BUSINESS THREAD ---- PPS programs decreasing payouts?
 

Looks like the opposite recently :)

f.e. SilverCash made the move 2 years ago from $35 to $30 per signup, blaming it on new Visa regulations. But it looks like they lost some market share (?) and now they just increased the payouts to $40 per sign up.

Many other companies, like Traffic Gigolos or Perfect Gonzo also increased payouts to $40 per sale. ( cam companies pay even more but they are a different animal )

All we hear is compliants about the retention getting worse, more free content being given away for free, every surfer having pop-up blockers installed etc..... but the PPS payouts increase regardless of that.... :upsidedow

Do you see even more programs increasing payouts in future? Or even someone beating the competition alltogether and offering permanent $45 payouts per trial? ( I'm talking about one of the biggest, most reliable companies where we can assume that they don't shave :uhoh )

Well, the more they increase, the more they will shave.

don't assume anything in this business

Shaving doesn't depend on how big the company is or how reliable they seem to be. Look at AFF for example.

I think what you are seeing is a fight for market share in an increasing fragmented market. A gamble that the ROI will justify the increased marketing cost.

to be honest i had a couple 35pps sign ups in the last couple days that are showing in the stats as 30 -

i guess when the shave is turned off the pps decreases .... :upsidedow

Interesting trend. I think Probono has a good point.

I'll add this: 'And a hope that the increase in volume will level the decrease in gross profits - enabling them to continue their growth."

Yeah shave city ahoy.

Agreed. Unless the company has very deep pockets or one of the very few immense market success, they will most likely fail.

If they retain 50% from the trial

$1 + $35 / 2 or $18 for the initial
$35 * .60 (say they keep 60% of those who paid 1 month) = $21

$21 + $18 = $39

then add in any extra months, upsells, exits, cross-sales and they can easily make more then $40. Also the people who look at work remember the name and type it in later at home and join.

They are making enough on Zango to cover the increased payouts.

Not all sponsors skim with PPS's..

True, but none of those figures factor in operational costs, new content, bandwidth/hosting, software, designers, programmers and the percentage that goes for processing.

Yep, good math.

agreed :)

15 replies...hm, I guess that's the max for a serious biz thread ;)

if it wasnt profitable, people wouldnt be doing it.

really.

dude..

seriously...

if you are going to just be an useless turd who posts absolute rubbish in every thread... at least try to put more than 2 seconds of thought into it. you might even consider thinking about the actual discussion and take a look at whats being discussed.