Originally Posted by iwantchixx

Let me break it down to why 50% is perfectly fair and 15% is absurd.

A affiliate sends your site a sale.
lets say the going rate is $19.95 for a membership.

At 50% that makes the webmaster $9.98 per sale.

Ok, take off processing and check fees and you're looking at $9.00 to the affiliate.

That $9 has to cover the bandwidth it took in page views to generate that selling click from the gallery/freesite/landingpage/banner/etc.

There's costs of advertising for gallery building affiliates to take into consideration too. That ranges anywhere's from $30 a month for a month's worth of listings to $600 a single day for one gallery. Multiply this by how ever many sites you pay for inclusion and/or review for inclusion.

Next, lets factor in the design time and money.

A good gallery design costs $30 in money and/or time. Same for a freesites and any other sites you build to promote with.

Now... simple scenario: It costs the gallery building affiliate $30 for a gallery, $20 in hosting after submitting to a few hundred sites and however much it costs for advertising (fees to get galleries review and/or placed) lets average the cost to being $100 for a simple low level gallery affiliate. That includes hosting, placement fees and time/money for the gallery design. Again, this is LOW level gallery affiliate. MANY are spending 10 times that per day.

He sends you 6 sales from this one gallery over time.

That equals $54. Multiply that by the industry standard 2.5 months that a member stays a member and you got $135 that the affiliate earns. $35 dollars profit. At that, the profit margin is pretty low to begin with but they bite it and submit more than one per day and find other methods of traffic generation, which still costs time/money.

Now lets look at this from a 15% standpoint that this greedy girl is suggesting.

That leaves the affiliate earning $5 from that single gallery thus leaving the affiliate in the hole by $95.

Now, to the girl wanting to drop payout to 15%: Are you intelligent enough and have enough financial backing and the drive to push galleries, freesites, landing pages, banner ads , SE pages etc etc every day 7 days a week X however many affiliates there are promoting your site?

I say this because nobody would take a hit of $95 each day because you don't understand what the numbers are. 50% is more than fair to pay affiliates. They worked hard, used their intelligence and put money and time on the table to promote you.

Don't be so fucking greedy.
You stick to spreading your legs, we'll stick to promotional campaigns. Pay the fair 50% and spend your money on coke, booze, useless handbags ...whatever. We don't care. Just don't think for a second that 50% is too much. There's a reason you're the one spreading and not the one selling and your suggestion proves it.