Quote:
Originally Posted by Barefootsies
In theory.
You are not accounting for the fraud, and back end support costs for dealing with a larger affiliate base. Which is also a business expense. All these supposed new sales do not just go into your pocket. You have increased expenses as well.
|
Fraud is a legit concern, but there are ways to deal with it.
As to back end support costs - they're next to nothing. Let CCBill handle your affiliate base, traffic tracking, payouts etc, it'll cost you nothing both labor and money wise.
You'll only need to spend your time answering affiliates emails, which is, as I've already said, the best time investment of your life.
Anyway, it's not like you're going to have immense affiliates base the day one you opened up your program. You'll have to fight for every new affiliate, not matter if you invite only or not.
As to paying to your affiliates - yes, you'll need to pay them
They're not going to work for free just because you have such a great site. Invites only system will not save you from paying to your webmasters.
Usually, I'd say in 99,99% of cases, including niches and microniches, money invested in affiliates payouts pay off through the increased sales.