The only way I can see the AM’s point of view on this is where you see those great chains of affiliates signing up under each other which does mean that program is paying more if those affiliates were going to sign up anyway –
E.G. I open amazingcasino.com and all 80% of you are about to sign up with me but see a thread where affililiates are signing up under each other – In that case I would be cheesed off becasue as an AM I am now paying extra comission when I shouldn’t be – If on teh otherhand there is an affiliate actively recruiting me affiliates through what ever means then of course that guy has to be rewarded.
I think its an important function to have in your program but maybe needs to be managed correctly