So, you're saying you don't owe him the $200 because a third party stiffed you for $4k and he was the one that recommended them? Seems like rather fuzzy logic to me, or more like grasping for an excuse to justify not paying back the $200.
Just pay the $200 and be done with it. I have a hunch it will be far more costly in the long run if you don't.
As for the $10/mo special price, I'm far less likely as an affiliate to push traffic to a program during such a promotion. It's all about $/unique and past experience has shown that the number of sales doesn't increase anywhere close to enough to make up the difference in price.
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