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Of all affiliates who signup to a general program, only a rough 10% actively promote the program and only 20% of them are really converting. If the program offers hosted banners/galleries/flvs then it is a sane step to weed out the losers and keep your "free content" tracked as much as possible.
Usually just requesting the urls of sites where the affiliate will promote them would suffice, and include in the TOS that afiliates are not allowed to promote the program on urls not reported to the program.
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