Our affiliate scheme is used by several of our clients, now we only give aff commission as credit to active clients.
We do this now as we did used to give commission as cash, but we had a client sign up for our cheapest shared plan and then sign up as an affiliate and then within 3 days he had signed up though his aff £150 a months worth of commission, which in 3 days we found strange, yes we had all these new clients, but something did not feel right, so we dug a bit deeper and found all the new accounts were using the same subnet and exchange. When we approached our client about this he stated he just did some door knocking to get clients.
We thn decided to make all aff commissions payable only as credits to clients accounts, as soon as we did this and informed clients of this new procedure all these new accounts started to send in termination notices, then the client sent in his termination request. So my feeling seemed correct in that all these accounts were in fact set up by the client in order to get cash commissions.