Can an Affiliate refer themselves?

[jols]

To be clear, I really like this system and I think it will be quite useful. So I am not trying to be critical here, I just need to know how it works before we put everything on line, i.e. so our affiliate program can not be gamed.

 

Sorry, I keep posting this, but after days of research I am not getting any clarity from both the forum and also from posting tickets in WHMCS support.

 

I received a ticket reply from WHMCS about this question, that contained this reply in part, "...an affiliate cannot refer themselves unless they sign up for a new account on checkout."

 

Sorry, I really don't understand this response. What I am asking about is what occurs when "...they sign up for a new account on checkout", obviously there is zero benefit to anyone if no new account is signed up.

 

So, here's a very simple scenario:

 

The Affiliate signs up to our affiliate program which gives a $20 payout on signup, and a lifetime 20% payment/commission on the account.

 

Question - What happens when the affiliate clicks their own banner, and signs up for a new account?

 

Do they:

 

1 -- Receive no additional benefit, because the Affiliate is signing up for the same account in which they registered as an Affiliate? (I am very hopeful this is the case.)

 

or

 

2 -- The Affiliate in effect receives a $20 rebate for the signup?

 

or

 

3 -- The Affiliate receives a 20% cash payment/lifetime rebate/discount for the lifetime of the account just for signing up their own account?

 

or

 

4 -- The Affiliate receives a $20 payout, plus 20% cash payment for the lifetime of their own account (just because they clicked their own affiliate banner)?

 

 

The answer has to be one of the above, 1, 2, 3, or 4. Which is it please?

 

Thanks very much.

Edited October 9, 2012 by jols

[Damo]

The answer is 3.

 

WHMCS has no way of knowing that the affiliate is linked to the new account. How can it?

[jols]

How can it? Well as you may know, when an affiliate signs up they are assigned a cookie code. It is this code that is used to track sales for the affiliate.

 

So clearly, if there is a new affiliate sale, which is for a product that is owned by that same person, i.e. the affiliate.... Get my point?

 

Also, in your view, if the system does not know, then why wouldn't it be #4, i.e. why wouldn't the affiliate also get the $20 bonus cash payout as well?

Edited October 9, 2012 by jols

[Damo]

You've made the assumption that the affiliate would have used the same browser. There's no reliable way to know as they could use a different browser, different pc etc..

 

I read the $20 payout as the initial affiliate payment for activating the affiliate account, not a payment per sign up. If it is per sign up then option 4 above would be the case.

[jols]

Thanks for your response.

 

Regarding, "You've made the assumption that the affiliate would have used the same browser."

 

Actually no. Nothing in what I have posted so far depends on use of any particular browser.

 

When a new affiliate clicks the Activate Affiliate link, then the affiliate cookie code is tied to the affiliate's account. Do we have agreement on this point? Okay then.

 

When there is a signup after the affiliate banner was clicked, then the cookie code is recorded in the WHMCS system during account signup. Right? Otherwise the system would have no idea who to grant the affiliate benefit.

 

Okay, so far in this process it does not matter which browser, or computer was used. When a banner is clicked, and signup occurs, then the cookie code is examined and thereby benefits the affiliate, who ever that happens to be. Good so far?

 

Okay, now, let's say after the affiliate signs up (activates his affiliate system) his computer's hard drive is trashed, the web browser is gone, plus he decides to travel to a remote location in Madagascar, but he takes a satellite dish, so he has to work off his laptop for a while. So then, sitting there in the jungle he simply clicks one of his banners and signs up a new account for himself.

 

That account is purchased under his WHMCS billing account, the same one he logged into before activating his affiliate link.

 

AND...

 

That new account's recorded affiliate cookie also goes into his billing account, thus recording the purchase as an affiliate purchase on the owners affiliate page.

 

Thus the affiliate has just easily gamed the system.

 

Now, one would think that the WHMCS system would prohibit this kind of activity with just a bit of code, something like this:

 

IF the affiliate with member ID 144 and cookie code 544, uses cookie code 544 to purchase an account for member ID 144. Then disallow affiliate discount.

 

Again, nothing here is tied to any web browser or any particular computer.

 

Regarding, "I read the $20 payout as the initial affiliate payment for activating the affiliate account, not a payment per sign up. If it is per sign up then option 4 above would be the case. "

 

Wow, this is truly disappointing. I do understand that on the surface all the affiliate would have to do is start multiple client accounts to get around the prohibition I mentioned. But to make system gaming this easy... Does anyone know of an affiliate add-on to WHMCS that has better protections than this?

[Damo]

I just tried out your scenario, without a trip to Madagascar of course, by using a client account that has an affiliate account.

 

Using a fresh browser I followed the link, made a purchase and then logged into the client account (as an existing customer in the checkout process - using the affiliate client) and no affiliate payment was made. So it looks like the system does know if the affiliate is using their own link.

 

I still don't see how the system would be "gamed" even if the affiliate could signup an extra account in their own name. At the end of the day you are still receiving the income from their additional account. The cost to you is that of your referral payment - something you would be paying to any affiliate anyway so would be factored into the cost of the plan you offer.

[ckh]

Put it in your TOS that an affiliate can't refer themselves. Then if they do, don't pay the commissions.