Brown paper bag money
Wednesday, August 4th, 2010So they’re making a movie of Ben Mezrich’s book “The Accidental Billionaires” all about the early days of Facebook and the enemies that Mark Zuckerburg allegedly made and the meteoric rise of the social networking site that we all now accept as part of our lives. I’ve read the book and if I’m honest wasn’t that impressed. A lot of the book is pure conjecture and speculation. Ben Mezrick uses quite a lot of artistic licence in piecing together what might have happened early on in Facebook’s life. But given that Mark Zuckerberg hasn’t written his autobiography yet, this is the best that we’re going to get to the real story of how Facebook started. BTW I love the subtitle of the movie, “You don’t get to 500 million friends without making a few enemies“. Brilliant.
This got me thinking though, I think there’s a much better story out there waiting to be told and it’s all about eBay and affiliate marketing. For those of you who don’t know, in August 2008 eBay filed a civil suit in America against Shawn Hogan, Brian Dunning and Todd Dunning from Digital Point. eBay alleged them of “cookie stuffing”, in other words generating hidden forced clicks of their eBay affiliate links. No big deal I hear you say, I know loads of affiliates who participated in cookie stuffing “back in the day”. Yes, so do I. But get this, between 2006 and June 2007, Shawn Hogan earned approximately $15.5 million in commission from eBay. Shawn was eBay’s number one affiliate. Yes that’s $15.5 million in commission from one programme in just over a year. So it’s unsurprising that eBay are taking this seriously. To make matters worse (for the affiliates in question) criminal charges have now been filed and if they are found guilty they could end up in prison for up to 20 years. 20 years in prison for cookie stuffing, can you imagine? You can read a much more detailed account of the whole case here.
What makes this case really interesting to me is that having been around the affiliate business for 10 years or so I can remember loads of affiliates who did the whole cookie stuffing thing. In particular one or two of the early voucher code sites were a tad naughty. I’m pretty sure none of them generated as much commission from it as the Digital Point guys though, still, it’s food for thought. And before anyone asks, no I won’t name these affiliates on here. In fairness though, affiliate marketing was a bit “wild west” a few years ago and things like cookie stuffing were very much a “grey” area as no real rules existed. Brand bidding was also open to pretty much anyone, ah those were the days.
If there is only one blog post you read today you MUST read this one
In response to the eBay allegations Shawn Hogan has written a blog post about his experience with eBay as an affiliate. You simply must read this, it’s absolutely fascinating and reminds me so much of years gone by when while not commonplace there certainly was an element of the “brown paper bag business” about affiliate marketing. Now that would make a good movie….
What I’m listening to right now: Strictly Bass, part 6
Post from Kieron’s Blog
Original post by Kieron











