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Old 07-05-2006, 05:48 AM  
jayeff
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Join Date: May 2001
Posts: 2,944
Quote:
Originally Posted by Alex from Montreal
Wouldn't be more logical to continuously reduced the SU price to gain more subscribers?
It isn't quite that simple because a lower-than-expected price can work to convince some people that a product is cheaper than it should be, therefore it cannot be worth buying. However the real issue is that most sponsors depend less on the saleability of their sites than the availability of affiliates.

It is illogical that the Internet is best suited to high-volume/low-margin marketing yet most of us pursue the opposite business model. Over the long term I'm sure prices will go down, as sufficient (large) newcomers decide not to get locked into the high-payout affiliate model. But meanwhile, a few sponsors, simply greedy or looking to attract more affiliates, may see no alternative to price increases.
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