Minimizing Chargebacks
 

With chargebacks threatening to cost many program owners a pretty penny over the next few months, or their ability to accept VISA or MC altogether, why aren't affiliate programs doing everything in their power to reduce them?

One major problem, which i believe is overlooked by most is over selling a website. KK mentioned this on another board, and i think it's very true. She calls it <i>inadverdent fraud</i>. How many of you have seen galleries that promise "millions of pictures" and "thousands of high resolution full screen videos."

Fact is, most of the sites that these people are promoting don't have what these affiliates using in their sales pitch. It makes sense that this will lead to a higher rate of chargebacks than a gallery that was using a realistic description of the contents of the website.

Solution: Add a new item to your terms and conditions. Inform webmasters that they can and will have their accounts terminated for falsely advertising the website. Don't make it a guideline. Make it a proper rule. Of course, something like this would be hard to police. Random checks of referring pages would be a start, i guess. Making an example of terminated affiliates would let the others know it's time to wise up.

I also believe this would have a positive effect for affiliates. I think surfers are tired of these sales pitches. They've seen them before, and they know it's bullshit. And the ones that haven't seen it before end up being dissapointed when they arrive at the tour. Be honest. You'll have more genuinely interested surfers arriving at the front page, and a happy horny surfer is far more likely to whip out the plastic than a disgruntled surfer who has just been led into pop-up hell with a bullshit sales pitch.

Your income is at stake. The income of your affiliates is at stake. Personally, i'd be first in line to promote a program that took a tough approach on inadverdent fraud like this.

You summed it up nicely :)

I like that idea, I'll have to send this to the head of NSCash, have that added in to our TOS. Great, fucking great idea man!

jDoG

<font size=+4><b>VIVA LA REVOLUTION!!</b></font>

nice idea chodadog
:thumbsup

Good point, the old, ?millions of pics? pitch is dead. The average user is on long enough to get his or her rocks off anyway, no one has time to tally pics on mega sites. Those loyal customers, the ones who keep coming back will do so for fresh, exclusive stuff. If site features were advertised in clever, honest and niche specific ways, the users would respond in greater sales, and better retention. Sure everyone wants to keep chargebacks down, and increase sales, but if webmasters advertised what was actually in the website, overall retention would go up too?

goog idea, BUT every sponosr must tell webmaster, what exactly is inside and what text link they can use .... ;)

failing which is another great reason for sponsors to steal webmaster's money for breaking TC ... so be careful

:2 cents:

In general isn't that already a required business practice by law, meaning no false advertising. I guess it may be a stretch but there may be something to it.

a lot of sponsors are doing this already
so its kinda old news
nevertheless it is correct and a good idea

But there's always the ever evolving problem of "friendly fraud." ie., clients who intentionally defraud regardless of whether there was any reason to chargeback.

:thumbsup good fresh ideas to that issue !!

I don't think it's a stretch, if 1,000,000 pics are promised and 100,000 delivered it's more than false advertising. It of course depends also on what is on the tour.

But don't these things fall into certain patterns with some affiliates sending lots of traffic, converting badly and high CB ratios. Add to your TOS the right to cancel the guy if he's not performing.

Also give him guidelines. Visa and MC hold you resposible not him.

I've seen some sponsors that have particular text that you can use, and only banners that are approved by them, etc. I think that's a good idea, but i think it's kind of limiting.

I mean, say you've got some new site in your affiliate program. You should give the webmaster some info on what he's allowed to use in the sales pitch, for example:

- Weekly Updates
- Exclusive Content
- General niche information
- X Number of videos/pictures
- X Number of models
- X Number of image sets

Stuff like that. If your site has 200 image sets, and you've got some prat pitching to the surfer that there are millions of pics inside, then there is going to be a problem. It's common sense really.

But yeah. What sites are already doing this? I'd love to check 'em out and see how they're handling it.