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Originally Posted by x-rate You are right but I'm pretty sure you understood the whole point of my post! You can apply my example to a trucking company using sub contractor etc...

I paid all my hourly employees even when I was not paid but some subcontractors had to sweat it out with me -- that is the risk of doing business.

More specifically with regard to chargebacks in our current endeavours ( webcam broadcasts); When there is a chargeback everyone eats their share -- we all lost money together. Chargebacks are a part of contracting. Independent Contractors are what Affiliates, Models and Studios are. None are paid hourly as an employee and all assume business risk. Rev share means revenue sharing -- losses should be shared when they are a direct result to ones revenue. No one likes losing money that is understandable.


A subcontracted truck is subject to different rules; it is paid by the tariff rate, agreed price per mile, or haul -- completion of delivery is the only prerequisite to payment. The truck owner operator does not agree to a certain portion of the revenue.

Bottom line; When a customer refuses to pay for services rendered -- you're fucked -- you cannot repossess the services. A sale is not complete until it is paid for -- always. Sometimes, you can sue to recover the loss but most of the time it is a write off and you just move on and learn from it.