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Old 03-17-2005, 12:07 PM  
Snake Doctor
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Join Date: Mar 2001
Location: On top of my soapbox
Posts: 13,449
I personally think that PPS is a dying beast.

Years ago you could afford $30-40 payouts based on average member retention alone. There were far fewer paysites and people stayed around a long time.

Then there were exits also which added to revenue.

As member retention deteriorated and affiliates wanted console free tours and would only send their traffic to console free programs, the only way to make up the difference in payouts was pre-checked cross sales.
These are a dying beast also, thanks to the new visa 1% rule.

My guess is most programs that are paying out high amounts per sign up do so because they have to.
The way chargebacks work is a person who signed up 3 months ago charges back and it shows up today. That chargeback is counted against this months sales (for purposes of the 1% rule) even though the initial sale happened 3 months ago.

The reason alot of programs won't (can't) lower payouts drastically or switch to revshare only is because the massive loss of traffic they would incur would put them out of business.
Not because they would be taking in less revenue, but because they would go over the 1% allowed by Visa and be unable to process credit cards for any of their sites.

A 2.95 trial membership is not worth $35 no matter what kind of voodoo math you try to use to get there. People paying this much are losing $$ or have the shave set high enough to offset the losses. Its as simple as that.
The reason they still pay this much is because they have to in order to stay in business, as I stated above.

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