Every person is well aware of the services offered by booking.com and Uber, but only a few people know that these are affiliate programs. These programs are nothing but models of marketing where an intermediary performs functions of a promoter and receives payments for their services.
Every advertiser can innovate his/her own affiliate program. Either they can do it themselves or with the help of already-developed affiliate programs. If advertisers take the help of affiliates, then they will have to bear high commission charges. Plus, they will be required to deal with the fraudulent actions of the affiliates. Furthermore, the advertisers show lack of faith in affiliates.
These imperfections of fraud and high commissions can be removed if an advertiser shows his/her trust in the services offered by the affiliates. HOQU is an affiliate platform of marketing that can remove all these imperfections. This platform makes use of the blockchain technology.
The main target of HOQU is to develop a decentralized environment that can develop the cost per action services, which include both affiliate networks as well as affiliate programs. This platform aims at integrating affiliate networks, affiliates, and advertisers. By doing this, HOQU can reduce financial costs borne by all the participants.
The main purpose of this platform is to distribute rewards to all the online affiliates in a fair manner. It will also establish new standards of efficiency as well as transparency through which they can provide benefits to all the participants.
The inactivity of the conventional industry of advertising and the progress in the electronic ways of attracting more consumers has made the world of online advertising more important. The main issue of performance marketing and internet advertising has been identified by the international advertising bureau, i.e., a lack of trust between affiliates and advertisers. This is majorly because of fraudulent schemes adopted by affiliates to earn more money.
In the field of e-commerce, affiliates can place an order themselves by going to the website. They can make use of untrustworthy methods to acquire personal information of the customer and give them to the advertisers. While making payments, in-house members make phone calls and impersonate themselves as consumers. Affiliate networks show advertisers a long list of customers and wrongfully debit the accounts of advertisers.
The losses suffered by the merchants form a major portion of the advertising budget. These problems can cause financial losses to affiliates and advertisers alike. According to a research conducted by an association, organizations that specialize in the network of mobile application development stated that around 34% of advertisements on mobile phones are dubious. Out of which 22% are frauds.
As per the predictions made by the videology company of marketing, the utilization of bots has led to a loss of 7.3 billion dollars in the year 2016. With the use of technology of blockchain and smart contracts, the cost per action system and reputation control system, HOQU removes the chances of fraud. Conventional service of advertising does not solve the issue of identifying the individuals. This has led to the growth of fraud.
The affiliate networks that are currently operating have a very poor security. If the system gets hacked, then any outsider can get access to all the information. Plus, if a technical issue arises on a platform, which is centralized, then all the networks will not work until the issue is completely resolved. These problems can be removed with the help of HOQU platform. If you want to know more about this platform, then read its whitepaper.