This is a question that has been hotly debated in past, but what do you think?

I ran across a site today that is clearly an online retailer, with their own affiliate program, and yet, they have a page with about 15 Affiliate links.  Not only that, but they have masked their links to funnel sites that re-direct to the merchant’s site.  And on top of everything else, the Affiliate sites aren’t even remotely related to the retailer’s website. They make it possible for other Affiliate marketers to lose sales because they are wildly promoting other sites under false pretenses.

I won’t reveal this retailer, as I personally won’t stoop down to their level, but the fact is that this retailer seemingly makes plenty of money off of sales and advertising, and the fact they hide Affiliate links sickens me.

So I ask you, do you think it is ethical for retailers with Affiliate programs to promote someone else’s Affiliate program?

Affiliate Summit is the premier Affiliate Marketing conference and was founded in 2003 by Shawn Collins and Missy Ward. The conference has grown enormously over the years and it is now the place to be for Affiliate Marketers. Affiliate Summit West 2008 in Las Vegas will be taking place from February 24-26 at the Rio Hotel. Not much info is available yet, but as more is released the more you will know.
On an important note, tickets are now on sale for Affiliate Summit West 2008 in Las Vegas, and if you don’t register soon ticket prices will rise significantly. For a full conference pass you pay $949 for a savings of $500. For an exhibit pass you pay $99, a savings of $100. Group discounts are also available. Register now for Affiliate Summit West 2008 in Las Vegas.

In this month’s issue of Internet Retailer, they dive into a common Affiliate Marketing issue. Can an Affiliate Program have too many affiliates?

While presenting both sides of this issue, they show how some affiliate programs and networks say it isn’t worth working with Affiliates who have been inactive for over 6 months. It is wise to cut these affiliates from your program and bring your program down to a size your company can manage.

They also took a look at the Affiliate managers and companies who believe that it is foolish to cut Affiliates from your program just because they have been inactive. The sentiment being, you never know when one of your affiliates, active or inactive, may become the next Super Affiliate.

I agree with the second group of people in saying that Affiliates shouldn’t be cut from a program because of inactivity. Rather, segment your affiliates into different groups, and manage each group accordingly. Three possible groups could be “Super Affiliates”, “Active Affiliates”, and “Inactive Affiliates”. Try and appeal to all three groups and continue to grow your program. In my opinion, there is no such thing as an unmanageable program. Even if you are a small company, there is no reason that your Affiliate manager can’t spend the time to separate your Affiliates into groups and reach out and market and support them.

E-consultancy is an online publisher of best practice internet marketing reports, research and how-to guides. E-consultancy, named Publisher of the Year at the 2006 AOP Awards, also publishes buyer’s guides and has a directory of 100,000+ third party internet marketing white papers. More than 700 E-consultancy users responded to the research email.

The merchants that responded to the email came from a wide variety of industries, including financial, retail, and travel. The findings of this survey address Affiliate Marketing conditions in the UK, and while there may be some differences between Affiliate Marketing in the U.S. and the UK, but this report does give a picture of the Affiliate Marketing industry in the US and the UK. But do keep in mind these numbers portrayed are in respect to the UK.

• 67% of responding merchants have increased sales from 2 years ago.
• 78% of responding merchants are spending more money on their Affiliate Marketing campaigns then they were 2 years ago.
• 78% of responding merchants also said they will spend more money on Affiliate Marketing in the future.
• 50% of responding merchants will add to their Affiliate management team
• 95% of Merchants say that Affiliate Marketing is the most cost-effective way to attract new customers … Email marketing and Paid Search Marketing trailed in this respect.
• Only PPC drives more customer volume than Affiliate Marketing.
• Merchants claim these are the largest barriers to growing their Affiliate Marketing programs:
  • • Lack of internal resource 33%*
    • Difficulty in attracting affiliates 20%
    • Problems with tracking 20%
    • Poorly converting website 19%
    • Restricted budget 18%
• 37% of merchant’s Affiliate programs are managed in house.
• 23% outsource their Affiliate Marketing programs.
• Only 29% of merchants have good communication with their Affiliates.
• 40% of Affiliate Programs are registered with one network and 33% with two networks.
• Merchants choose Affiliate networks based on the following issues:
  • • Network’s relationship with affiliates 47%
    • Technology (tracking and analytics) 40%
    • Level of account management 34%
    • Sector expertise 33%
    • Consultancy / Strategic advice 23%

Overall the Affiliate Marketing industry in the UK is very strong. Not only is it growing, but it is becoming more professional and more respected. Affiliate Marketing is here to stay and its future looks incredibly bright.

In my opinion this is a very easy topic to deal with.  Affiliate marketers who bid on a company’s trademark are in the wrong unless specified in the Affiliate program’s Affiliate guidelines.  If it is identified in the Affiliate program’s terms of service, then the Affiliate Marketer (Publisher) is in the wrong.

However, if the Affiliate program isn’t managed, and the Affiliate marketer gets away with it over a period of time, then I don’t feel past sales should be stricken from the Affiliate marketer.  The advertiser is responsible for managing their program, and if they aren’t then they deserve the foul practices that will occur from a poorly managed Affiliate program.

If the Affiliate program is managed well and the Affiliate uses PPC and bids on the trademark name, which is clearly forbidden in the program’s rules, then I feel the Affiliate should get one warning, and the second time they do it they need to get the boot.  It is stupid in my opinion to ever let the Affiliate bid on a company’s trademark, but you need to make mistakes as a business to succeed.

Affiliate Marketing is a very simple concept, however, setting up a successful Affiliate site can be difficult for people who have never designed a website.  Where are the best places and what are the best resources for learning more about Affiliate Marketing?

The Internet of course.

There is a wealth of knowledge just a few keywords away and it won’t cost you a dime.  Affiliate Marketing forums, such as ABestWeb and 5 Star Affiliate Programs, offer a wealth of knowledge, much of it straight from industry leader’s mouths.  Blogs, such as this one, offer opinions and many other thoughts on Affiliate Marketing.  Go out and participate, read as much as you can and practice what you have learned.

I stay away from E-Books because the information contained within can generally be found for free on the Internet.  Most E-Books offer regurgitated information, rarely with an original thought offered by the author.  Two of the few exceptions I have found are E-Books for Affiliate Manager.  One is by Shawn Collins and the other by Geno Prusakov.