Reasons for working in revshare, vs reality
People have various reasons for using revenue share programs, but the most common one is definitely: money.
Revshare gives you an opportunity to earn really substantial amounts. There are two basic methods: firstly, you can multiply your own money by certain percentage (it would depend on a program you use); secondly, you can use recommendation marketing, which means promoting a program for others, so you get a commission from their purchases. Of course, both of these methods can be used at once, allowing you to earn even more.
Unfortunately, I’ve noticed that not many people realise, their financial needs might not get fulfilled in revshare, because those programs do not give you any guarantee. If you’ve planned to earn a specific amount within some period of time, nobody can promise that you’ll get it.
Reason: money, high profits.
Reality: no guarantee, no set value of bonuses (it does not matter, whether a revshare states to have an ‘average’ bonus of 110%, or 120% etc. because it is only an estimation. They are not promising it.).
What does revshare bonus depend on?
It depends on company’s profits. If a program happens to have lower purchase rate (it includes adpacks, as well as other services: login ads, PTC ads, etc.), then bonus amount will decrease. What’s important: when company is earning less money, but bonuses stay the same, it might be an alarm, that something wrong. Money does not fall from the sky, or grow on trees.
If the company has lower profits than it is planning for, amount of your daily bonus will decrease. Full stop.
The duration of a program being online – purchases and a bonus amount.
Most revenue share programs (at least the ones I used so far) experience the fastest growth (rapid increase of users and purchases) in two points in time:
1. Just after it goes online (a program is brand new, what’s important in this business)
2. When leaders and well-known individuals from revshare sign up to it. They are the ‘heart’ of a program, because they influence people to register and purchase advertisement services, mostly AdPacks.
Important: You cannot define the exact moment of when leaders will sign up to a program. It may exist for 3, 4, 5 months, with a low number of users (4-5 thousand), and it may be the 6th month, when SOMETHING happens, that attract leaders to try a program out. It is usually the landmark for a company. It happens that leaders sign in to a program just after it goes live, but it’s fairly rare. They might not register at all, if e.g. the terms and conditions do not suit their needs (maximum daily withdrawal – $200, etc.).
Coming back to point 1 and 2: in both of these periods (their duration will differ), daily bonuses will usually stay the same, as it’s been said to you at the start + little variations. Why? Because that’s the time with the highest profits, so the company has money to share it with others.
To the points described above, we can also add: a company’s outside sources of finance – more of them is better.
At the same time, there are obviously periods, when a program experiences decrease in profits and bonus amount:
1.When a revshare is live for around 8-12 months (that’s when the most users start withdrawing their money, reducing their purchases, or minimising them to 0). And that’s absolutely normal. If money is our reason for joining revshare, we want to withdraw it as soon as possible. Some people do it quickly (like me) some do it slower, but 8-12 months is about time for finishing off the withdrawals, starting diversification and reducing purchases.
2. Leaders, who are ‘the engine’ of revshare programs will eventually reach the maximum. It means: maximum number of packs, or finally getting to previously planned deadline – start of withdrawals (everybody should start in revshare with some sort of plan in their mind). It may also be a moment, when they’re allowed to withdraw maximum of $400 a day, but their accounts show much higher values. Then it becomes pointless to carry on promoting a program further, as they are not able to withdraw their takings anyway. Then, those leaders would start using another program (still getting profits from the previous one, but without purchasing more packs from their own pocket and without recruitment, what’s absolutely understandable). Less promotion will equal lower number of users.
In both of those situations, daily bonuses might obviously decrease. It will be followed by some changes, because the company will have to react to point 1 and 2, attracting new users. It shouldn’t be a surprise to anyone.
Revenue share calculators
Many people, who do not take into account what I’ve written above (because they’re e.g. ‘newbies’), use calculators, which were designed to work out our profits in revshare. They are treating them as a business advice almost uncritically. With a strategy being set up for 8 months, they expect those devices to give them an exact amount of their future profit. The problem is that revshare calculators most often use the average amount of daily bonus, advertised by a company at the start (e.g. 2.5%). They don’t include the possibility of variations – it’s very likely that a program WILL NOT always have exactly the same profits. There are no businesses, that have identical takings every day. It would be unrealistic.
In general, revshare calculators are a good tool, because they estimate your potential earnings, but unfortunately, they may also mislead people. Because… As I said from the beginning: revshare does not give you guarantee for profits and stable bonuses every day. Revshare is not an investment in which you know for sure, you’ll receive 5%, 10% or 20% within a certain period of time. Revshare is an advertisement program, that will share it’s profits, if there are any.
A while ago, I’ve heard a suggestion of what to do to make revshare calculators a bit more accurate. Somebody said, to input LOWER bonus value in it, than the one that a company publicises. Then, it would not mislead people that much (of course, we are talking about long time perspective). But obviously, no program would enter lower amounts in their calculator…
Variable: crowd reaction
Revshare calculators, as well as other devices designed to work out possible profits, do not include one more, very important factor. And that’s- crowd reaction. Crowd is full of emotions, which change like wind: from peace to euphoria, from fear to panic and from depression to happiness.
If at some point, emotions are euphoric, everybody purchases like crazy. It’s similar as Christmas shopping. We see around us lots and lots of people, who run insanely to get all of the fancy presents. When we look at them, we feel ‘ashamed’, because the ones we’ve got are much… simpler. So, we take a loan to buy something stunning (‘I only live once!’). Euphoric crowd reaction influences others. Everybody goes shopping.
People, who think more realistically, are able to overcome that, set a strategy, or take a chance and start to diversify, by using commission from referral purchases. Unfortunately, many of us still follow the crowd and carry on buying carelessly.
But… Crowd reaction may change instantly…
When people start to panic, it’s like a snow ball rolling down the hill. If it comes to revshare: hundreds of FB comments, quickly bring hundreds more. One article on a blog, leads to more of similar ones being written. One hateful comment on a Forum encourages people to post what they feel too. Within 1 or 2 days, the Internet is full of doubts, fear, panic and anger.
On the third day, the pressure drops down and people start to count their losses and think logically, but… hundreds of posts online are not going to disappear. The Internet never sleeps. If before this hysteria, someone considered signing up to a program, now, he’s definitely not going to do it. He surely had noticed, what’s been happening. It’s hard to miss such an outburst of emotions.
Effect: decrease in number of people who want to sign up to this program. And of course, less people means less purchases.
Like a snow ball rolling down the hill.
Opportunities often being left untaken.
When crowd emotions are either positive or negative, people often miss their chances. Their reasons are purely to earn money a) from their own pack, b) from referral commissions.
The first miss: they forget, that revshare is an advertisement program, and they DO NOT fully use an ad, they’ve purchased. I know many people, who get millions of views (because of adpack), but they do not use the advertisement possibilities. Why wouldn’t they?
At the moment, in revshare programs, I mostly promote my own blog, single articles from it, as well as little landing pages. People who see my advert often write to me, asking questions and discussing various topics. They read my blog, to get some knowledge or ideas (not always singing up to my programs straight away). But those, for whom all that matters are ‘fast’ adpacks and commissions, often rush to use absolutely random advert, just so they can start quickly, e.g. reflink to some other program, hoping that ‘maybe someone will sign up’. By doing it, they lose their ad opportunity irrevocably. We have our awareness and we’re not going to register, using some impersonal link on the Internet. That’s it. If a person does not have time and will to keep an up to date blog, or at least to create some simple website about themselves, by keep promoting their reflink – they’re not going to be successful.
When you see, a millionth time, the FAP advert in revshare, are you going to sign up?
No, because you’re either in it already, or you’ll sign up through the link of somebody you know.
When for a millionth time, you come across a blog, written by Niedzielska, are you going to sign up?
No, but you’ll remember my name and you’ll get in touch eventually.
Take opportunities, that come from your revshare ad. Promote yourself. Not some company. Businesses disappear, shut down and new ones come. But you’ll stay. So allow others to remember you. 🙂
As for the ending, there’s one more important thing: we must not get the reasons that keep as going in revshare, mistaken with – gambling. If you use revshare blindly, without diversification, without paying attention to things I was talking about and without observing the market – you are not using your head. You are driven by emotions and thirst for money.
If you’re buying like crazy and withdrawing like crazy – that’s gambling. Do not be a gambler : think, calculate and use your brain.