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-   -   How can an affiliate program not afford to stay open? This shit doesn't make sense.. (https://gfy.com/showthread.php?t=978983)

TheDoc 07-21-2010 09:21 AM

Quote:

Originally Posted by will76 (Post 17351853)
yeah and so is 100% of the traffic. :2 cents:


well except for the people who miss links or didn't hear the 1 day notice that the company is going to shut down it's affiliate program.

Aye, an inevitable death once they have reached this point... unless they have something else going of course.

Brujah 07-21-2010 09:29 AM

Quote:

Originally Posted by TheDoc (Post 17351862)
If affiliates take 50%, if you drop them, it means you profit 50% more.

What do you profit 50% more on? Residual links that they forgot about maybe, but if they're not sending you traffic anymore then you're not profiting on any of it. Someone else is.

dig420 07-21-2010 09:31 AM

We're still paying 35 pps and having no problems.

Since 1996 baby!

Dollarmansteve 07-21-2010 09:36 AM

its threads like this that prove why affiliates are affiliates and business owners are business owners.

News flash: Being a 1-man show affiliate is NOT a business. The end.

The Porn Nerd 07-21-2010 09:36 AM

Please don't piss on my leg and tell me it's raining, okay people?
If a company stops paying it's either because they are going out of business or are trying to keep whatever's left before going out of business. Those programs that shut down and still accept memberships are just screwing people. Simple as that. It's not about PPS vs. Revshare because that business model debate has been going on for years now.

This business - Adult - is riddled with short-term thinking scammers trying to feed their coke/meth habit.

will76 07-21-2010 09:43 AM

Quote:

Originally Posted by Dollarmansteve (Post 17351909)
its threads like this that prove why affiliates are affiliates and business owners are business owners.

News flash: Being a 1-man show affiliate is NOT a business. The end.

comments like this show the intelligence of program owners and why a lot of them are going out of business.

Most affiliates (at least the successful ones) are not 1 man operations. Personally I have a staff of 2 full time programmers, a designer, and 5-10 full/time part time people that assist me from everything from writing text for sites to doing my accounting to taking care of my servers.

I am a business owner thank you very much. :321GFY

I've also owned my own membership sites, and done just about every other thing imaginable in this industry except be a content shooter.

potter 07-21-2010 09:47 AM

Quote:

Originally Posted by Jakez (Post 17351846)
How can you not afford to accept visitors loading your tour page? Lets say their hosting bill is $300/mo, they keep $15 of the revshare split, they need to make 20 sales a month, which at 1:4000 is 80,000 visitors, I think a $300 server can afford 80,000 visits..

What if they're running NATs? https://www.toomuchmedia.com/pp_nats-pricing.htm

Your question relies on the following being true.

A. Company is using affiliate software that doesn't cost anything.
B. Traffic / system affiliate uses doesn't create extra overhead.
C. Affiliate system management doesn't create extra overhead.

Point is, that is a few "what ifs" for you to be assuming are true.

Brujah 07-21-2010 09:52 AM

Quote:

Originally Posted by Dollarmansteve (Post 17351909)
its threads like this that prove why affiliates are affiliates and business owners are business owners.

News flash: Being a 1-man show affiliate is NOT a business. The end.

Are you a program owner or an affiliate rep? Why do you need to have "Dollarman_" as a prefix for your name? Is it because you're marketing a program to affiliates? Good job, buddy! :thumbsup

Nicky 07-21-2010 09:55 AM

Quote:

Originally Posted by Jakez (Post 17351360)
Ok but I still don't understand how someone could be dumb enough to turn away money if they are closing it for financial reasons.. it doesn't cost anything to run revshare besides bandwidth. Like wegcash for example, I have typeins for one of their sites and went to grab some tools and they're closed, haven't they been around forever?

Has to be some kind of explanation.

Allegedly there was another problem.....

Brujah 07-21-2010 09:59 AM

Quote:

Originally Posted by potter (Post 17351951)
What if they're running NATs? https://www.toomuchmedia.com/pp_nats-pricing.htm

Your question relies on the following being true.

A. Company is using affiliate software that doesn't cost anything.
B. Traffic / system affiliate uses doesn't create extra overhead.
C. Affiliate system management doesn't create extra overhead.

Point is, that is a few "what ifs" for you to be assuming are true.

For the above to be true, the program already be very small and unable to sustain itself without affiliates anyway, let alone a large program making good sales.

potter 07-21-2010 10:10 AM

Quote:

Originally Posted by Brujah (Post 17351994)
For the above to be true, the program already be very small and unable to sustain itself without affiliates anyway, let alone a large program making good sales.

Exactly, and a program that small and unable to sustain itself anyway. Probably wouldn't be just closing the affiliate program and not the sites as well.

A program large enough to sustain the paysite, but not the affiliate program. Most likely means the affiliate program has a large overhead to run.

Brujah 07-21-2010 10:16 AM

Quote:

Originally Posted by potter (Post 17352033)
A program large enough to sustain the paysite, but not the affiliate program. Most likely means the affiliate program has a large overhead to run.

Honestly, don't you think that such a program is already managed poorly if it can't make any money on a 50% revshare? :2 cents:

potter 07-21-2010 10:21 AM

Quote:

Originally Posted by Brujah (Post 17352057)
Honestly, don't you think that such a program is already managed poorly if it can't make any money on a 50% revshare? :2 cents:

If they're closing their affiliate program then obviously it was managed poorly.

:1orglaugh Where did you get the idea that I was stating it was top notch managing if they're closing their program down?

Brujah 07-21-2010 10:23 AM

Quote:

Originally Posted by potter (Post 17352079)
If they're closing their affiliate program then obviously it was managed poorly.

:1orglaugh Where did you get the idea that I was stating it was top notch managing if they're closing their program down?

Oh you know, I just get confused easy. :1orglaugh

will76 07-21-2010 11:05 AM

Quote:

Originally Posted by Brujah (Post 17351994)
For the above to be true, the program already be very small and unable to sustain itself without affiliates anyway, let alone a large program making good sales.

no kidding he is talking about pennies on the dollar. If they can't afford those costs they have much bigger problems to worry about.

Quote:

Originally Posted by potter (Post 17352033)
Exactly, and a program that small and unable to sustain itself anyway. Probably wouldn't be just closing the affiliate program and not the sites as well.

A program large enough to sustain the paysite, but not the affiliate program. Most likely means the affiliate program has a large overhead to run.

Which part do you not fucking get. They are lieing to you. No affiliate program is closing down because of the overhead being too much for the affiliate program to stay in existence. So what all they have to do is fire the reps, stop updating promos. Big fucking deal. They keep the program open. There are affiliates out there like me, I don't need a rep and I don't use your promos, I make my own. All I need the company to do is send me my fucking money. Which is the one thing they DONT WANT TO DO and is why they closed down their program = EXIT STRATEGY.

Jesus christ you are thick in the head you keep going on and on trying to justify a line of shit that these programs are feeding you and you can't accept the obvious truth, they closed down the affiliate program because they didn't want to send out "xxxxxx" in affilaite payments for the couple periods still owed, they put that money in their pocket, they make 100% on all future rebills, they let their staff go, they cut back expenses as much as possible and they put the sites on cruise control. They can live off of the fucking rebills for probably a year or so and it prolongs them having to get a JOB.

The Porn Nerd 07-21-2010 11:19 AM

Quote:

Originally Posted by will76 (Post 17352222)
no kidding he is talking about pennies on the dollar. If they can't afford those costs they have much bigger problems to worry about.



Which part do you not fucking get. They are lieing to you. No affiliate program is closing down because of the overhead being too much for the affiliate program to stay in existence. So what all they have to do is fire the reps, stop updating promos. Big fucking deal. They keep the program open. There are affiliates out there like me, I don't need a rep and I don't use your promos, I make my own. All I need the company to do is send me my fucking money. Which is the one thing they DONT WANT TO DO and is why they closed down their program = EXIT STRATEGY.

Jesus christ you are thick in the head you keep going on and on trying to justify a line of shit that these programs are feeding you and you can't accept the obvious truth, they closed down the affiliate program because they didn't want to send out "xxxxxx" in affilaite payments for the couple periods still owed, they put that money in their pocket, they make 100% on all future rebills, they let their staff go, they cut back expenses as much as possible and they put the sites on cruise control. They can live off of the fucking rebills for probably a year or so and it prolongs them having to get a JOB.

Maybe he's in denial. Maybe he's friends with the offending party and THIS is all a scam. Whatever Will. Some people get it, others waste everyone's time.

Hey, promote my shit and I'll give you a pass to create your own promos. Heh - I'm not above a little whoring (I said 'little'). :)

datatank 07-21-2010 11:26 AM

Quote:

Originally Posted by TheDoc (Post 17351700)
The average paysite join is still worth $70-$90 each, with rebills of course and time, so let's say $80. Let's assume the processor takes 12%.

Taking processing out,
At $80 it's: $70.40
At $70 it's: $61.60
At $60 it's: $52.80

Revshare Profit: No reason to include content, hosting, etc.. it equals out assuming the program is alive to some degree.

At $80 it's: $70.40 at 50% split $35.20 profit
At $70 it's: $61.60 at 50% split $30.80 profit
At $60 it's: $52.80 at 50% split $26.40 profit

On the PPS side
At $80 it's: $70.40 with $30pps = $40.40 profit
At $70 it's: $61.60 with $30pps = $31.60 profit
At $60 it's: $52.80 with $30pps = $22.80 profit

A hair over two months and the PPS program is passing the Revshare program in profits.

PPS Programs which convert as well as Revshare Programs, often pay on less join methods, exits, xsales, upsells, and emails. The profit margins are without question higher and more stable on a PPS Program.

That's why Revshare programs are closing down, they make less money than PPS programs when ran correctly. Any program type can fail, only one type though is locked into a profit margin that they can't escape from. That margin when you don't update, promote your sites directly, etc... get's very thin, very fast when you're always having to give out 50% - even if the affiliate isn't actively promoting you. Unlike PPS, when an affiliate stops promoting, it's all profit for them.


Define "average"

will76 07-21-2010 11:34 AM

Quote:

Originally Posted by datatank (Post 17352291)
Define "average"

yeah I would like to know myself as well... what does that $70-$90 include all of the cross sales/ up sells they do off of the person as well?

No way any "average" membership is going to generate $70 - $90 just from membership fees even if the monthly charge is $35, that would still be an average retention rate of 2-3 months. I find that hard to believe that many pic and vid sites are doing that much less it being an average.

Dollarmansteve 07-21-2010 11:40 AM

Quote:

Originally Posted by Brujah (Post 17351971)
Are you a program owner or an affiliate rep? Why do you need to have "Dollarman_" as a prefix for your name? Is it because you're marketing a program to affiliates? Good job, buddy! :thumbsup

Nope. Fail.

I am the wind.

Dollarmansteve 07-21-2010 11:41 AM

Quote:

Originally Posted by will76 (Post 17351938)
comments like this show the intelligence of program owners and why a lot of them are going out of business.

Most affiliates (at least the successful ones) are not 1 man operations. Personally I have a staff of 2 full time programmers, a designer, and 5-10 full/time part time people that assist me from everything from writing text for sites to doing my accounting to taking care of my servers.

I am a business owner thank you very much. :321GFY

I've also owned my own membership sites, and done just about every other thing imaginable in this industry except be a content shooter.

Congratulations. Was I talking to you?

ruff 07-21-2010 11:42 AM

I can't believe all of you putting a sweet justifiable spin on a company that, plain and simply, cheats its affiliates. You fucking idiots are just the fodder these shitheels love. "Gosh, they must have had a righteous reason for making such a prudent business decision." Do you realize how stupid that sounds? They are thieves, just plain thieves and they are stealing your money.

DVTimes 07-21-2010 11:47 AM

https://gfy.com/showthread.php?t=978729

Kiopa_Matt 07-21-2010 11:49 AM

Quote:

Originally Posted by Jakez (Post 17351432)
I can see how closing it and keeping all the rebills and traffic makes sense, but it's going to eventually die out and it doesn't seem very wise in the long run.

If it takes me 20 - 30 hours a week to stay on top of shit, and ensure everything is running, then yeah, I'd rather have $0. :)

Brujah 07-21-2010 11:54 AM

Quote:

Originally Posted by Dollarmansteve (Post 17352344)
Nope. Fail.

I am the wind.

Uh oh. Should affiliates be worried about Python programs? Are they in danger now because of xsell problems or banking/processing?

will76 07-21-2010 11:59 AM

Quote:

Originally Posted by Dollarmansteve (Post 17352353)
Congratulations. Was I talking to you?

yes you were:

Quote:

Originally Posted by Dollarmansteve (Post 17351909)
its threads like this that prove why affiliates are affiliates and business owners are business owners.

News flash: Being a 1-man show affiliate is NOT a business. The end.

I am an affiliate. I was posting in this thread and I agreed with the original poster.

You also made a blanked statement insinuating that affiliates aren't smart enough to be business owners, and that being an affiliate means you are a one man operation.

Congrats to you! for such logic.

icymelon 07-21-2010 12:02 PM

probably something they will regret. they could sell the program. merge it with another program if they dont want to be bothered anymore. The thing that makes the most sense is switch from pps to revshare. And just don't update as often.
worst case they could set a script to take one update down per week and then add one update back per week and rotate it. eventually the update would look new to most members.

But the smart thing to do is just stop updating and turn to rev share. hosting isn't very expensive these days. you can get a pretty good quality server with a ton of traffic for a few hundred dollars. if your going through more traffic than that you probably have enough revenue to just pass off the day to day operations to a manager.

Dollarmansteve 07-21-2010 12:02 PM

Quote:

Originally Posted by ruff (Post 17352354)
I can't believe all of you putting a sweet justifiable spin on a company that, plain and simply, cheats its affiliates. You fucking idiots are just the fodder these shitheels love. "Gosh, they must have had a righteous reason for making such a prudent business decision." Do you realize how stupid that sounds? They are thieves, just plain thieves and they are stealing your money.

If they are thieves then you get a lawyer and get your money. That's what a real business does.

Real businesses eat losses all the time from companies that go bankrupt or are delinquent. Affiliates live in a delusional world of business that does not reflect reality.

If every company who got stiffed by another company chose never to do business with that company ever again, our entire economy would grind to a halt. In the real world, hurt feelings don't matter.. there is no 'code' like there is in the fantasy world of Adult internet.

Dollarmansteve 07-21-2010 12:03 PM

Quote:

Originally Posted by will76 (Post 17352420)
yes you were:



I am an affiliate. I was posting in this thread and I agreed with the original poster.

You also made a blanked statement insinuating that affiliates aren't smart enough to be business owners, and that being an affiliate means you are a one man operation.

Congrats to you! for such logic.

By your not being a 1-man show then I guess you are not included in the group of "1-man show affiliates" that I was referring to. Eat that logic boy.

Dollarmansteve 07-21-2010 12:04 PM

Quote:

Originally Posted by Brujah (Post 17352402)
Uh oh. Should affiliates be worried about Python programs? Are they in danger now because of xsell problems or banking/processing?

I don't work for Python and haven't for a long time. Timeline.

Brujah 07-21-2010 12:12 PM

Quote:

Originally Posted by Dollarmansteve (Post 17352435)
I don't work for Python and haven't for a long time. Timeline.

Couldn't cut it there?

Dollarmansteve 07-21-2010 12:13 PM

Quote:

Originally Posted by Brujah (Post 17352452)
Couldn't cut it there?

Yep. I work at BK now. Would you like fries with that?

ruff 07-21-2010 12:25 PM

Quote:

Originally Posted by Dollarmansteve (Post 17352426)
If they are thieves then you get a lawyer and get your money. That's what a real business does.

Real businesses eat losses all the time from companies that go bankrupt or are delinquent. Affiliates live in a delusional world of business that does not reflect reality.

If every company who got stiffed by another company chose never to do business with that company ever again, our entire economy would grind to a halt. In the real world, hurt feelings don't matter.. there is no 'code' like there is in the fantasy world of Adult internet.

That's realistic as fuckall. Servers in Croatia, incorporated in Panama, shell corp in US for money, operations located anywhere they can plug in a computer. One affiliate gets ripped for $400 - 500 bucks and you say get a lawyer for, what, 5 grand? Of course there is no difference, this is real business. Stealing is still stealing. Sure don't need any lessons about it from you.

Shoplifter 07-21-2010 12:26 PM

Face it, most of these sites were simply front ends for card theft. And theft is what has largely been floating the adult online industry for the past few years.

Very few of these programs would be able to run as revshare on their own merits.

Dollarmansteve 07-21-2010 12:27 PM

Quote:

Originally Posted by ruff (Post 17352499)
That's realistic as fuckall. Servers in Croatia, incorporated in Panama, shell corp in US for money, operations located anywhere they can plug in a computer. One affiliate gets ripped for $400 - 500 bucks and you say get a lawyer for, what, 5 grand? Of course there is no difference, this is real business. Stealing is still stealing. Sure don't need any lessons about it from you.

The only thing that matters is what one chooses to do about it, not the fact that it happened.

Brujah 07-21-2010 12:37 PM

Quote:

Originally Posted by Dollarmansteve (Post 17352504)
The only thing that matters is what one chooses to do about it, not the fact that it happened.

Sure, they're just discussing it at the moment but guess what? So are you. How many posts have you made in this topic so far? What's the difference? There isn't one.

Dollarmansteve 07-21-2010 12:41 PM

Quote:

Originally Posted by Brujah (Post 17352537)
Sure, they're just discussing it at the moment but guess what? So are you. How many posts have you made in this topic so far? What's the difference? There isn't one.

What are you talking about? I liked it better when you were focused on personal attacks.

Brujah 07-21-2010 12:52 PM

Quote:

Originally Posted by Dollarmansteve (Post 17352552)
What are you talking about? I liked it better when you were focused on personal attacks.

My daddy can beat up your daddy.

epitome 07-21-2010 01:04 PM

First off, it is still very possible to do $30 PPS on $1 trials if you're doing things correctly.

What I suspect is a lot of these companies refused to contain costs when the writing was on the wall and the owner(s) also refused to compromise their own lifestyles. That creates a disaster.

TheDoc 07-21-2010 01:16 PM

Quote:

Originally Posted by Brujah (Post 17351886)
What do you profit 50% more on? Residual links that they forgot about maybe, but if they're not sending you traffic anymore then you're not profiting on any of it. Someone else is.

They profit 50% on all of the rebills that they would normally pay out on.

Often on the smaller, or dropped in size, or dieing revshare program, the recurring members is the bulk of the payout to affiliates. Programs like this basically live on the rebills, the new sales just kind half ass hold it together.

datatank 07-21-2010 01:28 PM

Quote:

Originally Posted by will76 (Post 17352322)
yeah I would like to know myself as well... what does that $70-$90 include all of the cross sales/ up sells they do off of the person as well?

No way any "average" membership is going to generate $70 - $90 just from membership fees even if the monthly charge is $35, that would still be an average retention rate of 2-3 months. I find that hard to believe that many pic and vid sites are doing that much less it being an average.

Lets see if The Doc will give us a real answer


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