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The math does work out. He is not offering 20% of referred sales, but 20% of net profit. Most likely, the marketing person won't be sending all affiliates, so the profit will be far greater than when just referring webmasters.
Only problem I still see is that he seems unwilling to hire professional designers. To me, it seems like idiocy to let your marketing person do your designing. But that's just me, ofcourse.
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