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Originally Posted by Paul Markham
You keep assuming the guy paying 30% has that money in his pricing structure.
The cost of affiliates has to be included in the cost of the join. So 1,000s of site are charging $20 and paying out 10%. Then someone decides he will pay out 50% and give affiliates everything they need. And raises the join price to $30. And everyone says "Why is this guy charging so much? Must be really good".
Then he finds it's no different from the $20 sites and all of a sudden, the $30 guy goes out of business. Because every customer thinks for $20 that can get the same.
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first of all who says anything about raising prices, i said raising affliate commissions
say one guy decides to risk it raise commission give up his profits on a site, counting on economies of scale to make his profits
bandwidth cost decrease with each additional users
fixed cost like content once you break even don't get allocated anymore
1 guy raising his commission would not need to raise prices 1 dollar to make made money if everyone else stayed the same.
That the fucking point moron, seriously you need to read up on a nash equlibrium
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Affiliates don't control this business, customers do. That's why Tubes are doing so well, customers decide where they view.
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tell that to microsoft, they don't focus on end users they focus on supporting developers
the end users take windows because it the plateform for all the applications they want
the same principle applied to the affiliate model
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As you said it's too late now, the dye is cast.
There is too much free porn online. And I'm in the majority who thinks that. Problem is no one can think of a way to get off the slide.
But you're a guy with th weirdest possible views on copying and profiting from other peoples property. So I guess you're thinking on this might be a bit weird.
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idiot i never said it was too late now
i said your a moron for trying to fight against the nashian trend
the success model embraces the change, adapt to the new marketplace rather then bitching about how there is too much free porn.