As an affiliate marketer immersed in this industry since 2015, I've experienced the incredible potential of recurring commission programs. The promise of continuous earnings from a single referral is undeniably attractive.
However, I've also witnessed and personally fallen victim to scams that specifically target affiliates. I know what it’s like to put in the work, only to have the rug pulled out from under you.
While recurring commissions can provide lucrative passive income, the reality is that many affiliates get duped by deceptive tactics. This leads to significant financial losses and wasted time.
In this guide, drawing from my experience and that of countless other affiliates, I’ll outline seven key warning signs that every affiliate should be aware of to avoid recurring commission scams and protect their earnings.
1. Bait-and-Switch Commission Schemes
The bait-and-switch is one of the oldest tricks in the scammer's book. Advertisers lure affiliates with promises of high recurring commissions, often touting figures like “50% lifetime commissions!” or even higher.
This initial offer attracts affiliates, who then invest their time, money, and effort into generating traffic and subscribers. However, after a few months of consistent earnings, the advertiser suddenly reduces commission rates drastically, often citing vague or unsubstantiated reasons.
They may claim “policy updates,” “market adjustments,” or “increased operational costs.” Some may even try to blame it on “client churn,” as I've personally experienced when my recurring commissions suddenly dropped.
Red flags
How to avoid
2. Fake Subscription Services
In this scam, advertisers promote subscription-based products or SaaS tools that don't actually exist or offer little to no real value to end-users.
These fraudulent programs create a facade of legitimacy, attracting affiliates eager to earn recurring commissions.
You, as an affiliate, unknowingly promote these fake services. You only realize the fraud when chargebacks and complaints start flooding in due to dissatisfied customers who demand refunds or report receiving nothing of value.
Red flags
How to avoid
3. Pyramid Schemes Disguised as Affiliate Programs
These schemes present themselves as affiliate opportunities but are, in reality, pyramid schemes that prioritize affiliate recruitment over actual product sales.
The real money is not in selling products or services to genuine customers but in recruiting more affiliates to join the program.
Affiliates primarily earn through commissions from recruiting new members (their “downline”) rather than generating sales to end customers.
This creates an unsustainable business model that ultimately collapses, leaving most affiliates with little to no earnings.
Red flags
How to avoid
4. Cookie Stuffing and Hijacking
Cookie stuffing involves secretly placing affiliate tracking cookies onto users' devices without their knowledge or consent, whereas cookie hijacking involves overwriting your legitimate affiliate cookies during checkout, giving the scammer credit for a sale you earned.
Both tactics allow unscrupulous individuals to steal commissions rightfully earned by legitimate affiliates.
Red flags
How to avoid
5. Google Ad Hijacking & URL Spoofing
In this scam, fraudsters create fake Google ads that closely mimic legitimate ads from reputable companies. The scammer targets branded keywords related to the company or its products.
When unsuspecting customers search for the brand, they may click on the fraudulent ad, which redirects them through the scammer's landing page before sending them to the actual company website.
The scammer then earns the commission for the sale, even though they played no legitimate role in the customer's purchase.
Red flags
How to avoid
6. Transaction Fraud (Fake Sales)
Fraudsters generate fake transactions using stolen credit cards or dummy payment accounts to earn illegitimate commissions.
While the transactions initially appear legitimate, they are eventually flagged as fraudulent, resulting in chargebacks.
When chargebacks occur, you lose your earned commissions and may face account suspensions, and could ultimately ruin your reputation.
Red flags
How to avoid
7. Unrealistic Earnings Claims & Get-Rich-Quick Promises
Deceptive programs lure new affiliates with exaggerated income claims and “get-rich-quick” promises.
Scammers often use persuasive sales tactics, creating a false sense of urgency to induce you to act without fully researching, or without being transparent.
These schemes often involve hidden costs, fake products, or unethical practices that can lead affiliates into financial losses.
Red flags
How to avoid
How Will You Verify Affiliate Program Credibility?
Protecting your affiliate earnings requires vigilance and knowledge of common deceptive tactics. By recognizing warning signs like bait-and-switch schemes, fake subscriptions, and cookie hijacking, you can safeguard your marketing business from potential scams.
Always verify program legitimacy through thorough research and product testing before promotion. Demand clear written agreements and monitor your commission rates consistently.
Remember that sustainable income in affiliate marketing comes from promoting valuable products to genuine customers, not from questionable recruitment schemes or get-rich-quick promises.
Stay alert, trust your instincts, and prioritize partnerships with reputable companies that value transparency.
Are you carefully vetting each affiliate opportunity before investing your time and resources?
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