Margin doesn't mean Jack when you don't make enough gross profit. Would you rather sell 5 cups of $1.50 coffee at 1000% mark-up or 1 $10 sandwich at 300% mark-up? Who cares - rent is $100 a day, you lose.

In other words, a variable cost will never put you out of business unless you go full-retard.

This way they still have all the affiliate incoming links to the site and they dont have to pay anyone.

Average: Some sites do better than others...

The math is based off the long term retention ratio. It's the entire life span of the site, after it has had at least one full year to cycle over its rebills, basically double stacking them.

So if you add the total sales and rebills income and divide by the total number of sales minus rebills, you get the join value of the site. The more time that is added in, the more the join value is, assuming the site doesn't blow ass.

It can be skewed too, if a site only takes in a few sales but built a large rebill base, as time passes without sales the larger the skew will be. So you run the stats from the drop point, and back... If you re-fire a site back up, it could skew it's 'new real' numbers, so it's best to reset your starting date.

in the words of Sleazy dream, " your an idiot! "

You kind of sound like Fatfoo on that reply. It doesn't matter if it is new sales or rebills, they both pay out 50%... Only difference is that less new sales = shrinking rebill base of revenue, but that has nothing to do with what you were saying.

didn't you run a celeb program at one time?

Most of the apologists here fail to take into consideration the shitpile of 'clean' signups programs get thanks to affiliates doing all of the branding. It is an insane amount of people that click on an affiliate link but sign up without credit going to an affiliate.

The programs closing are either run by morons or are stealing your money.

That is all.

Only if you let them get away with it. :2 cents:

Very good point that no one mentioned yet in this thread. The affiliates brand the hell out of different programs, and sometimes the customer comes back later through google search or type in. We all know sign ups are "lost" along the way depending on the program. Whether it is transaction that is declined, but retried 2 weeks later and goes through and the affiliate might not get paid depending on the program. Or the person enters in their email address but doesn't sign up, the program emails them promos and then the person signs up but the affiliate doesn't get credit.

Then there is intentional and unintentional erorrs.

There is straight up traffic leaks.

Affiliates generate a lot of free joins for programs.


I once joined a dating site after I signed up to be an affiliate because I wanted to see how it worked since they were only offering me revshare (50%). On a fucking revshare deal they still had 2 prechecked cross sales on the join page. Neither of which I got paid a penny from. Then when the person logged in for the first time, instead of seeing the members area there was another "up sell" that was tricky, to another membership site (didn't get paid on that one either). Then there was traffic leaks all over, paid ads, etc... none of which I got paid on. So I asked, you hit the person with about $200 a month of fees, plus the ad space you selling that my traffic is going to that I make nothing from, and you want to give me 50% of just the main site membership and nothing else. Crazy. The first statement the customer gets and sees 4 memberships he is going to cancel them all. so I make 50% of 1 membership fee, the site made 50% of 1 and 100% of 4 plus all t he other shit. bullshit.

Your over the top GIANT CAPITAL LETTERS don't really make a point. I already stated, the majority of the time - it's obviously going to be a financial decision.

The obvious problem with your theory is the fact it's laden with emotion and the oversight of a business plan.

You're saying program A isn't doing that great, but still making money. Instead of moving forward with their business, they decide it would be more lucrative to end their business and turn into scammers. So the following day, they end the adult affiliate business they had running, and plan to make OMG SO MUCH MONEY (notice the caps) by closing their doors and keeping all the rebills at a whopping 40-50% more than they were.

So, the likely scenario is: Program Y makes Z sales each month. Their affiliate program costs R each month and R is less than the F the affiliate program makes them each month. --- So they close it!

Your theory is: Program D makes P each month. They are making a solid B each month off their affiliate program. Instead of continuing with that B each month, they are going to drop the program to scam the very minimal % increase of B sales each month.

Do you not understand how backwards that is?

Your basically saying (for those that didn't pass algebra), that instead of choosing a solid steady income through the future. The program is deciding to take a temporarily higher but rapidly declining income for the short future.

:2 cents::2 cents:

Oh, and I'm not an affiliate. So I'm not worried about "them lying to me".

If a company could split their expenses 50% with an affiliate, what the hell, why not?

You sent one sale that was worth $29. You have $14.50.

NATS Tier 1 costs: $150/mo
Elevated X costs: $150/mo
Cheaper bandwidth: $5/mbit (average), let's say 30mbit sustained.
Server rental: $450/mo (Let's say one members area, one NATS, relatively small program).
Ok, so, processor fees are 12%, so your $14.50 is now $13.63 (that's 6%).

Now, where can you be invoiced for the outstanding balance of $436.37?

That is, of course, assuming that the content and employees work for free.

This is just an entirely non-sustainable model if you can't keep the numbers up. Period. Now, send another 200 joins, and hey, both make money. But at these margins? Nuh-uh.

Not all programs/sites have their own traffic. At least not enough inhouse generated sales to come close to sustaining production for a growing site. They can incur debt just like any other business. Also why there are so many dead sites comprised of 30 or less scenes (even exclusive ones).


The thread's about how an affiliate program not afford to stay open which was outlined above well by others. Unless the OP meant how a developed revshare site/program becomes one that doesn't pay out anymore, which is theft under the guise of "going out of business."

OK GOOD FOR YOU THEN :thumbsup:1orglaugh

The rebills don't drop any faster than they naturally would already - the difference is they aren't replaced, so it's still a 50% profit in the rebills, either way.

Aye, no reason to say less sales = shrinking rebills, that's a given.


With your other reply above to stocktrader, most programs sit at 10% natural sales from affiliates, type-ins, etc. Unless the program has traffic of it's own, which almost none do. As soon as affiliates stop, that dries up.

That's not always true....

Depending on how big a company is. If solo girls / models are involved, a percentage of sales from a certain site goes to them. Even under the revshare model, if 60% goes to the affiliate, and 20% goes to the model, that leaves 20% to pay for all other expenses including hosting. I don't even own any paysites and I pay $700 a year for domain names.

Bigger companies like Wegcash, well, they have a big staff and an office. They have huge expenses. They can lay off their staff, but then they have no one to run stuff - something crashes, no programmers to fix it. Affiliate issues? No one to help, no one sends traffic.

You stated earlier:

Then you stated to me. (As some sort of validation to a point you were trying to make)

When I never made any statement relating to any previous program or any specific situation. I was making a clear observation on business decisions based on financials in the hypothetical question from the op.

And the reply I made which you quoted was a direct response to the quote above. You tried making a point that my statements had something to do with what programs were feeding me. When there is no program "feeding me" anything. Today is the longest I've spent on GFY in a year. I have no knowledge of any drama or bullshit posted on these forums. My points were made specifically off common sense and business logic.

As I said:

Let me know if you want to get back to the adult discussion and can leave the emotion and CAPITAL letters aside.

Uh oh, someone making some sense. Better wait for the doom and gloom "they're all out to get us" crowd to try and refute what you're saying.

:helpme

but at the same time some of you (Rochard, you, etc...) are making it sound like running a revshare program is virtually impossible, and obviously it isn't. There are thousands of programs on ccbill alone that are proving you wrong. Of course you can throw a zillion variables at it to skew it one way or the other but at the end of the day the mere fact that so many are doing it just fine, is proof that it can be done. If you want to do it.

yup, that's right

:2 cents:

100 clues that the affiliate model is broken

more like 101 clues that the affiliate programs are broke.


Some people keep saying " well they have over head and they can't afford to give away 50% to the affiliate and make a profit". Then how do they suppose they will pay for traffic on their own. Simple question. If they can't afford to give 50% of the sales to the affiliate, where will their traffic come from? They will need to buy it to replace the sales lost from affiliates. Good luck going out there and buying traffic from brokers and shit and breaking even much less making a profit. One big positive with affiliates, you don't pay unless there is a sale. You know what your profit margins are. Now they will have to buy their own traffic and they will fail miserably. They will do traffic buys that they lose money on.

It comes down to this, if you can't manage your expenses and make a profit at 50% then you might as well shut down the entire business.

However, we know this is all bullshit. These companies aren't doing away with the affiliate program in a misguided attempt to try to turn their company around. They know they are going out of business, better to keep the affiliates money now so they can live off of it for longer before they have to get a job.


If I can't use CAPS then I am not talking!!!