Panel Ethics and Affiliate Bashing at the 2008 Internet Retailer Conference
An affiliate marketing panel at the 2008 Internet Retailer Conference led by panel moderator George Michie from RKG allegedly turned into an unethical and irresponsible affiliate marketing bashing session. Linda Buquet at 5 Star Affiliate Programs reported in a post that about 400 merchants attended a panel session that turned into a 90 minute rant about what scum-bags affiliates are.
The session led to this video interview with Larry Joseloff, VP of content at Shop.org talking about the state of affiliate marketing, where it’s going, and how it needs to reinvent itself. He makes some valid points but for the most part seems a bit out of touch with the inner workings of the affiliate marketing channel. He also didn’t really offer any thoughts on ways to improve the channel.
This issue is nothing new to the industry and is actually one that is being addressed with the formation of the PMA “Performance Marketing Alliance”which will be working with affiliates, merchants, networks and service providers to set standards and govern this very large and valuable marketing channel.
The disturbing part of this recent event is how the panel was poorly led by its moderator George Michie - who not only led this unethical and irresponsible style of panel moderation, but then continues to speak out of both sides of his mouth with a backhanded apology that instead re-bashed affiliate marketing without one shred of data to substantiate his rant. This not only demonstrates how a panel should not be moderated, it also demonstrates poor leadership that creates a negative image of the entire online marketing industry’s integrity. Here’s an excerpt:
Finally, I implied in my talk that most affiliates were “bad guys”. That was wrong. I apologize to those I offended. However, I do believe that the vast majority of the $3 Billion in affiliate commissions that will be paid out this year will go to cheaters, and other programs that add no value for retailers.
Does this not put him in the same ethics category as the few affiliates (out of the many) who he rants about? Is it not a moderators job to be a leader and provide an objective platform on all sides of the panel discussion? Why was there no representation from the affiliate marketing side of the business to speak about the channel? It seems that he was instead more interested in taking the opportunity to self promote his PPC channel and services.
Shawn Collins has posted a sound response on his blog “Consultants Can Fix Affiliate Marketing” that challenges and counters George Michie’s childish BS! There is also a good affiliate discussion in ABestWeb regarding the panels lack of affiliate representation.
You can read my response in the comments HERE.
7 Comments, Comment or Ping
g~ sunshine
Its a shame that merchants had to hear such a dreadful rant.
Puts another black eye on an industry that is enduring enormous competitive pressures and a fair amount of consolidation as of late.
I’m very surprised as I know so many tremendously fair and outspoken people in the affiliate publisher & the affiliate marketing community who basically sat back and allowed it to happen.
The panel should have used better discretion..
Jun 23rd, 2008
peter bordes
Since this post there have been further comments in the string on the RKG site that are very worth while reading. It makes it clear that there is no data to back up th affiliate bashing claims, and that it is being used to promote RKG’s PPC services with unsubstantiated bashing of the big, viable and important affiliate marketing channel.http://www.rimmkaufman.com/rkgblog/2008/06/12/irce-affiliate-rant-did-i-go-too-far/trackback/
all you have to do is read our interview with Overtsock CEO post and see how VIP affiliates and their affiliate program is..http://www.relevantlyspeaking.com/2008/06/05/interview-with-overstocks-ceo-patrick-byrne/
Jun 23rd, 2008
peter bordes
sunshine
thank you for you thoughts. Its a shame that this happened. All forms of interactive marketing are linked together and we need to take a holistic approach to creating value for our partner across all channels. We have a responsibility to everyone within the online marketing community to collaborate and make sure that advertisers and affiliates have a good experience.
negativity creates negativity that does not benefit anyone at all. PPC and affiliate marketing are both excellent marketing channels.
Jun 23rd, 2008
Affiliate Marketing
I love your BLOG! it is full of fantastic content ad i would recommend it to anyone. Give me a few days to get through some of it though because its teeming with info. I only just started my blog with the hope of helping people as well. Cheers and good luck, ill be sure to comment again soon.
Jun 26th, 2008
Jeff Molander
The point most seem to be missing in this “controversy”: Big, established brands (those that command most of the affiliate marketing revenue inside companies like CJ) have vastly different needs than smaller, lesser established brands. Here’s why: Smaller brands (yes, indeed, Overstock is a PERFECT example) haven’t invested zero in building and establishing their companies/brands. The point: They typically have one or one “main” channel — The Web. These factors drive the attitude and investment in affiliate marketing based, yes, on data. Channel conflict is what this is all about. It pairs with major brands FINALLY getting into SEM themselves and finding their affiliates beat them to the punch. Ouch. It hurts their egos and the channel conflict is either perceived (un-educated decisions) or documented (keep reading!).
While no data was shown at this conference there has been data shown in past panels I’ve hosted (that have not shown “the other side” because there’s really no compelling need to). The concept of channel conflict is simple enough and I’ve spent years documenting it.
http://www.jeffmolander.com/index.php?s=angel
Affiliates and affiliate networks can either come up with a solution (i.e. add value AS PART OF THE CONSUMER’S PATH TO PURCHASE CHAIN) or they can sit on the sidelines. So far they’ve sat on sidelines. That stated, ValueClick and others (http://www.atlassolutions.com/uploadedFiles/Atlas/Atlas_Institute/Engagement_Mapping/eMapping-TP.pdf) are not — they’re making change.
Where do affiliate networks fit in???!!! Clearly they DO fit in. Where do affiliates themselves fit in? Wrong question. IMO the question is: How does the nature of value contributed by affiliates figure into the NEW reward structure Microsoft and VCLK are pushing? It has CHANGE written all over it as holding companies of affiliate networks intertwine them with other path-to-purchase touchpoints (shopping comparison, search, etc.).
Where are the NEW opportunities for affiliates to innovate and provide value in ways not yet seen? (answer: http://www.revtrax.com)
Peter, I’m not so sure that calling people children and unethical really solves the matter either so I’ll respectfully ask that you re-consider that approach in future, please. I know you can do better than that
Aug 23rd, 2008
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