The following is what James Green had to say in response the the question, What is wrong with affiliate marketing and how can it be improved?
I personally think there are two main problems with/facing the affiliate world.
Firstly, there tends to be disassocation of the affiliate program and the rest of marketing. At times it seems the affiliate program is treated as the red-headed step-child of marketing.
However, businesses need to understand – and it is our job as affiliate managers to correct it – that most affiliate programs are pay for performance programs.
That means I know I will have a positive ROI. We may lose a little on our margins by paying out for sales but we take a smaller risk than other marketing streams.
Secondly, their is disassociation between affiliate managers and their affiliates. If affiliate managers took the time to work with their affiliates, know what they are doing, how they are promoting, etc… there would be less fraud and better relationships with affiliates, which equals more loyal hard working affiliates to drive your sales up.
It is our job as affiliate managers to communicate effectively with affiliates and company management to ensure we take a back seat to no one.