BEST PRACTICES | NOVEMBER 2007

Compliance Issues to Watch Out for This Holiday Season

By Joe Obringer
LinkShare Corporation

As we move into the busy holiday season, an important way to ensure your program is running smoothly is to make certain that publishers are complying with your Terms and Conditions. Below, you will find descriptions for a couple of the most common compliance issues in the affiliate industry, as well as steps you can take to identify violators.

Trademark Bidding
Most programs have restrictions related to bidding on trademarked terms in search engines. Trademarked terms provide the highest click through rate and the best conversion, thus making them extremely appealing to publishers in the pay-per-click (PPC) game. The best way to find violators is to manually search for your trademarked keywords. However, you should be aware that this method is not always reliable. Publishers have started to use several methods to sneak around the manual search, including geo-targeting and ad scheduling.

1. Geo-Targeting: Most PPC programs offer the option of targeting an audience
by geographic region (city, state, and/or country). Violators will use geo-targeting to their advantage by trademark bidding on terms in areas other than your current location, thereby preventing them from coming up in your search results. One way to identify these geo-targeting trademark bidders is to ask a friend or coworker in another office to try searching.

2. Ad Scheduling: Many affiliates will schedule their ads to run only at night to ensure that the publisher manager searching between normal business hours will not see their ads. This method is called ad scheduling and can be automatically set up through most major search PPC programs. Try searching from home at night or on weekends to catch these publishers who are bidding on your trademarked terms.

 













At LinkShare, we recommend a three strike rule to handle publishers found in violation of your Terms & Conditions. The first violation involves a written notice, the second consequence is a temporary removal from your program, and the third is a permanent removal from your program. When approaching first-time offenders, we strongly recommend attaching a screen shot of the violation ad to prevent the publisher from denying any wrong-doing. Most publishers comply immediately after their first violation warning, but it is important to have more severe consequences in place for repeat offenders.

Typosquatting
Typosquatting, by definition, occurs when a publisher purchases a domain name that is a common misspelling or typo of a merchant’s website URL. When an unknowing customer mistakenly enters the misspelled URL, they are automatically redirected to the merchant’s website by the typosquatting publisher, who then earns a commission. Below are a few common techniques typosquatters use to find domain names:

Original Domain Name: “WidgetStore.com”

1. If the domain is composed of two or more words adding a hyphen in between:      “Widget-Store.com”
2. “wwwWidgetStore.com” or “WidgetStorecom.com”
3. Common misspellings: “WidgitStore.com” or “WigetStore.com”






If a typosquatter is identified, your company's legal team should be immediately notified before further action is taken, especially if this is a corporate brand situation. Publishers found in violation of typosquatting should be sent a ‘Cease and Desist’ letter. If the issue is not immediately resolved, they are permanently removed from the program.

Every merchant’s terms and conditions are different, so without continual enforcement, some publishers may knowingly or unknowingly abuse them. These violators are taking traffic away from high-quality publishers who work hard to earn your commission. If you regularly monitor the compliance issues described above, not only will you be ensuring the integrity of your program, but you will also be on your way to a profitable and safe holiday season.