|
Do some websites run at a loss with affiliates?
Each day I see people saying they have not been paid. Often these are large sums of cash.
Then we see sites going bust, or simply not paying out.
Is it possible that affiliate system makes some sites run at a loss?
Many offer pay for a sale, as in 100% or almost 100% of the sale, but as these days most join for a single month, rather than re-bill, the site looses out, unless it has inside lots of upsell links to other sites.
Even on a 50/50 split, this leaves the site owner with not much cash. If they are a large sitre they may have contracts for content, large servers, and possibly staff too to pay for.
While some affiliate sales may be fine. The idea being that the affiliates get your site seen so even if they do not buy today after 5 months they may. And the bulk of sales you generate. But if a huge amount of sales are affiliated generated then logic sugests that the site will run at a loss.
I see sites offering $300 or so a sale. I fail to see how these sites can make a profit.
I would suspect we will see more sites fail simply as they have not calculated the profit and simply expected things to turn out ok in the end.
|