Quote:
Originally Posted by signupdamnit
I think some will use this type of move as a way to siphon off affiliate clicks and sustain themselves through unpaid cross sales and upsells.
1. Lower pricepoint to $9.95 (pay $5 to affiliate)
2. Add two prechecked cross sales up to $100. (nothing to affiliate)
3. Collect email addresses for further marketing. (nothing to affiliate)
4. Add heavy upsells within the members area. (nothing to affiliate)
5. Only have to pay affiliates $5.
I'm not saying Porn.com is doing this but only that the model could be used in this way. Currently it's popular with dating and cams. The affiliate sends you tons of free no-cc member leads and you don't have to actually pay the affiliate until those convert to a paid membership. So basically the affiliate is sending you free leads if you pay nothing on those leads directly.
People speak of having affiliates no longer being profitable but the reality is more that being an affiliate these days is much less appealing than in the past. There are more tricks and more instances where your cut is being taken from you. Entire businesses are now sustained basically by siphoning your traffic and paying you nothing or a small pittance.
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I agree with all of this, but just want to point out that if an affiliate is only going to make $5 per a credit card sale then they aren't going to have many if any affiliates. Hell, I currently get paid $4 per a confirmed email account, you know how much easier that is to do then to get someone to take their credit card out and sign up?? Even at $10 a month vs $30 a month subscription cost, (for example) I will still likely convert say 1:500 to make $5. With same traffic I could convert 1:50 and get paid $4 . Do the math, which one is 100x more profitable for me.
If I get someone to take out their credit card to sign up I need to be paid at the very least $30 a sale or I (and 99% of affiliates) would lose money. I know sponsors seem to think that traffic falls out of the sky for free for affiliates but it doesn't. Most either spend a tremendous amount of time or money or both to generate traffic, $5 per a credit card sale is just sad and would never take off with affiliates.