Thursday, August 21, 2025
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Covid19 Grows eSports Wager Affiliate Programs

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Media Central Corporation Inc. (CSE:FLYY)(FSE:3AT) (“MediaCentral” or the “Company”) today announced that it has entered into several affiliate marketing partnerships with leading esports gambling sites to further monetize ECentralSports.com (“ECentralSports” or “ECentral”) the Company’s latest original digital media platform. Launched in early June, ECentralSports is a dynamic digital destination for esports fans in search of the latest in news, competitive gaming coverage, analysis, events, lifestyle features and gaming culture. ECentralSports will now add gambling to its extensive content offering, with a new dedicated gambling content stream linking to some of the biggest gambling players on the scene.

Pulling from the Company’s approximately 6.5 million readers, ECentralSports will leverage affiliate marketing to drive revenue to the media channel by connecting readers interested in betting on top online gaming tournaments to premium gambling sites like LOOT.BET, ArchaneBet, and BeWinner through its omnichannel publishing model.

The new gambling stream will focus on the “big three” – CS:GO (Counter Stike: Global Offensive), League of Legends (LoL) and Dota 1 – which combined account for 85 per cent of the esports betting market1. The esports market has accelerated over the last several years, with more and more viewers tuning in to watch global tournaments. According to Arland Technologies, it is expected that there will be almost 300 million frequent viewers of esports worldwide. Like traditional sports like NFL and NHL, there is an enormous betting market connected to esports gaming. The New York Times recently quoted Nevada Esports Alliance founder Seth Schorr as predicting that esports will be third after NFL and NBA in terms of total wagering. The same article estimated that the global esports betting market will reach $14 billion by the end of 20202.

“COVID-19 has accelerated an already skyrocketing esports gambling market. With so many traditional sporting seasons on hold this year, esports events have really come to the forefront as an alternative-not just for fans who enjoy watching the action, but also for those who like betting on the outcomes,” said John Lucas, Editor of ECentralSports. “We are thrilled to provide our readers the latest commentary, news, features and now gambling information surrounding this global phenomenon. We are working on creating content to help our readers find the online betting platform that works best for them. This adds to our overall content offering and positions ECentralSports as a go-to hub for all things esports.”

MediaCentral begin introducing affiliate marketing to its other media properties including Toronto’s iconic NOW Magazine and Vancouver’s award-winning Georgia Straight in March of this year as part of the Company’s ongoing strategy to digitally transform and monetize its legacy alternative publications.

“Our mission at MediaCentral is simple. We will produce and acquire high-quality publications with the goal of consolidating, digitizing and monetizing an audience of over 100 million influential readers across North America,” said Brian Kalish, CEO of MediaCentral. “The fact that we have just launched ECentralSports mere weeks ago and have already introduced affiliate marketing to monetize the site proves how committed we are to creating a profitable and modern media company that delivers value to shareholders. Affiliate marketing has already proven to drive revenue and ROI across our other platforms, and we look forward to similar results with ECentralSports.”

FTC Warns MLM Companies about Promoting Fake Coronovirus Cures

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The FTC sent warning letters to ten multilevel marketing companies because of claims they or their sellers are making about their products’ ability to treat or prevent coronavirus, or about the money people can earn if they’ve recently lost income. 

The FTC sent letters to Arbonne International, doTerra, Modere, Pruvit Ventures and Total Life Changes, each of which sell essential oils, supplements or related products, covering both health claims and income claims.

It also warned supplements company IDLife, weight loss and nutrition product company It Works Marketing, and skincare product company Rodan & Fields about earnings claims, and wellness product company Zurvita just about health claims. 

Multilevel marketing companies typically work with non-salaried “representatives” that sell products directly to consumers, often earning commissions for their sales and the sales of those they recruit for their “downline.” Many such companies have been criticized for making questionable health claims about their products in advertising.

“Two concerns that you have to be aware of when you’re a MLM participant,” said FTC Regional Director Chuck Harwood. First, you want to make sure that you’re passing on reliable information.”

“There’s simply no substantiation that the kinds of products that are being marketed and sold through these MLM schemes will prevent someone from contracting COVID-19 or help you recover from COVID-19 any faster than you would otherwise,” Harwood said

Another big problem is inflated claims about the money you can make with a network marketing business.

“You have to be very careful if you’re investing in one, be sure that the promises of how much money you’re going to make, are actually truthful. a lot of times they’re inflated,” Harwood said. “A lot of times, what we find is that people who get into these kind of schemes- whether it’s related to COVID-19 or anything else- find that they lose far more money than they ever make.”

FTC Alleges App Developer Violated COPPA by Allowing Ad Networks to Collect PI of Child-Directed Users

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The Federal Trade Commission has announced that a developer of apps that are popular with children has agreed to pay $150,000 and to delete personal information it illegally collected from children under 13 to settle FTC allegations.

In a complaint filed on June 3, 2020 by the Department of Justice on behalf of the FTC, the FTC alleges that HyperBeard, Inc. violated the Children’s Online Privacy Protection Act Rule by allowing third-party ad networks to collect personal information in the form of persistent identifiers to track users of the company’s child-directed apps, without notifying parents or obtaining verifiable parental consent.

The ad networks allegedly used the identifiers to target ads to children using HyperBeard’s apps.

“If your app or website is directed to kids, you’ve got to make sure parents are in the loop before you collect children’s personal information,” said FTC lawyer Andrew Smith, Director of the FTC’s Bureau of Consumer Protection. “This includes allowing someone else, such as an ad network, to collect persistent identifiers, like advertising IDs or cookies, in order to serve behavioral advertising.”

The FTC complaint also names HyperBeard’s CEO and Managing Director.

COPPA requires that child-directed websites, apps and online services provide notice of their information practices and obtain parental consent prior to collecting personal information from children under 13, including the use of persistent identifiers for targeted advertising.

Many of the apps that HyperBeard offers are allegedly directed to children.  According to the FTC, these kids’ apps contain brightly colored, animated characters such as cats, dogs, bunnies, chicks, monkeys and other cartoon characters, and are described in child-friendly terms like “super cute” and “silly.” 

The FTC alleges that HyperBeard was aware that children were using its kids’ apps and promoted those same apps to children.  From early 2017 through 2019, the FTC alleges, it promoted its apps on a kids’ entertainment website, and that it published children’s books and licensed other products, including stuffed animals and block construction sets, based on its apps’ characters.

As part of the proposed settlement, the defendants are required to notify and obtain verifiable consent from parents for any child-directed app or website they offer that collects personal information from children under 13.  They are also prohibited from using or benefitting from personal data they collected from children under 13 in violation of COPPA, and must destroy that data.

The settlement also includes a judgment in the amount of $4,000,000) against the corporate defendant and individual defendant Kozachenko, jointly and severally, as a civil penalty.  The corporate defendant is ordered to pay to the FTC $150,000.  Upon such payment, the remainder of the judgment is suspended, premised upon the truthfulness, accuracy and completeness of defendants’ sworn financial statements and related documents.  The suspension of the judgment will be lifted as to corporate defendant and defendant Kozachenko if, upon motion by the FTC, the court finds that either failed to disclose any material asset, materially misstated the value of any asset, or made any other material misstatement or omission in the financial representations.

FTC Chairman Joe Simons issued a statement.  “In my opinion, an appropriate starting point for the civil penalty was HyperBeard’s gain from behavioral advertising over the relevant time period adjusted upwards by a factor to account for the likelihood of detection.  I further believe that the additional factors we consider, including the proposed defendants’ degree of culpability, history of prior related conduct, prior law enforcement actions, timeliness of corrective action, ability to pay, willfulness, and threat posed to consumers; the effect on the proposed defendants’ ability to continue to do business; and “such other matters as justice may require,” such as, cooperation with our investigation, past approaches to similar violations, and expectations of businesses and consumers, warrant the $4 million civil penalty,” Chairman Simons states.

Commissioner Noah Joshua Phillips voted no and issued a dissenting statement.  “Given the violations at issue, the harm to consumers and how we have approached other COPPA cases, my view is that the fine imposed today is too much,” Commissioner Phillips states.  “The recent push to heighten financial penalties—even where the law permits only equitable relief— has been relentless, without clear direction other than to maximize the amount in every case.  That may create the appearance of being “tough”, but it runs the risk also of being inconsistent and, in some cases, unfair or even counterproductive.”

Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP.  Follow him on Twitter @FTC defense lawyer.

Informational purposes only. Not legal advice. May be considered attorney advertising.

7 Email Marketing Practices for Newbies that Everyone Needs to Know

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Mobile Email Performs Better

Email is an indispensable communication tool for our business. This is because it is a free, fast and reliable form of communication that is accessible to everyone with an internet connection. It allows users to foster and build lasting relations irrespective of distances with both prospects and customers.

E-mail is most widely used as a prospect conversion and customer retention. E-mail can particularly be an effective push for your online communications outreach. It comes in handy for customer retention as it can help in targeted email campaigns where your message can be pushed out to customers to inform and remind. As a two-way form of communication, it is valuable to gather feedback and prompt actions from your audience.

Here are a few tips to optimize your email marketing strategy and build a campaign that gets results.

7 Email Marketing Best Practices to Increase Campaign ROI

Segment your email lists
Personalize each message
Choose the right time to send
Optimize email loading times
Engage customers with visuals
Maintain suppression lists
Don’t waste subject lines

1. Segment your email lists

People do their buying in stages. And if your email marketing strategy isn’t delivering the info prospects need when they need it (at the right stage), you’re unlikely to get the results or ROI you need to justify your email budget.

By segmenting your email list into groups, you’re better equipped to tailor your message to customers at different stages in the sales funnel, creating content that’s both relevant to each group’s needs and more likely to inspire engagement.

For small businesses, this email marketing best practice is a powerful alternative to the “casting a broad net” approach that, though it has the widest appeal, fails to capture genuine interest or persuade customers to take the next step.

How do I segment my email list?
Here’s a look at effective ways to segment your emails and customize your email marketing campaign:

Narrow your targets by asking readers about their interests in the introductory email
Create groups based on past purchases (returning customers vs. new customers)
Segment groups by location to optimize engagement
Divide lists by relationship or customer status (special event attendees, partners, etc.)


2. Personalize each message

Want people to open your emails? Meeting consumers where they’re at is important, but taking the time to personalize your email messaging strategy is essential to stimulating interaction and pulling customers one step closer to your business.

People are 26% more likely to open emails with personalized subject lines than those that say “Check out this offer. ”

Messages with personalized imagery (based on customer data and location) experience a nearly 30% uptick in clickthrough rate than those without, while emails containing personalized offers improve conversion rates by an average of 10%.

This significant increase demonstrates the potential of personalization on email marketing ROI.

One of the more effective email marketing best practices out there, personalized email strategies allow you to speak to subscribers on a truly individual level, grabbing their attention with relevant, impactful messaging and communicating solutions that address their unique pain points.

3. Choose the right time to send
Grouping emails by location is one way to customize your campaign and connect with different portions of your target audience.

People are more likely to open and engage with emails at certain times of day, making each customer’s time zone a crucial consideration when developing a performance-based email marketing strategy.

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A recent study found consumers are most likely to open emails on Tuesday, with Monday and Friday rounding out the top three. Further research has shown the best times to send marketing emails and improve open rates are 10am (shortly after they’ve arrived at work) and 1pm (when they’re sorting through messages after lunch).

What’s more: nearly a quarter of emails are open within an hour of being sent (email open rates fall below 1% after 24 hours from delivery).

With so much competing for your customers’ attention over the course of a day – and an average global email open rate of just over 22% – choosing the right time to automate your email sends is one of those email marketing best practices you can’t afford to ignore.

What to know: Thursday has the worst email open rate during the week, with weekend days experiencing the worse rates overall.

4. Optimize email loading times

Timing and personalization are critical email marketing best practices and key to optimizing email open rates.

But if your emails don’t open and load fast, you can count on losing your customer’s attention and valuable marketing ROI.

Slow load times, especially on mobile, have a dramatic impact on email deletion and subscription rates, as messages taking three seconds or more to load are likely to hit the recycle bin (with 15% of users unsubscribing altogether).

This makes it imperative to understand what impacts email performance and how to improve load speeds wherever possible.

Major factors affecting email load speed (and deliverability)
Too many images. Each image included in your emails requires an additional request to the server, which can slow downloading speeds.
Print-optimized images. Print-optimized images tend to be quite large (some as large as 10MB) and severely burden load speeds.
Unnecessary white space. Too much white space within images may slow down message loads significantly.
Extensive messaging. Large chunks of content/information can negatively affect load time and subscriber interest.
File size is the main culprit behind slow email load times, making it important to rein in file and image sizes when crafting your emails. Your email marketing engagement and ROI depend on it.

5. Engage customers with visuals
More than ever, content is visual. Images, graphics and other visual elements not only inject some personality into your messaging, but are an essential best email marketing practice key to grabbing attention, driving engagement and enhancing campaign ROI.

When selecting images to boost your performance-based email marketing strategy, be sure each is clear, inviting and relevant to your brand identity.

Note that many email marketing services resize images to improve visibility, and that adjustments will likely be made before making it to the customer’s inbox.

To reiterate, overuse of graphics and images can delay load times, making it crucial to choose and incorporate visuals carefully.

6. Maintain suppression lists
Holding onto nonmailable contacts lists not only helps ensure your email marketing campaigns are compliant with current CAN-SPAM requirements, but may also help when it comes to identifying and creating outreach opportunities down the road.

With suppression lists within reach, your email marketing pros can quickly eliminate or exclude contacts who wouldn’t find your current focus relevant, as well as to identify candidates for any re-engagement campaigns currently on the table.

Profile information and past email engagement gleaned from suppression lists can also help determine any prospects who may still have interest in existing products or services and who may be receptive to a more targeted approach in the future.

People are typically added to suppression lists when:

They mark one of your emails as spam
They unsubscribe from your mailing list
A hard bounce has taken place

7. Don’t waste subject lines
Any email marketing best practices list wouldn’t be complete without mentioning subject lines.

With tens or hundreds of emails coming through a person’s inbox every day, a catchy subject line is what helps your messages stick out, avoid the recycle bin and compel clicks. This makes a good subject line strategy a crucial piece of the email marketing puzzle.

Never overlook or skip through subject line development when building your drip email marketing campaign. The benefits of a good subject line strategy are nearly endless when it comes to engagement and email marketing ROI.

How to create the perfect email subject line
Keep it short. No more than 50 characters or between 4-6 words is a good rule of thumb
Keep it personal. People respond to messages that address them as individuals
Be urgent. Creative calls-to-action must be genuine and strategic
Be clear. Tell them upfront what they’ll find inside your email
Be mysterious. Improve your open rates by appealing to their curiosity
Be relevant. Capitalize on timely topics or and trends whenever possible
Make an offer. Highlighting an offer is an effective way to get your emails noticed

How BIMI Campaigns Improves Email Marketing Results and Creates Brand Identity

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Email isn’t just a 1-to-1 communication tool. It’s not even just a group communication tool any more. It’s the heart of business, and the heart of a business’s identity. There’s no shortage of what email is used for today: It’s your password change or confirmation, your invoices, account activations, registration confirmations, receipts, loyalty club notices, and the list goes on. No matter what, email keeps growing and we rely on it more and more every day. For marketers, it’s always been a significant focus for email campaigns.

Email marketing campaigns are another area where this medium reigns supreme. Email marketing produces an ROI of 42:1, far beyond other types of programs. And yet there’s always room for improvement — always a need to make your email marketing more efficient by improving deliverability to people’s inboxes, by increasing open rates, and by lifting engagement with the messages. As marketers, we have to ask ourselves: How can we stand out in the inbox?

From the creators of BIMI, a new email standard, comes a solution:

“Brand Indicators for Message Identification or BIMI (pronounced: Bih-mee) is an emerging email specification that enables the use of brand-controlled logos within supporting email clients. BIMI leverages the work an organization has put into deploying DMARC protection, by bringing brand logos to the customer’s inbox. For the brand’s logo to be displayed, the email must pass DMARC authentication checks, ensuring that the organization’s domain has not been impersonated.”

Not only does that look cool, but in tests on Yahoo Mail — which has been testing BIMI in a pilot project for the past year — putting recognized logos next to email messages increased customer engagement with those messages by an average of 10%.

Google will begin its own test of BIMI, with a BIMI pilot project expected to start later this year.

But, as the BIMI group paragraph above explains, before you can use BIMI, you need DMARC protection. Fortunately, that has a marketing benefit too: It protects your brand by definitively blocking bad (spoofed) emails from being sent from your domain.

And, it turns out, there’s a substantial cybersecurity benefit to that as well.

So the answer to standing out in the inbox could lie not just in a better marketing strategy but in better email security.

What’s DMARC and why do I need it?
DMARC (Domain-based Message Authentication, Reporting, & Conformance) is the prerequisite for using BIMI. Not only will DMARC protect your domain’s brand reputation by preventing spoofing, it also acts as encouragement for a healthy ecosystem of brands and emailing domains, ensuring that only authorized senders can use your domain. Note that it’s not enough to just deploy DMARC for monitoring how your domain is used (in monitor mode, also known as a policy of “none”), you also have to do so with a policy of rejecting or quarantining bad emails.

What does taking these steps really do? Well, DMARC with a quarantine or reject policy does two main things:

Protects your brand from being impersonated or spoofed


Provides reassurance to your prospects and customers that an email from you can be trusted – before opening the message


Tune to Merge with Cake Software in Major Purchase

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Publicly-traded Toronto-based company Constellation Software has announced the acquisition of Seattle SaaS company Tune.

Founded 11 years ago, Tune builds software that helps companies manage affiliate marketing partnerships. The company has evolved over the years and sold its attribution analytics business in 2018 to mobile marketing company Branch.

The acquisition builds on Constellation Software’s purchase last year of Cake Software at pennies on the dollar, one of Tune’s top competitors.

“We have often considered what a merger or consolidation might look like with CAKE, and now we’ll be joining forces with the backing of a major acquirer behind us,” Tune CEO Peter Hamilton said in a blog post. “While TUNE and CAKE have different approaches to the market, we have an incredible amount of learnings, opportunities, and efficiencies we can now share.”

Terms of the deal were not disclosed. Tune will maintain its brand under Constellation’s Perseus Operating Group unit.

Hamilton said there will be “some restructuring of teams” but did not provide specific details on how many employees will be affected. Tune has more than 150 employees, according to LinkedIn.

Hamilton will take a “more strategic role” after the acquisition, while Cameron Stewart, general manager at Tune, will continue managing the general operations of the business.

Constellation Software has more than 16,000 employees across six operating segments. The company acquires and manages “vertical market software” businesses. It posted $953 million in revenue last quarter, up 16% year-over-year.

Twin brothers Lucas and Lee Brown originally launched Tune under the name HasOffers in 2009 before rebranding in 2014. They stepped down in late 2018 and left to Alaska to launch a startup studio and haven’t been heard since.

Why You Must Have Affiliate Program Audits

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Charles Ngo, Affiliate Marketer Genius

Whether you’ve been running an affiliate program for 10 years, or 10 months, regular auditing is an essential aspect of maintaining a successful affiliate program. It helps you determine whether your messaging and assets are up to date, your commissioning structure is on point and if your strategies need adjusting. It also helps you determine which of your partners are performing well and which are not. Armed with this knowledge, you can take the necessary actions to optimize your affiliate program.

To help you along, we’ve compiled a list of compelling reasons for conducting an affiliate audit, how to perform one and we’ve also included a link to download a quick-reference checklist of what needs to be checked.

Let’s begin with why you should be conducting affiliate audits.

Audits ensure proper messaging is being used: Marketers should ensure that they are updating their messaging and product descriptions regularly. Think of it like this: if you don’t use up-to-date messaging, your publisher partners won’t either. As the brand, it’s your responsibility to set the baseline for your partners. For example, you might want to emphasize your brand’s environmental responsibility, philanthropic efforts or support for diversity to appeal more to broader or specific audiences. Look at your general messaging to ensure it’s accurate, up to date and on point.

Audits ensure the creative and promotional assets being used are relevant: Just like your messaging needs to be up to date, your creative and promotional assets need to not only reflect your brand’s current image, but also seasonality. Today’s consumers are looking for brands they can feel a connection with, and if you lag in developments or even seasonal changes, you set yourself up to potentially lose market share.

Audits ensure you’re engaging with relevant partners: Your publisher partners should have audiences that are interested in your products. It’s critical to know what your market’s interests are and then use this information to target the most relevant publisher partners to bring into your affiliate program or further engage existing partners for optimization.

Audits ensure you’re paying publishers correctly for their contribution: Affiliate marketing is based on a pay-per-performance model making it typically lower-cost than other marketing channels. Nevertheless, you need to make sure you’re offering publisher partners sufficient incentive to promote your products—without exceeding your marketing budget. On the other hand, you also need to ensure that you are accurately paying partners. One wrong click can mean an intended 1% commission rate is now a wildly incorrect 10% commission rate.

How to Conduct an Affiliate Program Audit

Now that you know why you should audit your affiliate program, let’s discuss how you go about it. While this list isn’t exhaustive, it is comprehensive enough to get a solid affiliate program audit in place.

Review your program description, terms and conditions and welcome emails: To attract the right kind of publisher partners and explain how your program works and what it has to offer, your program description must be as clear as possible. To eliminate any potential confusion that may create hesitancy to work with you, consider including an FAQ section. You should also review your terms and conditions to ensure they are comprehensive, as well as if publisher partners are abiding by them. If some are not abiding, act to rectify the situation. It’s also advisable to review your welcome emails to ensure they contain all the information new partners need to know.

Review your creative assets for relevant messaging and timed content: Check whether creative assets for your partners — including banners, images and keywords — are up to date. Similarly, is the timed content properly aligned with actions consumers need to take?

Audit your partners and their contributions to the program’s performance regarding traffic, revenue and spend: This is where you can start to determine the value of each individual publisher by measuring their performance. Are partners using the right links on their site? Are they using the right messaging?

Review your commission rates: Check your partner commission rates for accuracy across the board. Be sure you aren’t overpaying or underpaying a partner as a result of a manual error. Pro Tip: Tools like dynamic tracking enable you to be smarter about commissioning based on the attributes of an order.

Payment Processor and Executive to Pay Millions to Settle FTC Allegations of Assisting in Fraudulent Schemes and Credit Card Laundering

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According to the Federal Trade Commission, one of the world’s leading payment processing companies and its former executive will pay more than $40.2 million to settle FTC charges that they knowingly processed payments and laundered, or assisted laundering of, credit card transactions for scams that targeted hundreds of thousands of consumers.

As alleged in the complaint, First Data Merchant Services, LLC purportedly disregarded  warnings from employees, banks and others that Chi “Vincent” Ko, through his company that served as an independent sales agent for First Data, was laundering, and First Data was assisting and facilitating laundering, payments for companies that were breaking the law over a number of years.

According to the FTC, among the warnings was a 2014 e-mail from Wells Fargo’s executive vice president, saying “Why is First Data signing ISOs like [First Pay]?  They are going to get First Data and Wells Fargo in trouble with the FTC and CFPB due to consumer deceptive practices…”  In addition, a 2014 Visa investigation required First Data to pay back $18.7 million in charges processed by Ko and temporarily banned First Data from bringing on high-risk merchants.  A 2015 forensic audit conducted as part of Visa’s investigation indicated that First Data had “no controls” on how the company managed high-risk merchants.

The FTC alleges that Ko was later hired as an executive at First Data.

According to the FTC, Ko, through his prior company, First Pay Solutions LLC, opened hundreds of merchant accounts for at least four scams – three that were the subject of FTC actions, and one that was the subject of a U.S. Department of Justice criminal prosecution.

The FTC alleges that, from 2012 to 2014, Ko opened accounts under false names, provided Wells Fargo Bank with deceptive information to open the accounts, and ignored evidence that his clients were engaged in fraud.

The complaint alleges that the defendants violated the FTC Act and the Telemarketing Sales Rule.

“First Data is paying $40 million because it repeatedly looked the other way while its payment processing services were being used to commit fraud,” said Daniel Kaufman, FTC attorney and Deputy Director of the FTC’s Bureau of Consumer Protection.  “When companies fail to screen out fraudsters exploiting the payment processing system to steal people’s money, they’re breaking the law – and injuring consumers.”

In addition to paying more than $40 million, under the terms of its proposed settlement, First Data, which was acquired by Fiserv, Inc. in 2019, will be prohibited from assisting or facilitating FTC Act violations related to payment processing and evading fraud and risk oversight programs.  In addition, the company will be required to screen and monitor certain high-risk merchant-clients, as well as establish and implement an oversight program to monitor its wholesale ISOs.

The settlement also requires First Data to hire an independent assessor to oversee the company’s compliance with the settlement’s oversight program for the next three years.

Under the terms of his proposed settlement, Ko will be required to pay $270,373.70.  He will be banned from payment processing for certain types of high-risk merchants, credit card laundering activities, making or assisting others in making false or misleading statements, and assisting or facilitating violations of the FTC Act.

Richard B. Newman is an FTC defense lawyer at Hinch Newman LLP.  Follow him on Twitter @FTC defense lawyer.

Informational purposes only. Not legal advice. May be considered attorney advertising.

Feds Go After Israeli Crypto Marketing Scam

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The Commodity and Futures Exchange Commission (CFTC) has charged executives of American and Israeli firms for an alleged $15 million scam involving cryptocurrencies and binary options.

Court documents filed on May 5 mention two major scams, the first involving binary options, which was carried out between October 2013 and November 2016, and the second involving digital assets, such as Bitcoin (BTC) and Ether (ETH), which was carried out between November 2013 and August 2018.

The CFTC charged Israel-based Tal Valariola and Itay Barak of Digital Platinum Limited for aiding the United States-based firm All In Publishing (AIP) to create and promote numerous misleading investment schemes to U.S. and foreign investors.

Throughout the allegedly misleading marketing campaign, as many as 51,917 news users opened a binary options account and deposited a total sum of nearly $13 million. Additionally, 8,043 users opened digital assets trading account, depositing a total of over $2 million.

Creating fake customer success stories
Daniel Fingerhut of All In Publishing allegedly relied on fake customer success stories that showcased lavish lifestyles of investors trading on AIP’s partner platforms. The CFTC claims that DPL agreed to post the advertisements, despite knowing of the misleading information presented in the ad campaigns.

According to an email from 2015, AIP had spent as much as $50,000 to produce videos for the marketing campaigns during the binary options scam.

The CFTC stated that, during the digital asset solicitation campaign, the companies were using at least five email auto-responders, each with a database of approximately 200,000 emails.

“Fingerhut hired, directed, and/or supervised at least four individuals in Florida and one individual in Israel to write solicitation emails and disseminate them in bulk through autoresponders.”

The CFTC is charging the defendants on four counts including options fraud and CTA fraud, in addition to seeking a variety of injunctions banning them from commodities business-related activities. The commission has also asked the court to order financial disgorgement.

How to Win Affiliate Marketing During Covid19

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As Covid-19 disrupts “business as usual” and impacts consumer behavior around the world, companies of all shapes and sizes are discovering they must adjust their strategies in order to reach customers and capture lost in-store traffic.

Many brands have cut back on in-store and paid media spend and shifted their budgets to online channels, especially those that can drive cost-effective, measurable, bottom-of-funnel results such as affiliate marketing.

In the affiliate marketing ecosystem, brands partner with bloggers, influencers, publishers, even other brands to promote their products or services. By only paying for sales, leads, or new customers that their partners deliver, affiliate marketing allows brands to efficiently scale while optimizing their return on ad spend and cost per action (CPA).

Brands with creative and agile affiliate programs are the ones who will have loyal customers and partners long after this global crisis is over. With that in mind, here are some ways brands are adjusting their affiliate marketing strategies in the time of Covid-19.

1. Focus on in-demand product categories
Now’s the time for brands to focus on analyzing sales at the SKU level and promoting products or services that are in demand by customers. For example, shoppers are spending in double digits on food/drug, home goods, apparel and accessories, books, music, videos, and software, according to a recent survey released by Digital Commerce 360/Bizrate.

Savvy brands are also exploring categories that shoppers haven’t thought about yet, such as socks, kids’ shoes, dress tops, and tents. Walmart revealed they are selling more tops than bottoms as more people telework.

2. Liquidate aging inventory
As brands pivot their strategy to focus on what customers are buying now, some retailers are experiencing an aging inventory problem. With lower demand products sitting on shelves, it’s tying up their cash.

Affiliate marketing can help brands move their lower-demand products through strategic partnerships with affiliates who are highly effective at putting offers in front of their audience with a sense of urgency or scarcity. These campaigns can make it possible for brands to liquidate old inventory efficiently – and only pay their partners after sales on those products are generated.

For example, a leading sportswear brand with a large overstock in specific shoe sizes and styles liquidated all of the inventory on their website through their affiliate program. Their affiliate partners provided the opportunity to get stock off the books and gain new customers.

3. Offer Engaging Promotions
In this rapidly changing environment, most consumers are looking to save money and are attracted to discounts. Brands that are offering some form of an incentive that is relevant, contextual, and engaging are winning. Affiliate marketing is known for its ability to reach targeted audiences with the right offer in a way that is trackable, measureable, and aligned with the brand’s goals. Many brands are promoting free shipping codes, exclusive discount codes, flash sales, and limited-time offers through their affiliate partners to increase awareness while keeping their marketing spend in check.

For example, a brand might collaborate with a coupon partner to attract new customers by offering an exclusive discount for new customers (e.g. 20% off first clothing box purchase). Others may offer promotions on specific products for a limited time (e.g. 30% off shoes over the next 15 days). If a brand is looking to increase cart size and revenue, they can provide an exclusive code to an affiliate partner for free shipping once a certain threshold is met.

4. Build Brand Loyalty
Affiliate marketing is a highly effective channel for building customer loyalty. Many brands partner with loyalty partners, which provide consumers with a reward in exchange for a specific action such as a sale or a lead generated. There are a variety of loyalty partners; some provide cash back to consumers, contribute to a charitable organization, offer points for gift cards or ways to save for college. These partnerships help brands build loyalty with their customers and foster goodwill toward the brand.

5. Be respectful with partners
Relationships built on trust and respect are critical for successful affiliate partnerships. Pausing an affiliate program or reducing commissions in the short term can have long-lasting, negative effects on the bottom line and harm partner relationships.

If a brand finds they must pause their affiliate program or change commission rates, it’s important to show empathy and respect toward partners. Publishers understand these are unchartered times, and it can go a long way to communicate the why behind the changes and recognize the impact it has on their efforts to generate leads and sales. It’s essential to be clear with partners about what to do with their existing tracking links and provide details on the duration of the program changes.

Covid-19 will continue to change the world. As people gravitate to vital products and services, they will seek out credible brands that provide a great customer experience. By shifting marketing dollars to performance-based channels such as affiliate marketing, brands have the opportunity to manage costs, improve results, and emerge stronger than before

FTC Sends More Letters Warning Marketers to Stop Making Unsupported COVID-19 Prevention Claims

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The Federal Trade Commission announced it has sent 45 warning letters to marketers about  unsubstantiated claims that their products and therapies can treat or prevent COVID-19.  The foregoing is the fourth set of FTC warning letters to sellers of such products, and part of a continuing crackdown of COVI-19 related scams by local, state and federal regulatory agencies.

The FTC previously sent warning letters to sellers of vitamins, herbs, colloidal silver, teas, essential oils, and other products pitched as scientifically proven coronavirus treatments or preventatives, intravenous (IV) “therapies” with high doses of Vitamin C, ozone therapy, and purported stem cell treatments.

Several of the letters announced in the fourth round target other “treatments,” including Chinese herbal medications, music therapy, homeopathic treatments, and even shields claimed to boost the immune system by protecting the wearer from electromagnetic fields.  However, there is currently no scientific evidence that these, or any, products or services can treat or cure coronavirus.

FTC lawyer and Bureau of Consumer Protection Director Andrew Smith has stated that: companies making these types of claims can look forward to an FTC lawsuit.

The FTC sent the letters announced today to companies and individuals.   

In the letters, the FTC states that one or more of the efficacy claims made by the marketers are unsubstantiated because they are not supported by scientific evidence, and therefore violate the FTC Act.  The letters advise the recipients to immediately stop making all claims that their products can treat or cure COVID-19, and to notify the FTC within 48 hours about the specific actions they have taken to address the agency’s concerns.

The letters also note that if the false claims do not cease, the FTC may seek a federal court injunction and an order requiring money to be refunded to consumers.

Last week, the FTC announced its first case against a marketer of such products.

The FTC also recently sent letters to several VoIP service providers, warning them that it is illegal to aid or facilitate the transmission of pre-recorded telemarketing robocalls pitching supposed coronavirus-related products or services, as well as to MLM marketers business opportunities with unsupported earnings claims that their products or services can treat or cure coronavirus.

Contact an experienced FTC defense lawyer with questions about compliance with Federal Trade Commission claim substantiation requirements, or if you are the subject of a regulatory investigation or lawsuit.

Discovering Values during #Covid19

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As weeks are turning into months in our new normal, I’ve found it helpful to spend time focusing on the progress being made in the fight against COVID-19 and on the signs that we are slowly approaching a potential recovery.

I’m especially encouraged by the fact that the entire global medical community is working in a way never seen before to develop a vaccine in record time. Multiple medical companies are testing potential treatments and governments are planning testing and mitigation strategies, a key to reopening economies.

In the meantime, the best thing we can do is continue to stay safe and support each other. With that in mind, I wanted to share a few more resources that I hope you’ll find helpful.

Discovering core values

As we each are faced with important short- and long-term decisions during this crisis, I can’t think of a better time to focus on clarifying what your core values are.

I have been asked to share some of the curriculum we’ve developed with our leaders at Acceleration Partners on the “how” of discovering core values. I provided an introduction to this content on LinkedIn Live last week and am now developing a long-form course on how to discover, develop and apply core values in your personal and professional life. That’s coming in May and you can sign up via this form for more information.

Effective crisis leadership

  • Jacinda Ardern: The New Zealand Prime Minster has demonstrated excellent empathetic leadership throughout the crisis. By combining quick, decisive action with vulnerable, thoughtfulFacebook Live videos to the public, Ardern has built unity in her country and has led by example.The results are also impressive.
  • Stockdale Paradox: I focused last week’s Friday Forward on this brilliant concept from management guru Jim Collins. This is a vital lesson for leading others during a challenging time.

Stress, parenting and relationships

  • Lynn Smith: Parenting is a vital form of leadership. Smith’s article on how to balance parenting and work in a chaotic new normal serves as an excellent reminder that we all need to give ourselves a break. My favorite quote from her article is, “We cannot shield our children from this crisis, but it’s quite possible that because we can’t, they will grow and stretch in uncomfortable but meaningful ways.”
  • Unlocking Us by Brené Brown: This is a great podcast episode on relationships and connection by the world’s leading thinker on vulnerability. My favorite takeaway is that even the healthiest relationships are never consistently 50/50 and that we need to move away from this myth.
  • Global Stress Summit: Dr. Heidi Hanna, a world-renowned expert on stress and human performance, created a free virtual summit on managing stress that featured some of the world’s premier stress experts. You can find out more from my conversation with Heidi on LinkedIn Live.

Helpful resources

  • Scribe Book School: I’ve come across so many people who’ve talked about wanting to write a book. For many, this unique situation we’re in provides the ideal time. Founded by four-time New York Times bestselling author Tucker Max, Scribe Media is offering a free course to help aspiring authors write, edit and publish their first book.
  • Webinar with Verne Harnish: Verne is one of the world’s top experts on business growth. In case you missed his April 8th training on leading during chaos, you can watch the recording.
  • Liquidating Inventory with Affiliate Marketing: Brands looking to turn inventory into cash can use affiliate marketing as an effective tactic. This article from Acceleration Partners President Matt Wool explains how.

Elevate e-book

Thanks to everyone who took advantage of our free Elevate e-book deal earlier this month. If you downloaded the e-book and got value from it, I would love if you could leave a review on Amazon or Goodreads. This is the best way to help other readers discover the content.

I’m also excited to announce that Elevate is now included on Kindle Unlimited. If you’re a Kindle Unlimited subscriber and haven’t read Elevate yet, you can get the e-book free through that service.

I hope you all continue to stay safe and healthy.

The Affiliate Maturity Curve: Graduating from Banners to Lifetime Value

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Let’s face it: Affiliate marketing gets a bad rap. Once considered a channel fraught with black-hat players, fraud, weak strategy, and an overall lack of transparency, affiliate marketing suffered from a reputation for opacity that did not imbue confidence and trust in partners. Most importantly, there wasn’t a sufficient level of confidence that the channel could deliver desired results and outcomes. 

The reality is that the last-click-only perception of affiliate marketing is a thing of yesteryear. Looking back, coupon and loyalty dominated the category because of this reliance on the last-click model embraced by brands. That model stymied the channel’s advancement and progression. However, affiliate is no longer relegated to rudimentary tactics like banner advertising on coupon sites. 

There are affiliate marketing providers today who stand as category innovators who did not settle for the status quo and have developed new technology and tools to address the inherent problems of legacy affiliate head-on. The real challenge for affiliate marketers now is one of perception, not value. While the tech that supports affiliate marketing has accelerated, marketers live in the past.

Advanced discovery tools have helped diversify partner composition, within programs and in the market. The expansion of affiliate to content and influencers, coupled with attribution features, has shifted spend and rewards to the partners that drive outcomes that brands value in the upper-funnel discovery stages that often help drive higher LTV. 

Workflow automations in affiliate are nascent, signaling further category development and progression on the horizon. As this evolution continues to unfold, it is critical that brands maintain the pace of innovation and are poised to reap the benefits early. But to do that requires a perceptive shift. Below are a few changes marketers can make to take advantage of the progression in affiliate marketing.

  1. Adjust your mindset. Breaking old habits can be very difficult. It requires a level of trust to let go, re-assess based on a new, more mature landscape of options, and try something new. If a marketer wants to take advantage of the technology that is redefining the affiliate marketing space, they need to reset their standard operating procedures and have an open mind as they evaluate and test the tools around them.
  2. Data is the foundation to deliver desired outcomes. In order to optimize, you must use data-driven methodologies. Going beyond the traditional tactics of affiliate marketing, one must analyze the data that is being funneled through the affiliate program. Marketers now can see on a granular level the type of consumers they are acquiring through the channel and the type of consumer each publisher type is driving. They will gain insights into individual publisher metrics such as average order value, conversion rate, repeat visits, where they fall within the clickstream, and where each publisher ranks within each publisher category. Affiliate marketing partners will provide high-level campaign performance statistics; however, it is important to marry first-party data with the performance data of each publisher to understand their true, long-term value.
  3. Diversification. No publisher is created equal, and therefore each one can appeal to a different audience – men, women, younger demos, older demos, any number of composite targets. The best affiliate tools provide a diversified supply of partners, but they also enable a marketer to bring their own partner base into the mix, opening up the possibilities of potential publishers. By understanding the unique value each partner provides, marketers must/should embrace ALL publisher partner types as part of their affiliate mix in order to maximize reach across varying audiences and demographics.
  4. Break out of your norm, and execute. Leverage the technology at your disposal and implement test-and-learn strategies. Test-and-learn informs the performance of your overarching strategy and helps you get comfortable and expand with present-day affiliate tactics that drive growth. 
  5. Adjust your balance sheet. With all of the newfound technology in your toolkit, marketers should start to leverage the data available (now available in marketers MTA solutions) to champion the notion to finance or those that ultimately control investment decisions and demonstrate how affiliate is a profit-driving entity.

Over the years, affiliate marketing has evolved from a dominant coupon and discount channel, a state that was further exacerbated by fraud vulnerability, and the last-click attribution model into a widely used, scalable sophisticated means for marketers to confidently operate and cultivate high lifetime-value customers and derive operating leverage.  

While the opportunities in the new age of affiliate marketing are vast, and your own evolution will be a gradual journey of testing, learning and building anew, the strategies listed above will help bring an affiliate marketing program into the new age and allow marketers to take advantage of new ways to invigorate programs. And invigoration by definition leads to healthy growth — which in the marketplace at hand means profitable, clean growth, that is the ultimate success story.

How to establish a brand in 10 Steps

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position a new brand

Here are the 10 easy steps on how to eastablish you brand for your business:

1. Start by defining your brand

Review the service or product your business offers. Pinpoint the space in the market it occupies, and research the rational and emotive needs and concerns of your customers. Your brand character will promote your business, connect with your customer base and differentiate yourself inside the market.

2. While building your brand, think of it as a person

Every one of us is an individual whose character is made up of beliefs, purposes and values that define who we are, and whom we connect with. And our personality determines how we react or behave in different situations, how we dress, and what we say. Of course, for people, it’s rare and intuitive that you even consider what your own character is. But when you are building a brand it is important to have that understanding.

3. Consider what is driving your business

What is its purpose, what does it believe in, and who are its brand heroes? These things can help you establish your emotive brand positioning and inform the character and identity for brand communications.

4. Aim to build long and everlasting relationships with your customers

Don’t dress up your offering and raise expectations that finally result in broken promises, create trust with honest branding – always be clear who your company is and be true to the values that drive it on regular basis.

5. Speak to your customers with a consistent tone of voice

It will help reinforce the character of your business and clarify its offering so customers are aware of exactly what to expect from the service or product.

6. Don’t repeat the same message in the same way over and over again

Instead of this, aim to make your key messages work together to build a coherent identity.

7. Don’t try to copy the look of chains or big brands

Try to carve out your distinctive identity. And there is a huge consumer trend towards independent establishments, and few chains are in fact trying to copy an independent feel to capture some of that market. Truly independent operators can easily leverage their status to attract more customers who are always looking for something more authentic and original, that aligns with how they feel about themselves.

8. Be innovative, daring and bold – stand for something you believe in

Big and reputed brands are encumbered by large layers of bureaucracy, preventing them from being reacting and flexible to the ever-changing needs of their customers. And those layers of decision-makers can automatically make it hard for them to be daring with their branding.

9. Always consider your branding when communicating or talking with your customers

Don’t ever lose your pride or dilute your brand positioning with indiscriminate discounting. And try to offer more, rather than slashing prices. Promotions are an opportunity to promote or reinforce your brand mission.

10. An old way of stamping your logo on everything won’t cut it

The future of branding is engaging and fluid – respect your customers’ intelligence by not giving everything away upfront. Generate some intrigue and kindly allow them to unearth more about your brand for themselves. This is the more efficient way to foster ambassadors who revel in telling other people what they have discovered.

Hope these steps have helped you a lot. And you have got the best to the question “How to establish a brand”. 

Also Read: 4 Steps to Position a New Coorporate Brand

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