Quote:
Originally posted by Epoch@Sep 25 2003, 05:57 PM
If you look at the overall fraud in Partnership Programs (PP) vs. PPS you will see that the incidence is typically much lower. PPS programs usually have a much higher cbk rate than PP. The payout structure for PPS is obviously more appealing to fraudulent affiliates as they get paid prior to the onslaught of chargebacks. I believe that the difference in chargeback ratios between PPS and PP are attributable to bad affiliates who run a variety of scams in order to generate sales.
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Clay, I see the point you are making here but webmasters who use PPS programs don't just do so to be able to scam the program - sure the instance is higher, but many legitimate webmasters just want to make the most money possible as quickly as possible - because they can!! How can we blame the webmasters for their 'take take' attitude when we created it ourselves?
We have made webmasters expect $40 per signup - why would someone take $15-$30 (@ 50% recurring) over $40?
Relationships between affiliates and programs have gone 2 ways in the last 6 months - much better or much worse - try being a webmaster program dropping payouts and trying to explain why to affiliates when there are still programs paying $40 ... webmasters are going to hang on as long as possible and go for the higher paying programs.
Although it would be smart for reducing chargebacks to switch to partnership programs, you may as well just hand your webmasters to someone else & hope like hell they come back when the axe drops ... I don't think PPS programs are going anywhere, but hopefully there will be more folks being creative (like ars & others) with their payouts so we can move away from the rediculous $40+ per signup
The catch 22 - billing effects payouts and payouts effect billing - which one goes first?