Quote:
Originally Posted by JSWENSON
The margins on cams are already razor thin with affiliates clearing as much or more money than the program does.
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On an affiliate sale we pay 50% to the model and 30% to the affiliate = 80%
Affiliates get a generous split of the profits without the liability for operational and development costs. The affiliate's cost is only in the marketing and SEO activities of a website he owns to get the referrals to send us and other sponsors.
We bear the hosting expense of our white label products and get no benefit from any branding.
So yeah, a smart affiliate, with minimal investment, can make the lion's share of the profit from his sales. We, as a cam broadcast site, make money on our own house sales mainly and spend a lot on AdWords and ad buying to be constantly adding new customers. Customer churn (attrition) is a problem for a cam site as well as its affiliates. Our customers go into the same ''black hole'' that affiliates are always whining about -- we get shaved too by customer churn but we accept that that is part of the business.