How do they stay in business?

Discussion in 'Commission Junction' started by Tearabite, Jul 30, 2006.

  1. #1
    I just signed up for a new advertiser.. they give a $75 payout for a $39 customer purchase..

    how can they stay in business with this much of a difference between what they pay, and what they make?
     
    Tearabite, Jul 30, 2006 IP
  2. hextraordinary

    hextraordinary Well-Known Member

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    #2
    Who is they? You have to be more specific.
     
    hextraordinary, Jul 30, 2006 IP
  3. Will.Spencer

    Will.Spencer NetBuilder

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    #3
    Is there a residual income to them after the purchase? Is it $39 up front and $10/mo or something like that?
     
    Will.Spencer, Jul 30, 2006 IP
  4. Fahd

    Fahd Well-Known Member

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    #4
    I'm guessing web hosting or casino affiliate. They hope to make their money back through renewals/recurring puchases.
     
    Fahd, Jul 30, 2006 IP
  5. Tearabite

    Tearabite Prominent Member

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    #5
    Sorry.. it's "The Online System":

     
    Tearabite, Jul 30, 2006 IP
  6. Richie_Ni

    Richie_Ni Illustrious Member

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    #6
    Yea,I've the same question. like hostgator,someone signs up more than 1 month,then we could get $100 ,crazy
     
    Richie_Ni, Jul 30, 2006 IP
  7. js2006

    js2006 Guest

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    #7
    Simple: using reversals.

     
    js2006, Jul 31, 2006 IP
  8. zappy

    zappy Peon

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    #8
    No i wouldn't agree with this. If they are to make it big with affiliate sales, they know they should give their affiliates more reason to join their program. They wouldn't scare away a potential affiliate with reversals.

    Chances are they either charge monthy fee for the users and someone pointed out residual model..
     
    zappy, Jul 31, 2006 IP
  9. ShaneG

    ShaneG Peon

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    #9
    The model that usually supports this type of payout is a continuity program.
    So I would assume that there is continuity built in to this somewhere.
     
    ShaneG, Aug 2, 2006 IP
  10. 5starAffiliates

    5starAffiliates Well-Known Member

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    #10
    It it's a biz opp package they've probably figured that X # of people that buy the biz opp package upgrade to the next level or buy other products. So a new customer is worth 75 to them.

    Hostland, one my 5 Star clients pays $50 - $125 even on their 7.95 a month hosting plan. They calculate it based on the worth of a new customer since most clients love their hosting and few cancel, they are basically giving you commission for a full year of hosting upfront.
     
    5starAffiliates, Aug 2, 2006 IP
  11. Richie_Ni

    Richie_Ni Illustrious Member

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    #11
    Agreed.:p they want to promote their service,it's worth to do
     
    Richie_Ni, Aug 2, 2006 IP
  12. digitalhaven

    digitalhaven Peon

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    #12
    I can't find them in Commision junction, I did a search and The Online System didn't come up at all.
     
    digitalhaven, Aug 3, 2006 IP