How do Revenue Share programs die?
I do not work in revenue share long enough to describe every single case of a program’s ‘death’. But, because I am in this business for over a year, I have seen quite few spectacular shut downs (either myself, of just watching what’s happening online). It is possible to find sort of a pattern in it, which may enable users to ‘identify’ signs soon enough, to withdraw their money. I recommend you to read this article, and if you know about some other interesting cases – please leave a comment, as it will be useful for others who are interested in this subject.
Revshare program collapses.
1. Admin ends up to be a thief.
This is an example of a program collapse in which everything suddenly disappears: program’s website, its fan page, admin’s Facebook profile, all contact information, and of course – money. You wake up, all features do not work, there’s nothing there: it’s a typical sign that: ‘admin is gone with your money’. End of story. I could bet, that it is still the most common reason of revshare programs being shut down.
What’s important: those admins, hardly ever give away their surnames, but it happens sometimes, that the bad reputation, is not an obstacle for them.
2. Hacker’s attack.
Strange things happen with the website, there are delays with withdrawals, and then you see a message about hacker’s attack. At this point, the company does one of two things: they start to act and try to save the site, they get in line with everything, change some rules, and it is all OK, or… they announce the collapse due to hacker’s attack and loss of money, which is not their fault. Some people believe them, some don’t.
3. Stolen debit/credit cards.
This is one of the ‘deaths’ which can be prevented, if their dealt with soon enough, if not, then they will definitely lead to program closure. It is mostly caused by inadequate security measures while processing card payments, which allow people to instantly withdraw commission from referals’ purchases, that were done using a card.
How it works? John opens up an account in revshare program. Dave signs up using John’s link and Mark registers using Dave’s.
Dave purchases 1000 packs for $50. Same as Mark. John receives a commission, e.g. 8% per pack – $4 each, so 1000 x 4 = $4000. The same amount goes to Dave, from Mark’s purchases.
Both of them withdraw the commission straight away, so they have total of $8000.
It turns out, they had paid with stolen cards. The procedure is, that a victim has more or less 7 days to report it, so the bank can reverse the payment. By doing so, revshare program losses $8000 commission, but also 2 x 1000 packs purchase gets reversed too (what equals $100 000).
If those ‘bright’ men, steal bank cards on a high scale, within few days, they can set up hundreds accounts like that. If you then multiply above losses, you can imagine how quickly a program will die.
Whose fault is it? It is a revshare program’s fault, as they were not secure enough, as well thiefs’, of course.
What’s interesting: some revshare programs, which allow card payments, like Recyclix, hold the commission for 7 days, before you’re able to withdraw it. It is done especially, so if the card had been stolen and the bank requests a transaction reversal, a program would not lose the money. As far as I know, it is similar in Futureadpro. And those are good signs.
4. Admin being a newbie, not aware of all online dangers.
That includes point 2 and 3, as well as all other situations, when people try to open multiple accounts, so they can receive a lot of commission payments, using minimum amount of contribution.
5. Natural death.
It is one of those closures, which I think, at least shows some admin’s honesty. We all know, that revshare programs do not last forever. With time, they stop being so popular, the number of users decreases, withdrawals are higher than takings and bonus amount begins to drop down. It goes lower and lower, that it starts to be difficult to reach the point of withdrawal. It is a sign, that revshare is slowly dying. Often, revshares still pays the money out to people, once their adpacks finally mature. It’s like a natural agony, which may last for months.
There is quite few programs like that online (I personally know two. I’m still using one of them – but I have not been promoting it on my blog for a long time). That’s why it is important to keep yourself updated and be aware of an average amount of daily bonus within a program, and also knowing if it drops down often, or not.
As you know: somebody starts spreading a gossip (e.g. admin is a scammer, program does not pay out, there are signs that everything will go in the wrong direction soon). People begin to panic, withdraw their money out and share bad opinions about a program online. It goes as quickly, as a snowball rolling down the hill and often leads to program closure.
We can see, there are various things that may cause a program’s death.
I often get people asking me: ‘How do you manage to deal with so many programs at the same time?’. And I think, that these article may sort of answer the question.
I am just simply, fully aware, that there are no high profits, without high risks. And revshare programs are risky. That’s why it is so important for me to use diversification and dividing my actions and purchases between various programs. If one of them shuts down (and unfortunately, neither me, my sponsors or other users, are not able to do much about it), I will not be left with nothing.
I just rather stay on the safe side. I have to admit, that because of my approach to it, I am not able to brag around with screenshots of big, big money from one program (because I do not earn that much… yet) and I probably missed out on few good opportunities (because I did not pay in more money), but at least I can have a good night sleep, what I recommend to everyone.