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Old 11-25-2007, 10:37 PM  
Snake Doctor
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Join Date: Mar 2001
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Quote:
Originally Posted by woj View Post
I don't think it's really relevant, those "costs" are already included in the payout... that is, if lets say losses are 10%, and sponsor pays $40/signup, then without these losses the sponsor would be able to pay only $36 or so... however, this only applies to losses that go to the sponsor, for losses from spyware, etc, everyone involved (affiliate + sponsor) gets fucked....
I disagree with this logic. If payouts are $40 they are that because it's how much they need to pay in order to get a certain amount of traffic.
If they pay more they get more traffic but a lower margin, if they pay less they get a higher margin but less traffic. What they decide to pay is based on where they think the "sweet spot" is.

Also, losses from spyware can hurt the affiliate and not the sponsor, all they have to do is change the refcode from mine to theirs, the sponsor gets the same amount of sales, but my checks shrink and the spyware people make bank.

I think this is one of the main reasons we haven't seen anyone go after the spyware companies in a big way. The people with the deep pockets aren't being affected.
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