To save you time, I'll start with the summary and work backwards.
Is Affiliate Junktion a scam? Legally speaking I think it walks a fine line, but what you probably really want to know (legal or not) is if it will make you money. Sorry, it won't ((EDIT: Oops, di I say that ??? I'm now making €100 a day with it!)). What qualifies me to say these things ((EDIT: Good question! seeing as how I was WRONG!).
I tried Affiliate Junktion and lost money. Later, after I had learn't more about google adwords and just to make sure I hadn't missed something, I tried again (and lost a little more money) I did this purely to put the Affiliate Junktion saga to rest safe in the knowledge that I tried sufficiently.
I am a tech guy, and learn very quickly. I am well capable understanding the system and following it correctly.
I am a successful businessman who has already retired (in my early 30's)
My businesses were Advertising businesses.
This blog is genuine, It started out as some ramblings about Apple Macs etc and then I found Affiliate Junktion and decided to give it a go. I blogged the whole unhappy experience.
Ok whether you believe me or not just understand one important concept. Don't be quick to believe positive comments about Affiliate Junktion. Making a blog is easy. If you owned Affiliate Junktion, you would make some blogs to sing it's praises and inform people “its not a scam”?
Likewise the new recruited Affiliate Junktion members do the same. The believe if they give Affiliate Junktion a rave review they in turn will make convert a customer and receive a commission from Affiliate Junktion. How can you believe anyone who says they are making any sort of commission is genuine when they have a stake in saying that?
Internet copywriters know about this. They understand if you read “it's not a scam” and “I'm making...” enough, then you will start to believe it. Internet scams pray on your underlying will to believe. If someone says they are making a lot of money and they will show you how, we all want to believe it. We want it to be true.
But here are the facts about Affiliate Junktion:
Payouts are only made after your Affiliate Junktion commissions exceed $150, I would be willing to bet, that its about the time that people reach $100 in commission, they realise they are spending more money on advertising than they are receiving in commission (ie running at a loss) that people quit.
All payouts are in $NZ dollars (about US$.816292 – but the kiwi dollar is at an all time high)
Prices of advertising for fast money making schemes are soaring on the back of all the new affiliate program members. You can try to get cheaper clicks by using other keywords, but then your targeting the wrong people and can expect very few to join off your affiliate link.
Not only are the clicks hard (or expensive) to get, but getting someone to click a second time to follow your affiliate link to the Affiliate Junktion website reduces the amount of raffic even further.
Legal grey area: If a person offers you something for free and then requires you to make a purchase in order to get it... I'm no lawyer, but I think that means it's no longer (legaly) free, this has many implications, false claims being the mildest of them.
*If you want to know how Affiliate Junktion (and other similar affiliate schemes) works, I debunked it here. Behind the scenes of Affiliate Junktion is a really good piece of software called Post Affiliate Pro which can be used to make you own genuine affiliate program for your product or service and is used by many genuine companies. It's probably the most useful thing I learned from Affiliate Junktion.
The last thing I want to say before I put this experience to rest. is that if you have had a bad experience about Affiliate Junktion (or any other Affiliate program) write about it. Helping people from falling victim to scams is hard on the Internet because so many people are lying to help boost the image (to try and get commissions) that bloggers who tell the truth won't necessarily get heard.
Good luck dodging the sharks infested waters of online money making.
Here are some links of note.
My previous posts on Affiliate Junktion: