I definitely wouldn't go with a blanket 'wont work' it just wont work for every affiliate program. I've been a reseller for online poker affiliate programs for close to 10 years now and the number of sites that don't allow it is dwarfed by the number of sites that do. And the ones who don't allow it still give you a commission for referring new affiliates.

Basically what happens is that you have to enforce their terms and conditions for them. The incentive is certainly there for you to do this, because it's your affiliate account that is on the line and you are taking responsibility for the actions of anybody using your links.