To people making money from hosting affiliate programs got a question?

[eddie1278]

I read a lot on here about people getting customers to sign up for hosting at places like HostGator and getting $100 commissions.

I highly doubt a hosting company would pay someone $100 for a new customer when their hosting costs $4 a month and $48 a year. So the hosting company wouldn't make a dime for 2 1/2 years from that affiliate commission payed out? Not happening.



Thoughts?

 

[2011nfl]

Link to one of those threads maybe?

 

[Moto801]

Not happening.

Not happening? Really? Then please explain to me why it is happening...

 

[eddie1278]

One of what threads? I just read hostgators payout for affiliates. $50 for 1-5 sales and $125 for 21+ sales.

They say you will be paid $2,625 for 21 sales. They get $4 a month for hosting so they will make $84 right away for 21 sales and pay you $2,625 for them? Yeah ok! LOL Again it will take them over 2 years just to recoup what they paid affiliates for those customers it's simple math.

 

[Moto801]

There are a lot more people spending $10+ a month and plus their upsells, they are making their money back much sooner on average then you think.

Hostgator is an established long term business. This type of affiliate model works for them since they are thinking long term customers.

Also, they've had this affiliate program for a long time now.. if it wasn't working for them, they would have stopped by now.

p.s. if you join their affiliate program through commission junction, you start off at $100 instead of $50

 

[eddie1278]

There are a lot more people spending $10+ a month and plus their upsells, they are making their money back much sooner on average then you think.

Hostgator is an established long term business. This type of affiliate model works for them since they are thinking long term customers.

Also, they've had this affiliate program for a long time now.. if it wasn't working for them, they would have stopped by now.

I'm not attacking HG never used them just can't believe they can pay that out without making a dime for years. Reason being is I plan on designing websites and getting my customers to signup with them under my affiliate link (if i use them). So all of my customers most likely won't upgrade so how can they make money?

I read that lots of hosting companies "shave" legit sales because they can't payout. Based on the numbers HG provides I don't see how they can payout those numbers. I'm sure tons of people never upgrade and get the cheapest plan at $4

 

[Moto801]

Check out this thread... http://www.blackhatworld.com/blackh...g-people-free-websites-offline-marketing.html

 

[ryannull]

Marketing 101. They are working the backend.

A lot of big companies actually lose money obtaining new customers. They are banking on the fact that the customer will buy more from them. They are trying to reach a long term goal with their customer base.

As far as the affiliate payouts. They do pay the $100, but the leads rarely stick. What happens, in my case, you could get 10 leads, and only get paid for a few. I don't know why this happens, but it does.

 

[therage]

I'd pay $800 for any long term valued customer that buys. In fact I'd pay $900 a click to Google for to bring in the buying kind. How much are customers worth to you?

 

[lostpassword]

Marketing 101: Yes, They shave you.

If you refer to them 10 customer, expect about 5 leads sign up paid. (maybe even less)

They will come up with all kind of excuse to not pay the remaining.

Just google it and you will find a shit tons of affiliate not getting paid.

It's just common sense. The big number lures in the noobs with big dreams and they can just not pay you.

 

[cbnoob]

hostgator paid me but you need to wait 3 months for the money to be cleared.

 

[antichrist]

I guess I will just have to give it all back as well as all my hard work. Damn.