Quote:
|
Originally Posted by Dravyk
That's the cost of doing business, Ryan.
I remember when younger webmasters getting $35 flat from sponsors would compain about the email boxes and exit consoles on paysites. Affiliate owners had to explain to them that was how they were able to pay them $35 flat, and if they wanted it other wise, no problem, they would then go down to $25 flat. Soon after the model for no exits for TGP traffic came into being.
|
I dont know if they're still doing it this way or not, but most of the old contracts were written with 5% as a holdback that was to be returned 6 months later. This was their insurance against a site just suddenly shutting the doors and leaving them holding the bag on a bunch of chargebacks or whatever.
Some of the processors got creative with this a few years back taking large chunks of money owed as past holdbacks and turning it into a reserve and ceasing to holdback the 5%.
That's all well and good as long as your volume is consistent or perhaps increasing. But if you're someone like Ryan who during that time went from doing 7 figures down to being all but out of the paysite business, then they are probably sitting on a reserve that is total overkill for current volume levels.
I'd be curious to know if anyone has ever received any of their reserve back when they've ceased processing completely or even received a part of their reserve back to bring it more in line with current volumes.