Affiliate Rules Compliance: What You Should Know

Affiliate marketing is a lucrative and enjoyable business. That’s a no-brainer. But, like a lot of things in life, you have to play by the rules. These rules entail affiliate compliance. Let’s dive into the key elements of affiliate compliance rules to ensure your marketing efforts steer clear of costly mistakes.

What Is Affiliate Compliance?

Affiliate compliance verifies whether affiliates are following the terms and conditions of their affiliate program. It’s a key part of ensuring a legal affiliate partnership.

Why Is Affiliate Compliance So Important?

As brands grow from leveraging affiliate marketing, so does the likelihood of fraud and reputational damage. For context, in 2022, consumers lost over $1.2 billion because of fraud originating on social media.

Affiliate compliance exists to safeguard businesses and maintain a positive reputation in their industries. Your actions don’t simply affect you or your platform; they also impact your affiliate business partner. This domino effect can result in huge and damaging losses.

What Is the FTC Rule for Affiliate Marketing?

In the U.S., the Federal Trade Commission (FTC) regulates affiliate marketing practices.

The FTC enforces affiliate disclosures. So, if you’re compensated in any manner for promoting another product or brand, you need to tell your audience that. This involves publishing a statement that says you are being paid to promote a business’s products/services.

The FTC’s mission is to protect consumers from deceptive and unfair business practices and unfair competition. If affiliates don’t abide by FTC regulations, this can lead to significant fines and legal actions. This is especially the case in industries with strict regulations, like finance and healthcare.

What Are Common Types of Affiliate Non-Compliant Practices?

Let’s lay the groundwork by walking through non-compliant practices you shouldn’t do. These methods can lead to inflated commissions and lost revenue for businesses.

1. Cookie Stuffing

This is considered affiliate fraud, misusing the cookies an affiliate partner uses to track where a referral to their website came from and pay a commission to that source.

2. Paid Search Violations

Some affiliates might engage in paid search advertising strategies that violate a business’ guidelines. An example is bidding on your affiliate business’ keywords and using misleading ad copy.

3. Forced Clicks

Forced clicks involve inflating the number of clicks on your affiliate link. To do this, one might use bots, automated scripts, or other deceptive strategies to repeatedly click on a link.

4. Malware and Adware

Malware is software intended to disrupt or damage users’ devices. Adware is software that displays unwanted advertisements. Both types have been used in affiliate fraud. Affiliates might unknowingly or intentionally promote products/services that have malware or adware.

5. Pop-ups, Pop-unders, Hidden Windows

We’ve all experienced the annoyance of trying to navigate a website that’s cluttered with pop-ups. Don’t make your audience feel the same way. These distractions can negatively impact the user experience and may even drive people to use ad-blockers.

Don’t engage in these activities, in the long run you will more than likely be found out, your commission earned may be forfeit, and you may face legal consequences.

How Can Affiliates Maintain Affiliate Compliance?

Here are strategies to help you stay on the right track with affiliate marketing and working with your affiliate business.

1. Work with Reputable Affiliate Businesses

First things first: know who exactly you’re working with. Do your due diligence by researching the company and having thorough discussions before partnering with them.

Remember, by becoming an affiliate, you’re representing that business. So, you need to trust the products/services you’d be promoting and the way your prospective partner does business.

2. Understand Affiliate Regulations and Laws

Compliance requirements can shift and vary. Regularly review and keep tabs on these regulations. Be sure to ensure your business partner is doing that as well.

3. Make Disclosures and Keep Them Consistent

Disclose any relationship with a brand. This includes compensation or any free products you’ve been provided with. Make sure this is written in clear language.

For example, clear disclosure includes paid ad, #ad, sponsored, or #sponsored.

Include disclosures in every post or content where you promote the business.

4. Maintain Close Contact and Communication with Your Business

Be in contact with your affiliate business. Ask questions if you’re not sure. The more contact you have with them, the less guesswork is involved in your partnership and the way you market their messages. Stay accountable for your part by communicating with your partner.

The Takeaway

Affiliate marketing is a great way to earn commissions and loyal followers, but these must come from a place of honesty and transparency. Otherwise, you and your affiliate business may be walking into risky territory.

Consumers deserve to be engaged in fair marketing practices. This instills trust—which is critical in garnering business in an ethical way.

Partner with Round Sky

If you’re looking to elevate your affiliate marketing experience in the finance world, Round Sky has you covered.

Our team is partnered with 50+ lenders and financial partners, and we’re happy to connect your audience with them so that you earn a commission. We’re a member of the Online Lenders Alliance (OLA), ensuring customers are fully informed and treated fairly. Get started with the Round Sky Loan Affiliate Program today, sign up for an affiliate here!