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Originally Posted by BestXXXPorn
"Always" according to who? Certainly not any mainstream businesses I know of... MAYBE just adult? But there's a reason why people don't do this:
And once again... "Why don't I just advertise to my users that I'll pay them $5 for every sponsor they sign up with and cancel their membership... We can all get rich and drive the sponsors out of business..." <-- That is fraud and that is EXACTLY what will occur if you run a system where you pay out even if you had to refund the sale. Anyone who thinks that's a good idea has obviously never run a high profile subscription based site.
Sorry to say but the adult space is a bunch of noobs when it comes to many things. This definitely being one of them. Wait till you run a pay site and you get hit by the cancel account routine... you'll be singing a different tune.
It's completely unfair to expect sponsors to payout on a sale that was charged back. They just lost money... and the more charge backs that occur, the more expensive their rates become...
I work for a company that does thousands of new signups a day... there are so many charge backs you have to evenly distribute them across multiple accounts and gateways to make sure you don't hit any thresholds where it starts costing you $0.20 more per transaction. That shit adds up FAST. Remember all rebills are going through the same routine at the same time... try a 6 figure paid member count on for size...
You know what we do with affiliates that send a lot of charge back traffic? We drop them. If we kept them we'd be eating $10s of thousands every month in increased billing rates.
In the adult space I'm an adult affiliate noob... You know what lured me here? The fucking INSANE payouts! Higher than any other industry, PERIOD. It is asking WAY too much of sponsors to continue paying out this much AND pay you on non sale sales... It's just greed at that point. I want my sponsors to make TONS of cash so they can keep cranking out content and providing me with top notch free samples to pitch to my users.  |
Yes, this is the PORN Industry, not mainstream - NO part of mainstream is like Adult.
In our Industry, PPS when it first started paid on every sale and didn't take back on cb/refunds. It's fair because the program kept all sales on exits, upsells, xsales, etc.. The programs that have been around long enough, still run that way, IE: Topbucks.
Again to note: Nothing wrong with programs that do as long as it's clearly in the terms.
She works with and is the sales manager of one of the largest programs in our Industry that has been paying PPS this way from day one. I wouldn't really call one of the largest companies in our Industry a noob simply because you don't understand the business model.
The reason our industry can pay so high is because the average value of a member is that high. Programs that have upsells, xsales, exits, etc typically pay more than those that don't, but both are making a killing on the member average rebills.