Too many times we’ve seen it. A company that is going ok or that is new and starting to build a reputation or even one that has a very good reputation – they make the one big mistake that kills them. We especially see this with affiliate networks it seems. The whole point of an affiliate network is to provide a protective buffer between the affiliate and advertiser. They are to provide cash flow, support and more.

So what happens when the advertiser doesn’t pay the network? If the leads are fraudulent, then obviously the affiliate will eat the loss. But what happens if they leads are ok? Who takes the loss? This is when you will see the different between the good and crappy networks. The good networks will eat the loss and pay the affiliate, they will do whatever they can to keep there reputation. The bad networks? I think we all know what happens there.

In this business word travels fast. With the amount of forums, blogs, twitter, facebook, etc – it only takes a matter of minutes for info to get around.

Now, as a business what seems like the smarter move? Not pay your affiliate, they will trash you, word will spread and no one will want to do business with you. Or do you pay your affiliate, get them to tell everyone “hey the advertiser didn’t pay this network, but they paid me”, what do you think will work better in the long run? Isn’t that money put to good use by helping increase your reputation? Of course it is.

This just goes out to remind everyone, be careful of who you deal with. Make sure they have a good reputation and a good business sense. This extends further than just networks. If you contract someone out to do services, your name could be on the line. The last thing you need is a 3rd party contractor ruining your name.

Keep your reputation. Money will come and go, a negative reputation will haunt you forever.