Advertising revenue sharing sites are a hot new way for people that work from home to make money. It is also a way for people with websites to increase traffic to their websites by sharing it with other users in the program. The amount of ad sharing revenue that you bring in depends on you(the member) sufing a specified number (usually ranging between 8 – 10) of different websites each day. It also depends on the amount of money that you put into the program to buy ad shares.
It is also important to note that members of ad share programs get a percentage(usually ranging between 8-12) of the ad revenue that anyone that they get to sign up to the site, puts into the system. This means that the more friends that a person gets to use rev shares, the more income they will make from it. Think of it as interest revenue paid out for doing a simple task. There are many different revenue sharing sites that offer this service.
This apparently is an easy way to make money from home, especially given the fact that you are not required to refer anyone before you can make money. Many people however only see the negatives of the program and think that it is doomed for failure in the long run.
Why Ad Revenue Sharing Sites Fail
Relying solely on members funds
One main reason why most ad revenue sharing sites fail is because most such programs rely solely on funds from all the members in order to operate. This means that eventually they will run out of funds in the system and won’t be able to properly pay people the commission that they have earned. Also, after a certain point, all such rev shares will be greater than the funds that are in the system.
There is only a limited number of people that will use the revenue sharing sites. The advertising share programs that rely solely on members funds can only continue to work if people keep signing up for the programs. The number of people available is bound to run out at some point in time and so such programs are going to fail long-term.
The most important reason that a business like this can have success is through growth. If the company stops growing, it will fail. The growth must also get more and more intense, the bigger the company gets. There is no way the ad revenue sharing community can support the kind of exponential growth that these sites that rely solely on members funds will need in order to stay operational and not lose funding.
This is similar to an investor that makes a fund placement in a Bank, with a view to obtaining interest on maturity. If the bank does not re-invest the funds at a higher margin than it is going to pay the investor, it is bound to fail eventually.
Such programs that rely solely on members funds can thus only be a good way to make money for a while.
Lateness in harnessing other revenue generating sourcesHaving established above that is highly essential for any ad share site to have alternative sources of income, many revenue sharing sites start out hoping to harness alternaive sources of income as they go along but fail to take into consideration the speed of cash out by its members. In most cases, before they can successfully put in place such external sources of income, their members would have begun massive funds withrawals, given the bad experience most such members have had when they leave their funds for too long in rev shares.
This factor in conjunction with the factor stated immediately below, apparently led to the failure of TopShare Global.
Unsustainably high revenue sharing returns offered to members
Some ad share revs fail because they offer mouth-watering and unsustainably high revenue sharing returns to members perhaps as a ploy to lure them into joining new revenue sharing sites. While “slow rev shares” usually offer betwen 1% – 4% daily returns, “fast rev shares” sometimes offer as high as 12%-15% daily returns. These returns offered by “fast rev shares” are apparently unsustainable.
Domicile of Rev Sharing ProgramGiven that rev shares only recently made their debut and the concept is still not fully understood and appreciated by many, owners of such businesses must be extremely careful in choosing the legal and physical domicile of their businesses. It is well known that countries such as America, Britain etc are quite strict in legislating, monitoring compliance and enforcement. Rev shares in such domicile are still looked at as ponzi schemes and investments and this accounts for the current travails of Traffic Monsoon for example.
Choice of Payment ProcessorMany rev shares have almost been led to their demise through association with Paypal for example. Paypal has grown lethargic of rev shares and any new rev share choosing Paypal as a payment processor is singing its own nunc dimitis. Ad revenue sharing sites need to be wary of processors who have within their agreements, the withholding of certain percentage of rev share sites sales proceeds and ability to hold on to rev share funds.