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Originally Posted by slapass
The arguement from Revshare people was that it was not possible BUT we all would make more on revshare as they retain longer.
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Thanks for bringin up rev-share, i forgot to include that.. and I missed MarcD's post then.
Rev-Shares seem to help overcome the PPS issue, since for each member signup, the money to be paid to the affiliate webmaster comes out of the money received from the member. A 50/50 split may end up being like 80/20 or even 90/10 (referring the net result to the paysite, not meaning the affiliates gets more of the rev-share) once credit card fees, bandwidth, overhead, etc are taken out, but atleast profit is assumed to be generated on each sale on a month to month basis.
A high PPS could get more money in the short term, but over the long term, a rev-share arrangement would catch up as the member stayed. The issue is whether the content offering is good enough to satisfy the member to continue to rebill for months.
Knowing that consumers are impulsive, they may be signing up for just that 1 month, and then leave.. whether to explore another paysite with more/original/etc content or just had their curiosity or fix filled and moved on.
Paysites would most likely be able to spot this consumer behavior and therefore might be skewed to sticking with high PPS in order to make affiliates happy (and risk the economic issues), because a rev-share arrangement may see less money coming to affiliates if members are not sticking around.
Fight the Re-hash!