Dollarmansteve |
01-10-2007 02:45 PM |
Man, this goes to show how little people here know about the 'mainstream' world - I dont mean the 'offline' mainstream world, but the online one.
Incentivization is the cornerstone of many mainstream networks. It's not really 'fraud' - you'd have to show that the affiliate was actively trying to defraud the sponsor (in mainstream they have things called 'conga lines', and there are other situations that are blatant fraud). This is just low-value traffic.
The assumption that 100% of the people will sign-up for the trial and cancel is false. It also does not take into account that there are other revenues generated from a trial join. An incentivied join like this might be worth $10-$20. This type of traffic will alert any decent sponsor program's fraud department, it is then up to the sponsor whether they shut down the account or work with the affiliate to find a reasonable value for the joins.
The reaction of most people here borders on paranoia. Fraud management is a big part of our business - and the ability to differentiate between actual illegal fraud and just plain shitty traffic is important.
Im not defending this particular dude - All Im saying is that ignorance breeds fear and the belief that traffic like this has a zero value is not correct.
What is funny is that Review Site joins are somewhat incentivized (sometimes with discounted monthly charges, or the non-monetary value of the review itself) - and the proof is that a join from a review site is worth less than a join from another stream of traffic (in my personal experience with comparing lots of data). I dont see everyone running around calling out review sites for being 'fraud'.
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