Joined: 21 Apr 2004
    Posts: 115

    PostPosted: Thu Oct 14, 2004 4:45 pm    Post subject: Reply with quote

    Thanks for the info. Does anyone know what the networks do to reduce fraud? Can they do things that I can't, from a technical standpoint, etc. where it would make more sense to just run my offer through a small network? In my limited experience, and just based on logic, they don't seem to care much - and why would they since they are getting their cut on every lead/registration/sale etc. and could care less about fraud.
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