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Originally Posted by JSWENSON
It's also why Paul thinks it's stupid to pay affiliates 50% or a high PPS. He doesn't comprehend the ancillary benefits of owning the site nor does he factor in long term revenue. Hell a lot of companies factored in that once they quit paying affiliates 3 years later they'd cash out X. 
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paul does not have the very smallest clue of internet marketing as he never did it.
he thinks 50% to an affiliate is too much - but direct buying companies are spending 70-80-90% of their revenue in ads buying.
so the 50% affiliates are actually not overpaid they got fucked because they have send the traffic on their own risk also.
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In reality, affiliates and those with traffic dictate the payouts programs have to offer just like the ad buyers dictate how much banner ads cost on a tube. You pay me $5 PPS I'm not sending you a single surfer, $35 and we can talk.
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if you really mean pay per sale with "PPS" 35 dollars are peanuts.
someone who can only pay this price must have a conv-rate above the moon or he can not play the traffic buying game.
thatīs why you can not see classic member programs with ads because they simply can not pay the price.
whenever you see an ad of a classic membersite in a porn tube it is in exchange for content or the site is owned by the tube owner or you have such a strange location and browser fingerprint that nobody else booked it and you see simply fallback banners.
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Literally nothing Paul says is based in reality but he says it with such ego and confidence that it cracks me up every single time all these years later.
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i have seen really a lot of dumbs in 23 years but paul tops them all. he seems to have a learning allergy or maybe he is really not able to count 1+1 together or he simply need to deny everything for his own ego because to admit would mean to admit that he was not more than any other fool who could make money with no skills in the first few years when internet came up.