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  1. #1
    Join Date
    March 21st, 2007
    hosting affiliatoin through CJ
    I've been advertising a famous hosting campany using PPC for a few weeks through CJ
    Suddenly - half of my march sales were removed from my comissions for a reason of "fraud and deleted orders".
    All the traffic seems OK, keywords are various and nothing seems wrong.
    My question is :
    1. Does such a thing happened to someone (a lot of deleted / fraud orders in hosting)?
    2. What can I do in order to prevent such a thing?

  2. #2
    Internet Cowboy
    Join Date
    January 18th, 2005
    Web hosting is one of the worst things to promote as an affiliate. Hosting companies have been caught over and over cheating affiliates out of commissions and there is also a lot of fraud in that vertical. Do some searches here for the company name and chances are you will find that they have been called out at one point or another.

  3. #3
    Verbosely Virtuous Mutt spacedog's Avatar
    Join Date
    June 8th, 2006
    I'll second UncleScooter. The affiliate manager (AM) at the hosting company I promoted had always been up front with me and we established a good working relationship even to the point of multiple phone conversations about reversals. The company has always seemed honest (you never can tell, 'course) and has a good reputation for customer service. I even have some of my own sites hosted with them and have been pleased.

    However, I consistently got very high reversal rates and I promoted them exclusively with PPC. I had the AM go through reversals one by one to analyze them each month for about 3 or 4 months (what a trooper this guy is), and they were almost all fraud-related. Scammers stealing credit card numbers, setting up quick web sites to spam/con people with or create phishing sites, and then going to the next host once this host shut them down. It's a HUGE problem in the industry. My reversal rate was consistently higher than the company's average from all sources (affiliate-generated sales and all others), assuming the AM was telling me the truth about the statistics. I'm still not sure if it has anything to do specifically with PPC. I narrowed it down to only USA audiences in the search engines and that *might* have improved it a bit, but it's hard to tell since my volume of sales was so low. Scammers/thieves are in every country.

    I'd say if you can't make a good volume of sales via PPC in web hosting, where at least you could have some expectation of reversals over a few months' data, then consider promoting other verticals with your PPC efforts. It's a very expensive PPC vertical anyway; I routinely paid up to $3.00 / click to get any kind of volume. Even at that cost, I didn't get that many clicks and only a few sales per month. And the reversals made it not worthwhile for me.

  4. #4
    ABW Ambassador Joshua's Avatar
    Join Date
    August 17th, 2006
    Yup, web hosting has a high rate of fraud. I used to run a web host, and would get fraudulent orders all of the time. Since it was high-end hosting, we manually verified every order before processing it, but most hosts cannot afford to do that. Most of the fraud came from foreign IP addresses, but there was still a decent portion that was sent over US proxies, and the only way to immediately tell fraud from that is a mismatch of the location of the IP and the billing address of the customer.

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