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In addition to agreeing with most here - the most important problem I see is that new sponsors think they have to push a pay per sale model from the beginning - something that anyone who has been around for a while will tell you is BS - and not a good way to stay in business. While it may get you good traffic from the start from people like the LL owners etc. it cannot be done without something already in place to ensure that the freesignups/cancels still make you money (yes there are plenty of ways) which most paysites starting out don't understand.
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