Most companies that value the digital protection of their brands already have the custom of actively monitoring their competitors. However, few of them usually pay attention to what is done by their partners and affiliates. This is where a great danger hides: the improper commission. But what is, after all, this practice? How is it carried out? What are its impacts on the profitability of companies and, especially, how to prevent it from becoming a legal issue?

What is undue commission?

Affiliate marketing is a growing trend in the corporate universe, after all, it allows more flexibility, reduces costs and increases the visibility of its products and services. However, it is essential that the policies determined in the affiliation agreement are followed.

For Gustavo Mariotto, CSO of Branddi, a company specialized in combating unfair competition in the online environment, this is not what happens in cases of improper commission.“Neles, the affiliate breaks the agreement signed and extrapolates what was determined to gain financial advantages, “roubing organic traffic of the main company to profit on conversions that would not happen in sponsored campaigns. This practice combines brand bidding to the deviation of attribution of what was agreed between parent and previously affiliate”, he says.

Undue commission, misallocation and brand bidding

Unauthorized use of institutional keywords of a brand by a competing company is called brand bidding. But when this practice is performed by a partner or affiliate company, it is called attribution diversion. 

According to Mariotto, these occurrences, which have dominated the corporate judicial debate today, occur when the affiliated company maliciously uses the sponsored campaigns of its partner. That is, they unfairly seek to elevate their links above even the main brand to earn commissions. 

This can involve a number of situations, such as: 

• Fraudulent click: when a click is artificially registered on an affiliate link, that is, without the real intention of making a purchase or action;
• Duplicate sale: when the same sale is attributed to more than one affiliate, generating duplicate payments;
• Improper cooking: occurs when a cookie is inserted into a user's device without their consent, with the aim of incorrectly attributing a sale to an affiliate;
• Violation of the rules of the program: when the affiliate uses methods not allowed to promote the products or services, such as spam, buying paid traffic without authorization, etc.

One of the main points about improper commissions is that they can affect brands in many different ways, both in the efficiency of their paid campaigns, as well as in the relationship with their partners and spending. 

Check out the three main negative issues caused by misallocation and improper commissions:

Increase of institutional CPC of the brand

Because company keywords are being used in an unauthorized way, it is common for improper commissions to increase the cost per click of campaigns.

Thus, the brand cannot see significant returns in its marketing strategies, since this value is being changed. 

Increased financial spending 

This, which is one of the main consequences of improper commissions, is also one of the worst nightmares of brands. After all, all unnecessary spending decreases the amount that could be invested in actions really oriented to the company's goals. 

However, to deal with this increase in spending, it is necessary to consider the whole panorama involved in these cases. This is because, in addition to the increase in institutional CPC, this type of unfair competition still increases the company's expenses with commissions and actions that have not generated return or real value. 

In addition, there is still a risk that these processes will become judicial, which, in addition to involving financial investments, still involves the waste of time of a large part of the team in resolving bureaucratic and slow litigation actions.

Increased distrust between publishers and advertisers

Finally, another main result of misallocation and improper commission payment is the creation of a constant climate of distrust between advertisers and affiliates. After all, they can generate erroneous accusations and break the harmonious link existing until then.

Branddi has put together three practical tips to help your brand deal more transparently and positively with its partners.

Tip 1: Create clear, objective rules for your membership policy: establishing clear guidelines on what is or is not allowed in your brand affiliation program reduces the possibility of the existence of”. That is, everyone will know what is or is not expected and will be aware of the boundaries that cannot be crossed.

Tip 2: Perform regular audits: conducting regular audits ensures that all affiliates remain compliant.In this way, your brand can form much more aligned and lasting partnerships.

Tip 3: Prioritize constant monitoring: actively monitoring your brand's unique terms and elements is an essential step in finding suspicious occurrences before they hurt your business. 

Com a proximidade do Dia das Crianças, o mercado entra em um período de forte aquecimento, impulsionado por altas expectativas de vendas. De acordo com uma pesquisa da Confederação Nacional de Dirigentes Lojistas (CNDL), em 2023, o comércio movimentou aproximadamente 18,8 bilhões de reais, um aumento significativo em relação aos 13,7 bilhões registrados no ano anterior. A tendência de crescimento deve continuar em 2024, trazendo grandes oportunidades para os setores de brinquedos, eletrônicos, vestuário infantil, além de entretenimento e alimentação, que se destacam como os principais beneficiados nessa época do ano.

O especialista em marketing e estratégia de negócios, Frederico Burlamaqui aponta que o público infantil possui um poder de influência significativo nas decisões de compra da família, especialmente quando se trata de presentes e produtos relacionados ao lazer e entretenimento. “A importância das ações de marketing voltadas para o público infantil vai além da mera venda de produtos, pois também estabelece o branding da marca desde cedo, criando fidelidade a longo prazo. No entanto, as campanhas precisam ser planejadas com cuidado, considerando tanto a sensibilidade do público quanto às restrições legais”, afirma.

Frederico explica que o Dia das Crianças não apenas movimenta o mercado, como também serve como um termômetro para avaliar a capacidade das marcas de inovar e se conectar de maneira ética e estratégica com um público tão influente e, ao mesmo tempo, tão protegido. “Algumas empresas têm apostado em diferentes estratégias, que envolvem desde a criação de produtos personalizados até campanhas multicanal em redes sociais, TV, e até mesmo no universo dos jogos online e aplicativos voltados para crianças. É preciso ter em mente que as marcas precisam ser autênticas e criar uma conexão emocional com as crianças, utilizando uma comunicação simples e divertida. Além disso, o uso de influenciadores mirins, youtubers e personagens licenciados tem se mostrado uma forma eficaz de alcançar esse público”, comenta o especialista.

With competitiveness for attention in social networks, companies have sought more personalized and continuous strategies to keep their consumers engaged. One of the most effective tools for this is the newsletter via email. The direct, continuous and personalized communication offered by this channel can strengthen the relationship with the customer and ensure retention in the long term, building a loyal and engaged base. 

A survey by DemandSage showed that 89% of marketers already use email as their primary means of retention, surpassing other strategies such as social media and mobile marketing.This is because keeping existing customers is significantly more profitable than acquiring new ones 5% increase in retention can increase profits between 25% and 95%, according to WiserNotify analysis.

According to Fabio Soma's, innovation specialist and creator of the M.A.G.O.Method, which helps entrepreneurs and content creators to succeed with their newsletters, content customization, active feedback and recurring value offer are the main differentials of this format. “Sending content targeted to the interest of the customer demonstrates that the brand understands it. By using behavioral data and purchase preferences, companies are able to better segment their contact lists, ensuring that the newsletter is really relevant to the recipient”, explains the expert.

Loyalty and trust

Personalization not only increases open rates, but also contributes to building a closer and longer-lasting relationship between brands or content creators and their consumers. The frequency of submissions associated with useful, exclusive and relevant messages helps keep subscribers engaged with the company or producer, preventing them from distancing themselves over time. “This may include exclusive promotions, information about new products or even educational content that adds value to the day-to-day of the customer”, Soma points out. 

In addition, newsletters provide the opportunity to cultivate a relationship of trust with subscribers, which consequently increases retention.“Especially for companies that invest in email marketing, transparency in communications, such as updates on an order, changes in processes or improvements in service, improves the perception of credibility”, says the expert.

Exclusivity and valorization

Another key point to keep customers attracted is active engagement. According to Soma, when using newsletters to request feedback, participating in polls or sending their own reports, for example, the company or content creator demonstrates that it values the opinion of its subscribers.“Be it through surveys or interactions in campaigns, customer responses offer the brand precious information that can be used to adjust and improve its” services, explains the expert.

Brands using the format can also create loyalty programs and exclusive offers for their subscribers.Soma points out that rewarding customer loyalty with discounts or benefits is a powerful retention strategy. “When the customer feels that there are clear advantages to continuing to consume with the company, he becomes more resistant to the competition”, he concludes.