{"id":5352,"date":"2025-01-26T10:09:00","date_gmt":"2025-01-26T10:09:00","guid":{"rendered":"https:\/\/www.scaleo.io\/blog\/?p=5352"},"modified":"2026-03-10T10:30:38","modified_gmt":"2026-03-10T10:30:38","slug":"disadvantages-of-self-hosted-affiliate-software-you-should-be-aware-of","status":"publish","type":"post","link":"https:\/\/www.scaleo.io\/blog\/disadvantages-of-self-hosted-affiliate-software-you-should-be-aware-of\/","title":{"rendered":"Disadvantages of Self Hosted Affiliate Software You Should be Aware of in 2025"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">Hosted affiliate software may have a few disadvantages that every business owner should be aware of.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Today, we will discuss a few of the many disadvantages of self-hosted affiliate software and why you should opt-in for SaaS affiliate software if you are serious about your affiliate business.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.scaleo.io\" rel=\"dofollow\" ><img loading=\"lazy\" decoding=\"async\" width=\"1904\" height=\"995\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner.jpg\" alt=\"scaleo - affiliate marketing tool for data-driven decisions\" class=\"wp-image-6475\" title=\"-\" srcset=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner.jpg 1904w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-300x157.jpg 300w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-1024x535.jpg 1024w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-768x401.jpg 768w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-1536x803.jpg 1536w\" sizes=\"auto, (max-width: 1904px) 100vw, 1904px\" \/><\/a><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\">Why Is It Important to Avoid Self-Hosted Affiliate Software?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The platform you choose to power your affiliate program or affiliate network is your most crucial decision when starting your own.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">And this is where the majority of newcomers go wrong.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using self-hosted <a class=\"wpil_keyword_link\" href=\"https:\/\/www.scaleo.io\/blog\/best-25-free-affiliate-tracking-software\/\" title=\"affiliate tracking\" data-wpil-keyword-link=\"linked\" rel=\"dofollow\" >affiliate tracking<\/a> and management software is the biggest error you can make when putting up your own affiliate network.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now I see why people frequently take this route because it is less expensive.<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Running a blog where <a title=\"Starting An Affiliate Network: Where to Find Good Offers\" href=\"https:\/\/www.scaleo.io\/blog\/starting-an-affiliate-network-where-to-find-good-offers\/\" rel=\"dofollow\" >affiliate offers<\/a> are promoted necessitates using tracking software that can handle both organic and paid traffic and is integrated with Google Analytics.<\/li>\n\n\n\n<li>Running affiliate offers on popup traffic is entirely another ballgame that necessitates specific features such as GEO and device targeting.<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">However, in the great scheme of things, you ALWAYS lose!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Why do I always use a third-party affiliate management system? I think you should too.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Here are a few reasons why you should do the same.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-better-tracking\">Better Tracking<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Most of the self-hosted affiliate management software comes in the form of plugins that run on your web hosting service.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, your hosting server is not geared for accurately tracking all clicks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">A minor mistake can result in you paying twice the commission on each transaction. Believe me, I&#8217;ve been on the receiving end of countless double-commissions, and as an affiliate, I enjoy them.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, this is precisely why I usually utilize a third-party <a href=\"https:\/\/www.scaleo.io\/blog\/starting-affiliate-network-types-of-affiliate-tracking\/\" title=\"Starting An Affiliate Network: All Types of Affiliate Tracking\" rel=\"dofollow\" >affiliate tracking<\/a> platform.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-affiliates-find-it-easier\">Affiliates find it easier<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Using an established network, believe it or not, makes things easier for your affiliate <a href=\"https:\/\/www.scaleo.io\/blog\/partner-marketing-software\/\" title=\"Partner Marketing Software \u2013 What You Need To Know?\" rel=\"dofollow\" >partners<\/a> because there is one fewer dashboard to which they must log in.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s one less W-9 or tax form for them to fill out.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">They have fewer payments to worry about because the networks combine the payments and transmit them in bulk.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-automated-payouts\">Automated payouts<\/h2>\n\n\n<div class=\"wp-block-image is-style-rounded\">\n<figure class=\"alignright size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"1190\" height=\"1207\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/01\/payment-processes-automatic.jpg\" alt=\"-\" class=\"wp-image-2156\" style=\"width:389px;height:395px\" title=\"-\" srcset=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/01\/payment-processes-automatic.jpg 1190w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/01\/payment-processes-automatic-493x500.jpg 493w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/01\/payment-processes-automatic-768x779.jpg 768w\" sizes=\"auto, (max-width: 1190px) 100vw, 1190px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"wp-block-paragraph\">Time is money as a business owner.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">That money should not be spent on sending out <a href=\"https:\/\/www.scaleo.io\/blog\/starting-an-affiliate-network-how-to-pay-affiliates\/\" title=\"affiliate payments\" rel=\"dofollow\" >affiliate payments<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The best thing about using hosted affiliate management software is that it takes care of all domestic and international payments.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your affiliates will always be paid on time, strengthening your bond.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-improved-detection-of-fraud\">Improved Detection of Fraud<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To begin with, most self-hosted affiliate software does not include ANY kind of <a href=\"https:\/\/www.scaleo.io\/blog\/how-to-detect-and-prevent-affiliate-partners-from-creating-multiple-accounts\/\" title=\"How To Detect and Prevent Affiliate Partners from Creating Multiple Accounts?\" rel=\"dofollow\" >fraud detection<\/a>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If they claim to, you should double-check all the facts and learn exactly how it works (since it doesn&#8217;t).<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/12\/scaleo-security-update-posback-token-scaled-2.jpg\" alt=\"Scaleo affiliate software Advertiser Security Token for Postback\" class=\"wp-image-4600\" title=\"-\"><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">When you choose a professional platform, the clicks and referrals are tracked on a regular basis.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If there is any questionable activity or affiliate, their fraud section will notify you via email, ensuring you do not lose money.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">I&#8217;ve seen far too many businesses pay commissions just to discover they were deceived. One of my friends&#8217; companies was a victim and lost six figures before switching.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">When the world&#8217;s biggest brands don&#8217;t want to make their own software, they use an affiliate tracking service instead.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">My advice is to learn from the mistakes of others.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-there-is-no-accounting-overhead\">There is no accounting overhead.<\/h2>\n\n\n\n<p class=\"has-background wp-block-paragraph\" style=\"background-color:#feeaea\">If you own a business in the United States, you must send a 1099 form to anyone you paid over $600. Regulations are a lot stricter if you live in the EU.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">You should not have to worry about this as a business owner.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2560\" height=\"1707\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1.jpg\" alt=\"self hosted affiliate software disadvantages\" class=\"wp-image-4016\" title=\"-\" srcset=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1.jpg 2560w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-500x333.jpg 500w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-2024x1350.jpg 2024w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-768x512.jpg 768w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-1536x1024.jpg 1536w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-2048x1366.jpg 2048w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-270x180.jpg 270w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-300x200.jpg 300w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/08\/teamwork-concept-young-coworkers-big-glasses-brainstrom-together-study-documents-future-business-deal-write-down-notes-spiral-notepad-scaled-1-1024x683.jpg 1024w\" sizes=\"auto, (max-width: 2560px) 100vw, 2560px\" \/><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">This component&#8217;s time and hassle alone are worth the small fee for choosing a well-known affiliate marketing platform.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-influence-in-the-network\">Influence in the network<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">When you join a big affiliate network, you give your company more exposure, which aids in recruiting new partners.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This is precisely why some businesses belong to many affiliate networks.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">After reading all the above reasons, I hope I have convinced you that utilizing your own self-hosted <a href=\"https:\/\/www.scaleo.io\/blog\/affiliate-management-101-how-to-manage-partners-and-affiliate-programs-like-a-pro\/\" title=\"affiliate management\" rel=\"dofollow\" >affiliate management<\/a> system is a mistake. It usually does.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The second question I get is, &#8220;What are the best affiliate systems available?&#8221;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-most-effective-affiliate-network-and-platform\">The most effective affiliate network and platform<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">There are numerous affiliate networks and platforms available. We recommend <strong><a href=\"https:\/\/www.scaleo.io\" target=\"_blank\" rel=\"dofollow noreferrer noopener\">Scaleo<\/a> <\/strong>if you are looking for SaaS affiliate software (a white label solution tied to your domain) or ShareASale if you are looking for a network.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"2048\" height=\"1103\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot.jpg\" alt=\"-\" class=\"wp-image-2345\" title=\"-\" srcset=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot.jpg 2048w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot-500x269.jpg 500w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot-2024x1090.jpg 2024w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot-768x414.jpg 768w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2021\/02\/scaleo-affiliate-marketing-software-screenshot-1536x827.jpg 1536w\" sizes=\"auto, (max-width: 2048px) 100vw, 2048px\" \/><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-conclusion\">Conclusion<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">It&#8217;s a fantastic decision to create an affiliate program for your business\u2014go ahead and give it a shot. It will nearly always help your business flourish.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">If you&#8217;re considering saving costs on <a title=\"10 Best Affiliate Management Solutions in 2022\" href=\"https:\/\/www.scaleo.io\/blog\/10-best-affiliate-management-solutions-in-2022\/\" rel=\"dofollow\" >affiliate management<\/a> software and going self-hosted. I propose you use a <a title=\"white label\" href=\"https:\/\/www.scaleo.io\/blog\/white-label-affiliate-marketing-software\/\" rel=\"dofollow\" >white label<\/a> SaaS affiliate software; don&#8217;t host and try to run everything yourself.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Ready to get started?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">If you have realized that using hosted affiliate software may not be the best option for you, then perhaps it is time to consider a SaaS cloud-based affiliate software solution&#8230; <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Consider Scaleo!<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The great news is that you can give Scaleo a try absolutely free for a generous period of 14 days. What\u2019s even better is that you won\u2019t even need to provide any credit card information during this trial period. So go ahead and take advantage of this opportunity to experience all the benefits and features that Scaleo has to offer without any commitment or financial obligations. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Don\u2019t miss out on this chance to revolutionize your affiliate marketing efforts with Scaleo\u2019s powerful and SaaS-based platform.<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/www.scaleo.io\" rel=\"dofollow\" ><img loading=\"lazy\" decoding=\"async\" width=\"1904\" height=\"995\" src=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner.jpg\" alt=\"scaleo - affiliate marketing tool for data-driven decisions\" class=\"wp-image-6475\" title=\"-\" srcset=\"https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner.jpg 1904w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-300x157.jpg 300w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-1024x535.jpg 1024w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-768x401.jpg 768w, https:\/\/www.scaleo.io\/blog\/wp-content\/uploads\/2022\/05\/scaleo-affiliate-software-data-driven-banner-1536x803.jpg 1536w\" sizes=\"auto, (max-width: 1904px) 100vw, 1904px\" \/><\/a><\/figure>\n","protected":false},"excerpt":{"rendered":"<p>Hosted affiliate software may have a few disadvantages that every business owner should be aware of. Today, we will discuss a few of the many disadvantages of self-hosted affiliate software and why you should opt-in for SaaS affiliate software if you are serious about your affiliate business. Why Is It Important to Avoid Self-Hosted Affiliate<\/p>\n","protected":false},"author":2,"featured_media":5353,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[8],"tags":[4,27,33],"class_list":["post-5352","post","type-post","status-publish","format-standard","has-post-thumbnail","category-affiliate-marketing-insider","tag-affiliate-marketing-software","tag-affiliate-tracking-software","tag-referral-program"],"_links":{"self":[{"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/posts\/5352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/comments?post=5352"}],"version-history":[{"count":13,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/posts\/5352\/revisions"}],"predecessor-version":[{"id":200857,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/posts\/5352\/revisions\/200857"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/media\/5353"}],"wp:attachment":[{"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/media?parent=5352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/categories?post=5352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scaleo.io\/blog\/wp-json\/wp\/v2\/tags?post=5352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}