The sudden shutdown of Australian cashback platform Cashrewards has revealed critical vulnerabilities in the affiliate marketing industry. The company, which served 2 million members and processed over $5 billion in sales, ceased operations without warning.

Key impacts:

• Market consolidation: The closure reduces competition, potentially leading to less favorable terms for both brands and consumers.
• Exposed vulnerabilities: It highlights risks like attribution disputes, commission integrity, and the fragility of platforms dependent on venture capital or shifting corporate priorities.

Three critical lessons for marketers:

1. Conduct deeper due diligence: Evaluate a partner’s financial stability and corporate structure, not just their performance metrics.
2. Diversify your partnerships: Avoid over-reliance on a single major platform by spreading affiliate spend across multiple publishers.
3. Build direct relationships & control: Strengthen ties with individual publishers and invest in first-party tracking technology to maintain attribution control.

The bottom line:
The collapse is a stark reminder that in performance marketing, diversification is essential not just for audience reach, but for business continuity when major players suddenly disappear.