[Haiko de Poel, Jr.]

<p align="center"><font face="Arial"><big><font color="#000000"><big>Industry
Standards to

be established in Affiliate Marketing</big></font><font color="#800000">

</font></big>

<font color="#808080"><big>by Shawn Collins, President</big></font>

<a href="http://www.icebase.com/go.shtml?20021030130737796839&amp;25644&amp;http://iafma.org/index-start.html">Internet
Affiliate Marketing Association</a></font></p>


<font face="Arial"> On November 7, a diverse
cast of presenters in the affiliate marketing space will be making their cases
for and against what has become to be known as predatory advertising or
ParasiteWare. he purpose of the meeting, 'Defining the Rules of Engagement for
Software Technologies,' is to establish an industry standard among the 'Big Four
affiliate solution providers; Be Free, Commission Junction, LinkShare, and
Performics.</font></p>


<font face="Arial"> If you are not
familiar with this polarizing issue and the implications on affiliate marketing,
here is one definition:</font>
<ul>
<font face="Arial">&quot;ParasiteWare™ is technology (e.g. bho's,
browser plug-ins, toolbars or pop ups/sliders) used to retain or acquire new
customers that knowingly or unknowingly undermines or removes another
affiliate's ability to compete by changing, intercepting or redirecting a
link from the originating link,&quot; according to Haiko de Poel, Jr., chief
executive of ABestWeb, an online forum devoted to affiliate marketing.</font>
<font face="Arial">&quot;ParasiteWare™ may be installed
intentionally or unbeknownst by the end user into a user's browser and/or a
3rd party application that works independent of the user's browser,&quot;
continued de Poel, Jr.</font>
[/list]


<font face="Arial"> Affiliates have elected
Elisabeth Archambault (buckworks.com) and myself (ClubMom Director of Affiliate
Marketing, Author of &quot;Successful Affiliate Marketing for Merchants,&quot;
Internet Affiliate Marketing Association President - United States Chapter, and
an affiliate) to speak for them at this meeting.</font></p>


<font face="Arial"> Also slated to speak with be
Keith Kochberg (WhenU), Paul Nichols (Ebates.com), Farhad Mohit (BizRate.com),
Joe Hatch (Buyersport.com), and Tim Storm (FatWallet.com). Wayne Porter, V.P.
Product Development for AffTrack LLC, will be facilitating the talks. The
meeting will be taking place on November 7 at the Yale Club in New York City.</font></p>


<font face="Arial"> While proponents of
the controversial technologies assert that their operations do not have a
negative impact on the work of affiliates, Jim Gribble, managing director of
LinkProfits, an outsource affiliate program management and consulting firm,
disagrees.</font></p>


<font face="Arial"> Recently, one of his LinkProfits
clients, a merchant who generates well over one million in annual sales from his
affiliate channel, according to Gribble, wanted to know why he wasn't
experiencing real growth in his affiliate program.</font></p>


<font face="Arial"> After conducting some
research into the matter, Gribble made the following observations about one
affiliate that has been identified as a predatory advertiser:</font>
<ul>
<font face="Arial">Just one month after joining this merchant's
program, the predatory affiliate accounted for 3 percent of all this
merchant's affiliate sourced sales, 6 percent in month two, and after five
months, this affiliate accounted for fourteen percent of all sales.</font>
<font face="Arial">Over their first year, they were credited with
an average of nearly 10 percent of all this merchant's affiliate sales.</font>
<font face="Arial">This predatory affiliate's overall EPC (a
Commission Junction formula to determine earnings per one-hundred clicks)
for one year surpassed $50.00, yet the total program achieved only an $11.21
EPC during the same time period.</font>
<font face="Arial">Every top affiliate of this merchant saw their
monthly sales and commissions, as well as their EPC, drop significantly
after this predatory affiliate began their participation.</font>
<font face="Arial">The merchant realized only a small increase in
overall sales during the time period in which the predatory affiliate was
participating.</font>
[/list]


<font face="Arial"> Jim Gribble inferred from
this analysis that sales were being shifted from previously productive
affiliates to this predatory affiliate and that this affiliate was not providing
any significant increase in sales on their own.</font></p>


<font face="Arial"> Therefore, Gribble
recommended to this merchant that he end his relationship with this affiliate,
as &quot;he was damaging his pre-existing affiliate relationships and would find
it more and more difficult to keep these relationships in place, as well as
attract new, productive affiliate partners.&quot;</font></p>


<font face="Arial"> WhenU, one of the
technology companies being represented at the November 7 meeting, was recently
the focus of Herby Olschewski, Chairman &amp; CEO of the Internet Affiliate
Marketing Association.</font></p>


<font face="Arial"> According to Olschewski, WhenU
and their SaveNow program work as follows:</font>
<ul>
<font face="Arial">WhenU proliferates savenow.exe, bundled with the
WhenU Shopping bar, which is benign by itself.</font>
<font face="Arial">The predator is savenow.exe, which is left on
the PC, even if the user chooses to uninstall the WhenU shopping bar.</font>
<font face="Arial">savenow.exe pops up a special offer or coupon id
when the user types in any of the URLs in savenow.db (a database file that
installed with SaveNow).</font>
<font face="Arial">WhenU signs up as an affiliate of affiliate
programs and embeds their id in those popups. Not all - some are media buys
and don't have affiliate ids.</font>
<font face="Arial">The affiliate id in the savenow.exe popup will
override the cookie and affiliate id of the affiliate that made the effort
to bring the user to a merchant site. Thus, WhenU has stolen the
commission at the point of sale.</font>
[/list]


<font face="Arial">Another theft occurs when savenow.exe pops up a
coupon attributed to WhenU by the merchant. The coupon is disguised as part of
the merchant site.</font></p>


<font face="Arial">Olschewski concludes that the scenario works as
such:</font>
<ul>
<font face="Arial">An affiliate works hard to get a visitor to the
merchant site. (e.g. via a pay per click search engine buy).</font>
<font face="Arial">The visitor arrives at the merchant site and up
jumps the 'special offer' and/or 'coupon.' The popup is disguised as part of
the merchant site. The user invariably clicks on the popup, and the WhenU
affiliate id will override the id of the affiliate that did the work to get
the customer there.</font>
<font face="Arial">The upcoming meeting will hopefully resolve the
issue and establish an amicable result for all parties. As Abraham Lincoln
once stated, &quot;A house divided against itself cannot stand.&quot; This
certainly holds true today in affiliate marketing, and tens of thousands of
affiliates are crossing their fingers that ethics and integrity prevail.</font>
[/list]


<font face="Arial"> &quot;It is imperative for
the continuance of our industry that we level the playing field so that
ParasiteWare™ (e.g. eBates) does NOT remove ANY affiliate's ability to
compete,&quot; according to Haiko de Poel, Jr.</font></p>
<p align="center"><font face="Arial" color="#0000ff">Here's to drawing a
fine line between

innovation and self-annihilation!</font></p>
<p align="center">http://www.icebase.com/go.shtml?20021030130737796839&amp;25644&amp;http://www.adbumb.com/issue64.htm
</p>
<p align="center">(C) 2002 - ADBUMB. 11 West 42nd St, 29th FL, NY NY 1003,
www.adbumb.com (http://www.icebase.com/go.shtml?20021030130737796839&amp;25644&amp;http://www.adbumb.com)
</p>

<font size="2" face="Verdana">Haiko


The secret of success is constancy of purpose. ~ Disraeli</font></p>

[ecomcity]

Well Shawn adopted your definition Haiko and AdBumb is spreading the word ..or is it just seeding manure on the roses to protect them from freezing? Who knows but I'll have some more whine & Cheese please!

PS: I always thought online advertising was the root of all evils. When do all these parasites start to eat each other?

WebMaster Mike

[Haiko de Poel, Jr.]

Mike,

Spreading the word is a great thing and I applaud Shawn Collins for doing so, especially to adbumb subscribers ... as many are parasite-centric.

Change will happen!

<font size="2" face="Verdana">Haiko


The secret of success is constancy of purpose. ~ Disraeli</font></p>

[styleforfree]

Great info Shawn! Good luck /infopop/emoticons/icon_smile.gif

With my best,

Liz
http://Styleforfree.com

[heisje]

while all the above is well and fine, I believe it is a great mistake not to include in the argument one of our most potent weapons, and certainly one that lawyers understand most:

*COPYRIGHT LAW*

great omission indeed, and inexplicable.
we sound "amateurish", while the other side retain a host of lawyers . . .

[cyclone]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> Affiliates have elected Elisabeth Archambault (buckworks.com) and myself (ClubMom Director of Affiliate Marketing, Author of "Successful Affiliate Marketing for Merchants," Internet Affiliate Marketing Association President - United States Chapter, and an affiliate) to speak for them at this meeting.
<HR></BLOCKQUOTE>

The ONLY thing Shawn has EVER been interested in is in the promotion of himself. He is inadequate, and a total negative, in the cause, from day one. The above draft is one in which a total amatuer could have done better.

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> As Abraham Lincoln once stated, "A house divided against itself cannot stand." <HR></BLOCKQUOTE>
Look at the first quote and state your stand without POINTING at YOURSELF, as you forever d Shawn. No matter where I go, your signature is longer than anything else you have ever had to say.

[ecomcity]

The meeting peanut gallery of interested observers might include the following Advertising parasitic/spyware BHO software providers like Adware, AdBreak, AdReady, Alexa, Aureate, Bulla.com, Comet Cursor, Cydoor, Doubleclick, DSSAgent, EverAd, eZula, Expedioware, Flyswat, HomePageWare, SEBar, OfferCompanion, Hotbar, OnFlow, TimeSink, Web3000, Webhancer, Transponder, Wnad, ZapSpot, SurfPlus, AdvertBar, NetPal, CashBar, WurldMediaBHO, MessageMates, EWA, Ezsearchbar, CommonName, GoHip, DownloadWare, NetworkEssentials, ImiServerIEPlugin, TopMoxie, Lop.Com, BDE Projector, UCmore, OpenMe, JaypeeSysBHo, FlashTrack, NetRadar, NetZany, NetSource ,NowBox, TrustToolBar, WinAd, Kontiki, 7faSSt Search, iWonCopilot, many BrowserHijackers and more...

Be advised that the real programmers and principles behind these software site poaching tools are in deep hiding in far off places. The business cards handed out by them represent commissioned middlemen, who will not be able to devulge the writers of the programs in case changes have to be made.

WebMaster Mike

[Shawn Collins]

Cyclone -

I'd be happy to propagate anything that you feel obliged to write for this cause. When should I expect your draft?

With regards to my stance on this issue, I am opposed to all forms of predatory advertising, and I think there are a number of fronts where we can make a difference in putting an end to these link hijackings.

I'd like to see the solution providers play a proactive role, including the institution of an education effort, so that affiliate managers know the implications of working with predatory advertisers.

Further, I'd like to see more affiliates share their stories with the media - I've spoken to a couple of lawyers on the issue, and they maintain that it would be difficult to prove damages. But PR could be a very effective tool in moving the needle.

And I'd like to see standards set as to how and where the predatory tools can be installed onto a user's computer. It is my opinion that regulation must be put into place to be sure that there's an agreement by an adult to have this software installed on their computer, rather than by their child that doesn't bother to consider the implications.

Do you have any questions, Cyclone?

Also, I think it would be

Shawn Collins
Director of Affiliate Marketing
ClubMom, Inc.
http://clubmomaffiliates.com/
http://iAfma.us/
http://affiliatemanager.net/

[buckworks]

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR> The above draft is one in which a total amatuer could have done better. <HR></BLOCKQUOTE>

The above article was actually written and distributed, which is considerably more than your mythical "total amatuer" [sic] achieved in this context.

I'm reminded of the words of Finnish composer Jean Sibelius: "No one ever built a statue to honor a critic."

Elisabeth Archambault

[walleyewarrior]

This topic is like the lotteries. If you don't have a ticket, you can't win.
Same as if you want some changes, offering them and not complaining or taking personal shots at people. If you don't offer up productive info do you have any say in it what may happen with this matter.

I don't know shawn or elisabeth, but am hoping that something will happen at the meeting. They are a part of the the meeting, in what I see is going to be a thankless job, no matter how they proceed or handle themselves, as can be noticed in the post above. So far I havent seen anything but professionalism from them both as it should be. I am going to hope that OUR best interests are being moved forward at the meeting. So far I haven't seen anything in here that has made me think otherwise up until this time.

How about I suggest that instead of bashing people that have chosen to be part of this and get our industry put back under OUR control, our focus should be against the parasites themselves. Weren't they the ones that we were trying to stop??????

Sorry, just had to say it after seeing numerous posts bashing evertything in ABW this AM

WW

It was so cold last winter that I saw a lawyer with his hands in his own pockets.

[ecomcity]

Shawn said: "And I'd like to see standards set as to how and where the predatory tools can be installed onto a user's computer. It is my opinion that regulation must be put into place to be sure that there's an agreement by an adult to have this software installed on their computer, rather than by their child that doesn't bother to consider the implications."

Therein is the problem for the merchant's endorsing the P2P adware plug-ins and other "incent" BHO Affiliate Applications. The majority of endusers, who have accidently installed these programs that compromise the privacy of that systems users, are minors without credit cards. That is what alerts the States' Attorney Generals to the commission perps using spyware/parasiteware hidden downloads on their FREEbee, file share or reward offerings. The minors are easily enticed to just hit the "I accept -install button" without ever pooring thru the 5 page legaleze EULA that most attornies would have a hard time digesting the privacy/security ramifications. The P2P files also have no "Net-Nanny" features to stop porn viewing by minors. Merchants do not want their targeted affiliate traffic to be without a credit card and under age ofr binding sales transactions.

The networks need to run all BHO Affiliate commission grabbing applications out of their ranks for their merchant's and normal affiliates sake!!

WebMaster Mike

[7-days]

I second what Walleye posted. Could not have said it better myself.

[heisje]

PLEASE,

let us support Shawn in what he is *doing*
(the emphasis on *doing* . . .)

Shawn is oftentimes "amateurish" in his writing, and no doubt pompous in his signatures - these things do not help at all,

*BUT*

he is taking initiatives, works on them, co-operates with a lot of other people, spends -I am certain- a lot of his time on behalf of all of us, being very patient with people who attack him, etc, etc.

so, in spite of his shortcomings, which are very real, he has my full and total support in what he is currently doing, and I would encourage everybody in the affiliate community to support him as far as possible.

I shall try to provide him with whatever ideas and data I have, try to influence his thinking and whatever he utters in the Nov 7 meeting, provide constructive criticism - but all that within the framework of amicable co-operation and respect for his efforts and contribution.

so, there . . .

[obstinatedon]

Wow heisje....

I have been accused occasionally of the random ad hominem attack, but that was a classic.

Obstinatedon

You must not lose faith in humanity. Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.

Mahatma Gandhi

[Shawn Collins]

heisje -

Thanks for the, uh, compliments. /infopop/emoticons/icon_confused.gif

I never knew my sig was such a lightning rod of controversy.

Shawn Collins
Director of Affiliate Marketing
ClubMom, Inc.
http://clubmomaffiliates.com/
http://iAfma.us/
http://affiliatemanager.net/

[heisje]

fortunately, despite the few dirty drops the ocean has not become dirty /infopop/emoticons/icon_wink.gif

[SSanf]

Shawn is our representative. We elected him and believe him to be the best person for the job.

Additionally, he is obviously working and doing the best he knows how to on our behalf. He deserves our support.

Constructive help, I am sure will be welcome. Beyond that, if you can't say something nice, you should have run yourself.

The Wolf Credo: Respect the elders. Teach the young. Cooperate with the pack. Play when you can. Hunt when you must. Rest in between. Share your affections. Voice your feelings. Leave your mark.

[obstinatedon]

Hi Ssanf....

I thought you might be in Denver this evening.

Obstinatedon

You must not lose faith in humanity. Humanity is an ocean; if a few drops of the ocean are dirty, the ocean does not become dirty.

Mahatma Gandhi

[SSanf]

Nope, just a private ritual at home this time.

Blessed Samhain, everyone!

The Wolf Credo: Respect the elders. Teach the young. Cooperate with the pack. Play when you can. Hunt when you must. Rest in between. Share your affections. Voice your feelings. Leave your mark.

[Herby]

[QUOTE]Originally posted by Cyclone:
The ONLY thing Shawn has EVER been interested in is in the promotion of himself. He is inadequate, and a total negative, in the cause, from day one. The above draft is one in which a total amatuer could have done better.QUOTE]

Cyclone,

I have known Shawn Collins since circa 1998/9. He is the first one to step up to the plate to promote and further the cause of affiliate marketing.

I've known him as a speaker, a sponsor, a writer and affiliate. He has promoted three AffiliateFORCE events to date and declined any and all commissions. He has cajoled Club Mom to sponsor two events and goes out of his way wherever he can.

He opens his home for affiliate marketing events to facilitate dialogue and networking. (At the last BBQ at his home, his wife Vicky was slaving in the kitchen, catering for the 30 people trampling his lawn outside, beavering away making deals. We left his home at 11pm on a Saturday night. Yes, he sacrifices his family time too.)

I might add that Shawn put his hand in his own pocket for the drinks and food to feed 30 people. He even declined his iAfma.org commissions and put that in the beer barrel too.

Hangovers aside, the biggest contribution he makes to this industry is hours and hours of writing. Words which are disseminated far and wide in respectful journals, websites and newsletters. All with the good intention of bringing attention to affiliate marketing. That's what we need right now to influence companies to take this business model seriously and bring affiliate managers from down the corridor, into the board room meetings.

Shawn Collins is smart. He spends all this time and effort, not because he wants an egotistic epitaph, but because he knows it helps oil the cogs that keep him in a job and puts food on the family table.

He is making a concerted effort to help keep this industry alive and I for one, am more than happy to buy his book and make sure he gets a cold beer to cool down his "hot" signature.

As far as I can tell, the writings of Shawn Collins are helping to make a difference, be they judged "amateurish" or not.

Cyclone, of course I'd be happy if you can point us to any tangible evidence of your contribution to the industry that is feeding you.

Cheers,

Herby

Herby Olschewski

(Currently in Miami, Florida)

Internet Affiliate Marketing Association

"Keeping it Fair in Revenue Share"

Herby@iAfma.org
http://iAfma.org
Tel/Fax: +41-1-274-2900

[kickaha]

I am academically interested in the example cited by Jim Gribble in the above piece.

Taken by itself it could be interpreted as an ad hoc fallacy (post hoc ergo propter hoc).

Does anyone have other comparable data sets?

thanks,
Wayne

Wayne Porter
V.P. Product Development
AffTrack LLC.
http://www.afftrack.com
http://www.revtrends.com
Advanced & Automated Data Analysis for Performance Marketers.

[mrmerchant]

Don't hold your breath, Wayne.

"Jim Gribble inferred from this analysis that sales were being shifted from previously productive affiliates to this predatory affiliate and that this affiliate was not providing any significant increase in sales on their own."

This is where you lose everyone's respect, guys. C'mon now. How do you *know* the percentage that the evil affiliate might be sending that are "their own" (legit)?! You must know this percentage before drawing such a firm conclusion. PLUS... you take all of these loose little factoids that have nothing to do with nothing and you come to THESE conclusions? Really? This is what people pay Gribble for? How much I wonder?

Could the "small increase" be due to the fact that the merchant was undergoing technical issues at the server level over this period of time? Could this merchant have cut a deal with an email provider that turned out to be "questionable" and flooded their server with garbage traffic for a week - thus, negatively impacting site performance and, thereby, increasing abandoned shop carts - deminishing ROI on affiliate program sales? These things happen people! Did Jim take any of this into consideration... rr could it be that Jim Gribble's program management just isn't very effective? That affiliate newsletters really aren't the silver bullet that generates ROI at the end of the day? This isn't a pot shot at Jim... it's just a does of reality coming from someone who happens to have insight (me) into multiple merchant programs... many of which are working just fine and dandy with these so-called evil doers.

"Therefore, Gribble recommended to this merchant that he end his relationship with this affiliate, as "he was damaging his pre-existing affiliate relationships and would find it more and more difficult to keep these relationships in place, as well as attract new, productive affiliate partners."

Oh, my. I have no words for this recommendation. I really have to stop now. Let me just end with "where's the logic?" Hyperbole rules, Wayne.

You won't find crap like this in a decent trade publication - just affiliate newsletters and good ideas gone bad like AdBumb (need I point out the bow to Masha at the end of this week's issue - AGAIN he is forced to kiss up to those who threaten him). Real trades require facts - not to mention quotes from people who matter. No offense to anyone, of course.

[mrmerchant]

"ParasiteWare™"

Bye the way... you have to actually have a Trademark to use a trade mark symbol, folks.

[kickaha]

Mrmerchant,

I agree there are a range of variables that could impact the data.

This is the reason why I am specifically asking for other data sets to corroborate the assertion.


-wayne

Wayne Porter
V.P. Product Development
AffTrack LLC.
http://www.afftrack.com
http://www.revtrends.com
Advanced & Automated Data Analysis for Performance Marketers.

[mrmerchant]

Wayne... PLEASE stop cluttering up this board with your requests for a reasonable set of data to draw conclusions from. Jim Gribble has spoken - via Shawn Collins no less. I suggest you hire him immediately. Perhaps both of them.

Okay, but seriously... Adbumb HATES revenue sharing and CPA. They are laughing their asses off right now... watching this board fall all over itself - "hurray Shawn, self appointed king of affiliatedom and heaper of illogical, emotionally-charged fuel on the newly burning fire!" I can only hope that some wayward newspaper reporter contacts him again so that he can cry an ocean of tears into its pages. What is to become of the small business owner? Oh, no... they may have to - gasp - adapt to the ebb and flows of the way the Internet works. Aaaahhhrgh... better to just whine and write articles that make no sense.