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  1. #1
    Moderator Nabz's Avatar
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    Thumbs down HostGator Affiliate Scam, Fraudulent Reversal
    I read it many times how big commissions hosting companies pay to their affiliates and how bad they scam them. For that very reason I never promoted any single one of them.
    I purchased a reseller package for $300 at hostGator in December using my friend's affiliate link. The sale was tracked and $100 in commissions was credited to her account , but today I was informed by her that the transaction have been reversed, though my hosting account with HostGator is still up and running. In this case the affiliate directly knows the customer who made the purchase and immediately acknowledged that the reversal is incorrect and potentially fraudulent. In my 5 year experience of affiliate marketing I have never directly known the customers I have referred to merchants and it is impossible for me determine if the reversals posted by merchants are legitimate or fraudulent unless I am directly in contact with the customer. This is a big loophole in this industry, If a well respected hosting company like HostGator can do it then I will keep my expectations low for other merchants.
    I have asked my friend to contact HostGator regarding the transaction, I will keep you posted with the outcome.
    Last edited by Nabz; February 8th, 2010 at 11:29 PM.

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  3. #2
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    Yep, Hostgator does this. I have had the same experience.
    I got out of the hosting niche, since I found this behavior to be rampant, even among well respected hosts.

  4. #3
    Affiliate Manager emphimy's Avatar
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    for all those have bad experience with hosting companies, just try us once. If you ever see any reversal for an account which is still up and running, i am ready to pay 10x for the reversed commission. Also I am ready to give detailed explanation for the all cancelled sales if requested...
    Serkan Kutlubay
    myhosting.com - Affiliate Manager
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  6. #4
    Life is Supposed to be Fun! Rexanne's Avatar
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    Quote Originally Posted by Nabz
    In my 5 year experience of affiliate marketing I have never directly known the customers I have referred to merchants and it is impossible for me determine if the reversals posted by merchants are legitimate or fraudulent unless I am directly in contact with the customer. This is a big loophole in this industry, If a well respected hosting company like HostGator can do it then I will keep my expectations low for other merchants.
    It's a horrible reality, Nabz. We have to blindly trust merchants to credit our sales, not turn tracking off, not pull crap like Host Gator pulled on your friend and on and on. It's an industry where we have no choice but to blindly trust and once trust has been breached for whatever reason, it's all over for the person or company who screwed an affiliate out of money.

    I have a list of people and merchants in this industry that I lost trust in and those close to me know exactly who they are. A merchant who does this needs to be outed in public, such as you did. The only defense we have is outing the schmucks and never ever working with those merchants or industry people again.

    Thanks for outing Host Gator, Nabz. Yes, we've heard it before and it's always heart breaking but better to know then not know.

    And FWIW, I would never host a site with Host Gator because of this.
    Peace,

    Rexanne

    Rexanne.com
    Loving Everyone's Child Creates Magic


  7. #5
    Moderator Nabz's Avatar
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    Quote Originally Posted by Rexanne
    And FWIW, I would never host a site with Host Gator because of this.
    I am already looking into it, I currently have 1 dedicated server, 2 reseller and 1 shared hosting with them totaling in $2,800

    If a merchant is involved in such activities on affiliate side, then I doubt their honesty with their customers.

  8. #6
    Comfortably Numb John Powell's Avatar
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    If a merchant is involved in such activities on affiliate side, then I doubt their honesty with their customers.
    Like they say "beauty is only skin deep, but ugly is to the bone."


  9. #7
    Crazy Cat Lady Heidi's Avatar
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    I just got a reversal yesterday for a friend who signed up with my affiliate link also back in December. So another fraudulent reversal to add to the list
    Heidi
    "Happy are those who dream dreams and are willing to pay the price to make them come true"

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  11. #8
    Moderator Nabz's Avatar
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    They did not even bother to reply to her email.

  12. #9
    Member talentcn's Avatar
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    What is wrong with having a friend purchase the service and you getting the commssion? Did they say anything about the reason?

  13. #10
    Moderator Nabz's Avatar
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    Quote Originally Posted by talentcn
    What is wrong with having a friend purchase the service and you getting the commssion? Did they say anything about the reason?
    They said they will not pay for existing customers buying another service.

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  15. #11
    ABW Ambassador ladidah's Avatar
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    High reversal rates can be a good red flag for us affiliates which CJ unfortunately does not show like in SAS. If we see that their reversal rates are climbing or higher than the norm we can not join their program or if we are already an affiliate, confront them if we get a reversal.

    CJ needs to not let merchants hide behind their control panel and system.

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  17. #12
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    Quote Originally Posted by ladidah
    High reversal rates can be a good red flag for us affiliates which CJ unfortunately does not show like in SAS.
    They used to show it. It was eliminated a few years ago.
    Since June 10, 2012 a vegan aarf but still writing the Hound Dawg Sports Blog
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  18. #13
    Affiliate Manager ParadigmWilliam's Avatar
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    I do have been doing very well with Hostgator these past few years and never had one reversal. All of a sudden in the past few months half of sales are extended and 25% reversed. I know its crap because I offer web advice for a lot of people locally starting a new website and have them go through my website. I know they are still users and communicate with them once a month or so to see how their site it.

    In one week I had 10 sign ups (some big sales over $200) and they reversed 4 of them. I will show anyone statistics if they want. Unlike the OP I know most of the people I refer through business and can confirm they are still active.

    Advice, Hostgator's affiliate program is slipping bad. I hope they read this. Sadly I have been slowly transitioning to a new hosting company to refer to people.

  19. #14
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    It is sad that this is happening with HG. I agree many hosting providers are fraudulently reversing the affiliate commissions. Perhaps a legal case can be pursued against this fraud prevalent in this industry!

  20. #15
    general fuq mrbshouse's Avatar
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    anyone who reads Abest has no right to complain about HG, the truth has been posted here for years.

  21. #16
    Affiliate Manager ParadigmWilliam's Avatar
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    Quote Originally Posted by mrbshouse
    anyone who reads Abest has no right to complain about HG, the truth has been posted here for years.
    yea but its just sad its happening more and more. Maybe because the economy is down and they need to "cut costs" somewhere.

    I ended up just getting a server with a reseller account and referring others to my hosting site. It pays off in the long run. I just didn't want to deal with the hassle of being a hosting company.

  22. #17
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    Wow, it seems that I've been lucky so far! HG is by far my best program with not a single reversal.

    I'll keeo my fingers crossed.

  23. #18
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    Hostgator Affiliate - Call attorney general and BBB that will make them think
    For anyone that is being fraudulent with affiliate commissions is a crime, not just being a scam, call the attorney general office and post online to all those that have been ripped off for their money to contact attorney general office in the state where hostgator is located and the BBB, this will now build a case against them and if enough people do this they will take a big bite out of their butt like a pitt bull and not let go until they say ouchhhhhh and get their affiliate program shut down so they will lose more money now since now they cannot scam anyone any longer and pay back commissions to those they defrauded.

  24. #19
    Full Member silver93350's Avatar
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    I recently wrote a post on HG and how unethical they are to their affiliates. It's one of the worst experiences in affiliate marketing I have ever had. One person even responded to my post stating that nearly all 70 sales in a month got reversed. Stay away from the HG affiliate program. If you have been duped leave me a comment here: Hostgator Reverses Commissions – Bad For Affiliates
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  25. #20
    ABW Ambassador kaizen's Avatar
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    I don't mean to be pissy, but why do you promote them on your web hosting site if they are dishonorable?
    We did not change as we grew older; we just became more clearly ourselves.
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  26. #21
    Full Member silver93350's Avatar
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    It's all good, I understand.

    I do promote them on my site as I feel they are a good hosting company. But, I would rather people use InMotion, GreekGeeks, WebHostingHub, ect. Ones that actually pay me. I do like Hostgator but from an affiliate standpoint I just can't rely on them.
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  28. #22
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    Does the usuall solution work - sending them notice you will leave them and promote some other hosting company if they keep reversing legit sales.

  29. #23
    Full Member silver93350's Avatar
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    Hostgator could care less if I existed so I would say no.
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  30. #24
    ABW Ambassador superCool's Avatar
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    for what it's worth...

    superCool had a similar situation - a known valid sign-up was reversed. After going back and forth with HG a few times it was brought up that for a commission to be paid, the primary domain (or whatever it's called) must be active on the account. So if you sign up with abcd.com as your primary domain, then you have to have abcd.com live on the HG account. superCool knew there were other sites up on the account so told the HG person about it. They credited the commission back. A month later it was reversed again for the same reason. superCool got back in touch and they posted the payment.

    So apparently the primary domain that you sign up with has to be live on the account or they will reverse the commission. At least that's what happened to superCool. If you know there is at least one site hosted then you can follow up and let them know.

    good luck

  31. #25
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    You can follow up in every case, because no person pays for hosting if she doesn't have at least one domain active.

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