The Hidden Cost of Legacy Affiliate Platforms

David, many operators still rely on affiliate platforms that were built a decade or more ago. Why do so many businesses continue to accept the “it still works” mentality when it comes to affiliate technology?



Simple answer – because it’s easy. They’re comfortable and do not want to change. It is also possible that they have created workarounds in their operation to compensate for the shortcomings. Moving back to more efficient workflows while learning a new platform can seem disruptive in the short term, even if it saves significant time in the long run.



Technical debt is a phrase that’s widely used in software development but less so in affiliate marketing. How would you define technical debt in an affiliate platform, and where does it begin to impact commercial performance?



I think technical debt is much more for software than marketing as it directly relates to code and loading. As software expands and adds more and more, the code must also have the support structure behind it to lift the code without breaking. Imagine you are building a tower and it becomes top-heavy with new floors that are wider and wider. It will eventually fall. Technical debt is the equivalent of that. As features are added, the foundations also need to be strengthened to keep the platform stable. Resolving technical debt isn’t particularly exciting from a client’s perspective, but it’s essential. To give a Referon example here, the most recent case is the role engine. To allow the functionality of roles and privileges in the system, every endpoint, every button had to be reviewed. That work then has to continue as new functionality is introduced.



What are some of the hidden costs that operators often overlook? Is it simply slower technology, or does it extend into recruitment, retention and day-to-day operational efficiency?



I think this is a big topic that can fall into many things, but let’s focus on the topic of technology here; yes a slow, cumbersome technology can of course slow things down and create frustrations. Having quicker technology with easy features frees up time for higher-value tasks – performance analysis, negotiating deals and onboarding partners etc. Such examples could be creating campaigns or deals when a simple target is needed or perhaps reviewing data in reports and you can’t access the level of reporting you actually need.



Affiliate managers increasingly expect to launch campaigns, create deals and onboard partners almost instantly. How have expectations changed over the last five years, and are legacy systems keeping pace?



As with everything nowadays, everybody wants things quickly. There are more programs, more affiliates and more data points than five years ago and everyone is fighting for positions and communication lines.Affiliates need immediate access to tracking links and everything required to begin driving traffic. The quicker an affiliate can be set up, the quicker they can use the brand’s link and start pushing traffic. If a programme experiences delays and has problems with links or postbacks for example then it is simply wasted time. The best example here is postbacks and real time data demands in the market. More affiliates are demanding postbacks – real-time server-to-server notifications of key events – with richer data fields and more frequent updates, enabling them to analyse campaign performance and optimise traffic as quickly as possible.



How important has API flexibility become? As operators integrate CRM, payments, BI tools and compliance systems, does an inflexible affiliate platform become a bottleneck across the wider business?



The simple answer is yes. Reporting and APIs allow easy access to grab data instantly. Although all affiliate systems are generally reporting on the same metrics, there are still variations from company to company. Having a flexible system like ReferOn to support a wide range of API integrations makes things so much easier for both affiliate managers and affiliates alike. 



Modern affiliate programmes are handling significantly larger volumes of partners and data than they were a few years ago. How should operators be thinking about scalability when evaluating their affiliate infrastructure?



As affiliate portfolios grow, the need for automation and bulk operations become essential. The days of manual changes or one-by-one changes are steadily going. Having the ability to do deal updates, payment method updates, approvals, group management and payment updates in bulk is a must.

If an operator is considering replacing a legacy affiliate platform, what are the biggest misconceptions about migration? Is the perceived disruption often greater than the reality?



Generally we see trepidation about migrations due to a ‘change’ occurring. There are of course many things to consider in a migration both in data and operations which can create risk, but it is important to understand when handled well with clear communication and realistic expectations on hand things can and will go smoothly. 



Let’s take an actual example that happened lately, client was moving from another platform into ReferOn and was worried about how the links and data would look. However, we ran the data extracts through our templates, clarified a few queries and provided a staging environment showing how the setup would be. On the day of the swap everything started working already in ReferOn. They were under the impression they had to panic with new links for everyone but that is not the case.



AI, automation and predictive analytics are becoming increasingly common across iGaming operations. How important is it that the underlying affiliate platform is built to accommodate future technologies rather than simply supporting today’s requirements?


If we put AI to one side for a moment, as this is the buzz word of the last few years, any software out there, not just in igaming, needs to always think of what needs to be added. Development takes time and if a client comes to you with a problem, it takes time to fix. Laying the groundwork for the future with certain protocols or coding can help alleviate this, and can even solve problems before clients even know they have a problem, which brings us back to technical debt. This is a balance between operations and product teams.



What will separate the affiliate programmes that thrive in future from those that struggle? Will competitive advantage increasingly come from commercial relationships, or from the technology that underpins them?



I think it’s a mix of both. If a programme manages its commercial relationships well and communicates effectively with affiliates, their reputation grows and provides a strong base into the future. Good technology certainly helps, as it helps teams find issues and react but technology alone won’t solve problems if people don’t use it effectively. Technology is not the fast fix. It is certainly a bit of both. Together it is synergistic but using only one will inevitably lead to problems.

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