Social media may offer new affiliate marketing opportunities, but caution has been urged.

Businesses that are benefitting social media users could use them as affiliate marketing partners, it has been suggested.

This idea comes from Dennis Crowley, founder of Foursquare, and has been picked up by Patricio Robles of Econsultancy, in a post on the company's blog, who suggests that it may fall foul of social media best practice guidelines.

He suggests that getting users to promote brands for money could contravene Federal Trade Commission guidelines.

In addition, Mr Robles noted: "If everybody is getting 'kickbacks' to promote products and services, your friends will become about as trustworthy as the used car dealer on the shady side of town."

He added that word of mouth recommendations are powerful and attractive precisely because they are free and is something to which a lot of brands aspire.

Earlier this week, John Barrow commented on a blog for WNW Design, indicating that social media will start being used by the majority of companies over the next few years.

Posted by Laura Rathbone
 

Article Added: 02/11/2010 11:04:16