I see in CJ that affiliates like hosting affiliates pay more than their annual hosting cost, for (eg) some hosting companies pay $100 for a $44 annual hosting plan sale. so how is it possible , can somebody not misuse the system, like they can buy a $100comission x 1000 - 44$plan x 1000 = $66000 is it not like 66% profit right away ? am i missing something here ? Is it even possible to do something like that if not why would advertisers block, i am guessing even they would still make money ? any comments, laughs, thoughts
I guess if "someone" was to do that, they would get banned pretty quickly! I'm not sure about that side of it, but the reason they pay out well for hosting referrals is because they can almost certainly count on most customers renewing for several years, maybe even staying long-term with them. Also, many of them sell LOADS of additional stuff - if you ever try buying anything simple like a domain through GoDaddy, you'll know what I mean. You get about 3 screens offering you additional stuff - discounted this, buy 2 for the price of 3 that, you can hardly find your way to the checkout. They must make a lot of extra money that way, so long-term customers are worth paying for. By the way, that's the same reason eBay (still) pays (fairly) handsomely for new users (ACRUs) - they pay the affiliate $25 for a $1 coin sold, because they expect that new customer to bring much more revenue in the future (and boy are they letting affiliates know it too, now...)
I agree with markowe 100% . They just take back $ from long team customer. They can lost some money for investment first , for promote product first , but after that time , 1 year , 2 year , almost customer feel that service is good , of course they will renew service. Then money continue coming !!!
Hi, The web hosting company will earn more than the $100 if the customer renew their web hosting plan the next year. From what I see, some web hosting plan include 60-day free trial of Constant contact e-mail marketing. They will earn $2 per free trial sign-up and $50 for each new customer who becomes a paying customer. This is just one example and they may have other source of side income.
They pay based on the expected lifetime value of a customer. The hosting niche in particular is tough, and without a big up front pay like that, affiliates would work for someone else instead. People tend to be relatively loyal to hosting companies as well, as switching can be a huge pain.