Putting the Genie Back Into the Bottle

January 30, 2009 No comments

“You can’t put the genie back into the bottle” or so says the idiom. The issues surrounding adware have certainly been a “genie” for affiliate marketing. We may have the opportunity to see if that genie really can be put back into the bottle, at least for a sub-set of adware applications, toolbars.

Yesterday Brian Littleton, CEO of ShareASale, announced a Toolbar Roundtable Discussion for next Tuesday. The purpose is to receive input from the community for establishing guidelines for toolbar behavior within the ShareASale network. This is a shift from the historical policy of ShareASale which has not allowed software in the network. Not unexpectedly, there is some heated discussion around the announcement in the ShareASale Forum on ABestWeb.com.

Many people mistakenly think that I am opposed to adware. This isn’t the case. Adware is just technology, which isn’t inherently good or bad. It’s just technology…ultimately a bunch of 1’s and 0’s strung together to elicit preplanned behavior from the computer of the end user.

What I have opposed over the years is the manner in which many adware applications generate revenue in the affiliate marketing channel.
I have been exceedingly frustrated at times by technology being abused to the point of causing schisms within our industry and stigmatizing the technology itself which, in reality, could have been positive for the affiliates, merchants, networks and consumers it was meant to serve. On more than one occasion I have stated that adware does not have to be an issue within affiliate marketing. For years now I have worked outline a model for adware behavior. Not once have I been asked the details of that model, at least until now.

My view is broader than just toolbars. I personally feel that it is possible for any adware application to be respectful of the rights of other internet businesses, benefit the consumer, and generate legitimate revenue, directly and/or indirectly, in the affiliate marketing channel. I now have the opportunity to share some of my views and thoughts on how this can be achieved.

There is a glaring reality that we cannot afford to overlook: the technology is here and it’s not going to suddenly go away. The genie isn’t going to just disappear. My contentions have been with the policy, both written and how acted upon in reality, for how adware is allowed to behave in the affiliate marketing channel. My mantra is behavior, behavior, behavior (to the point I get tired of hearing it myself!) not toolbar, widget or desktop app. I don’t have a problem with Google’s toolbar, but I do have a problem with most software generating revenue through the affiliate channel.

To this point, there has been two primary types of policy by networks and merchants regarding how affiliates can use software in the affiliate channel: not allowed at all (the parasite-free policy) or allowed under a set of conditions that are far less restrictive for affiliates than marketing through other means (the COC/Addendum policy). I have always been opposed to the COC/Addendum policy because I feel it allowed revenue generation that facilitated unfair competition and diminished the overall value of the affiliate channel. I have longed for a working policy (policy that is actually being used) that would address how software can be legitimately used within the affiliate channel sans all the controversy. Indeed, I strongly believe it is critical that our industry be able to produce such a working policy.

Why? So we can demonstrate our ability to self-regulate and foster the healthy growth of our industry. All established industries need to demonstrate this ability for long-term success. To this point, I don’t think we have been able to demonstrate an ability to effectively self-regulate the very technologies our industry depends upon. Affiliate marketing is a technology business after all.

There are currently various technologies used by affiliates in their marketing efforts. Web sites, email, video, widgets and many other forms of technology are common. Guidelines for acceptable use have been established for promotion though most of these technologies. Granted, there may be an occasional debate regarding a new way these technologies are used, but none have been as problematic as downloaded software. Nor has a policy of all or nothing been applied to defining their use by affiliates.

Any and all of the technologies used by affiliates can be potentially abused. Questionable revenue generation tactics as well as more malicious behavior can occur through any promotional method. We certainly don’t say that affiliates cannot use web sites, email, and video or social media technology as promotion mechanisms because the technology can, and at times is, abused. Of course we don’t! We set guidelines and then we work towards enforcing those guidelines.

Enforcing a policy for toolbars will not be without its own challenges. But all monitoring of promotion comes with unique challenges. There are millions of web pages, owned by the affiliate or by someone else, where bad behavior can occur. However, once policy is established for promotion through a web site, protocols for monitoring are developed.

While practices may not always be policed by some companies to the degree some desire, we all understand that ultimately it’s a matter of survival for our livelihoods to have a certain degree of self-regulation within these technologies.

The landscape has changed dramatically since 2002 when the COC/Addendum policy was released by the major networks of the time. There is no longer a huge cost barrier for any affiliate having downloadable software and there are several sources for acquiring your own toolbar for free or at a very low cost. Distribution channels are available that do not require bundling, especially for toolbars. This has resulted in literally tens of thousands of toolbars available for download.

Of course, not all of these operate within the affiliate channel, but there is an increasing number which do. Toolbars can engage in a very wide range of behaviors. I don’t feel that a global policy of “X is not allowed” to be an adequate manner with which to address issues facing our industry in regards to a technology that is not going away.

Brian Littleton has outlined a starting point on the ShareASale blog for this policy discussion. As someone who has always focused on how adware can behave with regards to revenue generation, I am intrigued by his initial points. He appears to be envisioning toolbar technology used as a marketing vehicle versus a customer service vehicle. Marketing practices would use the toolbar for direct revenue generation, which is the most common use seen to date. Customer service would involve behaviors focused on the consumer experience, thus building branding, loyalty, and visitor retention for the affiliate’s own business. This form is a more passive marketing of the affiliate’s own business and does not tie the toolbar directly to the affiliate link for tracking a commissionable sale. While I still believe software can behave “nicely” and be used for more direct revenue generation, I find Brian’s outside of the box thinking on this issue very interesting.

We need to show that we are up to the challenges of regulating the very technologies used to enhance and bring value to the affiliate channel. I’m excited to see a company with a track record and reputation as established as ShareASale’s stepping up to the plate to undertake the task of presenting meaningful policy in regards to toolbars. I look forward to having a policy in use that I can point to as an example of how software technology can be used in a harmonious and productive manner.

Will ShareASale be able to put the genie back into the bottle? I don’t think the technology can go back into the bottle. But can we have the benevolent genie? I think so. The real challenge will be whether or not ShareASale can overcome the stigma that has become attached with downloaded software, turning what has been somewhat of a black eye for affiliate marketing into a positive.

I will definitely be at this Roundtable that Brian has facilitated. I encourage any and all who care about the policies driving our industry to attend as well. I’m hoping to see as many merchants as affiliates in attendance as this is not an affiliate issue but an industry issue which impacts all parties in the equation.