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Originally Posted by http
- PPS is much better for the webmaster's cash flow (VERY important when buying PPC)
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It is understandable that to an affiliate webmaster, PPS is better for them , and revshare not as exciting due to the factors you mentioned.
To the paysite, PPS could be bad because a high volume/spike of signups could cause them to have to pay alot of money to affiliates out-of-pocket because the CC deposits aren't enough to cover and have to wait 2-3 months of rebills to possibly make the money back.
The ways to handle this situation is to have money set aside as a float to cover payouts, shave, or factor in pre-checked crossales and other methods that bring in money to offset the payouts.
On the paysite site, a rev-share means not going into the red upon a signup, but means potentially paying out more in the long run should a member continue to rebill and also maybe less attractive to affiliates.
Having a PPS that is lower than the monthly membership would certainly make numbers sense, but a lower PPS payout might not attract the affiliates.
From the affiliates perspective, it's not their problem about how the paysite handles their payouts. If the paysite says they pay $40/join, then if a large spike of sales comes in and causes the paysite to have to payout more than it takes in, then that's their business problem... and additionally, shaving should not exist because it breaks the contract with the affiliate that each join is paid out a commission.
Fight the in the Red!