EBAY » Topics » If we are unable to operate our new in-house global affiliate platform in an effective and efficient manner, our business could suffer.

This excerpt taken from the EBAY 10-Q filed Oct 23, 2008.
If we are unable to operate our new in-house global affiliate platform in an effective and efficient manner, our business could suffer.
 
Under our affiliate programs, affiliates and website publishers are paid for traffic driven to our websites. Our affiliate programs were previously run externally through a third-party platform. In April 2008, we launched our new global affiliate platform, the eBay Partner Network, which is managed and operated internally. If we are unable to transition our affiliate programs in-house in a timely and effective manner, this could result in dissatisfaction on the part of our affiliates and/or a reduction in traffic to our websites, which could adversely affect our business and operating results. In addition, we may incur substantial costs associated with implementing and operating the eBay Partner Network, including costs associated with implementing appropriate internal controls and procedures with respect to the new platform. If we are unable to operate the eBay Partner Network as planned, our results of operations, business and reputation may be adversely affected. We are also exposed to the risk of fraud by our affiliates (including click fraud or other clicks or conversions) in our affiliates program, which may result in inflated traffic to our websites and/or lower quality traffic. If we are unable to detect and prevent any such fraud by our affiliates in a timely and effective manner, our profitability may be negatively impacted.
 
This excerpt taken from the EBAY 10-Q filed Jul 24, 2008.
If we are unable to operate our new in-house global affiliate platform in an effective and efficient manner, our business could suffer.
 
Under our affiliate programs, affiliates and website publishers are paid for traffic driven to our websites. Our affiliate programs were previously run externally through a third-party platform. In April 2008, we launched our new global affiliate platform, the eBay Partner Network, which is managed and operated internally. If we are unable to transition our affiliate programs in-house in a timely and effective manner, this could result in dissatisfaction on the part of our affiliates and/or a reduction in traffic to our websites, which could adversely affect our business and operating results. In addition, we may incur substantial costs associated with implementing and operating the eBay Partner Network, including costs associated with implementing appropriate internal controls and procedures with


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respect to the new platform. If we are unable to operate the eBay Partner Network as planned, our results of operations, business and reputation may be adversely affected. We are also exposed to the risk of fraud by our affiliates (including click fraud or other clicks or conversions) in our affiliates program, which may result in inflated traffic to our websites and/or lower quality traffic. If we are unable to detect and prevent any such fraud by our affiliates in a timely and effective manner, our profitability may be negatively impacted.
 

EXCERPTS ON THIS PAGE:

10-Q
Oct 23, 2008
10-Q
Jul 24, 2008
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