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jayeff · 02-17-2004, 09:18 AM

The stats quoted in the original post say more about new businesses than about revshare programs. Around 65% of all business start-ups fail within the first year and 80% within 5 years.

I don't see anything in either PPS or revshare that makes one model intrinsically stronger than the other: at least in the short-term.

PPS programs burn the initial investment faster, but a PPS program is much more likely to attract affiliates. Although many will be unproductive and some will try to cheat, it should be easier to get some serious volume going. The outflow of capital may be slower with a revshare site, but it will take a lot longer to reach sales levels that give the necessary economy of scale.

We also over-generalize about the sites behind PPS and revshare programs. PPS usually does mean cross-sells, upsells, email marketing, etc. But it doesn't have to. Some PPS programs are doing all the right things to retain their members, while many revshare programs make little attempt to do so.

It takes skill and funding to succeed with either business model. Working to get recurring billings is maybe easier and the best long-term model, because it isn't really that hard to figure out what the customer wants and give it to him. But relying on cross-sells, etc., means that you are constantly trying to push surfers a bit further than they really want to go. So your methods must keep changing as existing techniques get burned out. And that gets harder as time goes by.

I certainly see that as an affiliate. Although some of the programs I signed with years ago are still well-known names, I long since gave up on them as a serious source of income. These days if I'm going PPS, I'm likely to jump on new sites/programs and bail out after a couple of months. Against that, although I have only found 30 or so really solid revshare sites to promote, my income from them is good, year in and year out.

02-17-2004, 09:18 AM
jayeff Confirmed User Join Date: May 2001 Posts: 2,944	The stats quoted in the original post say more about new businesses than about revshare programs. Around 65% of all business start-ups fail within the first year and 80% within 5 years. I don't see anything in either PPS or revshare that makes one model intrinsically stronger than the other: at least in the short-term. PPS programs burn the initial investment faster, but a PPS program is much more likely to attract affiliates. Although many will be unproductive and some will try to cheat, it should be easier to get some serious volume going. The outflow of capital may be slower with a revshare site, but it will take a lot longer to reach sales levels that give the necessary economy of scale. We also over-generalize about the sites behind PPS and revshare programs. PPS usually does mean cross-sells, upsells, email marketing, etc. But it doesn't have to. Some PPS programs are doing all the right things to retain their members, while many revshare programs make little attempt to do so. It takes skill and funding to succeed with either business model. Working to get recurring billings is maybe easier and the best long-term model, because it isn't really that hard to figure out what the customer wants and give it to him. But relying on cross-sells, etc., means that you are constantly trying to push surfers a bit further than they really want to go. So your methods must keep changing as existing techniques get burned out. And that gets harder as time goes by. I certainly see that as an affiliate. Although some of the programs I signed with years ago are still well-known names, I long since gave up on them as a serious source of income. These days if I'm going PPS, I'm likely to jump on new sites/programs and bail out after a couple of months. Against that, although I have only found 30 or so really solid revshare sites to promote, my income from them is good, year in and year out.