I came across an interesting post on the Affiliate Summit blog that asked a rather important question. Yet it lay untouched, un-commented, and ignored. Which I thought odd as it was very relevant to all the conversations at the Performance Marketing Leadership Summit at ad:tech (yes, I do owe a post summit update).

The issue is over the title of the tradeshow, however, the debate symbolic of something larger. Should our industry evolve to becoming the “performance marketing industry” of which “affiliate marketing” becomes a major channel? Many comments have been made of late regarding the use of the term “affiliate” and moving the terminology to “publisher” or “media partner”. (that whole issue is another post altogether!). I think the discussion that Shawn brings up is an important one that  we need to address. Read below and join in his comments to discuss. The link to the original post is below.

Shawn posted This:

In every lifecycle in the growth of a company there are moments that define a company’s evolution and future. As Jim Collins said in his book Good to Great, there are stops along the journey when people get on and off the bus. This is a healthy natural occurrence in a company’s growth.

That may be the case. But in this case, its never easy to say “all the best” to someone who is part of the fabric of the MediaTrust family and one of my closest friends. I think I have spoken to Jivan more that my wife most days (lets keep that between us:)).  Jivan Manhas,our acting VP of Sales and fellow founder, has decided to step away from day-to-day operations of the firm he helped me co-found six years ago. After he completes his transition, Jivan will continue to support MediaTrust as a close friend, advisor, and shareholder of the firm.

Jivan explains:

“Subsequent to our recent merger with Bardon Advisors. MediaTrust is well positioned for continued growth going forward. Given the strength of the combined leadership team, as well as some of the new business we have lined up, now seemed like a good time for me to step away. I know the company is in good hands and we are well positioned to take care of our affiliate marketer and affiliate publisher partners. And that is important to everyone in the MediaTrust family, and to me as co-founder — and as a current and future shareholder!”

As part of the transition, we  will be winding down some of our operations in Toronto as we are optimizing and focusing the company for its next evolution of growth as a performance marketing platform. We will be looking to fill several key sales, product, and operational roles in our growing New York and greater Los Angles locations. As we build out our “MT East” & “MT West” centers of excellence in the two most influential digital media and adverting cities of the US, look for some new announcements regarding exciting technology releases, advertising partnerships, and new team members.

We are thrilled to announce our acquisition of Bardon Advisors and to have Keith Cohn join us as our President. This further expands the breadth and depth of our capabilities as a performance marketing platform. The MediaTrust platform now offers diverse transaction types (CPC, CPA & CPL) and tools such as our Conversion Solutions & Landing Page Rotator.

We believe the future of online marketing is platform-driven ecosystems that are open, modular and agnostic. Similarly to how at the heart of the Google ecosystem is a search platform, there is a performance marketing platform at the center of MediaTrust. We are looking to drive our segment of the internet marketing forward by delivering an innovative technology platform to empower our advertiser, marketer and affiliate publisher partners with the best-of-breed performance marketing solutions to drive traffic, leads and transactions.

Keith Cohn is the President and partner we have been searching for for over a year. He is equally as passionate about digital media and marketing, and has a track record in building digital marketing companies. Keith understand how to create value for brands, agencies and publishers by creating customized programs across all performance marketing channels. Helping brands understand and transition into performance driven advertising is a critical success factor for the future of the performance marketing industry.

And a quick FYI: In the upcoming months, we will be announcing several new products for publishers and advertiser that leverage CPC transaction capabilities. We now own a tremendous amount of sites, traffic, and (most importantly) data that we can leverage to make every aspect of our platform  smarter in targeting, optimizing and converting consumers, interactions, and transaction.

Our platform has migrated from being the typical “traffic-in/ traffic-out” affiliate network into a platform that powers the entire performance marketing value chain and “connects impressions to performance”. We have a very robust product road map and will continue to innovate and deliver technology to advance the performance marketing industry. We look forward to our continued collaboration with our business partners and industry so that we can evolve and grow as a community.

You can see the full press release and further information HERE and whats going on with coverage on Revenews , 5 Star Affiliate Programs , Adotas and Paid Content

Dear MediaTrust Partners,

We are pleased to announce some exciting news. MediaTrust has acquired search and CPC network Bardon Advisors .

We are very excited about this news, as Bardon’s team and technology allow us to broaden the MediaTrust platform to offer pay per click campaigns for our advertising and publishing partners. This means our advertisers and publishers can choose from three performance marketing metrics for their campaigns:  CPL, CPA and now CPC. The acquisition further expands our platform capabilities as we evolve to a diverse technology-driven performance marketing platform that handles every transaction type and includes best-of-breed tools for our partners to increase ROI. These tools include the recently released Conversion Solutions and our proprietary landing page rotator optimization system.

With this acquisition, Bardon Founder and CEO Keith Cohn will be taking the position of President and a seat on the board of directors of the combined entity. Cohn comes to MediaTrust with more than 20 years of leadership experience, building brands and businesses for start-ups and large established companies. Prior to launching Bardon Advisors, Cohn was President and CEO of Vendare Media, an Idealab & venture-backed Internet advertising and media firm. From 2000 to 2006, he led Vendare Media from a pre-revenue, fledgling Internet start-up into a $120mm a year diversified marketing firm with an emphasis on lead generation and other forms of performance- based marketing.

We are very much looking forward to working with Keith and the great team he has assembled. We are also looking forward to working with you to see how our broadened offering can help you reach your business goals.

Your account or publisher manager will reach out to you in the coming days to schedule some time with you to walk through the new offering. In the meantime, feel free to reach out to us with any questions. Also, we have assembled an FAQ to address some of your questions.
Regards,

The MediaTrust Team

An Agenda For Change and The Evolution of Affiliate Performance Marketing

I am honored to have been selected as one of the keynotes at the Performance Marketing Leadership Summit. The summit is taking place today at Ad:tech in San Fransisco. The agenda includes many industry thought-leaders gathered to participate in a very important discussion. We will be discussing how we effect change and evolve our segment of internet marketing so that larger brands , budgets and  agencies become more deeply involved the affiliate performance marketing space.

We are at a critical inflection point in our industry and have the opportunity to grow substantially IF we address key issues and come together as a unified industry segment. Think about it: There is no where else to go as digital marketing moves from CPM to CPC to the back end of the internet marketing funnel which is 100% transactional advertising.

We can either keep going in the direction we are heading in (MediaTrust says ‘no thank you’) which is to remain the red-headed-step child of internet marketing. Or get our act together and do what it takes to mature and realize the full potential of Performance Marketing. Basic laws of business tell us that we need to evolve. (This evolution is also the core of one of the best business bibles ever written: ” Good to Great” by Jim Collins–if you have not read it then get it!)

That being said, we need to work together to realize our full potential. Events like these are critical so that we can have open presentations and discussion about technology, fraud, transparency, compliance & industry standards.

I hope everyone will join and get involved in helping shape the future of our industry. I will post insights on the summit and the presentations and encourage those who are unable to make it… affiliate marketers, publishers, advertisers, merchants , networks and agencies no matter how big or small to get involved in the comments. We need everyone’s participation and input.

SUMMIT INFO : HERE shows the agenda , roster of speakers and companies attending

Top Industry Leaders Examine, Explore and Debate:Compliance, Fraud & Transparency What’s Keeping Tier 1 Advertisers Away Monday, April 19, 2010, 12 Noon PST Intercontinental Hotel – San Francisco, CA 888 Howard Street | San Francisco, CA 94103 Grand Ballroom A – Third Floor (located 1 block from the Moscone Center) This is a Free Event – Lunch will be served; Networking & Cocktails to follow Summit
Our industry is being attacked!  By fraud, by transaction processing woes and by Compliance issues.  It seems everywhere we look there are challenges that require us to alter the way we do our business plans and strategies.Add to that, the fact that as an industry we have been unable to draw in more than a handful of Tier 1 advertisers into the Performance Marketing channel.  Mostly due to the factors listed above.  Simply put, they look at Performance Marketing as a channel where the risks outweigh the rewards.  In order for us to grow, we will need to change that perception to the advertiser community. There is something you can do to help change that.  Offervault is presenting the Performance Marketing Leadership Summit.  This event, which builds on the first Leadership Conference held during AdTech NY in 2009, attempts to bring together Performance Marketing executives and advertisers into an open and honest forum regarding the issues we all face in today’s Cost per Action environment.
	Keynote Speaker: E.J. Hilbert President, Online Intelligence, Epic AdvertisingFor many in this industry the term compliance usually means lost profits, cease and desists, lawsuits and government intervention.  But, compliance is far broader when done properly means exactly the opposite.  Compliance is a catch all term to address legal concerns but is also anti-fraud, anti-abuse and brand protection.  Under that definition, compliance has moved from an add-on to the corporate culture and become a requirement for business success.		Featured Speaker: Peter Bordes MediaTrust Founder & CEO Attracting top tier advertisers (and their budgets) is a concern for our entire industry. No one knows this better than Peter. As a thought leader and long time player, Peter has been able to attract top advertisers and retain them for the long haul. He will reveal the strategies MediaTrust has been using to motivate them and keep this elusive group coming back for more.

Maryland Affiliates Call to Arms! Your Voice is Needed!

Affiliates please take the time to participate in this fight that threatens our industry and your livelihood. No matter what size your affiliate business is your voice is needed and does make a difference. An advertising tax bill has been proposed in Maryland, and a hearing has been scheduled for March 17th. If this tax passes, we estimate over 100 advertisers will terminate their affiliate programs with Maryland publishers.

The Performance Marketing Association is the central hub of all of our initiatives and is leading our industries charge to fight this unfair and ill-conceived tax.

“Our effectiveness in fighting legislation that directly harms the income of affiliates will depend on your support. The PMA will be coordinating a targeted grassroots campaign, and we need help from all Maryland affiliate marketers.”

You can learn more about this issue here:

http://www.performancemarketingassociation.com/blog/category/state-legislation/maryland/

You can register your support on the PMA site:

http://performancemarketingassociation.com/advocateform.html

You can also join a group formed for Maryland affiliates: http://groups.google.com/group/pma-md/

Our strength is in our numbers!

If you Twitter please use #NoAdTax to help spread the word in your tweets and Tweet this post ASAP
You can also reach out to the PMA

Rebecca Madigan
Executive Director | Performance Marketing Association
o: 805.445.9700 (PST)

I am thrilled to be joining the Search Engine Strategies Chicago Conference panel “The Oprah Winfrey Litigation: What Affiliate Marketers MUST Know“ Wednesday, December 9th from 2:30pm-3:45pm at the Chicago Hilton. The panel is led by a fellow affiliate marketing executive and thought leader Kris Jones. Kris is the President of the PepperJam Affiliate Network – which was just acquired by GSI Commerce. The panel promises to touch on a very hot and controversial topic, and certainly one that is on the forefont of many of our MediaTrust initiatives – like the launch of our compliance center and anti-fraud technology.

Notice that the panel description does slant towards the favor of the merchant and places most of the responsibility on the affiliate’s shoulders. This is a position that I will be countering as we have seen merchants equally participating in using the same tactics on thier landing pages. Affiliate networks are also responsible  in making sure both the affiliate publisher and advertiser are compliant. We have experienced affiliates asking how they can make sure the merchant on the other side is compliant as well as the advertisers. Our position is that we are all in this together and need to collaborate to proactively get ahead of these issues and help set the regulation frame work . Rather than waiting in the grey area for regulation to to be dictated to our industry from regulators who dont understand online marketing and disrupt our industry.

I am very pleased to see a well-rounded panel and good affiliate industry representation at the SES show. I hope to get a chance to connect with everyone at the show. Here is more info on the panel:

The Oprah Winfrey Litigation: What Affiliate Marketers MUST Know
In August, Oprah Winfrey’s production company brought a lawsuit against over fifty Internet marketers and their affiliates alleging numerous intellectual property rights violations against the marketers and the affiliates. Because many of the merchants used affiliate networks, these merchants were being sued regarding actions by affiliates that the merchants did not know or pay. Because many of the affiliates disappeared the moment that they were sued and because many merchant/network contracts preclude indemnification, the merchants may be liable for significant damages.

Using the context of the Oprah case, the panelists on this session will discuss whether the merchant/affiliate network model needs to be changed and how the risk can be mitigated. While the industry is unlikely to ever be risk-free, it is possible to manage risk by:

• Understanding how techniques like behavioral and contextual targeting affect consumers, affiliates and merchants
• Understanding the legal and regulatory environment
• Understating risks involved with prospective marketing partners
• Using and maintaining proper contracts that allocate risk and provide appropriate indemnifications, and
• Keeping informed about the changes in technology, marketing practices and the regulatory environment.

Attendees will learn how to identify these issues and develop policies and procedures to keep informed about the current technology, marketing strategies and regulatory compliance. The ultimate goal of this knowledge is to help insulate merchants from liability and protect their brands and reputation.

Moderator:

Kristopher Jones, President & CEO, Pepperjam

Speakers:
Mark Rosenberg, Of Counsel, Sills Cummis & Gross P.C.
David Adler, Partner, Adler Law Group
Grant Crowell, Senior Media Analyst, ReelSEO.com
Peter Bordes, Founder CEO and Chairman of the Board, MediaTrust

Each year one of our staff is reconized and honored by their peers at MediaTrust. The 2008 award (albeit five months overdue) goes to Geofferson Marcy for setting an example to all for living our core MT beliefs and business culture. Geoff has made great contributions to the MediaTrust family members, our business partners and the industry. He’s demonstrated great leadership and sets an example to us all in team work, integrity, ethics, coaching, collaboration and proactivity. His contributions have made a meaningful impact in building and improving our company and industry. Thank you for you insight, ethics, dedication, passion and inspiration. You are a mentor to us all!

Your Family Members,

MediaTrust

The PMA Performance Marketing Alliance Association announced that the anti-affiliate legislation in Minnesota DID NOT PASS! This win is directly tried to the members of the PMA organization and the industry community working together to combat the tax legislation.This is the second win that demonstrates how effective we can be in having networks, merchants and affiliates working together to make a difference. Minnesota affiliates your efforts are greatly appreciated. The tax is dead for now. There are more of the political details on the PMA site. Here is the latest communication  about the omnibus tax bill that was passed by the Legislature.

_______________________
Minnesota –Multiple Taxes: Omnibus Public Finance Bill Passes Legislature

An omnibus public finance bill that would make numerous changes to corporate
income, personal income, sales and use, property, and other taxes has been
passed by the Minnesota Senate, and has been repassed by the House of
Representatives as amended by the Senate, on May 12, 2009. The provisions
were amended to H.F. 1298 by the conference committee for H.F. 2323, which
as previously reported, passed the House of Representative on April 25,
2009, and the Senate on April 28, 2009. (TAXDAY, 2009/04/28, S.12)

Sales and Use Taxes
The bill does not contain the provision, previously passed by the House and
the Senate (TAXDAY, 2009/04/28, S.12), that would have created a rebuttable
presumption, similar to New York’s so-called Amazon law, that a retailer is
presumed to have a solicitor in Minnesota if the retailer enters into an
agreement with a resident under which the resident, for a commission or
other consideration, directly or indirectly refers potential customers to
the retailer by a link on an Internet Web site or by other means.
H.F. 1298, as passed by the Legislature on May 12, 2009.
______________________

Performance Marketing Industry & Hawaiian Affiliates – Time to Email the Governor!

The Performance Marketing Alliance has an all hands on deck alert for networks, merchants, service providers and affiliates to get involved in fighting the Advertising Tax in Hawaii.  As you may well know, the status of the affiliate marketing sales tax legislation in Hawaii has reached a critical point. The bill, HB 1405, has been sent to the Governor’s desk. We need everyone in the industry to help and most importantly, we the help of Hawaiian affiliates. We need to reach out to Governor Linda Lingle and ask her to veto the bill. Hawaii affiliates need to email or send a letter to the Governor as soon as possible.

Below are two sample emails networks, merchants and affiliates can send and info and contact information for the Gov. This strategy has proven to be easy, yet effective.

NETWORKS, MERCHANTS email letter to get your affiliates active BELOW
—————————————-
Dear Hawaiian Affiliate:

The Hawaiian legislature has sent an anti-affiliate bill, HB 1405, to
the desk of your Governor, the honorable Linda Lingle. This
legislation could force out-of-state merchants to shut down their
affiliate programs.

How would that impact your business?

If you live in Hawaii, it is critical that you send an email of
opposition to the Governor as soon as possible! It is our hope that
the bill will be vetoed by the Governor. With your letters of
opposition, she will hear your opinions voiced and increase the
chances of a veto.

So please contact Governor Linda Lingle as soon as possible, even over
the weekend. Because your businesses are under threat, it is
imperative that your messages are heard.

More background information can be found here on the PMA website.
www.performancemarketingalliance.com

Below is an e-mail template to use and the contact information for the
Governor. Please send an e-mail; it will only take a few minutes of
your time.

Email Template – copy and paste. Don’t forget to personalize the bracketed sections. Sometimes it is easy to overlook them in a hurry.

Thank you.

(e-mail: governor.lingle@hawaii.gov )
_____________________________________________________________________________

AFFILIATE EMAIL TEMPLATE TO SEND TO THE GOV ASAP
[letterhead]

[Date]

Her Excellency, the Honorable Linda Lingle
Governor, State of Hawai`i
Executive Chambers
State Capitol
Honolulu, Hawai`i  96813

Subject: Opposition to HB 1405

Dear Honorable Governor:

I am a small business owner with a website, and I am in strong
opposition to HB1405, which would require retailers that advertise and
receive direct or indirect referrals from advertising on websites,
such as mine, to collect sales tax in Hawai?i.

I am opposed to this bill because it would substantially harm my small
business, by reducing a large source of revenue that I rely on to
survive. This revenue results from providing advertising on my website
on behalf of out-of-state retailers.

[Describe your type of business, the % of income dependent on
out-of-state advertisers, number of employees you may have, and what
you contribute to the local economy.]

If retailers believe that doing business with me will result in their
having to collect sales tax on all Hawai?i sales, they likely will
sever ties with me, putting the viability of my business at risk. Such
was the case in the state of New York, where Overstock dismantled its
performance advertising program and hundreds of other business
followed Overstock?s example. This left thousands of small- and
medium-sized business owners with a major loss of income.

For these reasons, I respectfully oppose this legislation.

Sincerely,

The federal Trade Commission is going to be looking at setting guidelines and standards for best practices for the online marketing industry and consumers. The FTC is suggesting that bloggers and social media marketers who use false statements about products they promote will be held liable. If the proposed guidelines come into effect, affiliate publishers and marketers will need to use the same sort of strategies and care that traditional publishers and infomercial producers do.

This is part of the FTC’s advertising-practices divisions effort to “update guidelines that are 30 years old.”

The FTC commissioners will be voting on the new proposed guidelines later in the summer. This is part of the new regulation-minded administration in Washington that wants to set better standards, definitions and best practices in the online marketing industry.The administration will be formalizing many areas of our business’s framework from paying taxes to outlawing unethical business practices.

The online marketing industry is still very young and has been allowed to have too much undefined grey area for marketers and consumers. This effort will cause some initial pain and awkwardness for some of our online marketing community, but in the long run our industry will greatly benefit. This will create a more solid foundation and greater credibility for growth – especially in the the performance marketing segment of our markets.

We will be launching a compliance resource center in our platform for our advertising and affiliate publisher partners. The center will be updated with all the new policies and procedures plus other hosted compliance solutions. We are looking forward to our industry’s next evolution in becoming a more mature and vibrant business. Stay tuned and also make sure to reach out to us if you need any help understanding the many moving parts of compliance and our markets.