XPays open model vs. closed program model

[G Sharp]

I ran into this fascinating description of Xpays [one of the older and more established players out there] http://www.adultbuzz.com/060502/buzzshots.phtml Interesting model -- swapping traffic/tracking. Apparently they have 10,000 webmasters according to the interview plus up to 20,000 other wm's with affiliated systems.

What I'd like to know is if there are other programs out there like it. Or are most programs basically "closed" systems that only do traffic swaps/trading via exits/cross sells?

Is this model viable and evolving or are we basically stuck with static networks? Is this primarily a technical model or is it an improvement/modification of the standard paysite business model?

[Pornkings]

I didn't know there were that many affiliate programs

I would figure out of that 10,000 only 10% send traffic and out of that 10% only 10% might get sales.

most sponsors do swap traffic and there are a few closed systems out there. most are opening up to all webmasters now and days. some keep it closed so they don't have to worry about fraud

[G Sharp]

Originally posted by Pornkings
I didn't know there were that many affiliate programs

I would figure out of that 10,000 only 10% send traffic and out of that 10% only 10% might get sales.

most sponsors do swap traffic and there are a few closed systems out there. most are opening up to all webmasters now and days. some keep it closed so they don't have to worry about fraud

From what I've read of xpays and other webmaster "aggregator" programs is that these types of programs collect webmaster traffic to pay higher rates to its affiliates. So instead of an individual webmaster getting paid $20, because he is a member of an "aggregator" site, he gets paid $25. The aggregator site gets paid a premium of $10 cuz they hit the volume threshold.

Similar to volumebrokers and other former aggregators of clickcash, did I understand this model correctly?

Seems like a good model because the aggregator is basically an application service provider--providing traffic and specialized software. Are there other sites, besides Xpays, that does this? Are their rates competitive with closed system sponsors [ie., avg is $35 per s/u ]?

[G Sharp]

Another alternative would be a Commission Junction type website for adult sites. Would this be competitive? I mean, the hardware requirement alone is quite challenging.

[d0se]

I think one of the beauties of our industry is the variety of sponsors/ billing agents available.. it means you dont haveto put all your metaphorical eggs in one basket..

[G Sharp]

Originally posted by d0se
I think one of the beauties of our industry is the variety of sponsors/ billing agents available.. it means you dont haveto put all your metaphorical eggs in one basket..

I agree. Just like any evolutionary system, diversity in models ensures survival. I guess my key concern is whether the open model may be a key to survival if, for example, processor regulations hit the fan--killing smaller, closed models. Or if there's some sort of regulatory road block. Or, on the more positive side, there's more incentives available to an open/aggregator model than a simple sponsor to affiliate relationship.