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Opinion

The problem with the affiliate system
by Rick Hendershot, small-business-online.com

"I've recently been reminded that product reviews and recommendations from 'affiliates' are completely unreliable and untrustworthy ."

Anybody who has dabbled in web marketing knows that a prime source of revenue for web marketers is selling "affiliate" products. If you don't have your own product — and many of us do not — then all you have to do is get your web visitors to click thru to "gurus" like Jim Daniels, Cory Rudl, or Ken Evoy, and they will gladly give you anywhere from 25% to 60% of the retail price just for the click thru.

Everybody in the business seems to think this is a wonderful system. What could be better? You build traffic to your site and gradually gain credibility as a reliable source of marketing information. And you leave the product development to the guys who really know what they're doing.

You send them the prospects. They send you the checks. Ka-ching.

But I prefer another way of looking at the affiliate relationship.

While you build your business and (maybe) develop your own products and services, you prostitute yourself to the gurus who already have the products.

Why do I prefer this interpretation?

Because as far as I can tell the "affiliate" relationship turns us into lemmings.

It encourages entrepreneurs to latch onto affiliate products in an absolutely uncritical way. Many of these products are nothing more than glorified "how to" manuals, but intense hype by experienced marketers turns them into "super products". And a bevy of willing affiliates cannot offer objective information about these products because their livelihood depends on selling them.

For instance, Ralph Wilson (www.wilsonweb.com) is known for his extensive research into all aspects of web marketing. He is also a major affiliate for products like Site Build It. Do you think this affects his objectivity about these products?

Is there any question? In fact I have never read a critical review of a program like Site Build It. Why would you be objective about a product if you stand to make money every time it is sold? In fact, this seems to be an unwritten rule about web marketing products. No criticism. Ever.

And therefore it is virtually impossible to get objective third party information about products that are sold through affiliates. And please don't tell me to look on the discussion forums. Why should I rely on a bunch of disgruntled consumers to do the job the "experts" won't do?

Do you see what a beautiful system this is for enterprising marketers? Create a product. Make it available to affiliates. Offer a handsome commission. And no one (except the poor suckers who buy it) will ever say a negative word about your product again.

In fact, it gets much worse. Not only are affiliates uncritical about products, but they can be downright misleading in their praise of them.

For instance, I was recently searching for an autoresponder program, and because I was an affiliate for Cory Rudl's products, I thought I would try his much-hyped program called "My Email Manager". One of the reviews I read about the product praised it up and down and gave it a glowing "five star" rating.

After struggling with My Email Manager for a week or so I concluded it was a turkey. It just didn't do the things it claimed it could do. The product promotion was clearly misleading, and the review I had read bore no resemblance to my experience. I doubt very much whether this person had actually tried the program.

But that's how the affiliate system works.

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Small Biz Tips: The Problem with the Affiliate System



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