Evaluating an Affiliate Program

An 8-point affiliate program test:

1. You only get paid for actual customer sales

Good sign:

You recommend a product → customer buys → company pays you a commission.

This is the classic affiliate model.

Red flag:

You recruit an affiliate → that person recruits another person → you get paid because they joined.

Recruitment-based compensation is where you need to be extremely careful. The FTC focuses on whether rewards are tied to genuine sales to ultimate users rather than recruitment.

NovaCast NEVER pays for recruiting!

2. You don't have to pay to become an affiliate

A traditional affiliate program generally doesn't require you to purchase an expensive package just to participate.

Be very cautious if the company says you must:

• Pay $500, $1,000, $5,000, etc. to join

• Buy a starter package

• Purchase inventory

• Buy monthly products

• Pay for mandatory training

• Maintain a monthly purchase requirement

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The FTC specifically identifies required purchases and fees as warning signs in pyramid-scheme situations.

NovaCast NEVER requires anyone to pay anything to become or remain an affiliate!

3. There is a real product or service

Ask:

"What exactly am I selling?"

You should be able to answer that in one sentence.

Then ask:

"Would people buy this product if there were no affiliate opportunity?"

If the answer is clearly yes, that's a good sign.

Answer: “We are selling an IPTV service that provides a tremendous volume of content at a low price that can save families month every month.”

Answer: People buy NovaCast every day without becoming affiliates.

4. Be suspicious of huge income promises

Watch for statements like:

• "Make $10,000 a month!"

• "Quit your job in 90 days!"

• "Earn six figures from home!"

• "Anyone can become financially independent!"

  
  

Those claims can create serious legal problems if they aren't supported by reliable evidence.

NovaCast NEVER states potential earnings numbers or other claims!

5. Look carefully at the compensation plan

Before joining, ask the company for the complete compensation plan in writing.

Then ask:

"Exactly what activities generate my commission?"

You want a straightforward answer such as:

"You receive 10% of the purchase price when a customer buys through your link."

NovaCast’s compensation is straight-forward and easy to understand.

6. You should be able to make money without recruiting anyone

Ask the company:

"If I never recruit another person, can I still make money by selling your product to customers?"

The answer at NovaCast is YES!

7. Watch for pressure

If someone tells you:

• "You have to sign up today."

• "This opportunity won't be available tomorrow."

• "Don't talk to your lawyer."

• "Don't overthink it."

• "You need to get started immediately."

  
  

Walk away.

We agree. Our affiliates can be terminated for applying pressure and we NEVER make any of the above statements.

8. Look at what a company tells its affiliates to say

This is particularly important for you.

Even if the affiliate company itself is legitimate, you can have a problem if you make false or misleading claims while promoting it.

The FTC says affiliate marketers need to disclose their financial relationship with the company, and the disclosure should be clear and close to the recommendation.

For example:

Disclosure: We may earn a commission if you purchase through links on this page.

And don't make claims such as:

"This product will save every consumer $3,000 a year," unless you have evidence supporting that statement.

The FTC's general rule is that advertising claims must be truthful, non-deceptive and supported by evidence.

We fully agree! Our affiliates can be terminated if they violate these rules!