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I think the logic behind it is one of competitiveness. My guess is that in order to get more webmasters to refer people - that in the early days - someone decided to pay for the value of the sign up -up front. For someone like me - who can use money NOW. I am willing to get a lower amount now and upfront vs a possible higher amount over the long term.
Of course, they would have to figure out how much each sign up is really worth to them - and go from there. I was suprised too when I first started - it just seemed to me like I was reading something wrong, but hey I'm not complaining...
I have been an affiliate in many other non adult programs. Adult webmasters are by far the most demanding. It is very hard to find a good non adult program that pays every two weeks - much less every week like ARS. And most programs don't pay like 3 - 5 days after the period ends.
I guess that in order to get more signups - companies were willing to do what is necessary to entice more webmasters. How much longer will ARS keep their $2.95 sign ups - now that two other big sponsors are more expensive.
I have a ton of ads to change...
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