Compliance in the Japanese affiliate market

Managing affiliate programs for our domestic and international clients comes chuck full of with its own challenges. I’m often asked what are the key differences between setting up an affiliate program in the States and in Japan. The answer to that question in one word is : compliance. Japanese affiliate program networks, like many companies here are extremely sensitve to any form of legal problems a merchant may exposure them to. With the recent publicity given to the Livedoor scandal as well a a few others, affiliate networks have beefed up their compliance rules and set strict standards for who they will accept as merchants into their networks. For most honest online businesses, this shouldn’t pose a problem, but we’ve witnessed more and more rejections of merchants that historically had no trouble getting on an affiliate network. Case in point: Health & Suppliments retail shops. The larger networks (especially those publically listed) have outright refeused to ake on any merchant that sells health products or make any health claims on their site. I’ve seen online retailers strip their product pages clean of all text leaving only product pictures and a list of ingredients in order to get accpeted into an affiliate network. If you’re thinking of setting up an affiliate program in Japan, you would be wise to review a few points:

- Do you have a business presence in Japan?
- Does your business have a Japanese bank account?
- Does your site sell products banned in Japan?
- Does your site claim special health benefits resulting from the use of your products?

Take the time to review the copy on your site. If you plan to create a localized version of your site for Japan, have an experienced professional run through all the copy and remove anything that may raise a red flag with the networks. It’s important to prepare before submitting your site for approval. Most networks will reject a site without explaining the reasons for the rejection. And once rejected, it’s difficult to re-submit later. Strict compliance rules makes the Japanese media market a tough nut to crack, but it helps keep out unscrupulous sites that tarnish the image of affiliate marketing for the rest of us.

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