|
Good thread here, I always wonder how this makes any company money. I feel like they are playing a huge game of catch up since the processing companies are 2 weeks behind, they payout for the most part bi monthly so there is anywhere from a 2 to 6 week window in the payout structure.
So you keep taking in money each and every day with these elaborate payout models and then pay the webmasters on money that you earn within the 6 week window and just keep pushing ahead.
BUT I spoke with some processing companies in the past and once the fraud issues are under control they could offer real time payments. Then the window will be gone and the company has got to strip their bottom line pretty bad.
Recently a large company posted that they that their webmasters had earned 28k in either 24 or 48 hours because of some news related to their site.
Their site is 40 per month, no trial, and they payout 35 per sign up. If you divide 35 into 28k it was something like 800 joins. No multiply the 800 joins by 40 and you get 32k. Then subtract the 2 and you have a 4k profit less all other expenses, hosting, office, feeds ,etc. How can they have made any money if the person does not recur? For me to do that that is putting a lot of faith in your site that they do recur at 40 per month.
What has happened in my opinion is programs have to offer these huge payout because otherwise webmasters will not support them at all, and they are at the mercy of the webmasters pretty much and the result is this living month to month because of the time delay in payouts.
Mark I am going to contact you man to take a look at that spreadsheet for sure because this business model has to be risky, no matter what your retention is.
|