Successful affiliate selling depends on a factor that is not addressed appropriately by online gurus that promise to teach you “everything” about affiliate marketing in three easy steps.
The most important aspect of affiliate marketing is payment processing. Because all the marketing in the world does you no good if the payments cannot be successfully processed.
Affiliate marketing is classified by most acquiring banks as a high risk industry. Payment processors make a distinction between a sale made through an affiliate and a sale made through a merchant website.
The reason behind the distinction is that the marketing model adds an intermediary between the payment processor and the merchant – an element which has an impact on the business model of the latter.
Specifically, the merchant that uses affiliate marketing is more likely to attract fraudulent transactions, the chargeback rate will increase, and there is a risk of selling illegal or counterfeit products and services. The increasingly common use of mobile technology makes fraud prevention even more challenging.
Understandably, selecting reliable affiliates is the first step, but once this is done, the merchant will have to pay attention to chargebacks, as these losses can quickly squander the profit that results from affiliate marketing. If the chargeback rate increases as the affiliate sales go up, the first step is to figure out what the predominant reason of the chargebacks is.
If the chargebacks are due to fraudulent activity, that is, if the payment has been placed without the knowledge of the cardholder, then the payment processor will have to implement stricter fraud prevention tools. As unlikely as this may seem, the merchant will have to take into consideration the possibility that the fraudulent transactions are initiated by the publisher himself.
The second chargeback reason that needs constant monitoring is the one that deals with the products or services being “not as described”. If the merchant registers an increased number of “not as described” chargebacks, this may suggest that one of the affiliate partners provides an inaccurate or exaggerated description of the services or products on their website. Misleading testimonials and bait-and-switch techniques will prompt disgruntled customers to file a chargeback, so the merchant will have to address this issue as quickly as possible.
Because affiliate markets are considered high risk, it is important to work with a company that specializes in high risk placement. It is essential to make sure that the chosen payment processor accepts affiliate marketing prior to making an application. Otherwise, you waste valuable time applying to banks who will decline the account simply because it is affiliate marekting.
Some unscrupulous merchant account providers will approve an account only to have it terminated once the bank realizes that the account is for an affiliate marketer. That is a nightmare you don't want to experience.
PayNetSecure accepts a large variety of high-risk business models, and merchants that currently sell or plan to switch to affiliate marketing are welcome. In addition, all affiliate marketplace merchants receive support for chargebacks so as to limit losses and keep the business profitable.
Affiliate marketing is a powerful and effective way to generate sales. Yet, your success depends on having the proper payment processing accounts in place.
Marketplace affiliate merchant accounts are available to provide you with the processing capacity needed to operate and grow your business. Special programs help you control chargebacks, protect your accounts, and keep your business safe.
Interested in an Affiliate Marketplace Merchant Account?