Just some tips for the next wave of PPS programs closing down..
1. Even though you already know you are planning to close in 2 months, don't give notice until at least 3 days prior to closing. Affiliates LOVE late notice, it keeps them on their feet, keeps them switched on, increases excitement! Also changing links on multiple sites has to be the most enjoyable function a webmaster can perform, it's just fun!
2. Don't close down the sites.. just close the affiliate program!! Webmasters fully understand when you close the affiliate program with 3 days notice, then keep the sites up. Infact affiliates would rather you keep the sites up, and keep the traffic, rebills etc, as a thanks for all the wonderful years and good times where you generously paid them for sales sent. Webmasters are a sentimental bunch. Also think on the bright side, you are gonna have a ton of links out there which you no longer have to pay out on!
3. In your parting message/email, make sure you mention the good times, talk about how its impossible to continue, and be sure to slip in something about the "special relationship". When an affiliate is looking at losing a few thousand bucks nothing makes them feel better than a tactical "thankyou"!
4. Whatever you do ... DON'T consider the possibility of changing your business model ... it worked back in 1998 and it should still work now!! Ok so you can't dick surfers for 5 prechecked white text on white background cross sells that rebill for $350 a month, so obviously business is over and there is no way you can possibly keep the program alive. Adapting is for losers, and lowering payouts, adopting a true revshare model, cutting back expenses, even possibly giving up your $10k a day coke habit, these things should never be entertained!
Closing the program (or just the affiliate program) is the only solution, and affiliates know this. Surely you don't think affiliates would ever agree to less than a $40 payout on a $1 trial!!! Madness!!
5. Don't make the last payout, and if possible try to dick your affiliates for the last few payouts. They won't mind giving up the last few $k as a send off present, especially since you gave them 3 days notice! If you do get the odd ungrateful affiliate who wrongly feels they deserve to be paid for their traffic, then don't worry ... the more they need it the more broke they are and they can't afford to chase you. Sure they may rubbish your name on the boards, but you didn't really care about your rep anyway
6. Sometimes you need some reputation intact so you can start another program or another webmaster service in order to screw a whole new generation of clueless affiliate. New affiliates are constantly being fed This is where you cash out your bro points... bro! Hit up all those bro's you bought a beer for at 'convention xyz', and get them to call you a standup guy. Also make sure if you have any bro's in your program you pay them out, but only on the condition they post something awesome in your parting thread. In any case you ARE a 'standup guy'... you gave them 3 days notice!
Enjoy!