Quote:
Originally posted by $5 submissions
What impact, if any, does this practice have on minimizing the effects that affiliate fraud have re chargeback ratios for the sponsor? Ie., so happy so they don't cheat?
I don't support nor wish to appear to condone shaving... however, I won't be surprised that some PPS sponsors might feel that this practice is a "justifiable" response to affiliate cheating. I spoke awhile back with the owner of a mid sized and growing affiliate PPS program and he said that at least 10% of payouts in every payout period is paid out to cheaters. Even with his extra vigilance, he feels that he's not catching them all.
Regardless... this doesn't excuse punishing all (via shaving) for the sins of a few.
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It has nothing to do with minimizing the efects of WM fraud..taking a little from all WM's to make up for the lack of proper fraud control you have is no justfication....it is bad business practice.
We pay many 100 of thousand of dollar every week to WM's and I would be very suprised if 1% is paid to WM's for fraudulent trans.
Mind you we probably devote more resources to preventing WM fraud than most.
