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Originally Posted by GigoloMason
Funcitonally, it really just breaks down to a cash flow issue and it strikes me as funny that rev-share advocates say an affiliate makes more with rev-share and then goes on to say it's impossible to support $35 a signup without engauging in shady practices.
Either an affiliate does make more with PPS, albiet possibally at the expense of the surfer in your example, or the PPS model can work just fine without anything shady going on assuming the company has the cash to cover the negative cash conversion cycle that a PPS program runs.
Jay, seriously if you still can't connect the dots maybe you shouldn't be participating in business threads.
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Wow, very condesending.
Believe it or not, I totally understand what you are saying. You pay out a lot (at a loss) to your affiliates up front and make your money back when the rebills come in. I do all of our Google Adwords personally...I grasp the concept.
Maybe I went to far to say they have to be scamming. Back in the day most programs were doing some shady shit. I know, I've been in this industry for over 8 years.
These days -- with popup blockers, a crackdown on spam, email filtering, surfers knowing to uncheck those cross sales, surfers expecting cleaner members areas...all of those additional sources of income are slowly drying up.
There is only so much you can do to cover that $35 payout for a $2.95 join. Personally, I don't like limited trials...we use a version of them but we give full access to the site you joined...the other 19 are the upsale.
The big problem is it has become such a dick waving contest about how much you can pay per join that nobody can back down. I remember when Silvercash dropped their payout by 5$ and everybody freaked out. They did what they had to do. I respect them for that. I think you will see a lot more of this in the near furture.
And, I've sat on panels with Lensman, Mike Price, and Tony Morgan and they said exactly what I am trying to explain to you now.
You can only bleed so much money out of a trial join. There are a lot of trial hoppers out there...as I am sure you know.