Well, I guess it’s time I posted some feedback on my own blog about the “Triple Jangro” issues that David Lewis has raised.
I’ve been following this story very closely and the discussions in many other circles are as follows (not my views, simply what people are saying):
1. Many Search Engine employees & Affiliate Networks are already using their own data from affiliates and other merchants to go to networks and buy traffic, based on inside information they receive from clients. This pushes up the click prices on the search engine’s side, and increases the competition and prices for an advertiser, so in theory, as their employees from both networks and search engines are using confidential data to find niches and extract profits, and in both cases, increase profits of the search engines and the networks.
2. Data Privacy has potentially been infringed by the networks and the search engines, this can result in a class action to many affiliate networks and search engines and there is already talk afoot about this. In many cases, this speculation is unwarranted and spurious, but there have been many spurious class action suits in the past – so let’s assume that a case can be brought before a court.
My views:
While I don’t think that the Triple Jangro was an isolated case, I do feel that a class action suit would damage the industry’s reputation – both affiliate and search, and I strongly urge those who are considering this course of action, to back down and just roll with the punches, this time.
I do think that as part of a bigger strategy, the super affiliates (which represent the largest chunk of affiliate commissions), networks and search engines should have a round table meeting to discuss the way forward, and myself and a few others are already willing to start these discussions. In theory, if a class action suit had to go forward, the super affiliates stand to gain the most from a settlement, if they’re the ones saying “let’s not”, I’m hoping that people will listen. This is not a viable course of action and will only lead to more volatility in our industry.
In my mind it’s very clear, both search engines and affiliate networks should enforce both data privacy and non-competes with their staff with respect to all their clients. Problem solved – everyone is happy. Going the Class Action route will only be damaging to the industry and create unnecessary long term distractions in our core businesses, and that being, building a sustainable and long term industry for all of to enjoy the fruits of.
I don’t think that the companies in many cases even knew what their employees have been up to, so that’s at least a relief – that they have not been openly advocating this breach of privacy and if they enforce a code of conduct upon their employees, at the very least, this is an indicator of good faith upon them. People tend to be entrepreunerial and opportunistic, and you cannot fault anyone for that – it’s human nature.
This is really a part of the growing pains of any industry, and we just need to ensure that we deal with the situation in a positive manner.
Please feel free to post comments on this blog – as it will be followed closely.
Some other coverage of this topic:
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