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Old 07-21-2010, 08:34 AM  
TheDoc
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Join Date: Jul 2001
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The average paysite join is still worth $70-$90 each, with rebills of course and time, so let's say $80. Let's assume the processor takes 12%.

Taking processing out,
At $80 it's: $70.40
At $70 it's: $61.60
At $60 it's: $52.80

Revshare Profit: No reason to include content, hosting, etc.. it equals out assuming the program is alive to some degree.

At $80 it's: $70.40 at 50% split $35.20 profit
At $70 it's: $61.60 at 50% split $30.80 profit
At $60 it's: $52.80 at 50% split $26.40 profit

On the PPS side
At $80 it's: $70.40 with $30pps = $40.40 profit
At $70 it's: $61.60 with $30pps = $31.60 profit
At $60 it's: $52.80 with $30pps = $22.80 profit

A hair over two months and the PPS program is passing the Revshare program in profits.

PPS Programs which convert as well as Revshare Programs, often pay on less join methods, exits, xsales, upsells, and emails. The profit margins are without question higher and more stable on a PPS Program.

That's why Revshare programs are closing down, they make less money than PPS programs when ran correctly. Any program type can fail, only one type though is locked into a profit margin that they can't escape from. That margin when you don't update, promote your sites directly, etc... get's very thin, very fast when you're always having to give out 50% - even if the affiliate isn't actively promoting you. Unlike PPS, when an affiliate stops promoting, it's all profit for them.
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Last edited by TheDoc; 07-21-2010 at 08:37 AM..
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