Quote:
Originally Posted by signupdamnit
It depends on volume. It's a sort of economy of scale. If your fixed costs exceed your total revenue then yes you are definitely operating on a loss. Programs have certain fixed costs and if they aren't pulling in enough to cover them then they have surely reached what is called the shutdown point. A program would be foolish to offer affiliates so much that they actually take a loss for each new member added. Again that's not what is happening to most of these people. The problem is that business has died down from it's highs and they aren't doing the same volume as they used to. In spite of this their fixed costs are the same or higher. This makes them approach that dreaded shutdown point.
This is one of the advantages for a percentage based model for your backend (e.g. CCBill minus any Visa fees, etc) if you are a smaller program. It's one less fixed cost you have to worry about. If you had to pay say $1000 for your backend each month but you only did $900 in sales per month it would not make sense to keep operating.
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The level of affiliates payouts were set in far better days. Now everyone has fixed it there, it seems set in stone. Time to adapt or die, affiliates will become extinct if they can't adapt.
Quote:
Originally Posted by tonyparra
 Thank you for the logical answer. Its amazing how many of these people are terrible at any business of any sort and own a paysite. Its your job to sale your paysite. Its your site. If you want more money and help getting bigger faster then you should have affiliates. If affiliates are not adding to your revenue ( theres a difference between that and profit ) you are doing it wrong. |
Illogical Captain.
So you want 50% plus all the tools to deliver traffic to the door. Which has to be supported by in house traffic generation, that has to be cheaper to pay for the high price of affiliates. Score Cash can employ people to do it ALL themselves using their tools. So that' will be the future if you continue to demand too much.