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Originally Posted by ElvisManson
I like to look at the ROI for the time spent on anything I do. That which makes me the most money gets most of my attention.
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So then "shaving" is not much of an issue, because as you are tracking your results, and you are happy with them, then it doesn't really matter if the program shaves or not.
I agree with your analysis that ROI is the key, but being satisfied with what you perceive as your ROI, encourage or send a message that it's better to have a high PPS and shave, then it is to price the PPS that is lower than the membership price, such that from a business perspective, that makes sense (ie. not paying out more than you take in?)
I'm not saying that a lower PPS wouldn't or couldn't shave, but its the perception that shaving is necessary when you have a high PPS.
So the risk issue seems to be this:
1) If a paysite does a high payout, they are hoping statistically that members rebill and they make their money and the risk to affiliates is that they get paid less than what they could have earned.
2) If the paysite does a lower PPS, then less risk for the paysite if a member doesn't rebill, but possibly less ROI for the affiliate webmaster, so therefore the risk to the paysite is getting less traffic.
Fight the Dilemma!