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Why Should I Take The Blame For Unauthorised Voucher Code Usage?

Around a month ago I locked myself away and immersed myself in airport parking. The result is something I’m very happy with, listing all affiliated car parks around the UK. It was all hand crafted including the data that powers the site.

It wasn’t long before my first sale rolled in. And it wasn’t long before it rolled back out. I checked the network a couple of days later to see the sale cancelled, with the reason cited as:

"Dear Affiliate we were unable to process some of your transactions due to voucher code use. We are unable to accept unauthorised voucher codes. Please contact xxx @ xxx if you wish to discuss this further. Kind regards, xxx"
(The merchant shall rename nameless as it’s an industry wide problem. As confirmed readers of this blog, they know who they are.)

Naturally, an email address invites an email so I fired one away.

The one returned enclosed a copy of the merchant’s voucher code policy:
"xxx makes voucher codes available strictly for certain groups such as the airline industry. Affiliates are prohibited from adding these to their websites or promoting them via other means such as in their newsletters. This is actively monitored. If an affiliate has promoted a voucher code, all their commissions will be revoked.

xxx would like to emphasize that if any affiliate transaction is found to have used a voucher code, no matter from which source the voucher code has been acquired, whether it is the affiliate site or not, that transaction unfortunately cannot be paid for."
The overall vibe I get from this is that no voucher codes can be promoted by affiliates whatsoever. All good and well, I tend to avoid voucher codes like the plague.

So it turns out I get penalised for following the rules, and as the result of someone else out there breaking them. If a couple of codes exist for small minority groups, these must have somehow found their way into the mainstream.
 
Is It fair?

I can understand why the commission has to be reversed but I certainly don't agree with it. Rather than go after me for following the rules, why don't they go after those that are publishing these rare gems of codes? Surely that makes more sense?

The Solution

Various solutions exist. Later in the terms, it reads:
"While other merchants would delete these bookings automatically before they even showed in the networks' systems, xxx does not have this implementation set-up yet, and so the affiliate transactions which also have a voucher code used are deleted manually on a weekly basis."
This doesn't solve the problem, it just hides it. By deleting it before it reaches the network, surely that constitutes a degree of fraudulence and mistrust? Surely affiliates have the right to know about every transaction they generate, not just the successful ones?

Another solution is to revoke all voucher codes. The purpose of a voucher code is to make a sale by offering a more attractive price. Why not just make prices a little cheaper across the board or rely on non-price related USP's to get the sale. How about relying on those humble affiliates you've got working their socks off for you? Ah, but the chances are the mighty airlines and voucher code sites account for a large share of sales, hence why affiliates get kicked from all angles.

The third idea is to go and penalise the offender who has published said code in the first place. A Google search for the code itself would be a nice and easy start. In fact, the terms state:
"Affiliates are prohibited from adding these to their websites or promoting them via other means such as in their newsletters. This is actively monitored.
It can't be monitored that actively for this to happen. If consumers have a voucher code, they would go directly to the merchant, not to me then to the merchant.

In all likelihood, the consumer has found me, decided to buy and then looked for a code. A look at my logs and it took just under 2 hours between landing and buying. Plenty of time to search for and try out a few codes.

Out of sheer curiosity I did a quick search for the merchant name plus "discount" and on page 1, found what appear like valid codes that would save me between 15% and 20%, and are quite niche. For example, one was issued by RAC to its members but appears on a top 10 site. So much for monitoring.

The offending voucher code sites are affiliated with the merchant so whilst I'm happy in the knowledge that they will be losing money too, I'm not happy that they are losing me money.

Will This Ever Be Resolved?

I suspect not. I imagine us small affiliates will be kicked by both larger affiliates running consumer driven sites (words like "fight", "revenge" and "anarchy" spring to mind) as well as several merchants who rely on such sites to bring them volume. And if they are cancelling such sales, then that (in my mind) equates to free affiliate traffic.

Luckily there are some retailers out there that either don't distribute codes or who actually value the work affiliates do for them.

But this issue does raise several issues. How many merchants are hiding such sales, deleting them before the networks get hold of them? How many sales does this actually account for and how much are affiliates really losing? Finally, will there ever be a resolution that satisfies affiliates of all sizes as well as the merchants and key partners?

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7 Comments

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matt

matt

Speak to the merchant, if they're not helpful, promote someone else.

From the merchant's POV, affiliate is basically a marketplace for web distribution, they put an offer on the table (via a network usually) and hope take up will be worthwhile. If most affiliates continue to run a brand regardless (most will), the merchant has no reason to change, the market is working well for them.

Written on Friday 24 July 2009 at 17:05:41 GMT (Permalink)

Darren

Darren

I agree it's wrong to blame others for unauthorised voucher code usage. I'm sure many will argue that voucher codes have their place but I don't agree. Like you said in your post surely the solution is to provide good prices and other unique selling points in order to entice the customer.

Voucher codes are not doing the affiliate marketing industry any good and although I have to admit I have such a site I only promote it as a last choice on my content sites and it is merely the case of if you can't beat them join them, with a view to try and reduce leakage.

If the likes of Amazon for example who are a huge worldwide brand can do without them then surely other can and just offer good prices instead.

Perhaps it's one of the reasons I tend to promote Amazon when I can. They also don't seem to work with cashback sites which is another added bonus!

Written on Friday 24 July 2009 at 22:00:49 GMT (Permalink)

David

David

@Matt - That idea certainly crossed my mind and if this persists, I'll happily send traffic to another merchant.

@Darren - I considered setting up a voucher site but lost interest. I agree with your point about Amazon. Good prices, good service and no voucher codes!

Written on Saturday 25 July 2009 at 12:06:50 GMT (Permalink)

Rob

Rob

Hi David,

Nice site. I hope it goes well for you.

If I was a merchant I would be concerned about the drop off caused by having a voucher code box on my checkout page (scenario - holidaymaker is about to book, sees the voucher code box, searches for it in a new window, lands on a page with car parking offers from other merchants and subsequently books with them).

I understand the commercial reasons behind having deals for airlines etc and I can see that the merchant would be crazy to pay e.g. 10% out to an affiliate when the discount has already taken the margin down to a few percent. However the merchants should be looking at alternative to the voucher code on checkout page - they do exist. ... special URLs, whitelabels for example

Written on Monday 27 July 2009 at 11:34:55 GMT (Permalink)

hero

hero

"xxx makes voucher codes available strictly for certain groups such as the airline industry. Affiliates are prohibited from adding these to their websites or promoting them via other means such as in their newsletters. This is actively monitored. If an affiliate has promoted a voucher code, all their commissions will be revoked.

xxx would like to emphasize that if any affiliate transaction is found to have used a voucher code, no matter from which source the voucher code has been acquired, whether it is the affiliate site or not, that transaction unfortunately cannot be paid for."

These are 2 contradictory things - if they monitor what their affiliates are doing, they will know which affiliates of theirs follow the guidelines and won't penalise them for something out of their control: the customer finding a voucher. It's unfair for an affiliate to have commissions cancelled because of how the customer acts.

Having a blanket approach "we won't pay commission on any sales that have a voucher" is very shortsighted.

As to your question "How many merchants are hiding such sales, deleting them before the networks get hold of them?" - this is a very frequent scenario with local tracking, where sales are deduped at the checkout stage. The new IAB ethical merchant charter strongly recommends that merchants state what deduping they do so affiliates are informed. From my end, I prefer to only have the transactions that fulfill the criteria as set by the merchant, bar customer cancellations/refunds/fraud. I don't want my merchants cancelling sales by manually deduping or by applying external validation criteria.

Written on Wednesday 29 July 2009 at 09:36:59 GMT (Permalink)

David

David

@Hero - The agency involved claims to be actively monitoring the affiliate field penalising those who display voucher codes yet a quick search in Google reveals active affiliates doing just that.

It seems like cancelling the sales is easier than monitoring affiliate promotions, thus tarring everyone with the same brush.

Written on Friday 21 August 2009 at 09:06:17 GMT (Permalink)

David

David

@Rob - Unfortunately some merchants are short-sighted and thus don't see the vision of dedicated landing pages, white label solutions, etc.

Perhaps in an ideal world ... :-P

Written on Friday 21 August 2009 at 09:07:40 GMT (Permalink)


Thank you to all previous commenters.

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