Just want to update everyone on a few things. These are some major updates, so be sure you read them all. This is going to be a long one.
But, there is some awesome news at the end!
Weekly Revenue Earnings Percentage for last week
Many of you have already noticed that the weekly revenue earnings percentage for last week was lower than normal. Those of you that are in some of the other rev share sites have noticed that many of the rev shares site have been posting lower percentages the past few weeks. Some have already started changing models, some more drastic than others. Although we still had a great week, overall the amount of sales was a little lower than we would have liked. We could have very well posted another 14% week, but with what is happening in the rev share industry we felt we better start taking action now. We rather be proactive than reactive.
In my opinion the slow down in the rev share industry is being caused by several factors. Number one being the amount of new rev share sites that have opened up and new ones opening almost weekly. With the recent saturation of all these rev share sites, members are spreading their funds in many sites now. Before, members were concentrating on may 2-3 sites at most. I know members now that have funds in 5 or more sites. This has caused the rev share sites that have been around awhile to start seeing decreases in the amount of advertising they have gotten use to selling. So, the only option is to decrease the weekly percentages. ANother effect from the increasing number of rev share site sites, is the decrease in exposure for the rev share sites. Members that were once promoting the older top rev share sites are now promoting the new sites. Many are jumping from new site to new site.
The second major cause is the amount of higher percentage sites that have opened up. Like the 12% for 12 days sites. Members are tempted by the high percentage and quick return, so are putting more and more funds into these sites and less in the rev share sites. But, anybody that has been around a decent amount of time online, knows that these sites do not last for more than a few cycles usually. Sometimes not even that. I know people that have lost a ton of money in these sites. If you don't know how to work these type sites, I suggest not even getting involved in them. The odds are you will lose.
The third reason is that this time of year can be really difficult on the entire industry in general. More scam sites pop up this time of year than any other time. More sites close down this time of year than any other time. There are all kinds of holidays or holidays coming up this time of year. Christmas is the big one for most members, so they are likely to spend less in these programs and will most likey withdraw more of their funds to spend for the holidays.
The fourth reason is one that has just recently came about and I'm going to quote the below paragraph directly from a recent update from Linda and Perry at AdTrafficExplosion.com just sent out to members. I think the statement below sums it up very nicely about rev share sites and what they are about.
"There has been a lot of hype and negativity about Revenue Shares lately, and the focus seems to have been taken off of what Revenue Shares truly are. A Revenue Share Program is simply that, one that shares its weekly revenue with its members. It is not an investment program. Percentage of pay outs has gone completely overboard in this industry.
There is a fallacy out there that if a Rev Share drops its percentage under 14% they are going under and will crumble¦.or¦..if they do not totally pay out from outside income sources they will fail. Nothing could be further from the truth, if a Rev Share chooses to do that, it is a choice they make because of other factors that would cause them to close down. We have received numerous emails about the following subject, outside income. The bottom line is that this is an advertising company, to tell us that our income needs to completely come from somewhere else,
or to limit our membership is utterly ridiculous. (What would be the point of having an advertising company to begin with then?) Now, with that being said, we do believe that outside income sources are necessary.
We feel that being diversified is the key, a common saying is, do not have all of your eggs in one basket. Having multiple streams of income, one source could go away and it would not destroy your bottom line.
Rev Shares do not guarantee income or pay outs, but if a Rev Share only pays 4% for the week you didnt lose anything, they do not have to close the doors. You are still making money! Even if the Rev Share does not give a payout for one week, you still did not lose anything, your ad packs are still there, you just did not make anything for that week and they will expire at the rate that the program dictated in the first place. The Rev Share does not have to close its doors, they do not crumble. Remember, it is an advertising business, you are still receiving your advertising as promised."
Now, with all that said and the fact that many of the rev share sites are feeling the impact of all the above. We felt that we needed to take action now here at PIFT to make sure we are prepared. So, the first step was to post a lower percentage of earnings for the week. Which is what we did. We also wanted to do this due to the fact that many members seem to think that we guarantee a weekly earnings % of 14%. I've even seen an advertisement for PIFT stating this. No where on our site is it stated that we guarantee a weekly earnings % of 14%. The percentage we pay is based on the revenue we receive for the week. Therefore, it will eventually vary. We do have reserves and outside income sources we can pull from, but we feel those should be used in cases where the percentages would be very low if we didn't use them. More for emergency type situations.
In order to increase stability in our program we are going to implement the following changes:
1)Earnings will be capped to around 10-11% weekly. If we have an exceptional week we could go higher.
2)Referral Commissions will be set to three levels now. 10% for 1st Level, 3% for 2nd Level, and 2% for 3rd Level. There will be times we will increase this for specials, etc.
3)Rollover Commissions will be set to 3% for 1st Level, 2% for 2nd Level, and 1% for 3rd Level.
4)A max Ad Level balance of $10,000 will be set. You must start withdrawing when you hit this level.
5)We are looking at a couple other minor changes on how the math is done in our model that will also be implemented in the future.
We feel with these new features in place we will remain as strong as ever and continue to grow. We are still building additional income streams along the way and with these new features, it should enable us to be around for a long time.
Now onto some exciting news!
New Site by PayItForwardTraffic
We have been working on building an additional site to be included as one of our additional income streams for awhile now and are about ready to launch it. It will provide you with an additional advertising source, a way to earn some additional income, and a way to increase your ad levels at PIFT. We very excited about it and if all goes well we will be sending out the link to it sometime tomorrow. So, make sure you are watching your email. You will want to get in as soon as possible.
Conclusion
I know this has been a very long update. But, I felt it needed to be that way so everyone knows what is going on in the rev share industry and at PIFT.
We are still a very strong site and with the support of our members we will remain strong and around for a long time.
Take care... Tony