I have always seen affiliate programs paying out 50-60 ($8 plans)for 1 signup with no conditions. While I understand it's a matter of calculating the cost of acquiring a new customer (vs advertising dollars spent and so on), and the figures make sense, how do companies:
1. Prevent people from signing as an affiliate and then signing himself. That effectively cut his own fees by quite a bit or about half a year. I know some companies do an approval process.
2. Discourage spamming or any unethical activities. I do know strong policies, policing and terms would be a start. Just wanted to know if there's any other ways. (Probably not)
3. Generating lots of fake signups which terminate within a couple of months. After all half the money is better than none.
Also what other problems do you guys typically face with an affiliate program and is willing to share them
It seems that more & more affiliate programs are charging an "initiation" fee or sorts to possibly help alleviate some of those problems.
We have a few affiliate programs, & I personally do not see a problem in that. Some companies though - the only way you can become an affiliate is by signing up for their services & in the sign-up process, you are asked if you want to be an affiliate / reseller.
It is difficult to control other people. We were once contacted by a very well known company to advertise some of our services. Even though it was opt-in, etc, we declined. I personally hate spam & even opt-in e-mail I pretty much see as spam because sooner or later someone else gets that e-mail (remember the big amazon or e-bay scandal a few years back?)
As far as fake sign-ups that cancel, is the merchant not getting their money for these sign-ups? If these sign ups last 2 months, but the merchant is not at least getting is $8 back, then the merchant needs to review his business plan