The Daily Revenue (Profit) Sharing Rate – Why Your “Return” Isn’t What You Should Look For – Any Fixed Percentages Won’t Work
The entire revenue sharing industry works pretty much in one way. People get paid out, supposedly, based on the company’s profits and what each affiliate is actually “worth” in terms of how many adpacks they have and how many referrals they have, and how many adpacks these referrals are purchasing.
This is all fine and dandy. Everywhere I look, though, I see people coming in to any of the revenue sharing program groups and asking “how much is the daily revenue sharing rate for this program?”
Those that care about how much the daily revenue sharing rate is – obviously don’t understand a very important thing about how a revenue sharing company (that is going to be sustainable) works.
If a company HAS a certain rate/percentage that they tell you that they are going to pay you out at each day, like clockwork.. then this is the kind of company that you don’t want to be a part of.
How come? Well, can you name me one company who can predict their own profits? No, you cannot, because it is not possible for any company to tell how much they will earn in the future. It doesn’t matter if that future is an hour, day, week, or even 5 years down the road.
Therefore, if a revenue sharing program tells you that your daily revenue share rate is a fixed percent, then they and you are both in trouble. They are in trouble for offering something that they can’t possibly hold up to and you are in trouble for believing them. This is what you would call “being unsustainable” in the rev share industry.
A rev share site can easily be sustainable if it only pays out members based on actual profits. A lot of people – for some crazy reason – feel that all rev shares are unsustainable because all they have seen is programs coming and going and they have the impression that everything has been tried already.
Another false idea is that a revshare program needs new members to be sustainable. This is wrong, too, for a revshare that is totally sustainable. Why would a revshare care how many affiliates it has or if the member base keeps on growing and putting in money? I mean, it is ok to care, but totally NOT ok to rely on that growth to sustain.
This is why fixed percentages can’t work. As the company grows and more members come in.. how can you keep paying them all that same fixed percent. It’s impossible without the outside income growing in proportion to the new affiliates.