educational

For A Few Dollars More

Get a group of adult webmaster affiliates together to "talk shop" and one of the subjects that is bound to come up is uncompensated affiliate program upsells, where a sponsor makes an unrelated sale to a referred surfer without paying the referring affiliate a commission on the sale.

Sometimes this is because a sponsor program passes traffic it receives from affiliates on to sponsors of its own; sometimes it's because a surfer that joins a paysite then buys a selection of DVDs from that site's affiliated toy store. In any case, the original referrer of the customer isn't compensated for these "add-on" sales.

The problem is that some webmaster affiliates feel that since it is "their" surfer that they are sending to the sponsor, the sponsor should pay them for all sales made to that surfer regardless of source — whether they originated from the sponsor's own program — or as a result of the sponsor sending that surfer to a third party, such as another affiliate program.

A variety of reasonable viewpoints may be presented on this subject, and I have my own views — some of which have been voiced by others, some of which have been overlooked. So to further the discussion, I present the following food for thought:

It's easy to understand the concern of webmasters who after acquiring often hard-earned traffic, have seen it sold by their sponsors to other vendors, without compensation to the webmaster or affiliate for that referral. The most vocal call it theft; the most pragmatic call it a cost of doing business. But what really is the problem?

Some affiliates consider this to be the "loss" of a surfer, but why is this so? If you run a typical affiliate traffic source, such as a TGP/MGP, review site, blog or search engine, then you should be popping all of your sponsor links as new windows — thus never losing a surfer to any site; but merely offering him one particular option as well as several more in case the first offer was a no-sale.

As for what the site you sent the surfer does with that prospect, that's its business. You should only be concerned with how well that sponsor is converting the traffic you send it, not how it does it or what else it does with it. As long as you're getting paid and happy with the amount, then keep using that sponsor. If you can make more with someone else, or are unhappy with how a certain program performs, then it's time for you to move on.

Having said that, there is a big problem when the sponsor an affiliate sends traffic to makes those surfers wade through the Max Cash catalog before seeing the target offer — an exceptionally shady practice that I've seen in the past. This is where the referral is hit with pop-up windows or a full-page ad on entering a website offering competitive offers before the sponsor's own offer. Less egregious is the practice of popping a window under the main window, a so-called pop-under, but this is still an area of concern.

But the bottom line is: Is it necessarily wrong for sponsors to use affiliate traffic for their own purposes without additional compensation?

Far from being motivated by a desire to rip off affiliates, the practice of sponsors trying to upsell and resell affiliate referrals is born of necessity. For example, many affiliates demand unrealistic payout levels and one easy way in which sponsors can provide them without "shaving" is by selling unproductive referrals.

What About Non-buyers?
It's a simple concept: When you look at your sponsor stats and see a conversion ratio of 1:500, you're happy about the sale; but did you ever think about what happened to those 499 other folks who didn't buy? If the sponsor just let these surfers go without trying to make another sale, then shame on them — that's not a very good business strategy.

By popping an exit console on surfers who exit the join page without making a purchase, you have another chance to satisfy their needs and make a sale. If that popup didn't work then perhaps another one might. No luck with that one? Sell the surfer to a traffic broker.

If you as a sponsor can convert 1:500 on your sponsor, and your site converts at 1:500, then you can pretty much pay your affiliates out of what your sponsors pay you, and thus dramatically increase your profitability. This is an easy, direct example, but it outlines how being smart about handling exit traffic can pay off big time.

And it's not just about exit traffic, but about member traffic: Sponsors offer cross-sale deals that do not always compensate referring affiliates and offer upsell areas such as toy stores and VOD with nary a payout to the source of this traffic. Is this wrong? Not if the affiliate was paid for originally referring the member.

What the sponsor does with this member after he's been paid for is the sponsor's business. It's not just member traffic either but ex-members and others who might receive email or other marketing from the sponsor to these affiliate-supplied prospects.

At the end of the day, anything that makes sponsors stronger lengthens the time that they'll be able to pay affiliates, as well as enables their ability to do so, and that makes for an overall benefit to affiliates.

Remember, as an affiliate, you're paid for the traffic that you send based upon the rate you agreed to. If you don't find the deal "fair," then look somewhere else, but don't begrudge a smart operator from maximizing his income. On the other hand, if you're a sponsor, don't cheat affiliates by making competitive offers before the one that's being targeted by your affiliates. Send your own traffic to such a deal.

Copyright © 2026 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

opinion

How Adult Businesses Can Navigate Global Compliance Demands

The internet has made the world feel small. Case in point: Adult websites based in the U.S. are now getting letters from regulators demanding compliance with foreign laws, even if they don’t operate in those countries. Meanwhile, some U.S. website operators dealing with the patchwork of state-level age verification laws have considered incorporating offshore in the hopes of avoiding these new obligations — but even operators with no physical presence in the U.S. have been sued or threatened with claims for not following state AV laws.

Larry Walters ·
opinion

Top Tips for Bulletproof Creator Management Contracts

The creator management business is booming. Every week, it seems, a new agency emerges, promising to turn creators into stars, automate their fan interactions or triple their revenue through “secret” social strategies. The reality? Many of these agencies are operating with contracts that wouldn’t survive a single serious dispute — if they even have contracts at all.

Corey D. Silverstein ·
opinion

Building Sustainable Revenue Without Opt-Out Cross-Sales

Over the past year, we’ve seen growing pushback from acquirers on merchants using opt-out cross-sales — also known as negative option offers. This has been especially noticeable in the U.S. In fact, one of our acquirers now declines new merchants during onboarding if an opt-out flow is detected. Existing merchants submitting new URLs with opt-out cross-sales are being asked to remove them.

Cathy Beardsley ·
trends

How to Handle Payment Disputes Without Sacrificing Trust

You can run the best-managed and most compliant website out there, but that still doesn’t completely shield you from the risks tied to payment disputes. Buyer’s remorse, an unclear billing description or even a simple misunderstanding can lead a customer to dispute a transaction. Accumulate enough disputes, and both your reputation and revenue could be at risk.

Jonathan Corona ·
trends

WIA Profile: Taylor Moore

With a 70-person team and a growing slate of tools for content creators, the Teasy Agency has developed a reputation for putting talent first. That commitment owes a lot to co-founder Taylor Moore’s own experiences as a cam model.

Jackie Backman ·
profile

WIA Profile: Cathy Turns Creator Platform Experience Into a Model-First Playbook

As both a model and industry executive, Cathy lives in two worlds at once. “Since I do both things, I can act as the liaison between the model community and the rest of the SextPanther team,” she tells XBIZ.

Jackie Backman ·
opinion

From Compliance to Confidence: The Future of Safety in Adult Platforms

In numerous countries and U.S. states, laws now require platforms to prevent minors from accessing age-inappropriate material. But the need for safeguarding doesn’t end with age verification. Today’s online landscape also places adult companies at uniquely high risk for inadvertently facilitating exploitation, abuse or reputational harm, or of being accused of doing so.

Andy Lulham ·
opinion

What Adult Businesses Need to Know About Florida's Age Verification Law

The rise and proliferation of age verification laws has changed the landscape for the online adult industry. A recent and compelling example is the state of Florida, where Attorney General James Uthmeier has filed multiple complaints against major platforms as well as affiliates accused of violating the state’s AV law.

Corey D. Silverstein ·
opinion

Maintaining Brand Trust in the Face of Negative Press

Over the last year, several of our merchants have found themselves caught up in litigation over compliance with state age verification laws. Recently, Segpay itself was pulled into the spotlight, facing scrutiny over Florida’s AV statute, HB 3. These stories inevitably get picked up by both industry and mainstream news outlets.

Cathy Beardsley ·
opinion

How to Switch Payment Processors Without Disrupting Business

For many merchants, the idea of switching payment processors can feel pretty overwhelming. That’s understandable. After all, downtime can stall sales, recurring subscriptions can suddenly fail, or compliance gaps can put accounts at risk. Operating in a high-risk sector like the adult industry can further amplify the stress of transition.

Jonathan Corona ·
Show More