<<<<< EDIT: my latest blog on Affiliate Junktion is here - You can find more up to date information on Affiliate Junktion here.>>>>>>
There are allot of Affiliate programs these days, and most good bloggers are affiliate savvy as are readers. I decide to take the plunge and check out one thats surfaced recently.
The site is Affiliate Junktion. Affiliate Junktion reads too good to be true. It guarantees to make you $150 a day, free to join and free website. We all know that affiliate plans can never 'guarantee' anything. In an effort to find out if Affiliate Junktion is a fraud, I did a bit of research:
I found (from forums/blogs) that after you join with Affiliate Junktion, sure you might get a free website (more on that later), but you have to host it with the service provider in their scheme. For that you have to pay for a years hosting, anything from US$5 to $10 a month (depending on time of year specials - currently only $4.95). Thats US$60-$100. So much for free (although the do promise to re-reimburse you $75 to cover that)
Looking at the site it appears to be New Zealand based. A quick whois check show Affiliate Junktion is hosted by bluehost.com in the US but (care of their domain privacy). OK so its hosted in the US that doesn't tell us anything. I had a look at the affiliate program at bluehost.com and they pay out $65.00 per signup to affiliates. That looks like where Affiliate Junktion is making their money.
So I thought lets see what happen when I sign up and registered my details. I immediately received an instruction email showing that I would have to sign up at ipower.com. Something smelt rather fishy. Why host with bluehost.com and direct people to ipower.com to sign up? So I check out their site, seams legit and a quick look at their affiliate program might hold a clue as to how Affiliate Junktion makes money. ipower.com pays out US$100 per sign up, enough to cover the promised $75 reimbursement and $2 sign up fee Affiliate Junktion pays its members (as I understand it).
About the guarantee to make $150 a day, we'll I check out Affiliate Junktions terms and conditions and it has a waiver that basically says that Affiliate Junktion is not liable for the validity or truth in the content of its site. That way Affiliate Junktion can guarantee and promise all they like it doesn't mean anything. You should know that.
I decided to carry on with the sign up. Hey I could use a years hosting even if the Affiliate Junktion turned out to be a scheme.
Therein I think lies the secret. Affiliate Junktion gets you to sign up for web hosting. This is how it avoids being a pyramid scheme, because at the bottom level there is someone getting a product, and one that most people who are likely to come across Affiliate Junktion (those searching for affiliate schemes) can use.
There are other schemes like that. They are called multi-level marketing. Basically a pyramid scheme which make sure the bottom level never 'breaks down' leaving people with nothing to show for thier money, by providing a product or service. They then encourage their members to duplicate the process and find more members. They even have a name for it, it's called "the cycle of duplication".
Whatever the outcome, I've paid my money to Affiliate Junktion so time will tell if they suckered me. If it is real, ones things for sure, Affiliate Junktion is set to make a bundle and at some stage there will be allot of people saying "I've got my hosting, now what?"
The last thing I did today ways to send my sign up proof to Affiliate Junktion. They are supposed to respond and upload the 'magical' website which will make me $150 per day to my host account. In any case I'll post tomorrow with more... if your thinking about joining Affiliate Junktion, maybe hold off a few days, we'll soon see if Affiliate Junktion is truth or fraud.
