Understanding Subnetwork Risks in Affiliate Marketing

subnetworks, also called sub affiliate networks, can provide brands with access to large pools of publishers through a single partnership however, they also represent the highest fraud risk in affiliate marketing due to weak vetting processes and limited transparency this article explains what subnetworks are, why they're risky, and how to manage them safely using marcode's detection capabilities what are subnetworks? a subnetwork is an intermediary that sits between your affiliate network and individual publishers (called "sub publishers" or "sub affiliates") how they work traditional affiliate model brand → affiliate network → publisher subnetwork model brand → affiliate network → subnetwork → sub publisher instead of publishers joining your programme directly, they join through the subnetwork the subnetwork appears as a single affiliate on your programme, but behind that one affiliate id are potentially hundreds or thousands of individual sub publishers why brands use subnetworks subnetworks can offer legitimate benefits scale access many publishers through one partnership efficiency one approval instead of vetting dozens of individual publishers niche reach some subnetworks specialise in specific publisher types (content creators, influencers, international markets) resource optimisation subnetworks handle publisher management and payments example of a reputable subnetwork skimlinks specialises in premium editorial content sites, offers full transparency, and has robust compliance monitoring why subnetworks are high risk despite potential benefits, subnetworks pose significant fraud risks that brands must understand 1\ lack of transparency the core problem most subnetworks only provide aggregate reporting you see total clicks and conversions from the subnetwork, but not which individual sub publishers drove those sales why this matters you can't see if specific sub publishers are committing fraud sales appear to come from a "trusted" subnetwork partner in reality, those sales might be coming from hijackers, fake discount sites, or unauthorised browser extensions the fraud it enables subnetworks can claim they're driving sales through legitimate content sites when the revenue is actually coming from fraud without visibility into individual sub publishers, you have no way to verify their claims 2\ weak vetting processes many subnetworks have extremely lax approval processes for accepting sub publishers into their network common vetting failures accepting publishers with minimal or no review not checking for previous fraud violations allowing banned affiliates to rejoin under different names no verification of promotional methods accepting anyone who applies to maximise their publisher base the result your programme becomes accessible to fraudsters who would never pass your direct application process 3\ ad hijacking through subnetworks hijackers frequently join affiliate programmes through subnetworks because subnetworks rarely check how sub publishers promote brands individual hijackers are hidden behind the subnetwork's affiliate id brands don't see the hijacker's details in standard network reporting even if caught, hijackers can simply rejoin through a different subnetwork most hijacking we detect at marcode comes through subnetworks link to docid\ rkf5vn f e1tsj7lndb t 4\ fake discount sites via subnetworks sophisticated fake discount site operations almost always operate through subnetworks because they can get approved in bulk without individual scrutiny they can hide behind the subnetwork's legitimate appearance when banned, they simply create new sites and rejoin they can operate dozens of fake sites through a single subnetwork id link to docid\ nadf7ykqdtlnu0zzg gzi 5\ unauthorised browser extensions rogue browser extensions commonly join programmes through subnetworks to avoid direct scrutiny of their extension's behaviour hide behind aggregate subnetwork reporting continue operating even when brands think they've removed them the subnetwork may not even know which of their sub publishers are running extensions 6\ banned affiliates returning one of the most frustrating subnetwork issues affiliates you've removed for fraud can reappear through subnetworks how it happens you catch a fraudulent affiliate and ban them from your programme they join a subnetwork using a different name or company the subnetwork doesn't check if they've been banned elsewhere they're back on your programme, earning commissions again without visibility into individual sub publishers, you won't even know it's the same bad actor how marcode solves the transparency problem marcode's core value for subnetwork management is revealing what subnetworks hide extracting critical identifiers when marcode detects violations (hijacking, brand bidding, discount sites, extensions), our analysis extracts the detailed tracking parameters needed to identify the specific sub publisher what marcode captures subids the subnetwork's internal id for the sub publisher clickids unique tracking identifiers for the traffic source siteids website or source identifiers within the subnetwork affiliate parameters full redirect chain showing all tracking details where to find this information in any report look for the microscope icon in the top right corner of any report click to view a list of all analyses these are separated into automated (ones marcode has run) and manual (ones you have run) the analysis will be labelled by the ad account name running the ad, or browser extension find the analysis and click on it see the complete redirect chain and tracking ids in the affiliates tab customise your view (see " docid 26awqetet9yutabbuputd ") add columns for subid, clickid, siteid view these parameters directly in the report table in email templates and playbooks add dynamic fields to automatically include these parameters see more docid\ r5wyslhqw78nhzuew mgi and docid\ txyapmjoj0j4vn6wmwz80 taking action against subnetwork violations step 1 identify the violation review your hijacking, infringements, or coupon & discount ads reports look for violations where the affiliate id is a known subnetwork step 2 contact the subnetwork provide the subnetwork with the extracted parameters so they can identify the offending sub publisher within their network what to include in your communication violation type (hijacking, brand bidding, etc ) date and time detected subid, clickid, and siteid (critical for subnetwork to identify the source) evidence from marcode clear deadline for removal (typically 48 72 hours) consequences if not addressed (removal from programme) step 3 use playbooks for efficiency set up playbooks specifically for subnetwork violations with the extracted parameters automatically included example playbook send warning email with subid/clickid/siteid → wait 3 days if no response send final warning → wait 2 days if violation continues remove subnetwork from programme link to setting up strike based policies when subnetworks can work not all subnetworks are problematic some operate with high standards and full transparency characteristics of reputable subnetworks according to the apma subnetworks matrix, look for subnetworks that offer transparency provide full domain visibility (not just publisher ids) share performance reports by individual sub publisher offer advertiser logins to view sub publisher activity explain suspension and removal processes clearly have strong vetting manual publisher approval process published criteria for accepting sub publishers dedicated compliance teams can blacklist specific sub publishers on request provide support dedicated account management clear escalation paths for violations respond quickly to fraud reports proactively monitor for compliance issues the apma subnetworks matrix the affiliate & partner marketing association (apma) publishes a comprehensive matrix evaluating 20+ subnetworks across transparency, publisher management, technology, and support use this resource to compare subnetworks before partnering verify their compliance capabilities check transparency practices see which subnetworks responded to the industry survey (those who didn't respond raise red flags) see the apma library https //theapma co uk/apma research 3/ best practices for working with subnetworks before accepting a subnetwork 1\ check the apma matrix verify they offer transparency and have strong vetting processes 2\ request detailed information publisher vetting process and criteria how they handle fraud reports what parameters they track (subid, clickid, etc ) examples of sub publisher reporting compliance monitoring methods 3\ set clear expectations in your t\&cs subnetworks must provide sub publisher details on request they're responsible for all sub publisher activity violations from any sub publisher may result in subnetwork removal you require subid/clickid/siteid visibility 4\ start with a trial period monitor closely for the first 30 60 days before fully trusting the partnership while working with subnetworks 1\ monitor regularly with marcode review hijacking, infringements, and discount ads reports weekly check for violations coming from subnetwork affiliate ids extract and document all subid/clickid/siteid parameters 2\ demand transparency request sub publisher reports monthly ask for top performing sub publisher domains question any sales patterns that seem unusual 3\ act quickly on violations don't give subnetworks endless chances use playbooks to automate enforcement remove persistent offenders decisively 4\ track subnetwork performance which subnetworks respond to violation reports quickly? which ones repeatedly harbour fraudsters? are the sales quality worth the monitoring overhead? 5\ review quarterly are you getting value from the subnetwork? could you recruit their top sub publishers directly? would you be better off without them? our recommendation extreme caution marcode's position on subnetworks be extremely cautious why we're cautious most fraud we detect comes through subnetworks the transparency problem is fundamental to their business model many have inadequate vetting that lets bad actors in legitimate publishers can (and should) join programmes directly when subnetworks might make sense you're using a reputable subnetwork with proven transparency (e g , skimlinks) you need access to specific international markets or niches the subnetwork provides value you can't get from direct publishers you have monitoring tools (like marcode) to detect violations you're willing to invest time in active oversight when to avoid subnetworks they can't or won't provide sub publisher visibility they're not listed in the apma matrix (or scored poorly) they ignore your violation reports you keep finding fraud coming through their affiliate id you don't have tools to monitor what they're really doing red flags to watch for remove a subnetwork immediately if they refuse to provide subid/clickid/siteid information they ignore violation reports or miss deadlines repeatedly you detect the same sub publisher violating rules multiple times they claim to be "unable to identify" the source despite you providing detailed parameters banned affiliates keep reappearing through their network they can't explain suspicious sales patterns common questions "how do i know if an affiliate id belongs to a subnetwork?" check your affiliate network's publisher list subnetworks are typically listed by their company name (e g , "skimlinks", "sovrn") if you're unsure, ask your affiliate network account manager "can i block specific sub publishers without removing the whole subnetwork?" yes, if the subnetwork provides subid/clickid/siteid transparency marcode extracts these parameters so you can request the subnetwork blocks specific offenders "what if a subnetwork says they can't identify the sub publisher from the parameters?" this is a red flag if marcode can extract subid, clickid, and siteid from the redirect chain, the subnetwork should be able to match these to a sub publisher if they claim they can't, consider removing them "should i approve subnetwork applications automatically?" no treat subnetwork applications with extra scrutiny check the apma matrix, request their compliance documentation, and only approve after thorough vetting "can i use playbooks to automate subnetwork enforcement?" yes set up playbooks that include the {{subid}}, {{clickid}}, and {{siteid}} parameters this automatically provides the subnetwork with the information they need to find the offender "how many warnings should i give a subnetwork?" maximum two warnings subnetworks should respond quickly to violation reports if they don't remove the offending sub publisher within a few days, they either can't or won't control their network "what's the difference between a subnetwork and an agency?" agencies manage affiliate programmes on behalf of brands but don't operate their own publisher networks subnetworks have their own pool of sub publishers who promote through the subnetwork's affiliate id