Tuesday, February 17, 2009

How to Prevent Fraud and Save Thousands in Affiliate Sales

Author: Egidijus Andreika

Affiliate marketing can be a fantastic way to promote your products online and earn a lot of money with affiliate's help. However, like in any other form of business, there are some risks of facing fraud involved. Here are the best ways to prevent affiliate marketing scammers from fleecing you of your money.

Stolen credit cards and PayPal accounts

Many affiliate marketers are smart enough to steal customer credit card account information and make it look like they have made a successful sale. This is done so that they can earn commissions from your merchant program wrongfully. You need to install safety measures and anti-hacking systems as well as authentication methods to prevent such occurrences. Make sure your merchant account provider provides you with all the tools to detect and prevent fraud.

Detecting spam mails

One other way to detect malicious affiliate marketers is to find out if they have been sending spam mails to customers. Most amateur marketers will send customers bulk emails hoping to receive more income. However, this can get your company ignored and even blacklisted in the minds of your customers. The best way to stop this is by banning these affiliate marketers from your program. Make sure that your merchant account and affiliate management solution allows you to fully control your affiliates and ban them accordingly.

Black hat sites

Many fraud affiliate marketers will use Black Hat sites to lure unsuspecting customers to purchasing products. The way they do this is by using similar domain names as your parent site and having a small typo in it so that no one suspects it is another site. Customers visit these sites and purchase products, little knowing that their credit card information is being logged and stolen. This can damage your company's reputation massively. Make sure your affiliate program has high quality parameters before you enroll new marketers.

Software like human behavior

There are affiliate marketers who will develop software and scripts, which mimic the actions of users. These scripts will make it seem as if a user has clicked to your merchant site, when in reality it is the software doing it. Make sure your affiliate marketing management system can easily detect such scammers and ban them.

Illegal transactions

Affiliate marketers also use fake identifications and use credit cards stolen from customers to make purchases of your merchant products. This way, they get their commissions and later on also perform a chargeback or refund to get the money back into the account. Customers do not suspect as they receive the money back but you as a merchant end up losing heavily by paying such marketers commissions. Make sure your affiliate marketing system protects you from such cases with built-in tools to protect merchants.

Where affiliates are scammed

There are also instances in which other affiliate marketers set up parasite websites, which hack the hard-working affiliates affiliate links and cookies. In this method, leads that your affiliates have procured are diverted to these parasite sites, where the customer is made to make purchases. Thus the commissions are received by these parasite affiliates instead of your own marketers. Make sure your affiliate marketing system protects honest affiliates and protects from unfair ones.

About the Author:
Egidijus Andreika is a creator of Click2Sell.EU affiliate network to sell products. Click2Sell allows you to sell digital products online and run your affiliate program. It protects your business from fraudulent affiliates, sales and all expenses related with fraud because of a advanced anti-fraud system. Visit Click2Sell to sell products online.

Article Source: http://www.articlesbase.com/management-articles/how-to-prevent-fraud-and-save-thousands-in-affiliate-sales-777531.html

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