What does voucher leakage mean in affiliate marketing?

Voucher leakage in affiliate marketing

Definition:
Voucher leakage refers to a practice in affiliate marketing where certain publishers deliberately and systematically distribute discount or voucher codes to generate excessive traffic and conversions. Often, they use exclusive or unauthorized codes to attract customers.

Risks for shops:
This method can pose significant risks for online shops. The aggressive placement of voucher codes can lead to increased competition and brand devaluation. There's also the risk of revenue cannibalization, as customers may focus solely on discounts and become less willing to pay full price. Additionally, there’s potential for fraud or misuse if vouchers are shared without control or used multiple times.

Publisher behavior:
Publishers who engage in voucher leakage often do so with the sole goal of generating quick commissions, without regard for the shop’s long-term impact. This type of affiliate marketing is problematic, as it can damage the brand image, dilute the value of marketing campaigns, and create conflict with more reputable partners.

Summary:
Voucher leakage is a strategy in affiliate marketing involving the deliberate spread of voucher codes. While it may boost short-term sales, it can cause long-term harm to a brand. Affiliate program operators should be aware of these risks and implement proper controls to prevent abuse.