So what they are basically saying is, if someone orders a $2.95/year domain name... you get $10.00. This seems like they are losing money with the strategy of getting their money back in 1-2 years probably. They have paid $6,000,000 in comissions in the last 2 years. Maybe they get 10x times their upfront lost-investment. Seem smart for a huge company with large revenues, I wonder how long ca nthey hold-on. Thoughts? -Joaquin
It's a prety big/good company, I'm sure they know what and how to do things. I wouldnt worry too much about them >=x
Trust me if they weren't profitable it will not keep paying you affiliates. They make money, but just how much is anybody's guess.
They can pay that because web hosting customers rarely change hosts. So a new customer can be expected to hang around a long time and keep bringing revenue...on average much more than any commissions paid.
It costs much more (in general and depending on the market) to capture new customers than it does to retain old customers. Once you get them - then you can see how much blood can be extracted.
I have only bad experience with ipower. More than a year ago I tried to transfer a domain when registration cost was $5.95 and after provide my credit card details, they asked for copy of my documents by snail mail to process my order. A couple of months ago I tried to get a few domains at the new low price to find that this time they delayed 3 hours to reply, asking again for documents, this time faxed to them, but because it was Friday night, making clear that they will be process them until Monday. When your want a domain is IMMEDIATELY, particularly when you find a gem that anyone can register prior they can act, like those 3 letter domains dropped and free for a very little time.
this is a great idea. They get you to sell a domain for $3, give you $10... so you get $10 and you're happy right? Well, they UPSELL that domain customer and get them to order hosting/email/private reg and make a killing... all without having to pay you commission for that because you were sending DOMAIN traffic. NetworkSolutions did/does this. I use to promote them for a long time and would only recieve commissions for the exact product (banner) I promote, not the upsell. Again, GREAT idea and worth it for them.
hosting and domain sales is an easy entry, low risk market to setup in. Consequently its just stupidly and incredibly competitive. In that kind of industry you have to throw your weight around a bit, risk the commission for the chance to sell add-on products etc. Over big numbers and over time it may work. Unless there are 100 companies doing that same thing !! A long-term strategy for a company that is aiming to take market share and be around for a long time.