Posted on 23 June 2009.
While pay-per-click (PPC) sites remain a large part of the cybersquatting business model, there is another wave of massive-scale online infringement monetization called affiliate fraud that often goes undetected.
FairWinds Partners analyzed this monetization practice, which can garner 5.6 times the revenue than that of a pay-per-click model on the same Web site. An average typo used to pull off this sort of affiliate fraud against a top Internet retailer's brand generates $100,000 in cost to the brand annually.
Some companies offer legitimate affiliate programs that allow third-party Web site owners to post links and banners with the company's branded content on their site or to send traffic to the company's site directly through domain forwards. In return, the owner of the site hosting the link receives a commission for every click-through that results in a purchase. This lucrative commission structure has enticed cybercriminals to take advantage of affiliate programs by registering typo domains that redirect to legitimate content and enable them to collect affiliate referral fees.
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