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Originally Posted by John Marco
You guys probably don't realize expenses associated with cams:
40-50% for model payouts
12-15% for processing fees (including cb fees, txn fees, etc)
5%-7.5% for refunds (if you don't deduct it from models immediately)
That's 57-72.5% of gross revenue, which leaves 27.5% to 43% gross before affiliate payouts. So assume you pay 20%, this leaves 7.5% to 23% to cover all operating expenses and turn a small profit. Cam programs can't really pay 30% without some sort of catch to it if they want to be even mildly profitable which is probably why cams.com has a fair 20% payout.
Oh and I should mention that webcam sites require much more staff than a regular site because you have to have full time risk management/fraud preventation staff reviewing transactions. We have 3-4 people per shift, 24 hours per day doing this, for example, due to all of the fraud attempts from Eastern Europe and Asia
I hate to take up for the competition but this is simply the facts
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I think most who promote cams realize this, but this really isn't the heart of the issue with AWE. I've been promoting cams solely for over 8 years and come across dozens of different programs and revshare has always implied for the life of the customer.
AWE has great sites, nice promo material and they convert. However, even after much scrutinization from the webmaster community over the last few months, they still fail to disclose the 14 day cookie in their program details to prospective webmasters. They exploit the fact that the overwhelming majority of adult webmasters promoting cams assume "revshare" means for the life of the customer. They are the only cam program I've found that has a revshare program where the webmaster doesn't get paid for the life of the customer.
I have no problem with them only wanting to pay out for 14 days, just make sure a webmaster looking to sign up is made aware of this and existing webmasters understand this by listing it as part of their program details. Its hilarious to listen to AWE's owner on this board complain that they only pay 14 days revshare because he believes that's all the webmaster deserves and because his margins are thin. Then turn around and invent the "live sex awards" and spend over a 500k promoting it with excessive prizes. Bottom line, its a shady practice to call something revshare and not disclose the 14 day payout to your webmasters.
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Its crazy..."
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