And also, some companies thought its a perfect time to get out of the affiliate model and keep all the rebills, so they boosted their net profit a lot. And they know they won't get much bad publicity as they can blame it on the current economic situation and there are so many programs doing it, so why not do the same and be forgotten fast.

Any chance of further restrictions re rebills?

And they also have to have the backend to support the joins. So pretty much, programs are just not paying the affiliates. Processing fees, hosting, backends (if leased) - those are all paid for monthly.

Most of them aren't closing they just stop paying affiliates. All the sites I have seen are still up and running and still billing customers, they are just increasing their margins by cutting out the expense of actually paying all those pesky affiliates.

agreed:thumbsup

If I stopped paying affiliates I'd be out-of-business in a month. 70% of my sales come from affiliates, at this point.

GOD BLESS THE AFFILIATE!!!

that is why I pay people to watch porn now.

Good point.

I think the reason that works well is that they forget about it easier on their bill, it doesnt look like a recurring charge. :thumbsup

This is likely one big reason why so many affiliate programs are closing... Their margins are going down. By around 10% and they already were operating very close to their limit with pps.. So now they have to drop affiliates since it was simply the non aff traffic which was paying for the aff at this point... So why keep them...

They simply did bad member value calculations or inflated them to be able to pay more for pps...

Bad math, never works...

Good point, it blends in - easier to glaze over than $29.95.

good point nathan u would think the pps payouts would drop though but haven't seen that all maybe payouts 15-25 instead of the 30 to 40

Ack,

What affiliate would promote 15-25 pps? The Most would not even test it, so even if it converted great it would not matter I think..

It's one reason why revshare does not work well in the us... People prefer big payouts instead of steady...

It is the opposite in Germany and other eu parts, they have had majority revshare for ages, and many sites pay only 50%... or even less if it's cams... People still make a lot per join just over time and not upfront...

Maybe the us affiliate has to change to make good money again...

But there always will be good programs too which simply know their math and do have a high member value... For example us with brazzers or rk or naughtyamerica

Good point u bring up regarding low payouts guys wont bother. I am surprised the pay per active join model hasn't caught on more. Many of the cam sites and dating sites are doing that

How is your processing these days?

Lol, is that your sink??