Archive for the ‘Scams’ Category

Google Sues Utah Company over Alleged Online Scams

Wednesday, December 9th, 2009

By Adam Ward

One of the business sites of internet search engine Google Inc is shown on a computer screen in Encinitas

I’ve often wondered why nobody seems to do anything about online offers that are clearly scams. I picked apart one such scam in this post. But except for questioning the publishers’ decision to run such ads, I didn’t make a call to action. It looks like Google has taken action in a big way.

The Salt Lake Tribune today reported on Google suing Pacific Webworks of Salt Lake City for using Google’s name to sell fake products. I’m sure you’ve seen similar offers: “Download our toolkit for free to make tons of money from home using the Internet.”

I don’t know anything about Pacific Webworks, so I can’t comment on them specifically. But I can comment on these types of offers because they are, unfortunately, so prevalent online. The kicker for these types of offers is, often, 1) they don’t have a legitimate product, 2) unsuspecting consumers who download the product don’t realize it isn’t legitimate until after they’ve downloaded it, and 3) even though it was free to download, it comes with an ongoing monthly charge that hits the consumer’s credit card unless the consumer cancels it.

Google got involved in this one because it felt its name was being used to market products that it had no control over. Google has a right to protect its brand regardless. But when it comes to protecting its brand for products that are fraudulent, which carries a greater chance of tarnishing Google’s name, it makes sense that Google would aggressively target companies it feels are running such fraudulent offers.

I hope that this has a chilling effect on other bogus offers online, much the way CAN-SPAM Act of 2003 stemmed so much of the pernicious tide of email spam.

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Ways Online Publishers Can Steal Your Organic Traffic

Monday, November 2nd, 2009

By Adam Ward

Thief Stealing Wallet from Womans Purse

You’ve got a product and a website. You’d like to drive more traffic to your site, so you sign up with an online ad network (called an affiliate network). As long as the publishers on that network send you traffic that turn into sales, you’re happy to pay commissions to those publishers, right? Well, yes, unless you end up paying commissions on traffic that would have come your way organically.

The point of advertising on a publisher’s site is to have consumers already on the publisher’s site see your ad, be interested enough to click through to your site, then buy something. Although they may already have known about your products, the key was they didn’t come to your publisher’s site specifically looking for your product or company.

When consumers are looking for your site or product, they will either type in your site’s URL directly or come in through a search engine. If your site is listed high enough on search pages, you may not be buying search words through the search engines. Or, you may be buying search terms so your site will show up higher in the sponsored-search section of the results page. Either way, you are responsible for managing the results of those searches.

What you may not realize, though, is your publishers may be engaging in affiliate arbitrage. This is where they buy search terms applicable to your site or product, hoping they’ll make money on the spread between the commission you’ll pay them and the click costs they have to pay the search company.

In a general sense, you probably won’t mind publishers paying to generate traffic that eventually turns into a sale for you. And since making money through affiliate arbitrage is quite tricky, chances are you may not encounter this.

But if a publisher is unscrupulous enough to buy search terms that are clearly competing with your traffic, you can’t afford to be in a relationship with that publisher. For example, if your company is called Widget House and you are the only makers of the Super Widget product, you would expect people searching the Internet for Widget House or Super Widget to click through the organic search results, or sponsored results that you pay for, directly to your site. Now let’s suppose you’ve got a publisher that you’re paying commissions to through an affiliate network. If that publisher wants to bid on the search words “Super Widget” and “Widget House” through Google’s AdWords, Google will not prohibit them from doing so. If a consumer then searches for “Super Widget” and sees your publisher’s link at the very top of the page, the consumer may click through that link rather than clicking your own link. Although the consumer may then click the ad on your publisher’s page and ultimately buy from you, you’re on the hook for paying a commission that you never should have paid. You’ve just paid an unethical publisher a commission for stealing your traffic and rerouting it to you.

To avoid this pitfall, make sure your attitude toward affiliate arbitrage is spelled out in your terms and conditions with the network and publisher. Also, periodically search for your business and products to see whether any of your publishers show up in the paid searches.

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Don’t Cheapen Your Site with Questionable Ads

Friday, October 23rd, 2009

Adam Ward

Welcoming man in a tacky suit

Although I have been advocating for traditional media organizations to adopt performance marketing into their online ad space, I’d like to add this caveat: know what ads are running on your sites, and steer clear of ads that don’t belong there. Ad managers use discretion when placing ads on TV, radio and in print. So why do they give carte blanche to affiliate managers to run questionable ads on their websites?

Case in point: What’s with USA Today, MSNBC and even my local daily, the Salt Lake Tribune, doing running blatantly bogus ads touting people in my area working from home and making lots of money? I expect to see offers like that scrawled on poster paper and stapled to telephone poles, but on legitimate news sites? Do those news organizations realize how much that cheapens their content?

Check out the landing page of one of the banner ads from these sites, which was placed by the Pulse 360 network. The banner ad itself is dubious, but the landing page is downright sleazy.

Notice how the whole website is set up like it is a legitimate news organization. They’ve copied the format that newspapers use in reporting stories. They try to make the content look local by entering the name of city where your IP address originates from (in my case, Roy, Utah). Your page might look different, but mine says that Mike Richardson from Roy, Utah, went from his lost job as a “boring account rep for a manufacturing company” to making “$5,000 a month at home” in four weeks. Unlike real news stories that mention a person’s full name the first time, then subsequently refer to the person by just the last name, this “story” refers to Mike by his full name in each reference. That’s another sign that some non-human is populating elements into this story.

This site tries to look like other news sites by having icons you can click if you like it, dislike it, or want to share it on reddit, digg, facebook, etc. Only they are just for show. You can’t actually click any of them. And all those favorable comments by readers at the bottom of the “story” that rave how similar their experiences were making loads of money doing nothing? All bogus. Yes, it looks like you can add a comment, but of course you can’t.

Two other things I thought were frustratingly brilliant in their deception was that 1) in the “story” it discounts get-rich-quick schemes (inferring that we all know those don’t work, so this must somehow not be one of those) and 2) how it has advertising links along the side. The ads seem to lend credibility to the “story,” all while linking to other bogus offers.

If you actually read the disclaimer (yes, the small print nobody reads) at the bottom of the page, you’ll learn what those warning bells in your head were telling you: that Mike Richardson is not a real person, and you’re more likely to end up in the hole instead of making money.

One can argue that if people are dumb enough to fall for these types of gimmicks, that’s their fault, not the fault of the website that drove those people there. But when I see those types of ads next to real news content of legitimate news organizations, I can’t help but question the integrity of the story.

There are plenty of legitimate networks pushing legitimate offers to web publishers. So my advice to traditional news organizations is this: steer clear of the bottom feeders and make sure your affiliate ads don’t drag you into the muck. Your readers will appreciate you for it.

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