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?
Is there a residual income to them after the purchase? Is it $39 up front and $10/mo or something like that?
I'm guessing web hosting or casino affiliate. They hope to make their money back through renewals/recurring puchases.
Yea,I've the same question. like hostgator,someone signs up more than 1 month,then we could get $100 ,crazy
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..
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.
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.