Quote:
Originally Posted by Snake Doctor
Not so. People always say the program spends this and the program spends that and the affiliate spends nothing.
Bullshit.
The most expensive commodity in this scenario is traffic. That's what affiliates have that affiliate program owners want.
Try buying traffic straight up on a per click or per sale or per impression basis, and odds are it's going to cost you alot more than the 50% of the revenue you're giving to affiliates, PLUS you have to pay out upfront and take the risk that you'll convert. With the affiliate program you only payout as the money comes in.
If you have a revshare program instead of a per click, per sale, or per whatever program, then what you're asking me to do is trust you. You don't have to make a big expenditure upfront, and in exchange I get a piece of the pie long term.
The money made from x-sells, upsells, exit consoles, mailers, etc is all calculated into the payout on a PPS program. If you want my traffic on a revshare basis, then you either need a way for me to share in those other revenue streams, or you don't use them.
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I stand corrected, as I did not really consider the underlying difference in PPS and Revshare. I would tend to agree with you that in a revshare scenario revenue is revenue.
Though it may not be agreeable I think they get around that on the outset by informing you of what transactions would be shared and which would not is that correct? Whether it is right or wrong it is worse if they dont disclose it up front I imagine.
If the expressed interest is to share revenue generated imperpetuity then I think that ethically speaking (lol @ ehtics) revenue is revenue regardless of what part of the site or service the transaction transpired.