This article outlines why transparency and fair validation matter, and how aligning with IAB Australia’s recommended practices ensures long-term program health.
Transparent affiliate programs foster ethical partnerships, reduce operational risk, and elevate performance. According to the IAB Australia Affiliate & Partnership Marketing Working Group, a lack of transparency can result in:
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Misleading or unclear advertising
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Tracking discrepancies
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Undefined or inconsistent program terms
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Increased fraud risk
Clarity builds confidence and safeguards your brand and your affiliate relationships.
Recommended Best Practices for Advertisers
1. Clearly Define Commissionable Actions
Affiliates must know what actions earn commission—and what doesn’t. Your program terms should state:
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Commissionable products/services
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Exclusions (e.g., GST, shipping, returned items)
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Cancellation policies
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Order validation timelines
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Use of third-party payments (e.g., PayPal, Apple Pay)
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Excluded sources or scenarios (e.g., offline conversions)
Tip: Clearly list exclusions such as failed credit checks, duplicate orders, or use of non-authorised discount codes.
2. Publish a Fair De-Duplication Policy
De-duplication affects how conversions are attributed across channels. Your policy should disclose:
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Which channels are included (e.g., paid search, display, email)
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Attribution logic (e.g., last-click)
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How it affects affiliates’ tracking credit
Avoid de-duplicating against organic or direct traffic, as this often undermines affiliate value.
3. Set Clear Rules Around Affiliate Types
Each partner type—coupon sites, influencers, loyalty platforms, mobile affiliates—needs tailored rules:
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Set clear usage terms for coupon codes
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Confirm whether retargeting, email, or browser extensions are allowed
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Outline mobile tracking set-up, especially for app conversions
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Align brand messaging with content affiliates
Tip: Ensure mobile tracking is integrated correctly to prevent sales loss from untracked app traffic.
4. Be Proactive in Communication
Advertisers should maintain ongoing, transparent communication with affiliates and networks:
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Announce significant program changes at least 7 days in advance
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Explain changes to tracking, policies, or commission structures
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Encourage questions and feedback from partners
Good communication enables affiliate agility and avoids misalignment.
5. Validate Transactions Promptly and Fairly
Delayed or arbitrary validations discourage affiliate effort and diminish trust. Best practices include:
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Using objective validation reasons that match stated exclusions
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Validating or rejecting transactions within a defined timeframe
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Avoiding retroactive invalidations outside your listed terms
Prompt, fair validation increases affiliate confidence and investment.
Note: On Commission Factory you must list the reason for cancelling or amending a commission rate, so ensure this is accurate as its visible to your partners.
Upholding Industry Standards
Advertisers who implement IAB-endorsed practices not only boost partner engagement but also reinforce the professionalism of the channel. These practices are backed by leading networks, including Commission Factory, and are applicable across all affiliate verticals.
Download the full IAB Affiliate Marketing Commission Validation Recommended Practices guide to review every area in detail, and connect with our team for support in applying these standards to your program.