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Originally Posted by tony404
I personally dont see paying on recurring , the affilate brings the member .
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Not paying recurring and paying a high PPS makes sense from a "mainstream" business point of view, but in the adult space, many MBA principles get turned on their head.
PPS means less to payout to affiliates over long run and more profits to the website, but means digging into your pocket to make the short term payouts that put you in the red without a float or capital to back the time delay of breakeven (as lenny pointed out, it could be up to 4 months).
As many have observed, the sites and business that consolidate or have deeper pockets will have an advantage over smaller players in that they can attract affiliate webmasters with higher payouts.
Ways to stay competitive as a paysite could include getting more qualified traffic and even generating their own internal traffic (ie. an affiliate webmaster ends up creating his own paysite and drives traffic to it that otherwise went to an affiliate program website).
Is there concern by large paysites that the affiliates that drive them traffic could end up starting their own paysites, or be woo'd by a website that paid them for traffic (ie. purchasing banner spots) rather than having an affiliate program?
Alot of affiliate webmasters could be more "hobbyists" at this, who generate some good traffic numbers, and could be very happy with being paid a flat $500- $1000/month marketing spot, rather than trying to work out revshare and PPS options with other programs.
Some have observed that the sky is falling when it comes to the affiliate program. I don't see an end to the affiliate program, just an evolution as all business does to adapt to changing times.
Fight the Darwins!