Another interesting debate has opened up on A4U regarding click to reveal and voucher codes. The call is for this action to be banned, something I agree with, but I do wonder if there are worse things happening in the affiliate world? The big question is are they being addressed and if not, when will they be and by whom?

As affiliates we sometimes think we’ve got it bad and that our commissions are being “lost” or “stolen” by voucher code affiliates using click to reveal and/or cashback sites. Proving that this actually happens isn’t always easy and perhaps that’s why many affiliates remain frustrated, especially at networks and merchants.

So what if you could say “it happens” because people are encouraged to do it?

For example, in this week’s News of the World Martin Lewis explains how a Kent grandmother got her car insurance for just 96p! Martin explains how to get the best insurance deal…

First you combine comparison services in the right order, eg Money Supermarket, GoCompare and Confused.com to maximise quotes in the minimum time. Then you see if you can get money back on the cheapest quotes by buying it through special cashback websites.

In consumer terms this is a fantastic story, but in affiliate terms it’s even better.

Firstly, we’re being told that the customer goes to a comparison engine to find a good deal then the cashback site gets the commission for the referral.

Sounds awfully familiar doesn’t it?!

It does makes you wonder how GoCompare et al feel about this. Perhaps it’s not a big issue as they can afford to lose sales to cashback or are paid in different ways? Perhaps it’s not something they’re aware of yet? Perhaps there are agreements in place between cashback sites and the comparison sites? Or perhaps cashback doesn’t get paid out if a customer has used a comparison site to generate a policy?

It’s a commission conundrum and a half! Should the comparison site get the commission for their part in creating the lead or is it the cashback affiliate who’s jumped in at the end to claim the reward?

It’d be interesting to see what happens in the affiliate world if and when large comparison companies start questioning why their “revenue” appears to be going “elsewhere”.

Another point is this – if you’re thinking of becoming an insurance affiliate the above is probably as good as a reason as any as to why you should look at other sectors. Ask yourself if you can compete with the price comparison sites and then can you afford to lose any effort you put in to cashback?

If you’re a network, guess why we’re not racing to promote your insurance merchants? Frankly, it just doesn’t seem like a good use of time.

Affiliate stuff aside – it’s a great situation for cashback consumers, but not for others! If an insurance company can insure someone for 96p on a fully comprehensive policy (which seems economically irresponsible) then isn’t it about time that they start paying back the hundreds they take off everyone else?

Perhaps a case for Mr Lewis to take up once he’s finished with the bank charges stuff?

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