Do you think sponsors who pay out high% Rev Share are honest?
 

Just had a chat with an affiliate and his feeling is sponsors who pay out large amounts on Rev Share are shaving. No matter how much I told him about type ins, members who rejoin and traffic that just arrives he is convinced a site that pays out high is shaving.

So what are your thoughts?

um, it depends and I'm too lazy to elaborate but use your brain here.

Not on Rev Share at reasonable levels. Rarely see someone giving out 100% :winkwink:

On some of the PPS, I think in todays market you have to have something extremely good to retain or sell up from. The surfer is not the fool he was in 1999.

he's an idiot

Thank you for the bump, makes the thread look better. :thumbsup

The reason we were discussing it was we are now getting a very high % of rejoins and type ins. So how do we share them with webmasters and still look honest?

Sponsors paying higher revshare percentages generally deduct the processing fee before calculating the revenue sharing. The difference between a 60% revshare sponsor giving you 60% of the membership and a 70% revshare sponsor giving you 70% after processing costs are removed really isn't that big of a deal.

Good point, so make sure you don't give with one hand and take with the other.

It depends where their costs are tied up. A huge enterprise type site network is going to have a much lower per-user cost than someone that is doing less transfer, fewer transactions and providing less managerial support.

The higher rev shares start to make more sense at those higher levels.

what do you consider "high"?

Very true. But there are lots more people who will send 1 join a week than people who can send 5 a day.

I have found large programs running with small teams and others running with large teams. In todays business climate I think more sponsors will be looking at support teams and seeing who they support and the profit involved in supporting them. Is it more profitable to give affiliates an extra 3%-5% in rev share, or PPS, than it is to spend that on support and support teams? The answer will be different for every site depending on it's traffic and who sends it.

If you don't have much overhead, get enough volume to add to those couple bucks per sign up also exits / cross sells / upsells, yeah it might work.

Note that the "high revshare" ALWAYS includes consoles.

I would never go this way though, you get what you pay for.

And I'm pretty sure that with 50 pct. with me, you're far better off talking about $ / 1000 uniques than 70 pct. revshare with many other programs.

It's simple maths.

If the sponsor has revenue sharing and pay per sign up, you should always try both, 1 week of traffic for each.

Depending on the program, you'll want to do this before any re-billing takes place to mess up your results or campaign them if possible.

That should give you a clearer answer on at least what is being signed up. Old timers will tell you they're still getting re-bills from 2000 and so forth, but eh.

Revenue sharing has never worked for my traffic... I am too impatient to wait for it to "compound" so that goes against me.

Short answer, no I don't think they're all always honest, but as others have mentioned it's based on factors to get a higher % anyhow.

What do you mean by "high revshare?"