Best Paying WebHosting for REFERALS ?
- Thread starter BackY
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BackY
Senior Member
- Dec 28, 2012
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I see Hostgator pays up to 125$ per signup (if you get 21+ people to sign up using your referal)
and if you send 1-5per month, you get 50$ for each.
This is kinda confusing, cause a approximate webhosting package on hostgator costs around 30-40$. How is this making them $$ ?
and if you send 1-5per month, you get 50$ for each.
This is kinda confusing, cause a approximate webhosting package on hostgator costs around 30-40$. How is this making them $$ ?
innozemec
Elite Member
- Aug 19, 2011
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innozemec
Elite Member
- Aug 19, 2011
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well, consider you send them 30 users. thats 30 x $125 = $3750 they should pay you in commissions
On average if those 30 users purchased service for $40 lets say thats $1200. So after 3 months, they will be on zero and start earning from 4th month. Now if they cut half or most of your referrals, the numbers change a lot..
On average if those 30 users purchased service for $40 lets say thats $1200. So after 3 months, they will be on zero and start earning from 4th month. Now if they cut half or most of your referrals, the numbers change a lot..
tnhomestead
Regular Member
- Oct 9, 2011
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They also know their cost per client, if they keep a client 5 years as an example, they lose money year 1 and make it from then on. I know I pay for referrals, I assume hostwinds and most other companies do as well.
innozemec
Elite Member
- Aug 19, 2011
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yep, indeed. Well, almost all companies giving such big payouts do the same. They have a compiled set of excuses why a referral should not be counted. Yes, you know how much users you exactly sent, but when they tell you these X users are not eligible for commissions due to "....." there;s nothing you can do. Either continue promoting them and be happy with whatever they pay you out or find new alternatives to promote..
The practice is called "shaving" and "scrubbing". With first meaning downright removing certain cut of referals, while second is "silently" taking away some money owed to affiliate, due to rest of traffic that's being paid for underperforming.
The problem is, it's companies who might do it, that have all the data to control it, unless you work REALLY close with people earning you the commision in first place ( imagine providing webdesign, in exchange of signing up for hosting under your link. you KNOW who signed up, and if numbers are off - you can just mail them asking "excuse me, wtf are you doing?"... then they reply "oh, it's just an error on our system. we added "missing" sales to your account. ticket closed."
Ultimately, it all comes down to trust.
innozemec
Elite Member
- Aug 19, 2011
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well, i am not speaking about hostgator specifically, but about common practices for all those companies offering such big affiliate payouts..
I remember there was thread in "money making" section ( or was it WSO ebook download? don't really remember...) with exact same method. You should search for it on here, probably can pick a few tips up from it.