13.Which are the things throttling affiliate economy?
Creating written contracts is easier said than done.
Affiliate dealings rarely use a written contract just because of their digital nature. It’s this nature only that makes commission-based marketing multinational and fast paced. So, affiliates, affiliate networks, and publishers usually discuss these deals over a skype conversation or take it or leave it”terms and conditions”. Since most of these dealings aren’t documented formally, they’re subject to massive renegotiations.
A good case in point: A publisher can individually decide to renegotiate a deal’s terms with respect to the traffic or can even cut an affiliate’s commissions. Likewise, affiliates can find out their traffic’s high performance and scale; based on that, they can demand higher commission.
What if the deal isn’t renegotiated keeping in mind an affiliate’s interest? Well, affiliate typically can send their traffic to another brands site, leaving the old merchant out of their current business. Typically there is more than just one place for eg Casino where to send converting traffic.
To top it all off, most affiliate marketing agencies are incorporated in zero- or low-tax jurisdictions worldwide. That way, having a legal written contract becomes quite challenging—much less, adjudicating or enforcing it.
And that’s just one of the many things that kill the efficiency of affiliate marketing.
14. Super affiliates are a cost addition to the value chain
Here’s an affiliate-marketing trend that’s all the rage today: Publishers usually associate with a large affiliate network having a single point of interface. By doing that, they avoid the time-consuming task of calculating and releasing a lot of small payments to every single affiliate they’re working with.
And since there’s a super affiliate now, the overhead cost increases because payment solutions add charges on every payment it’s making to other affiliates. These infrastructural negatives can seriously throttle the cash flow of many smaller affiliates. Problem might be transferred from merchant to super affiliate but it’s still there. That is where AEToken will bring cost efficiency to affiliate industry by having payment model without adding overhead per single payout substantially.
15. Giving payouts and using funds aren’t that simple
The regulatory ecosystem, governing the payments in affiliate marketing, has a lot of restrictions that are developed and deployed by payment service providers (PSPs). For example, the AML/KYC requirements don’t really mesh up with all the unwritten contracts that characterize this business.
Also, the cost these PSPs charge can break the bank as they were originally designed to be used by small online businesses every once in a while.
And yet they’re always used because sub-affiliates are mostly geographically spread and because these payment providers have the infrastructure and capabilities to send and receive funds worldwide.
These PSPs have exorbitant cost because they’ve got really high foreign exchange charges—that’ll be in addition to their already-high fees. So, seriously, both publishers and affiliates should have deep pockets to use super affiliates and PSPs.
To combat all these challenges, the affiliate economy needs a solution that’ll create trust among super affiliates, affiliates, and publishers and advertisers; it needs a solution that’ll streamline payment releases. In short, affiliate marketing needs AEToken.
16. How AEToken is a game changer for affiliate marketing?
Affiliate marketing is fragmented at many levels. The deals in the affiliate economy don’t generally involve written contracts. Plus, the payouts in this economy are difficult to manage and track. What’s more? Withdrawing and using funds across the affiliate infrastructure is quite challenging and costly as well.
Wait, there’s a robust solution to all these challenges. It’s known as AEToken.
AEToken is a completely decentralized blockchain that’s fully engineered to let publishers and affiliates earn reputability and create a whole new level of trust.
Also, the blockchain will have an innovative payment method that’ll be used by affiliates and publishers to send and receive funds worldwide quite seamlessly.
And as far as the confidentiality of network participants goes, this decentralized network will use Bulletproofs— completely non-interactive zero-knowledge proofs.
The scalability of AEToken is quite high. That’s because it’s a side chain allowing its native digital assets, AET tokens, to be moved across popular blockchain networks belonging to Ethereum, Bitcoin, Stellar, or Chia. That way, these digital assets can even be swapped for Bitcoin, Ether, and other popular crypto coins.
That way, this blockchain project will definitely restructure the whole affiliate economy.
17. AEToken—revolutionizing the way affiliates and publishers work
AEToken is changing the way publishers and affiliates work together, and that change is definitely for the better. So, let’s see the value publishers and affiliates will unlock when they join this revolutionary blockchain-powered network.
For e-commerce websites and publishers
Contract justiciability alongside reputation generation will create trust between affiliate partners and publishers/e-commerce sites. And when the number of affiliates will rise, accounting and paying the fees will simplify. Ultimately, all of this will end up improving the quality and volume of the incoming traffic for a publisher.
For affiliates
Again, contract justiciability is one of the highlights of AEToken. With this feature, there’ll be trust created among a number of affiliate website partners. Also, since there’ll be rock-solid trust, the number of disputes among the affiliates—super affiliates and sub-affiliates—will go down. There’s even a credible dispute-settlement process called mediation in place just in case a dispute arises. Last, this decentralized network has the right processes for accelerating and simplifying the payment transfers. That way, the liquidity of an affiliate’s funds increases.
19.The transactions happening on AETokens
A general transaction that’s happening on AEToken’s blockchain will involve sending cryptographically blinded coins to a specific address at a defined time. However, the sender of the coins will have the power to easily mutate any transaction to any specific escrow mediator along with the public key.
The smart contract of this side chain will optionally have the mediation flag set to all or nothing; also, a small transactional fee will be set for the mediator, just in case. This fee will be released whenever the transaction is done and recorded successfully by the mediator.
If, however, both the parties perform the transaction successfully or if both of them work through the disputes independently, then the transaction will unlock at a predefined time. And once it’ll unlock, the success fee will be released to the escrow mediator at a defined time. While all the remaining funds will be evenly distributed among the recipients—that is, affiliate marketers and publishers.