Quote:
Originally posted by psyko514
Once again, you're not getting it.
Joe Surfer shows up at the site, dick in hand. The tour is good, he thinks the site will be worth $39.99, so he signs up. He gets in the site, looks around and decides it isn't worth the $39.99 he just paid. So he calls his bank and does a chargeback.
Chances are Joe Surfer is a lot more likely to decide the site is worth $29.99 then $39.99.
Right now, the big programs are scrambling to reduce their chargeback ratio. They have to cut their ratios by 60%. They're doing everything they can to cut the ratios, including lowering prices, getting rid of free trials and limiting cross sales.
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No, you are not getting it! Even if this "plan" would work to reduce chargebacks there are many other ways to minimize their outgoing cashflow without making the webmasters eat it and 100% of it at that!
And I still don't think this plan is going to work in the way you think it will. If joe surfer goes into a site and pays $39.99 and hates the site, he charges back. If he pays $29.99 and hates the site, he charges back. I don't see such a middle ground on "quality" and "worth" like you are assuming.
If the site sucks, the site sucks. Now if it was a difference between $9.99 and $39.99 then maybe it would make more sense but the site is at least $29.99 if he don't like it and would chargeback $39.99, believe me he will charge back $29.99 too!
The paysite owners should be more focusing on improving their sites, getting rid of deceptive practices, making it easier to cancel the subscriptions and tightening down on their other expenses instead of giving the webmasters who promotes them and helps make them rich 100% of the loss.
Also if you read the threads, the owners are hoping for MORE sales to offset the cut they are giving webmasters by having a lower price per signup and I don't see it happening to the point that it will "make up for it"
Here's an example:
Say I make 300 sales a month. At $35/signup that's $10,500. Times that by $10 (the cut in pay) equals $3,000!
Thats a $3,000 loss on only 300 sales/month. Leaving me at $7,500 Now say 10 more ppl sign up because the price is lower (not likely) times that by $25 (new payout) that gives me an extra $250 on top of the the $7,500 which equals a big $7,750.
I'm still paying the same amount of money for my advertising, hosting, content, etc but still losing an average of $2,750! That could pay for all my content, hosting, advertising etc for the month. That's the mortgage on a kick ass house and other toys each month. That is a big fucking cut in pay when you look at it this way.
I've just recently expanded to hire a full time designer to design galleries for me, AND i still design my own stuff all day long. I upgraded to another dedicated server and now just again the other day another dedicated server. I just started to pay for advertisting and now it's a smaller chance I'll make my money back on advertising if I was to pay for listings at certain places.
So what I am getting at is I've expanded to make more money NOT LESS! As I'm sure many other webmasters are doing. And even worse this all comes in the middle of the summer slowdown! Since all the big guys are always preaching "you have to spend money to make money" And it's true! But don't tell me to spend to make and they you cut my "make" lol
Will the paysites be losing enough money that they "notice" it like I and thousands of other webmasters will? Not a chance. So why dont they eat some of that $10 or all of it and get rid of their big fancy internext showoff parties, their free hosting and hosted galleries which I'm sure cost them TONS of money each month in bandwidth. Make cuts in other places that don't effect people's bottomline income instead of spending all that money showing who has the bigger wallet at the webmaster conventions!
These paysite owners also know that to get big in this game webmasters have to pump out sites and galleries and will not bother to go back and redesign a site and drop that sponsors codes so they aren't going to lose any old traffic sources.
Even if I chose to not promote any sponsors who let the webmaster take the full loss in this, I would still be promoting them through the thousands upon thousands of galleries, free sites, avs sites and full page ads that I have all over the net, in the search engines etc.
so in closing, I understand fully what you are trying to say but you are not looking at the WHOLE picture as I am. They should leave their webmaster payouts as is for now and cut other expenses that won't be noticed or cared about and see how things go.
Lower their prices by $10/month, go for it. I'm not arguing this point at all but I don't see them seeing a BIG difference in their chargeback numbers by doing it. Don't make us hardworking webmasters eat that $10 is all I am saying. There are soooo many other ways around it and if the paysite owners cared one bit about how this would affect us webmasters who they would be nothing without, they would find that way and leave our payouts alone
Like I said before they will now just have more agressive upsells in the members area so I don't see them losing ANYTHING in this. I see the only one losing in this are those that promote them.
This will most likely weed out the "piranha" from the decent honest paysite owners and those will be the ones I promote and recommend to everyone.