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 © 2025 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

WIA Profile: Lainie Speiser

With her fiery red hair and a laugh that practically hugs you, Lainie Speiser is impossible to miss. Having repped some of adult’s biggest stars during her 30-plus years in the business, the veteran publicist is also a treasure trove of tales dating back to the days when print was king and social media not even a glimmer in the industry’s eye.

Women in Adult ·
opinion

Fighting Back Against AI-Fueled Fake Takedown Notices

The digital landscape is increasingly being shaped by artificial intelligence, and while AI offers immense potential, it’s also being weaponized. One disturbing trend that directly impacts adult businesses is AI-powered “DMCA takedown services” generating a flood of fraudulent Digital Millennium Copyright Act (DMCA) notices.

Corey D. Silverstein ·
opinion

Building Seamless Checkout Flows for High-Risk Merchants

For high-risk merchants such as adult businesses, crypto payments are no longer just a backup plan — they’re fast becoming a first choice. More and more businesses are embracing Bitcoin and other digital currencies for consumer transactions.

Jonathan Corona ·
opinion

What the New SCOTUS Ruling Means for AV Laws and Free Speech

On June 27, 2025, the United States Supreme Court handed down its landmark decision in Free Speech Coalition v. Paxton, upholding Texas’ age verification law in the face of a constitutional challenge and setting a new precedent that bolsters similar laws around the country.

Lawrence G. Walters ·
opinion

What You Need to Know Before Relocating Your Adult Business Abroad

Over the last several months, a noticeable trend has emerged: several of our U.S.-based merchants have decided to “pick up shop” and relocate to European countries. On the surface, this sounds idyllic. I imagine some of my favorite clients sipping coffee or wine at sidewalk cafés, embracing a slower pace of life.

Cathy Beardsley ·
profile

WIA Profile: Salima

When Salima first entered the adult space in her mid-20s, becoming a power player wasn’t even on her radar. She was simply looking to learn. Over the years, however, her instinct for strategy, trust in her teams and commitment to creator-first innovation led her from the trade show floor to the executive suite.

Women in Adult ·
opinion

How the Interstate Obscenity Definition Act Could Impact Adult Businesses

Congress is considering a bill that would change the well-settled definition of obscenity and create extensive new risks for the adult industry. The Interstate Obscenity Definition Act, introduced by Sen. Mike Lee, makes a mockery of the First Amendment and should be roundly rejected.

Lawrence G. Walters ·
opinion

What US Sites Need to Know About UK's Online Safety Act

In a high-risk space like the adult industry, overlooking or ignoring ever-changing rules and regulations can cost you dearly. In the United Kingdom, significant change has now arrived in the form of the Online Safety Act — and failure to comply with its requirements could cost merchants millions of dollars in fines.

Cathy Beardsley ·
opinion

Understanding the MATCH List and How to Avoid Getting Blacklisted

Business is booming, sales are steady and your customer base is growing. Everything seems to be running smoothly — until suddenly, Stripe pulls the plug. With one cold, automated email, your payment processing is shut down. No warning, no explanation.

Jonathan Corona ·
profile

WIA Profile: Leah Koons

If you’ve been to an industry event lately, odds are you’ve heard Leah Koons even before you’ve seen her. As Fansly’s director of marketing, Koons helps steer one of the fastest-growing creator platforms on the web.

Women in Adult ·
Show More