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The big, ugly affiliate marketing scam

After CES 2013 in Vegas, I stayed on after the show finished for a few days. An “Affiliate Summit” converged in Las Vegas. I was shocked to see the number of shysters involved in this growing trend. And I don’t use that term lightly.A while ago, one of the marketing consultants at my company, Kogan, came to me and advised that we should get involved with affiliate networks to expand our digital marketing reach. I asked him, “Where do these affiliates get their traffic from? How will they drive traffic to Kogan.com?” He couldn’t really answer the questions, but I agreed to run a small trial. Based on our results, that marketing consultant is no longer with us.To get started with affiliate marketing, we signed up with one of the world’s biggest affiliate networks and agreed to pay a 10 percent commission for their sites that drive sales and conversion to Kogan.I was shocked when I saw that in the first week, affiliates drove about $200,000 of sales to the Kogan website. We were then able to generate a list of sites that drove the sales to Kogan. I had not heard of a single website on the list. “Where are these guys getting their traffic from?” I asked the marketing consultant again. “I don’t know. They must have people going to their site to look for deals,” he told me.

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13 Aug
Abraham Thomas @ab_thomas
The big, ugly affiliate marketing scam | VentureBeat http://t.co/S5REeSPOTd