Quote:
Originally Posted by GITZINGER
Um, ok. however, it's quickly becoming a different game. While you are demanding more and more money for doing less and less, the game is changing. Why would an affiliate program that does all the work, pay you between $50-$70 for doing a little bit of work, when they can do that little bit of work and keep the money for themselves?
They are asking themselves that and making the appropriate changes.
|
To me it is all a simple equation. If someone owning a paysite can be their own primary source of traffic and they can make good sales doing so then they get maximum profit, but I think there is a cap to how much one person can do on their own. I think most paysites are built around the affiliate model. If you have 300 affiliates that all send only 3-4 sales per month to your site that is 900-1200 sales per month. It's not a huge amount compared to some of the big sites, but that can be a pretty good chunk of income. How many full time in house employees would someone have to have to achieve that 900-1200 sales on their own and how long could you keep them once they realized how much more they could make working on their own? I would venture to guess that 80% or more of the sponsor programs out there would cease to exist without an affiliate model and those that did continue to exist would be forced to scale down big time.
Ultimately I think the really profitable affiliate sites do one of two things to help them prosper. They either have good sites that they know retain well and they know what an average signup is worth to them. With this knowledge they base what their pay per signup will be. Or they work hard to create their own traffic and any affiliates they get are just an added bonus. Since they aren't reliant on affiliates they can name their terms. If affiliates want to work with them, they will and if not, no big deal.
For me it is all about who I make more with. I have a sponsor that I use that is revshare only. I make an average of $60 per signup with them (they have no trial and rebill decently). But, I actually make more using a different sponsor that is pay per signup that has trial prices. The reason is simple. With the revshare program I am around 1:1200 and I have to wait for the rebills to kick in before making much money. With the $30 per signup sponsor I am 1:400. I simply get more sales to them and those extra sales offset the rebills.