Topic to Raise at the next meeting.

[bapages]

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In light of a network going bust. Can I ask an issue be raised to discuss restrictions on Networks using affiliates commissions to pay creditors off be debated and possibly ringfencing affiliate payment.

This would be a sinple as a term inpossing the Administrator to honour payments within the Terms.

[Rovers0411]

In light of a network going bust. Can I ask an issue be raised to discuss restrictions on Networks using affiliates commissions to pay creditors off be debated and possibly ringfencing affiliate payment.

This would be a sinple as a term inpossing the Administrator to honour payments within the Terms.

In the 'Affiiliate Payment Protection' thread I`ve already suggested Networks should operate Client/Trust A/cs to handle affiliates commission. A Client/Trust account has to be managed by a Trustee/s and as a seperate legal entity from the company affiliate's commissions are protected in the event of a Network's failure.

[KevinEdwards]

Hi,

We'll raise the payment issue but it's worth considering this would have to cover anyone dealing with affiliate payments, not just networks. Agencies are increasingly taking a bigger slice of the affiliate pie as well as other third parties.

[Rovers0411]

Hi,

We'll raise the payment issue but it's worth considering this would have to cover anyone dealing with affiliate payments, not just networks. Agencies are increasingly taking a bigger slice of the affiliate pie as well as other third parties.

The more protection the better for everyone who has promoted and facilitated sales for a merchant. There is no reason for a viable business within the chain to need to use affiliate's commissions to fund their own cashflow so no one in the chain should have any objections to pipe line monies being held in secure Trust A/cs.

However, what is the current merchant-advertising agency/3rd party-network relationship? If a merchant passed affiliate commissions to an agency then that agency went into liquidation would the network still expect the merchant to honour the payment to them? If current agreements mean the merchant remains responsible for payment of affiliate commisions, even if their advertising agency goes into liquidation, then do networks and affiliates need to concern themselves with the merchant-agency relationship? If not, is it not just a case that network-merchant agreements require merchants to guarantee monies regardless of whether their advertising agency cease trading. It would then be the merchants own responsibility, not networks/affiliates, to esnure their own monies are secure when they pay their advertising agency.