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Paul your numbers you posted seem correct but your logic is off. Based on your math - it would mean you would have to calculate in the average income of every webmaster and divide each across your expenses.
Most programs pay 50%, the ones that pay 60/65 can easily pay 70/75 and still make a great profit from any Webmaster. Even if I only earn $30 - it's still a profit.
The key is volume, it's the key to pps programs, it's the key to any Program not losing with Webmasters that request this. If FreeOnes ask this of you - you should force them to increase sales. With Volume - you could pay them 90% and if they increased sales volume you would start to make an increased net profit.
Either way though, even if they don't increase sales to you, paying them an increase % will not hurt a programs bottom line if it retains that affiliate vs not having those sales at all.
I think what they are doing is stupid, they should have kept it private and just made the requests in a professional manner. It would be the only way I would give up the % without laughing the people out of my program.
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