Will The Pay Per Signup Model Be Forced To Change?

[Jace]

Not sure if this was posted or not already, but here it is again if so...LOL

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by Danny_C


It's a simple fact that the market is changing. Profit margins are shrinking across the industry, companies are tightening their belts, and most importantly, they're treating it like a serious business rather than easy money. Companies that are strong today are that way because they've learned to be versatile in the face of change. They've learned to accept adversity and have the nerve to do what it takes - even occasionally make very hard decisions - in order to survive and prosper.

I'm going to avoid prophesizing about the industry's methods of adjusting to growing and upcoming obstacles, but what I can predict is this: there are difficulties that lie ahead, and many or all will have to adapt, whether it's the PPS programs, the webmasters, or both.

1) Lower profit margins. It's just a simple fact. While many companies continue to earn great deals of money (and in many cases, are making more than ever), the industry as a whole is experiencing lower profit margins than in years past. Many companies and webmasters have been weeded out. Even companies who are still making good profits are being forced to tighten their belts and more closely examine their business practices in order to maintain those numbers.

2) Threats like Acacia. Likely, in my personal opinion, Acacia will lose the battle. If they win, we can say goodbye to a large percentage of our gross profits. If they lose, more legal are sure to come.

3) New laws and more aggressive enforcement. Perhaps the doomsday harpers are being a little overdramatic, perhaps not. But there's no question that the noose is going to tighten, and we may have to make adjustments in order to keep from hanging. The new 2257 laws and spam laws are enough to demonstrate what a huge difference new legal concerns can make.

4) Popup blockers and spam filters. I think this may become a rude awakening for webmasters. Microsoft has announced that Windows XP SP2 will be released in August. What does the new service pack include? For one, a popup blocker built right into Internet Explorer that is turned on by default. "But my code beats the popup blockers!" some of you will scream... unfortunately, Microsoft has caught onto that, too, and will be blocking those as well. The days of substantial exit revenue are numbered. What does this mean to the webmaster? Well, if you've been promoting non-popup tours, nothing. If you've been counting on the payouts offered by tours with popups, you may be eventually forced by all affiliate programs down to the lower non-popup amount.

5) Cross sales. Sure, cross selling is still occurring, and hopefully it will last a long, long time. But something tells me that greater and greater limitations are on the way.

In the end, who knows what will come of these obstacles, and how affiliate programs, along with webmasters, will choose to adapt. But it's very important that we take these upcoming issues and possibilities into serious consideration, if we plan to continue moving forward and still make the income we've grown accustomed to.

[emthree]

Interesting read, but this is something most of us know already