HostGator Affiliate Program

I am looking to have an affiliate program with one company on my site and see that HostGator is one of the biggest and I also have a couple of sites hosted with them. It also doesn't hurt that they pay up to $125 CPA.

I had a look at their T&C - http://www.hostgator.com/tos/affiliate-tos

You will receive a commission for 'active' referrals. Active is defined by clients with a website and domain name pointed to a HostGator server with user uploaded content.

I contacted HostGator to ask what user uploaded content would satisfy their requirements but they refuse to release this information.

I can't spend the time and effort to do all the marketing for this company if I don't know if i will even get paid for sending them a paying customer but the alternative I am considering is Blue Host who pay a maximum of $65 CPA.

A lot of my referrals will be content with a 3 page brochure website to advertise their small business. They won't tell me if this example is enough.

Does anybody have experience with HostGator's affiliate program and what do you think about it?

 

If you do some research, you will find that the HG affiliate program's referral invalidation rate is very high. Some affiliates have reported reversals of 80% - 100% month after month. (I do not participate in the HostGator affiliate program. One affiliate program I participate in has a invalidation rate of 10% - 15% to give you a comparison.)

https://www.google.com/?gws_rd=ssl#q=hostgator+affiliate+scam

One of the reported "gotchas" is that the main domain name on the hosting account has to be active and have real content, not just a parking page. With hosts that offer a free domain with hosting purchase, the free domain is often (usually?) the main domain for the account and that means it will not necessarily be developed right away and often not in time for the 60-day validation period. So even if add-on domains have active websites on them, according to the complaints you will not get referral credit if the main domain on the hosting account is not an active site.

That "gotcha" where they only pay on the main domain for the site is really dirty if you ask me and just a way to get out of paying. If the add-on domains have active sites, the account is active and the referral should be paid in my opinion. Another "gotcha" that I have read about is that if somebody starts out on the smallest plan then upgrades before the validation period ends, it counts as a cancel and you do not get any credit for the upgrade.

Other higher-paying affiliate programs you can look at are FatCow, DreamHost and WebHostingBuzz (I am an affiliate of all three). Also keep in mind that you may earn more money joining the affiliate program through ShareASale or Commission Junction than you will by joining the program directly. For example, the HG affiliate program has a tiered payout structure starting at $50 a month up to $125 a month. But you have to have 21 or more valid signups in a month, and that is not easy to do particularly with the very high HG invalidation rate. However, if you signup through CJ, you get a flat $100 per signup (after the same validation rules). So if you are doing less than 21 valid referrals a month, you will make more through CJ and if you do more than 21 you would make less through CJ. Note: HG has warned in the past that you can only join their program directly or through CJ, but not both and not one first than the other later or you will be terminated from the affiliate program.

Please keep in mind the varying quality of web hosts and that the commission rate is not the entire picture. A web host with a lower commission but that retains more customers (has a lower invalidation rate) may end up making you more money in the long run than a higher-paying program with a higher invalidation rate.

Some affiliate programs do not pay a flat fee but will pay 10% - 20% of the monthly hosting fee for the life of the customer. That sounds great on the surface because recurring income is always nice. However, the hosting industry is still in consolidation phase and hosts are still being bought out. Whether or not the purchaser of a host would honor that monthly commission for the life of the customer is unknown.

 

Thanks Billzo. Great info there and a lot for me to think about.

Have you any insights about BlueHost?

 

No, I really do not know anything about BlueHost. BlueHost, HostGator, and my hosting company are all owned by the same corporate holding company but they seem to be independently run and as of a few months ago had separate affiliate programs (my host is not located in the HG data center). So they were not being run all the same and the hosting is not all the same. However, there is an anti-EIG backlash about and that may end up hurting you in the long-run because people are saying that all the EIG hosts are the same and that is not true but some people will believe it and it could cost you sales.

I think your experience with any hosting affiliate program is going to depend on how well it converts and how well they retain customers (how few of your commissions are invalidated). Try to find something that converts well (as HG apparently does) and results in a low invalidation rate (as HG does not).

 

Billzo, great info! I can see why the HG program have a high invalidation rate with those tactics. Commission rates must be realistic otherwise you'll get caught up with all these different ways the company will cheat you out of your commission. Understand providers are willing to go months without realizing a profit by paying it to the referring affiliate but at the same time they aren't gonna do it at a loss. For example we are currently starting a program at shareasale where we're giving all revenue of the account to the referring affiiliate for the first 3 months however the customer must remain active for 60 days. If the customer stays onboard after 60 days which equals to 3 months revenue than even if the customer cancels we're not out of pocket for the money paid to the affiliate. Bottom line is the commission has to make sense otherwise you run into all these different loopholes they will use to get out of paying.

 

I would recommend go for HostGator via Impact radius and for BlueHost. their payouts are pretty well.

 

Yes the hostgator affiliate program may sound very lucrative due to its high commission. However it is well known fact that there are some 'ifs and buts' which not favorable for the affiliates. In order to avoid that, it would be wise if you could join the hosting affiliate program through reputable affiliate network like shareasale or CJ. Still I would be very cautious before promoting hostgator affiliate program.