A single bad affiliate can cost you thousands in fraudulent commissions, damage your brand reputation, and violate advertising regulations. Meanwhile, low-quality affiliates waste your time without generating meaningful results.
Effective vetting separates legitimate partners from problematic ones. Here's how to build a vetting process that protects your program.
Why Vetting Matters
The Cost of Bad Affiliates
Fraudulent affiliates might:
- Use stolen credit cards to generate fake "customers"
- Cookie-stuff visitors who never intended to buy
- Create fake accounts and self-refer
- Exploit promotional codes in unauthorized ways
Low-quality affiliates might:
- Make false claims about your product
- Use spam tactics that violate laws
- Target irrelevant audiences that don't convert
- Damage your brand with poor content
A single fraudster can generate thousands in illegitimate commissions before detection. Prevention is far cheaper than cleanup.
The Legal Exposure
Affiliates represent your brand. If they:
- Make false advertising claims
- Violate FTC disclosure requirements
- Send spam emails
- Engage in trademark bidding
You may share liability. Vetting helps ensure affiliates understand and follow the rules.
Building Your Vetting Process
Application Requirements
Start with a simple application form that gathers:
Basic Information:
- Name and email
- Website/social media profiles
- Country (for tax and legal considerations)
Promotional Intent:
- How they plan to promote your product
- Their audience size and demographics
- Experience with affiliate marketing
Don't over-complicate. A lengthy application deters legitimate affiliates. Gather essentials upfront; dig deeper on approval.
Review Criteria
Evaluate each application against:
1. Relevance
Does their audience match your target customers?
Good signs:
- Content in your industry/niche
- Audience demographics that align with your ICP
- History of promoting similar products
Red flags:
- No clear niche or random content
- Audience mismatch (promoting B2B software to gaming audiences)
- No visible content at all
2. Quality
Is their content professional and trustworthy?
Good signs:
- Well-written, original content
- Professional website design
- Active social media with engagement
- Positive reputation in their space
Red flags:
- Thin or scraped content
- Unprofessional presentation
- No recent activity
- Complaints or negative reviews about them
3. Promotional Methods
How do they plan to promote?
Acceptable methods:
- Blog posts and reviews
- YouTube videos
- Email newsletters (with opt-in lists)
- Social media content
- Podcasts
Methods requiring scrutiny:
- Paid advertising (may need restrictions)
- Coupon/deal sites (can attract deal-seekers who churn)
- Incentivized traffic (often low quality)
Methods to prohibit:
- Spam email
- Trademark bidding
- Misleading ads
- Cookie stuffing
- Incentivized clicks without disclosure
4. Track Record
What's their affiliate marketing history?
Good signs:
- Experience with other reputable programs
- References from affiliate managers
- Proven track record of ethical promotion
Red flags:
- Banned from other programs
- History of fraud accusations
- Suspiciously claims no experience (might be creating new identity)
Approval Tiers
Not all affiliates need the same scrutiny:
Auto-Approve (Low Risk):
- Existing customers applying
- Small audience, low fraud potential
- Standard promotional methods
Manual Review (Medium Risk):
- Larger audiences
- Paid advertising plans
- Coupon or deal site affiliates
Enhanced Review (High Risk):
- Very large platforms
- Unusual promotional methods
- International applicants in high-fraud regions
- Any applications with red flags
Verification Steps
For affiliates warranting deeper review:
Website verification:
- Check domain age (new domains are riskier)
- Review content quality and volume
- Look for contact information and about pages
- Check for other affiliate relationships
Social verification:
- Verify claimed social accounts
- Check follower authenticity (fake followers are a red flag)
- Review engagement rates
- Look at content history
Reference checks:
- For high-value affiliates, ask for affiliate manager references
- Contact other programs they claim to work with
Search their name/site:
- Google for complaints or fraud reports
- Check affiliate marketing forums for mentions
- Look for legal issues or controversies
Red Flags to Watch
During Application
- Generic application: Copy-pasted text, no specifics about how they'll promote
- Unrealistic claims: "I'll drive 1,000 customers in the first month"
- Missing information: Won't provide website or social profiles
- Pushy behavior: Demands immediate approval, special treatment
- Multiple applications: Same person, different emails/identities
Website Red Flags
- No content: Just affiliate links and ads
- Thin content: 100-word "reviews" on every product imaginable
- Misleading content: Fake reviews, false claims
- No contact info: No way to identify the site owner
- Domain age: Very new domains (under 6 months)
Promotional Red Flags
- Trademark bidding: Bidding on your brand name in Google Ads
- Cookie stuffing: Dropping cookies without genuine clicks
- Spam: Unsolicited emails or social messages
- Incentivized traffic: "Click this link and get a free gift"
- False urgency: "Only 2 left!" when that's not true
Fraud Detection and Prevention
Technical Safeguards
IP monitoring:
- Flag multiple signups from same IP
- Watch for conversions from data centers or VPNs
- Geographic anomalies (affiliate in US, all conversions in different country)
Conversion patterns:
- Unusual spike in referrals from single affiliate
- Conversions at strange hours
- Very high conversion rates (might indicate fraud)
- Immediate cancellations after commission qualifies
Payment verification:
- Watch for chargebacks on affiliate-referred customers
- Monitor refund rates by affiliate
- Flag suspicious payment methods
Policy Safeguards
Commission qualification period:
- Don't credit commissions immediately
- Wait 30-60 days to ensure customers stick
- Reverse commissions on refunds/chargebacks
Payout thresholds:
- Require minimum balance before payout ($50-100)
- Delays small fraudsters who want quick money
Clear terms of service:
- Explicitly prohibit fraud tactics
- Reserve right to reverse commissions
- State consequences (termination, clawback)
Monitoring Best Practices
Regular audits:
- Monthly review of top affiliates by volume
- Check content for compliance
- Verify promotional methods
Automated alerts:
- Set thresholds that trigger review
- Unusual conversion spikes
- High refund/chargeback rates
- Rapid commission accumulation
Customer feedback:
- Ask new customers how they found you
- Watch for complaints about affiliate tactics
- Survey for misleading claims
Handling Problem Affiliates
When to Investigate
- Conversion rates significantly above average
- Spike in referrals without clear cause
- Customer complaints about affiliate's content
- Refund rate higher than other channels
- Chargebacks from affiliate-referred customers
Investigation Process
- Pause commissions — Don't pay while investigating
- Gather evidence — Screenshots, conversion data, customer feedback
- Contact affiliate — Ask for explanation (sometimes there's a legitimate reason)
- Make decision — Based on evidence and response
Taking Action
For policy violations (non-fraud):
- Issue warning
- Require corrective action
- Reduce commission rate
- Remove from program if repeated
For suspected fraud:
- Terminate immediately
- Reverse all commissions
- Block from re-applying
- Consider legal action for significant amounts
Document everything. If an affiliate disputes termination, you need evidence.
Building Trust While Maintaining Security
For New Affiliates
- Start with standard (not premium) commission rates
- Consider temporary commission caps until proven
- More frequent check-ins during first 90 days
- Clear explanation of what's allowed and prohibited
For Established Affiliates
- Increased trust over time
- Higher commissions for proven performers
- Less frequent audits
- More flexibility on promotional methods
Transparent Communication
Be upfront in your terms:
We reserve the right to review all promotional methods and reverse commissions for violations of our terms. This protects both our brand and our legitimate affiliates from those who might damage the program's reputation.
Legitimate affiliates appreciate programs that actively prevent fraud—it protects their commissions from being diluted by bad actors.
Creating Your Affiliate Terms of Service
Include clear policies on:
Prohibited activities:
- Spam (email, social, forum)
- Trademark bidding
- Cookie stuffing
- Misleading claims
- Incentivized traffic without disclosure
- Self-referrals
Required disclosures:
- FTC compliance (US)
- Clear affiliate relationship disclosure
- Accurate product representation
Commission rules:
- Qualification period
- Reversal conditions
- Payout requirements
- Minimum threshold
Termination:
- Right to terminate for violations
- Commission handling upon termination
- Appeal process (optional)
Tools and Resources
Affiliate Software Features
Look for platforms with:
- Fraud detection algorithms
- IP and device tracking
- Conversion pattern analysis
- Easy commission reversal
- Affiliate approval workflows
Third-Party Fraud Detection
For larger programs:
- Forensiq
- TrafficGuard
- Opticks
These services specialize in detecting affiliate fraud at scale.
Checklist: Affiliate Vetting Process
Application Stage:
- Collect basic info (name, email, website)
- Ask about promotional methods
- Request audience information
Review Stage:
- Check website/content quality
- Verify social media claims
- Assess audience relevance
- Search for red flags
Approval Stage:
- Categorize risk level
- Apply appropriate scrutiny
- Send welcome with clear terms
Ongoing Monitoring:
- Monthly top affiliate audit
- Watch for conversion anomalies
- Monitor refund/chargeback rates
- Address complaints promptly
Effective vetting isn't about being paranoid—it's about protecting your program so legitimate affiliates can thrive.