The appeal of affiliate coupon codes in eCommerce is clear: brands reach price-sensitive shoppers, move surplus inventory, and increase brand visibility. However, while voucher affiliate programs bring short-term gains, they also introduce significant risks. From affiliate code scams to lost margins and reputational harm, brands may unknowingly undermine their own success by relying heavily on these tactics. This article breaks down the hidden dangers of coupon affiliates and how Bluepear’s brand protection technology can help protect brands from potential damage.
Why Coupon Affiliates Hurt Brands More Than They Help
1. Attracting Cheap, Bottom-Funnel Traffic
Coupon sites target customers already familiar with your brand, who are near purchase completion. Users who type “brand + promo code” into search engines are looking for one final discount before purchasing. As a result, this affiliate code does not bring in new customers but instead reduces revenue from those already inclined to buy. Brands end up paying commissions on sales that didn’t require affiliate influence, lowering overall profitability.
2. Paying Twice for Pre-Engaged Leads
Many brands lose money in voucher affiliate programs because they pay commissions on leads they’ve already acquired. Customers reaching for affiliate codes at checkout were likely already committed to buying. By reducing the price through an affiliate-distributed coupon, brands lose out on full-margin sales and pay unnecessary fees for these nearly closed deals. The net result is decreased margins and revenue leakage.
3. Reputational Damage from Invalid or Fake Codes
One of the most harmful effects of affiliate coupon codes is the spread of expired or unauthorized codes. When customers encounter non-functional affiliate codes, they are left disappointed and frustrated, which can harm brand trust. This negative experience can push customers to competitor sites with reliable discounts, leading to brand erosion. Without robust brand protection technology, brands have little control over which codes are shared or if they’re even valid.
4. Complex Attribution and False Credit
A major challenge in voucher affiliate programs is attribution. Since many affiliates use the last-click attribution model, they can take credit for sales that were largely driven by other marketing efforts, such as PPC campaigns or SEO strategies. For example, a customer reaches the brand’s site, driven by organic search or PPC, but leaves to find an affiliate coupon code. When they return to the site and purchase, the affiliate receives credit, and the brand pays twice—first for the initial traffic and again as a commission for the “conversion.”
How Bluepear’s Brand Protection Technology Helps
Bluepear’s brand protection technology offers a suite of tools to curb these risks, allowing brands to monitor and control affiliate coupon codes and ensure compliance within voucher affiliate programs.
Comprehensive Monitoring and Filtering
Bluepear’s platform includes filters that help brands track down coupon affiliates, non-compliant partners, and brand abusers. This brand protection technology helps brands quickly detect and respond to any misuse of affiliate codes and affiliate coupon codes, including unauthorized brand bidding or misleading promotions. Bluepear's filters allow brands to segment and control who uses their codes, ensuring that only authorized partners promote legitimate offers.
Real-Time Alerts and Evidence Collection
With Bluepear, brands receive real-time notifications about any suspicious activity. This technology compiles evidence, including screenshots, UTM tracking, and redirect histories, so brands have all the necessary information to take action. For example, if a coupon site engages in brand bidding or posts unauthorized affiliate coupon codes, Bluepear’s detailed reports allow brands to swiftly respond, protect their margins, and prevent further damage to their reputation. Case Study: New Balance’s Use of Bluepear for Brand Protection Consider how New Balance leveraged Bluepear’s brand protection technology to combat unauthorized coupon use.
Despite New Balance’s voucher affiliate program policies, which prohibit brand bidding and unauthorized coupon use, affiliates continued to misuse affiliate codes and brand-specific keywords.
Upon activating Bluepear, New Balance identified 18 instances of affiliate policy violations involving affiliate coupon codes from sites using the New Balance name in their ads, offering unauthorized discounts.
Bluepear’s platform provided New Balance with specific data, including affiliate links, redirect paths, and a detailed report on each violation, as seen in the example screenshots. With these insights, New Balance effectively addressed non-compliance, securing their brand and stopping revenue leakage.
Strategies to Work Effectively with Coupon Affiliates
Brands don’t have to abandon voucher affiliate programs completely. By using brand protection technology like Bluepear and implementing a thoughtful approach, they can still benefit from coupon marketing without incurring its full risks.
- • Partner with Reputable Coupon Sites Only: Restrict your affiliate coupon codes to a few trustworthy partners to maintain control over how your brand is presented and ensure customers only see valid codes.
- • Set Lower Commissions for Coupon Affiliates: Since affiliate codes often convert customers who are already prepared to buy, it’s reasonable to negotiate lower commission rates for coupon sites, helping to maximize returns and minimize costs.
- • Regularly Monitor Branded Search: With Bluepear’s tools, brands can keep an eye on their branded search results to identify any affiliate code misuse, unauthorized brand bidding, or duplicate ads. By doing this, brands avoid overpaying for traffic and preserve their brand integrity.
Conclusion
While affiliate coupon codes might seem like an easy way to close more sales, brands face significant hidden risks, including lost margins, damaged reputation, and inflated costs. Implementing robust brand protection technology through tools like Bluepear gives brands the power to track, monitor, and eliminate unauthorized or harmful practices within voucher affiliate programs.
