i allow it and encourage it - they do the work for me, they spend the money on the campaign. there is NOTHING to say that the sales he sent you through his PPC traffic using the site's keywords would have turned into type-in sales. porn mostly is an impluse purchase, his PPC ad caught their attention and you got a sale.
i know some site owners hate when affiliates use their names/trademarks to outrank them in the serps and to run PPC ads but my answer to them is - don't run an affiliate program, if your attitude/viewpoint is that affiliates are your competitors then simply don't have an open affiliate program.
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I moved my sites to Vacares Hosting. I've saved money, my hair is thicker, lost some weight too! Thanks Sly!
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