RefToken brings the flexibility of a bespoke legal contract to affiliate marketing via its use of smart contracts which offer a blank canvas on which to define the specifics of their commercial relationship, the only limitation being the ability of the person writing the smart contract. In current affiliate platforms conversions are measured by the firing of pixels (on ‘thank you’ pages for example), server to server postbacks, FTP uploads or a combination of the three.
Regardless of the option or combination thereof there has always been opposing pressure between merchants and affiliates to move qualification criteria to their advantage, e.g. Affiliates promoting insurance or mortgage companies will often work on a cost per lead (CPL) basis, in this case the affiliate will push to have each enquiry (on the merchant’s webform) count as a conversion, whilst the merchant in order to protect themselves for bot powered or incentivised user fraud would negotiate to only count confirmed appointments as leads (necessitating a manual updating of lead status, and opening the possibility of undercounting). In another common instance, online casinos offer commissions to affiliates based on a revenue share (RS or cost per acquisition (CPA) basis, this leads to often protracted negotiations between the parties in order to quantify CPA triggers (minimum deposits, wagering amounts etc), in the case of revenue share the process is somewhat simpler, however both structures once again depend on the merchant (and their employees) being honest in their ways and uploading the correct data.
RefToken’s smart contracts will sidestep all the above issues, by presenting merchants and affiliates with infinite flexibility in defining a successful conversion, safe in the knowledge that the system is trustless in nature and that the affiliate program is solvent at all times.