Just out of curiosity, I'd like to know if you'd be interested in refering customers to host they web sites and making money from this referal, if so, how much would you like to earn per commission? How do $50 commissions sound?
Comissions for web hosting affiliate programs are usually about U$50 or sometimes higher (depending on the price of the service [VPS, Shared Hosting, etc] and on the number of referrals you get to sign up per month [much like a performance bonus]).
Yes, these $100 are paid using the new customer's money, for instance if he subscribed a $10 plan, the web host pays the referee $10/month for 10 months, as long as the customer is still here.
No, for example, hostgator pays $100 as soon as the person pays $10. The host loses money if they can't retain the customer. The hosting market is highly competitive.
So in that case there is a blackhole in this situation. I buy a product from them. The referal is my friend he get's 100$ payment asap!. I cancel the product and he still gets his 100$ payment ?
A lot of affiliate programs take that risk. Ringtones pay $10-$12 and sometimes the signup is only $4.99. Credit card companies pay $60 for a credit card signup. Not only would they lose the $60 if the person doesn't use the card, they would lose the administrative costs to issue the card. Mortgage companies pay $35 an application and the person might not even decide to take the loan or qualify. There are countless affiliate programs that pay $50 or more for a lead - no sale is required to pay the commission. Big business doesn't think or operate like many small business owners who often think they need an immediate profit before they pay commission. While someone small timers may scam them for a few dollars, they aren't going to get away with a large sum of money as they have checks in place to catch fraud. How many hundreds of millions of dollars did Amazon lose for years and years before they ever made a penny in profit? Sometimes you need to look at the big picture and not micro-manage every dollar or try something because you might take a loss.