PPS vs. REVS
Every once in a while you see this question around: “Which affiliate program should I promote? PPS or REVS?”. Gonna cover some of the aspects you might look into, if you are confused about which of the two to choose.

Choosing between PPS and REVS is based on a couple of simple factors. Before diving into that, let’s weave some scenarios out:

The live webcams affiliate PPS vs REV scenario

  • Revenue share is definitely your choice for any live webcams affiliate program, if the sponsor offers lifetime revenue
  • There are certain specific cases where the REV program will not be available for the lifetime of the membership. A common example is the so called “REV” (which is in fact some sort of PPS too in the end) provided by AWE (LiveJasmin and co.). This is definitely a case you might wanna go for PPS instead.
  • Bottom line: use REV with any live webcams affiliate if they offer member lifetime revenue. Other wise go for PPS

Other scenarios to weave out

  • Hit and run sponsors that will try to get you to signup with them, send them the traffic and then poof disappear over night
  • Shaving sponsors that might feed you nice payout programs and shave you to keep the balance
  • Specific day PPS crap, where you get a high PPS payout only for a specific day of the week (the day when their system shows there is a very little amount of signups and they can afford to fool around)
  • One month limited offer with a weird PPS amount value, dropping back to the normal value on the very next month
  • Other greedy business scenarios

Why REV beats PPS?

Now, let’s take a look how payouts go around when a sponsor offers both PPS and REV programs to its affiliates. Let’s take some random values:

  • PPS value = $35 per member
  • REV value = 50% of all sales

In order to keep that up, the sponsor most satisfy both of the PPS and REV terms and keep the income on a profit level. Hence, according to its internal overall stats:

  • The average member will spend at least $35 with its membership
  • 50% of the average member spending can cover maintenance costs (ranging from hosting to employees and credit card processing fees) and still offer the sponsor at least some income (which multiplied with the total members number gives you the sponsor profit)

Therefore, no matter what program type you decide to promote, it ends up in a win-win situation for the sponsor. But that is not the main point – what’s more important is how much you can squeeze out of it. While going for PPS you will always be limited to that $35 standard and fixed payout, without having any chance to maximize your profit and have the opportunity to gain more and more profit as the member is rebilled. True, you gonna get that $35 now and fast, but if you mean business, that is not what you should aim for. Optimized profit is what you should look for. Bottom line is, after doing a quick math, that if the sponsor affords to pay you those $35, they surely get at least the same amount when going REV. So, worst thing that can happen if you choose REV is getting and equal profit for REV as PPS, you won’t regret anything. On the other hand, if you choose PPS, you might one day sit back and think how your profit would look like if you had decided to rebill all those members that you converted for the $35 fixed amount.

Can you prove it?
Testing things out is quite easy. You can also decide which way to go, PPS or REV, by running your own benchmark. After all, it is your traffic quality that is one of the factors in play, so this testing should give you an even better overview for your decision. The simple testing method is to set all your linking codes pointing out for one program, say REV, then after a fixed amount of time, switch those very same links to point to the other program, say PPS. The amount of time should span over 2 months (rebills are made monthly usually, so you need at least 2 month to see how many members you rebilled) to maybe a couple of months, if you are running poor traffic. In the end compare the profit of the 2 periods. On your profit computing, bare in mind that the REV period will probably continue generating income for you in the future months to come, due to the member rebills.

Even more factors
Math may not always be the final decision factor in this choice. More specific, it is also about other factors, such as the ability of the sponsor to both absorb but also retain the traffic you are sending. In the end it is the sponsor capability and content quality that decides if the member will rebill or cancel his membership, affecting your REV performance. For instance, if you run some poor traffic, you may wanna try to send it to some free trial PPS, instead of REV.

So.. what was it?
Of course, there is one more scenario: if you are looking for quick cash, want to see instant results or maybe you just don’t expect to keep running in this biz after 1 year, you should just go the easy way, PPS. On the other hand, if you want to build up or you want to see a steady income stream from your rebills, choose REV.