Affiliate Marketing

How not to commit affiliate fraud?

While tackling the ecommerce world and generating income through affiliate marketing is an intelligent business choice in today’s world. However, this process of earning can get bitter if you find yourself on the receiving end of affiliate marketing frauds. These tips and tricks mentioned below on preventing affiliate fraud can save you and your earnings.

Start by understanding Affiliate Marketing and relevant frauds

Affiliate Marketing

Affiliate Marketing

To understand the severity and types of affiliate marketing frauds, let’s first look at what affiliate marketing itself is. With this business method, companies collaborate with affiliate partners to promote and advertise their processes. There are some codes and unique links—any sales made through these end up with a commission going in the affiliate’s pocket as well.

Types of Affiliate Marketing Frauds

Affiliate Marketing

You will find the internet filled with different methods of fraud. Once you know about them, your chances of affiliate fraud detection and preventing affiliate fraud are high at an early stage. Here are some common types:

Traffic diverting is one type of fraud where scammers use parasite sites to use the traffic from a legitimate affiliate site such as yours.

Click fraud is another where scammers flood the PPC campaigns of legitimate affiliates with invalid clicks or frauds. AI and bots are used to do this.

Cookie stuffing is another standard method. Tons of cookies are placed on a user’s site to enter a commission in hacker’s pockets when users buy something.

Typosquatting is when a hacker uses a URL that’s pretty much identical to the company’s name to steal referrals from indirect links.

Tips to prevent Affiliate Marketing Fraud

  • Monitor your traffic

Preventing affiliate fraud can be an easy chore with active monitoring. Moreover, you can use tons of tools to monitor the traffic you are receiving in today’s world. Keep a close eye on your market traffic as well as program analytics to gauge any affiliate marketing frauds coming your way. Keep an eye out for a sudden increase in traffic or a high number of transactions from a single IP.

  • Vet your partners

The earliest stages of affiliate fraud detection include covering all your ground. This means vetting not just your traffic but your partners as well. You should know who you are into business with. While picking a partner, opt for people who have proof and can give examples of their older monetization projects and campaigns they were a part of.

Moreover, you also need to check if their sites are new, complete, and valid. Preventing affiliate fraud can be easier once this screening process is carried out thoroughly.

  • Action against red flags

There can be some hurdles along the way. However, the intelligent thing to do is take action as quickly as possible after affiliate fraud detection. Sometimes, some abnormalities might occur that won’t directly equate to cybercriminal activity, but it’s better to be safe than sorry.

Keep a close eye on the activity on your site. If there is one user repeatedly getting flagged for violation of terms and conditions, it is wise to get rid of them. Losing one potential user is always better than compromising the entire campaign. You can block any such suspicious IP addresses immediately to nip it in the bud.

  • Elaborate your terms and conditions

Another simple tip for preventing affiliate fraud is to be clear in your terms and conditions. Take this part of your site to elaborate on all the details. You can also use this part of the site to scare away any potential fraudsters.

First off, to prevent affiliate fraud, you need to outline which type of traffic you will allow and which type won’t be acceptable. With strict terms and conditions, you are sending out a zero-fraud tolerance message and getting a legal stance as well.

Preventing affiliate fraud can be easy if you do your fair share of research before and during your affiliate marketing campaigns. When you do research before, it is done to vet your partners, while the study done during the campaign is done to monitor your traffic.