Would you take lower percentage for regulation?

[vinism]

In order for regulation to work, licensees have to be afraid of losing their licenses. And in a marketplace where you can pretty much go anywhere for license, regulation doesn't work. That's why this whole nation by nation regulatory system that is slowly evolving intrigues me. On the one hand, it significantly raises operational costs. The cost of obtaining licenses, setting up individual infrastructures, and complying with local regulations can be substantial -- certainly more substantial than having a license in once place that works everywhere else. And that has a definite impact on costs and profits. On the other hand, these local licenses are very valuable because they give operators access to the market. That's something operators won't want to lose. And that's the hammer regulators can use to make sure the system is working correctly. As for regulating the affiliate market space, I'm not sure what appetite there is for that from a regulatory standpoint. But at least with local licenses, there is a high incentive for operators to be above board in all of your dealings. Because if you get caught doing something shady, you could be out of business.

[MichaelCorfman]

I think Mojo's question and the associated discussion is interesting. So, since it was phrased as a question, I have added a corresponding poll to it, and moved it to the poll forum. That way we can make it the question of the week for today's GPWA Times newsletter.

Thanks Mojo.

Michael

[baldidiot]

I think it would depend on how much it would cost, and what it would control. From a purely hypothetical perspective, I'd take 100% guaranteed regulation for a 5% reduction in revenue.

If it were to cost any more, or if the protection was wishy-washy then I'd rather keep the revenue in the hand and roll the dice.

[PingPong]

great post. I would suggest to add another poll:
For how long you would expect "properly regulated" aff program to stay "properly regulated"

[grem]

When governments take more income it leaves less for affiliates.

[robertmedl]

I voted NO. Regulation will not impact the trustworthiness of an affiliate program. They either are or are not honest with respect to affiliate earnings; by now, I think we know the most trustworthy programs, as well as most of those that are less than trustworthy.