Date: Sunday, January 11th, 2009.  Session 3d, 3:00pm.
Session Description: There are two sides to ethical issues in affiliate marketing, and we will entertain audience questions for a panel of industry leaders.  The panel consisted of:

• Haiko de Poel Jr., Managing Partner, dp internet services LLC, DBA ABestWeb (Moderator)
• Connie Berg, CEO, FlamingoWorld.com LLC
• Chuck Hamrick, Affiliate Manager, affiliateCREW.com
• Brian Littleton, President/CEO, ShareASale.com
• Alex Butin, Freecause (Alex stood in for Paul Nichols from Ebates, who had to bow out last minute)

With Alex on the panel and the latest big issue facing affiliate ethics being toolbars overwriting affiliate cookies, I think that swayed the tide of the questions asked by both Haiko as moderator and Q&A portion.  I would have liked to hear more questions asked by audience members, but admittedly, I didn’t have any to ask myself since I’m still learning about all the different issues that eat at the ethics of the industry.

Bullet Point Review!

• Haiko made a good analogy to Las Vegas and asked: is the soul of the industry gone?
• Online marketing is becoming the default medium for high ROI.
• From your unique vantage point, where do you draw the line?
  • Chuck, as an OPM, said: Knowingly doing something that’s unethical.  Working with adware and parasites knowing that’s wrong.  Allowing PPC tactics you know affect other department’s performance.  Being an affiliate of your own program.  Playing favorites.
  • Connie, as a coupon affiliate, said: Coupon sites that have a toolbar that overwrites other cookies.  Auto load cookies.  Social media apps. Networks owning competing affiliate sites.  As new technology comes out there are new ways to cheat.
  • Alex, as a technology provider, said: Be clear with your motives, evolve your business models.  It’s up to merchants to decide what’s unethical, as a company they don’t want to create a tool that doesn’t do exactly what it says it does, so they’re not interested in shady features that aren’t advertised.
  • Brian, as a network, said: They see “interference” to tracking as a problem period, and since parasites, toolbars, etc. interfere with tracking, they’re out.  They’ve also seen a total disregard for other company’s policies (affiliates breaking Google rules was his example) and they have no interest working with those people.  Don’t turn the other cheek to practices you know are unethical.
• There’s a whole movement of squeaky clean networks and businesses.
• We need to take charge because the networks won’t.
• People are pushing the term “affiliate” under the rug and re-branding as “performance” marketing.  Performance is all inclusive and too broad to represent affiliates.
• Network compliance teams are a joke.
• The industry needs more disclosure and transparency, not division and separation that some organizations are actually providing (seemed to hint at the PMA).

Points brought up during the Q&A

• One question asker made the statement that “cookies are dead”, referencing the new browser technology recently coming out that has been blocking affiliate ad displays and blocking cookies.  Brian respectfully disagreed with the statement that cookies are dead, but said his network is looking at ways to track without cookies, but couldn’t get into specifics for obvious reasons.  Other panelists agreed that the cookie issue isn’t too big yet.
• Brook Schaaf asked about the negative thoughts associated with coupon sites, and Connie and the other panelists agreed that “one bad apple spoils the bunch”, so to speak.  There are shady coupon sites running toolbars that overwrite cookies, stealing non-affiliate coupon codes from the merchant’s website, and stealing exclusive codes from other affiliates that have given legitimate coupon sites a bad name.

Based solely on the description of this session, I was hoping for more of a discussion, but despite the room being packed, the panel was over 20 minutes early with just two questions asked.  I’m glad that it seems they took the feedback from Boston and toned the emotion of the session down a bit, and I hope to see further discussion at future Summits, or perhaps even a jam session type event to just address ethics.  It seems like a discussion bigger than an hour long panel can accommodate.

There’s also a recap from Michael Buechele’s point of view on the Affiliate Summit Blog:  Affiliate Summit West 2009 Session Recap – Ethical Issues in Affiliate Marketing. Check out a different perspective.

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Well, I think many people attending this session were expecting the topic to be heated, but l’m not sure they were expecting some of the venom that seemed to be in the room.  Speaking for myself, I certainly didn’t.  Originally there was only supposed to be one panelist fielding questions, but since 4 out of 5 working group leaders were in attendance, they were also recruited to speak.  So ultimately the panel consisted of:

• Rebecca Madigan, Performance Marketing Alliance
• Sam Harrelson, Publisher, Cost Per News
• Brook Schaaf, Schaaf Consulting
• Brad Waller, VP Business Development, AdJungle.com
• Peter Bordes, CEO, MediaTrust

Guns were slinging!  Unfortunately there’s not many bullet points to be had, but here you go.

Bullet Point Review!

• PMA is in germination phase – not a real entity yet.
• Why start now?
  • Misinformation & lack of representation.
  • Legislation.
  • Lack of transparency.
  • Maturity of industry.
• Formation process still underway.
  • Interviewed over 60 industry leaders, Formation Advisory Board voted in by 100 peers.
  • Working groups of 45 volunteers.
  • Working groups make recommendations on formation.
  • FAB 11 ratifies formation proposals (click here to see members).
• The working group committees are Scope/Objectives (headed by Sam Harrelson), Governance (Brook Schaaf), Fundraising (Peter Bordes), Membership (Durk Price), and Operations (Brad Waller).

Points (or other observations in this case) brought up during the Q&A

• Right off the bat the questions were hostile.  There’s animosity about the PMA using the NY Tax situation as a launching point for formation despite the fact that they can’t do anything to help.
  • Essentially there’s nothing the PMA can do since they’re NOT a fully formed organization, no matter how much they want to help.
• Rebecca acted as moderator and moved the conversation on after almost 20 minutes of hostile banter.
• The PMA blog as been quiet because the people in working groups have had their heads down working on things without much to report at this point.
• The term “Performance” has been used over “affiliate” because it is more inclusive of the larger base of members within the industry.  Inclusive of a lot more relationships than just the affiliate – merchant relation.
• The PMA has a very similar model as a chamber of commerce but the scope is still being set up.  They are looking at the chamber model in forming things.  Mostly they want to improve visibility & credibility.
• Rebecca was questioned as to why she didn’t attend the meetings in Albany that the NY affiliates had since she’s actually the only paid member.  It was decided that there was no reason because it would have been redundant and she can’t represent an organization that isn’t formed and doesn’t officially exist.
• They were asked why they divorced themselves from ABestWeb after the controversy, to which they responded that they didn’t divorce from it BUT once a particular few threads got ugly and became increasingly unprofessional they just stopped participating in those threads.
• There’s no conspiracy regarding Rebecca’s involvement – Anik Singal of Affiliate Classroom generously donated her salary for a year and she’s just being paid to “corral cats” and help form the organization.  Her comment was that if she weren’t paid for this she’d have bailed long ago based on the assumptions about her involvement and what she’s had to deal with.
• An affiliate asked how they can be assured that the PMA won’t be overtaken by large company sponsorhips and forget the little affiliate?  The affiliate industry is it’s own little ecosystem and the heart of it is the average affiliate.  They’ve been very hypersensitive to the issue to ensure that affiliates are included.

It seems that there’s lots of confusion about the organization – or lack thereof – and hopefully the Q&A has taken things in the right direction.  Perhaps Q&A wasn’t the right moniker.  Maybe Suggestion Session or Feedback Forum might have worked better.  It was disappointing to see one of the most vocal critics of the PMA – ABestWeb founder Haiko de Poel Jr – leave the session half way through in apparently disgust.  I hope that future discussions going forward will be a bit more productive than the session in Boston.

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Issue 2 of FeedFront Magazine is hitting mailboxes as we speak, and will be distributed at Affiliate Summit East next week.  I’m happy to say that an article I wrote has been published!  Now you can read all about a great strategy to keep in contact with your affiliates as a manager.  Check out my article on page 12 of the magazine.

If you can’t wait for your hard copy (as I couldn’t) you can download just my article here.  Or, if you actually want to read the whole issue, you can get it here.  There are a lot of other great articles this time around, including a look at ABestWeb.com founder Haiko de Poel Jr, coupon code woes, and avoiding NY state tax nexus.

I hope to write another article for FeedFront soon, I just need to rack my brain for some ideas .  If you’ll be going to Affiliate Summit East, we’re sure to have a blast.  Remember to take lots of pictures – the gang at FeedFront is holding a contest and YOUR picture (or mine!) can win the coveted cover position for the 3rd issue of FeedFront.  Not only does the winner get the bragging rights of having their photo on the cover of the magazine, but you also win a full conference pass to Affiliate Summit West 2009 happening in Las Vegas January 11th – 13th.

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