CCBill Exposes Shavers System-Wide

[Rolo]

Not really related to CCBill topic, however I saw the PPS vs Recurring posts, so I wanted to jump in with my 2 cents about it.

Recurring is probably more strong in nature, since the payout cashflow is controlled. PPS is more complex because they are paying for much more than just the single transactions - and this is why I think the PPS game will have to change or continue the downspiral... if you only have PPS and try to add all kind of extra revenue (consoles, redirects, e-mails, xsales, upsell, shaving etc.) into the PPS payout, then it will only get hard and hard to do the high payout, because:

1. Technology is working against consoles, installs and spams
2. Bankers will keep making risky transactions more risky
3. Less webmasters will control more traffic, and they will get smarter - both filtering traffic away, and spotting shaving will be easy for them.
4. Surfers get smarter, still surfering with their dick in their hand, but also knowing about low trial/high recurring price, and how too cancel. Plus they will have access to much more free content than today, so why stay a member?
5. Possible tax issue down the road...

If PPS and processors continue with the old model, then in 2 years time we will probably hear webmasters who are saying something like this:

"You know back in 2004, then I was converting 1/1500 and got $35 per signup - sure alot of them shaved, but I made Bling Bling!! However today in 2006 I´m converting 1/5000 and I´m paid $35 per signup, and now everyone is shaving like mad, and I will probably need to work at McD... damn I wish it was 2004 again"

Not saying that recurring is better, than PPS - recurring will have the same problems, however they will not have to payout $35 per $1-5 trial.

The sky is not falling - yes you can still wake up each morning and milk the PPS cow, however in time that cashcow will produce less and less milk - no matter how hard you try to squeeze the teats... evolution