Title: Creating a mechanism to ensure protection of affiliate earnings.
With many larger networks merging in recent years. Are the smaller networks a risky option?
A topic suggestion modified from an article by: John Gilbert -Jupp
DGM UK was entering into administration without notice to affiliates again proved that affiliates seem to be at the bottom of the pile when it comes to payment protection.
Networks generally have no mechanism in place to ensure protection of affiliate earnings.
No network to date separates the revenue allocated for affiliate commissions into escrow, separating these monies from their general expenditure. This means that there is no underlying guarantee of payment protection directly for affiliates. Reputable networks like Affiliate Window spend huge sums of money on credit insurance each year. This ensures that the network gets paid for all merchants in the event of merchant defaults and this goes some significant way to ensuring affiliates get paid.
Yet what precise level of protection does ANY network provide to protect affiliates from network over exposure beyond the laudable activities of voluntarily provided information on merchant credit protection and an alert system on merchants behind with payments? There is no mechanism in place which states that affiliate earnings are ringfenced and will be paid even if the network folds.
Ringfenced earnings is surely a must-do to create confidence moving forward?
Grant
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