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Evil Ryan

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#1

questions on affiliate payouts why 50%

09-25-2009, 05:34 AM

so there is something i am not understanding with all this affiliate stuff why is it that it seems to be the standard that affiliate programs offer there webmasters a standard 50% payout on the revshare business modell even when, the program is offering up free affiliate content, hosted fhgs, hosted blogs, rss, free sites, promo tools, etc, etc, etc, etc, etc.....

if a program is offering up as many things to affiliates as possible to make the sales for them, including text and scene descriptions and stuff, why are we still offering 50% on signups that are generated using these types of promotional tool?

like wouldnt it make more sense to have a sliding scale payout starting lower than 50% and actually make that payout get higher once the affiliate has prooven that they are able to make sales and market websites not just send traffic to a bunch of galleries?

i mean really, anyone can send traffic to a gallery but it takes a good sales person to sell a site, doesnt it?

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#2

09-25-2009, 05:56 AM

Business 101, take it

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Gerco

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#3

09-25-2009, 06:01 AM

I started out at 20% back in 1999 then it just keep getting higher and higher until there where no profits from it unless you skimming or carding, but that's kind of the whole point, the only ones that can get away with it are the big companies, and it's the driving effort to get rid of anything smaller. I'm done with that game. I'm back to 20% take it or leave it. Many are going to leave it which is fine, it will just mean less competition for the ones that do push me.

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cykoe6

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#4

09-25-2009, 06:03 AM

Originally posted by Evil Ryan

so there is something i am not understanding with all this affiliate stuff why is it that it seems to be the standard that affiliate programs offer there webmasters a standard 50% payout on the revshare business modell even when, the program is offering up free affiliate content, hosted fhgs, hosted blogs, rss, free sites, promo tools, etc, etc, etc, etc, etc.....

if a program is offering up as many things to affiliates as possible to make the sales for them, including text and scene descriptions and stuff, why are we still offering 50% on signups that are generated using these types of promotional tool?

like wouldnt it make more sense to have a sliding scale payout starting lower than 50% and actually make that payout get higher once the affiliate has prooven that they are able to make sales and market websites not just send traffic to a bunch of galleries?

i mean really, anyone can send traffic to a gallery but it takes a good sales person to sell a site, doesnt it?

I agree. Who needs affiliates at all? Rely on your own traffic and you can keep 100%

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alias

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#5

09-25-2009, 06:04 AM

Go fuck yourself, anyone cool will pay you 60% or more if you ask.

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hjnet

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#6

09-25-2009, 06:11 AM

Competition set's the price
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Evil Ryan

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#7

09-25-2009, 06:12 AM

Originally posted by cykoe6

I agree. Who needs affiliates at all? Rely on your own traffic and you can keep 100%

that is kind of my point i was being shown a breakdown comparison between in house and affiliate traffic yesterday and it really is amazing how much affiliates actually do cost a program owner, not just in the form of payouts but also in wasted bandwidth from them using hosted promo tools and stuff at the moment our in house traffic accounts for a good chunk of our total sales on Condom Cash (almost 75% of them) and those sales are pretty much pure profits whereas the 25% remaining sales generated by affiliates are costing lee and gary more in bandwidth and time because of affiliate support i just dont understand why the norm is 50% when in non adult payouts are much much lower.

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#8

09-25-2009, 06:13 AM

Are you gay? Seriously.

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pixovore

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#9

09-25-2009, 06:14 AM

Originally posted by alias

Go fuck yourself, anyone cool will pay you 60% or more if you ask.

Yes indeed

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Wizzo

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#10

09-25-2009, 06:18 AM

Originally posted by hjnet

Competition set's the price

Exactly, I wouldn't dream of running a program at 50% because I could bump it to 60 or 65% and grab that many more affiliates from the 50% programs as long as the product was and conversions were comparable... Then its just basic math:

50% of 25 sales a day or 40% of 100 sales a day which is better?

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#11

09-25-2009, 06:19 AM

Wizzo, do you guys bill .jp or just eu?

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#12

09-25-2009, 06:19 AM

Originally posted by Evil Ryan

that is kind of my point i was being shown a breakdown comparison between in house and affiliate traffic yesterday and it really is amazing how much affiliates actually do cost a program owner, not just in the form of payouts but also in wasted bandwidth from them using hosted promo tools and stuff at the moment our in house traffic accounts for a good chunk of our total sales on Condom Cash (almost 75% of them) and those sales are pretty much pure profits whereas the 25% remaining sales generated by affiliates are costing lee and gary more in bandwidth and time because of affiliate support i just dont understand why the norm is 50% when in non adult payouts are much much lower.

why don't you go ahead & offer what you think you should pay out

which i would guess is around 15%

then go brag to all of your gay friends about how elite you are

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closer

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#13

09-25-2009, 06:21 AM

For every 1000 affiliates there will be only about 10 that really get you good business.

Bandwidth = brand exposure, some find that cost worthy

Most programs do not credit their affiliates re-bills for lifetime

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#14

09-25-2009, 06:24 AM

If you got content that converts on tgp traffic at like 1:100 then I MIGHT be interested in 20%.. until then.... i'm not ever going to consider promoting those programs.

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Evil Ryan

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#15

09-25-2009, 06:28 AM

Originally posted by closer

Bandwidth = brand exposure, some find that cost worthy

thats a good point actually i didnt think of that i guess to a certain extent that additional bandwidth from using the hosted promo tool stuff could be looked at as marketing for building the in house branded traffic that said at what point does it make sense to limit the amount of exposure so that a site or sites do not become saturated and lowers conversions for other affiliates?

Last edited by Evil Ryan; 09-25-2009, 06:29 AM.

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Wizzo

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#16

09-25-2009, 06:29 AM

Originally posted by alias

Wizzo, do you guys bill .jp or just eu?

Our focus is strictly EU...

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#17

09-25-2009, 06:32 AM

Originally posted by Wizzo

Our focus is strictly EU...

k, cool

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DebsDeep

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#18

09-25-2009, 06:33 AM

We actually pay out up to 65% to some

affiliates are worth it.

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Wizzo

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#19

09-25-2009, 06:36 AM

Originally posted by closer

For every 1000 affiliates there will be only about 10 that really get you good business.

Bandwidth = brand exposure, some find that cost worthy

Most programs do not credit their affiliates re-bills for lifetime

Excellent points!

Also many don't maximize the ability of a surfer to pay, say you offer CC and Check options for people to join, German surfers only around 23% have a CC and there's no more checks of any kind in the german banking system, so 7 out 10 German surfers couldn't even join if they wanted to! That's why even amazon.de uses Direct Debit because 97% of the German population can use that...

As things get tighter and more competitive both sponsors and affiliates need to make sure they are doing all they can to convert their traffic...

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#20

09-25-2009, 06:42 AM

Originally posted by Evil Ryan

thats a good point actually i didnt think of that i guess to a certain extent that additional bandwidth from using the hosted promo tool stuff could be looked at as marketing for building the in house branded traffic that said at what point does it make sense to limit the amount of exposure so that a site or sites do not become saturated and lowers conversions for other affiliates?

First time I heard from your sites was on that gay adult webmaster board, so trust me, you haven't reached that over-saturation point by far (yet)

Do you think Brazzers is being considered over exposed? Still, they are one of the bigger players at the moment

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#21

09-25-2009, 06:47 AM

Originally posted by Wizzo

Also many don't maximize the ability of a surfer to pay, say you offer CC and Check options for people to join, German surfers only around 23% have a CC and there's no more checks of any kind in the german banking system, so 7 out 10 German surfers couldn't even join if they wanted to! That's why even amazon.de uses Direct Debit because 97% of the German population can use that...

As things get tighter and more competitive both sponsors and affiliates need to make sure they are doing all they can to convert their traffic...

Personally, I do not like Direct Debit so much as it is sensitive to chargebacks.
European traffic needs a single bank-to-bank payment gateway like IDEAL is.
No chargebacks, safe for both consumer and producer, everyone has an ATM card ... just IDEAL

Last edited by closer; 09-25-2009, 06:48 AM.

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#22

09-25-2009, 06:58 AM

Originally posted by closer

Personally, I do not like Direct Debit so much as it is sensitive to chargebacks.

No worry if you've got a good local encashment company, we're getting the money from most direct debit chargebacks after 1-2 emails. No one wants a letter like "PAY YOUR PORN BILL" ... so they pay - except for the few % professional scammers that use stolen data and fake the authentications - but you gotta deal with these ones at credit card billing too.

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Wizzo

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#23

09-25-2009, 07:02 AM

Originally posted by closer

Personally, I do not like Direct Debit so much as it is sensitive to chargebacks.
European traffic needs a single bank-to-bank payment gateway like IDEAL is.
No chargebacks, safe for both consumer and producer, everyone has an ATM card ... just IDEAL

We offer both and each has its pros and cons, we also actively fight each and every chargeback that any of our clients get, because most "chargebacks" in a direct debit system are actually NSFs and not a chargeback in the traditional sense of how we think of them with creditcards.

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#24

09-25-2009, 07:03 AM

Originally posted by Evil Ryan

so there is something i am not understanding with all this affiliate stuff why is it that it seems to be the standard that affiliate programs offer there webmasters a standard 50% payout on the revshare business modell even when, the program is offering up free affiliate content, hosted fhgs, hosted blogs, rss, free sites, promo tools, etc, etc, etc, etc, etc.....

if a program is offering up as many things to affiliates as possible to make the sales for them, including text and scene descriptions and stuff, why are we still offering 50% on signups that are generated using these types of promotional tool?

like wouldnt it make more sense to have a sliding scale payout starting lower than 50% and actually make that payout get higher once the affiliate has prooven that they are able to make sales and market websites not just send traffic to a bunch of galleries?

i mean really, anyone can send traffic to a gallery but it takes a good sales person to sell a site, doesnt it?

Imagine if affiliates (and tubes) didn't even exist, then there'd be no need for them. There'd be no abundance of free porn and even if you were horrible at SEO you'd still make awesome conversion rates/money. But it's just not like that. The amount paid out to affiliates does seem ridiculous (from the webmaster side).

However, at the same time most affiliate programs are based on cookies, and with an increasing number of surfers not accepting cookies you can expect to be sending paysites tons of free sales which you will never be credited for. Then of course there are cases where you send a surfer and he doesn't decide to signup until after your cookie has expired, or from a different browser/etc. And don't forget everyone's favourite conspiracy - shaving.

The bottom line is the adult industry is in shambles anyway and there's no money to be made, especially if you're a newb! So run.... run far far away and never look back!
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