Questionable Business Practices in Affiliate Marketing Part 278
Update Note: Kris Jones of PepperJam contacted me via email and asked me to correct some of my statements to accurately reflect the known facts. Some of my statements were a misinterpretation of some facts on my part. I corrected the post accordingly and marked my changes for transparency purposes.
I don’t know if 278 is the exact number of questionable business practices in the affiliate marketing industry, but it is probably not too far-fetched either.
The latest example is a practice by the largest affiliate network in the United States, namely Commission Junction, and how it deals with potential threats to its business. In this particular instance is the victim the newly launched affiliate network called PepperJam Network, whose founder and CEO, Kris Jones, published on his blog about actions CJ did in response to his network launch.
Commission Junction allegedly blackmails advertisers of its network to terminate their business relationship with the network, if they do not terminate their relationship with the PepperJam Network.
Corrected Statement: Commission Junction allegedly blackmails advertisers of its network to terminate their existing marketing services business relationship with Pepperjam. CJ gave Pepperjam’s clients an ultimatum – fire Pepperjam immediately or you’ll be kicked off our network. CJ also goes on to offer Pepperjam’s clients the same management services Pepperjam was offering them.
In contradiction to other affiliate networks like LinkShare, does CJ have no “exclusivity clause” in their contracts, which prohibits advertisers to use additional affiliate networks parallel to LinkShare. LinkShare’s exclusivity clause is still cause for debate and the vote is still out that declares it unethical, illegal or perfectly okay. The big difference is also that the LinkShare clause includes any affiliate network, without exceptions. LinkShare also prohibits their advertisers via legal agreement to run an in-house program on the side.
Commission Junction has no problem with advertisers who use other networks such as Performics, any of the numerous CPA networks or run an in-house program in parallel to their program within the CJ network. Excluding one particular network without providing any reasons that would justify singling out an individual player is IMO very questionable.
Addition: Although CJ does not prohibit advertisers to use the PepperJam network in parallel to CJ, does the demand to advertisers to fire their often long time OPM, PepperJam, right after the launch of the PepperJam network, clearly has to do with CJ’s perceived threat of the PepperJam network to their business. CJ had no problem with PepperJam as OPM for CJ clients for several years, until now.
I would also imagine that this violates existing laws and regulations, which are very strong when it comes to singling out a minority without any good reason that would justify this. I am not a lawyer to be able to make the final determination of that, but by gut instincts tell me that there got to be a law against this type of business practice.
My fear is that CJ never made any of those threats in writing and only verbally without any recording made of the conversation. I can say from personal experience that this is typical business practice by Commission Junction. This allows them to say that this never happened and that it must have been a “misunderstanding”, which they sincerely regret. I would ask CJ to acknowledge their demands in writing, but I honestly do not think that they will ever provide you with something like that. It would not be the CJ who I got to know over the years, as an affiliate in their network, affiliate manager of a CJ Access advertiser and blogger who was writing more than once about the issues with CJ and their practices.
The consequences were never pretty, but I also moved away from CJ as much as I could to be able to point out these issues without having to fear CJ’s wrath coming down on me and destroying me professionally.
On another personal note I have to say that I am very disappointed in Kerri Pollard‘s response to this (Kerri is the newly appointed General Manager of Commission Junction). I know Kris well enough to believe what he wrote in his blog post about what Kerri told him in person at Affiliate Summit. I also talked to Kerri a few times in person and had a good feeling about her and her ability to change how CJ conducts business. I guess that my good feeling was more based on hope than reality, which I regret.
It is not too late yet to straighten things out and fix what is broken. I wonder if Commission Junction did not realize it yet that this kind of behavior is the biggest threat to their business and not the launch of another network.
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http://hawaii-online-advertising.com Hawaii SEO
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http://lordmatt.co.uk Lord Matt
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http://sageblogger.com Vlad
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http://affiliatemarketing.co.cc/questionable-business-practices-in-affiliate-marketing-part-278 Affiliate Marketing » Blog Archive » Questionable Business Practices in Affiliate Marketing Part 278
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