Advertisers restrict it because incentivised users convert once and rarely return, so the customer acquired has little lifetime value. Programs that permit cashback usually pay a reduced rate for it.
For a sub-affiliate network, incentivised traffic arriving from downstream partners is a serious risk: the upstream network sees the aggregate quality, not the individual partner, and will act against the whole account.
Common questions
Incentivised traffic, answered
Is cashback the same as incentivised traffic?
Cashback is the most common form of it. Some advertisers permit cashback explicitly, usually at a reduced rate and with prior approval; most retail programs restrict it. The permission is program by program, and promoting through cashback without checking is a policy breach rather than a grey area.
Why do advertisers object to incentivised traffic?
Because the customer converted for the reward rather than for the product, so they buy once and rarely return. The advertiser pays acquisition cost for a customer with little lifetime value, which is a worse outcome than not acquiring them.
Can I run a giveaway that requires a purchase through my link?
That is incentivised traffic and is prohibited on most programs, because entry is the reward being exchanged for the action. Giveaways that do not condition entry on a purchase through a tracked link are a different thing and are generally fine, but the distinction is exactly where people get this wrong.
Keep reading
More from the glossary
Every term here is written to answer one question completely, then point at the next one worth asking.
Sub-affiliate network
A sub-affiliate network is a company that holds approved relationships with affiliate programs on major networks and lets smaller publishers and creators promote those programs under its account, sharing the commission it receives.
Affiliate network
An affiliate network is a platform that connects advertisers running affiliate programs with publishers who promote them, handling tracking, reporting and payment between the two.
EPC (earnings per click)
EPC is the average commission earned per click sent to an advertiser, calculated as total commission divided by total clicks over a given period.
Cookie window
The cookie window is the length of time after a click during which a resulting purchase is still credited to the affiliate, commonly ranging from 24 hours to 90 days.
Last-click attribution
Last-click attribution credits the entire commission to the final affiliate link clicked before a purchase, which is the default model across almost all affiliate networks.
Attribution
Attribution is the process of determining which marketing touchpoint receives credit for a conversion, and therefore which affiliate is paid.
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