I know this is basic stuff, and I do apologize for obviously not understanding how "the Biz" really works, but here goes:
Say you sell a Membership for $30. You, the Program Owner, offer $50 PPS for every signup to Affiliates. You're losing $20 right off the bat so you're counting on making your money with....rebills?
The average Member rebills for 3 months. That's $90. So theoretically you're making $40 by the end of those 3 months (assuming the Member rebills for that long). BUT the $50 you paid to the Affiliate is an actual, real $50, right? Your cut, as the Program Owner, from the initial $30 Membership might be, in reality (after processing fees, other costs, etc) $20. So really, at the end of the day (or at the end of those 3 months) you've made a whopping $10.
Hmmm.....
Okay let's try 100% Revshare:
You sell the Membership for $30 but you give every penny to the Affiliate.
Okay, um.....so you're counting on, not rebills (since the Affiliate is getting 100% of that) but rather....cross-sells? Upsells?
Hmmm...
Seems like a lot to "give up" to get a little in return, no matter how you slice it. Hey, great for you Affiliates, God bless. But for the Program Owner (seemingly) not so much.
What am I missing here? How do the "Bros" do it and make a profit?
