With an established sponsor I noticed the payouts are actually not 50%, but lower. Through the whole history. Example:
I contacted them and here is the reply I got (I'm intentionally replacing all company references):
Quote:
What's going on here is that we used a billing company for our international sales called XXX.
They use their statistics and testing to create different price points for different countries, time of day, operating systems, etc. so a different price can be presented to each individual customer. On testing we've found this brings us 20% more revenue than not using it.
The NATS descriptors are the same so a '$29.99 multi-site membership' would be $29.99 in the US and other countries we have our merchant accounts or Epoch on - while the user would have varied amount elsewhere.
.....
There are also other reasons the payment may be less as we employ a number of billing techniques, such as when people cancel they are sometimes offered a discount if they rebill, and if we can't rebill a card for the full amount, we often try a smaller amount to keep the account open (and then try a full price rebill the following month). All of this represents a larger revenue for us - and in turn you.
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Is this a normal practice or should i be worried? I understand it's and attempt to maximize the profit (by creating lower prices, adjusting the exchange rate in different countries, etc.). I just would like to hear your opinion on this.
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