Understanding Revenue Sharing

Rev Sharing (revenue sharing) has become big business online despite being a very risky investment of your hard earned dollars.  Sites are popping up it seems almost daily and people continue to flock and invest, in hopes of making quick easy money.  The problem is revenue sharing as it was meant to be has been distorted to take advantage of the masses.

To understand what rev sharing is the Wikipedias definition is:

“Revenue sharing is the distribution of profits and losses between stakeholders, who could be general partners (and limited partners in a limited partnership), a company’s employees, or between companies in a business alliance.”

It goes on to say that, “Revenue sharing in Internet marketing is also known as cost per sale, in which the cost of advertising is determined by the revenue generated as a result of the advertisement itself. This method accounts for about 80% of affiliate marketing programs,[1] primarily dominated by online retailers such as Amazon and eBay.[2]

Note, the 2 big names there Amazon and eBay.  Those two sites offer actual physical wares vs the ad pack method of rev sharing.  Now compare some former rev sharing programs (Traffic Monsoon and 12DailyPro) to Amazon and eBay…..Amazon and eBay are still going strong where as the former are now both defunct.  In fact, 12DailyPro owners ended up in prison for bilking millions out of unsuspecting consumers.  (refuse to call them affiliates as it detracts from true affiliate marketing)

Without getting into another subject all on its own device, simply put affiliate marketing is where the owners of said sites share a small portion of their earnings to those advertising for them as a thank you.  Basically, affiliates save owners money in their advertising budget because affiliates do the advertising in return for a small percentage of the site owners sales.

Traffic Exchanges offer members the opportunity to become affiliate marketers on a much smaller scale.  It is a win-win situation for all those involved.

However, Traffic Exchanges have received a bad reputation with online processors such as Paypal because of sites such as Traffic Monsoon. Those sites have emulated the Traffic Exchange model to run a pyramid scheme.  A simple way to understand a pyramid scheme is that the site must have a continuous flow of new members who invest or in this case purchase ad packs to pay the older members who joined first.

My point is that what was originally an innocuous system that created earning opportunities for others while saving owners advertising dollars has been blatantly debased to scam others.

Stop and think about it.  Can your bank provide you 50% interest on your savings?  Of course, not!  The rapidity of earnings is unsustainable and has been proven time and again to fall short on being a secure way to make money.  A current example of how volatile those traffic exchanged based model rev sharing programs are, all you have to do is look at the kaput “instantrev share aka irs” program that was in pre-launch.

Oh, I hear some of you going, “But I made money or I make money” with these types of programs.  On the grounds of coming across as hubristic, I am going to say it anyhow……Why don’t you care that the unwitting people that you recruit into this unstable venture will most likely lose their shirt just so you can make a few bucks?

Affiliate Marketing with its revenue sharing plan is a two-way street.  Meaning all parties involved reap the rewards.

With the distorted version of rev sharing done by the unscrupulous, only one party reaps the rewards.  I know you get advertising for your purchase.  Let me ask you this when the sole purpose of buying those ad packs is to gain the absurd return on them, do you really think its such a great place to be advertising your wares or affiliate links?  Seriously, no one is there to buy anything but ad packs to make a profit.

The choice obviously is yours to make if you want to risk your hard earned dollars and/or don’t mind luring others in with false promises of easy money.  I can not change what people do.  My intent is to inform those contemplating joining those sites and attempt to prevent them from losing even one red cent.

Sadly, we see some big names out there (well-known marketers with big lists) promoting these types of programs.  Again, it is an individual choice to join and/or promote but, buyer beware.

My advice is to stick with affiliate marketing as it was meant to be.  Of course, it is a lot of work!  Believe me, it takes time and energy to reap the rewards of marketing online.  In the end, though you can hold your head high knowing you became successful through your own efforts and reaping your just rewards.

Deb

Busy Freeway Traffic

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