The area of CPA (cost per action) marketing has long been in need of revising its working model. The point is that the whole system lacks two important components — openness and trust. If we translate the CPA into a performance marketing track, where a particular confirmed result is placed at the forefront, then all that will be needed to revitalize this promising industry is to find the right tool using which only one option of cooperation will be possible — a fair deal.
And this tool has already been invented. It is capable of revolutionizing all areas of society’s life that are amenable to technological modernization, making objectivity a concrete, measurable unit. And it lies in blockchain technology.
What fundamentally new principles does blockchain technology bring to the CPA marketing scheme? To answer this question, we should briefly recall what the technology itself is. As a matter of fact, and literally, it is a “chain of blocks” in which information is recorded, an unchangeable log, where all transactions that have ever been written are transcribed, and these records cannot be falsified or destroyed, since they are not on any particular server, but on all user computers constituent of the network, in other words — distributed.
HOQU is a distributed partner platform, for the first time combining a performance marketing model and blockchain technology. The essence of the project is to create a decentralized ecosystem on the basis of which CPA-services will be created, starting from partner programs, ending with partner networks and related products. HOQU will unite advertisers, networks and partners into a single platform, significantly reducing the financial costs of all market participants.
The mission of HOQU is to make distribution of rewards in the market of affiliate internet marketing more fair and to set new standards of transparency and efficiency from which all fair market participants will benefit.
What is stored on the HOQU blockchain
The HOQU blockchain system records all data of participants in the platform ecosystem. This is the whole array of personal, reputational and other data on partners and advertisers. Also, the unalterable journal of the system records all leads obtained by partners, according to which a calculation is made in a performance marketing system oriented solely at the result — the number of truly interested customers.
The tracking service generates lead data and adds key information about it to the platform through the API or by directly contacting a smart contract. If the advertiser approves the added lead, his account debits the cost of the lead and is sent to the partner minus the platform commission. By approving the lead, the advertiser gets access to key information of the lead and can get its full data (using the tracking service or unpacking the lead data with a key).
Combatting fraud
The decentralized approach of HOQU unites all participants of the platform in a common ecosystem, which allows one to keep a record of the reputation that affects access to offers. The system gains a considerable advantage from the fact that within the framework of the platform, fraud as such, inevitably, comes to naught with time and is rendered unprofitable.
Of course, fraud (unscrupulous execution of contract terms) is always theoretically possible. To combat this, the platform provides a reputation ranking system. Thanks to it, fraud will never work more than once within the platform framework. And thanks to the quality scoring system, no matter how many accounts the fraudster tries to allocate on the platform, the system will automatically determine who it is, and will assign the corresponding reputational ranking earned, which is safely stored on the blockchain and is directly assigned to the identified entity.
Thus, the smart contract acts as the anti-fraud guarantee mechanism. The contract is primarily responsible for the transparent distribution of commissions, and stores only the data that affects the amount of payment. The contract itself cannot physically conduct an audit of leads on fraud. Fraud is excluded only due to a single ecosystem, where punishment is provided for any fraudulent activity.
If webmasters are accused or caught involved in fraudulent activities, they will not be able to work with good advertisers any longer, because they will have a barrier to work with similar webmasters by default. Given that working with most offers on the platform is available only to webmasters with a high level of identification and a positive reputation, it is simply not profitable for them to engage in fraud.
Advantages of blockchain for webmasters and advertisers
The greatest advantage for webmasters is that they can work from one dashboard with any networks they want. HOQU will allow using hundreds of networks and choosing the most favorable conditions for each. In addition, an added advantage for a webmaster will be the ability to have instant access to earned funds.
For affiliate networks, the advantage will be the lack of costs that they incur when paying out. This is achieved through the use of internal platform currency, the proprietary token HQX — the only possible unit of calculation for services within the platform, which can be used for paying for effective marketing.
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