Revshare Sponsors w/ "Processing" Fees

[Windy City]

I saw this mentioned inside another thread and it's been something that has been bothering me for a little while. I won't name company names, but I think it's kind of sleazy to be pulling out huge amounts of money for processing in a revshare program. Now I'm not talking about a couple percent, I'm talking in upwards of 15%. Now these aren't small time programs either with only a few sales to process a day, these are large programs being pushed heavily.

So I guess I have a multiple part question here.

1) Should sponsors be taking this money out of your sales? When I read 50/50, I'm assuming that I'm getting 50% of the sale amount. Most programs don't take out for processing.

2) Should programs disclose up front what their processing fees are? It's a bit frusterating to sign up for a 60% revshare program and end up making 44% when fees are deducted. I think it's a tad misleading. If I sign up for a $30 PPS program and they pay me $27 for each payout because of processing, I think we'd have some pissed off webmasters.

3) How the hell do you get that high of a processing fee? Mind you I've never processed in adult, but 15% seems awfully high for anything. Is this normal? If not, are these companies juicing the numbers?

[[BV]]

That's pretty close to the standard base rate that CCBill and Epoch charge to process transactions. You can do a little better with volume, (maybe 1-3 points accordingly)

This is just for the processing fee remember, so if a sponsor is cutting their own checks then those bookeeping fees needs to be figured in as well.

It's not high or out of the ordinary.

However I do agree with your other point on your expectations of what a 50/50 payout is.

This has been a personal gripe of mine as well because I get so tired of seeing sponsors advertise 60/40 to make them look good compared to a 50/50. When in reality they do like you say and deduct half or sometimes all of the card fees and you end up with around 50%anyways.

You will find that rev share programs that advertise 60/40 or better percentages for the affiliates are much more likely to be deducting card fees from it's affiliates half, more so than 50/50 programs.

I advertise my programs as 50/50 and I pay ALL of the fees. So affiliates get exactly 50% of what the member pays for life.

In reality that's not really a 50/50 partnership as I only end up with 36-37% after the processor gets their cut.

Bottom line, read the sponsors TOS to know for sure.

[Jakke PNG]

I personally feel that a when it's a matter of revshare, the CC fees are also shared. That's what we do.

So 50/50 partnership... fees go 50/50 as well. That way it really is a 50/50 deal, instead of 50/34/16 deal or whatever the processing fees might be

[Greenguy]

I don't mind a 50/50 split after processing fees, as long as the fees aren't outrageous (like the Jugg Cash 24% that I mentioned in the NATS thread)

[Windy City]

Thanks for the insight, I wasn't aware that processing could be that high. Jugg Cash was one of the companies I was thinking of and couldn't fathom why it was so high.

[emmanuelle]

Wow- We've always paid the fees on top of paying out 60%- Should we have been passing the fees onto affiliates? I feel like such a noob sometimes

[babymaker]

i dont mind splitting processing fees of 14.5% that ccbill charges, but when they charge me like 10+ bux to send a fucking check tha pisses me off, if i told my isp ohhh i owe you 25 bux this month but it's going to cost me 5 or 6 bux to go out and mail it or goto atm etc they arent going to accept that, those sponsors should then pay half my hosting and my fucking rent and my food bill and my trusty graphic designer when i need him lol