What is Profit Sharing Advertizing Model?
Posted by Jackie R. on December 9, 2006
A big portion of my current online income comes from “auto traffic exchanges sites”, or popularly known as auto-surfs or paid to surfs (PTC). I must admit I just love this concept of making money online ever since I discovered it in sometime in 2003.
The concept is very simple. You are paid for viewing other advertizers’ sites and how much you are paid depends on your “account level”. Since last couple of years, we have seen an amazing proliferation of such autosurfs appearing and disappearing, some can last a couple of weeks to two and a half years, after all, it depends on the integrity of the site admins and the business model it employs. There are also a wide range of the daily returns offered, from the traditional 1% per day to as high as 25% a day. As a note, autosurfs will bring an extra big amount of traffic or hits to your site too and is a really good way to gain more impressions for your sites.
However, the main risk of it is that, this is also a constantly evolving industry. By November 2006, many people have realized that the fixed rate model is no longer viable for long term because more and more people have been hurt by the sustainability of this model. Hence profit-sharing model is borned. In this model, there is no fixed daily rate and there is a cap of how much you can earn in total. Generally, the daily advertizing purchases are added and then divided by the total active advertizing packages at that moment. This will yield certain percentage which is what individual advertizers will earn per unit that day. The site admin will usually deduct certain percentages from the total daily purchases for other purposes like admin fees, web host fees, or simply as reserves. It is a surest way of making money online as well as advertizing your services and sites.
Let me give you an example. Say http://www.ProfitShareExample.com receives a total of $48,000 advertizing purchases today and the current active advertizing packages or adpacks are 500,000. If the site admin uses 90% of the total for profit sharing, that day’s rate will be calculated as $48,000×0.90/500,000×100%=8.64%. Each day, the site script will calculate that for members. Let say you have a current personal purchase of $1,000, and therefore you will earn $86.40 that day. For subsequent days, you will continue to earn based on other to-be-determined rate until a maximum cap, usually 130% to $150%, has been reached. In another words, you can profit between 30% to 50% of your initial purchases depending on HOW FAST the site performance can allow you to reach that target. This is just the basic way how profit sharing model works so you need to read the site’s terms as there may have some slight variations.
Profit sharing model are structurally more stable than fixed rate models because they do not have to credit fixed amounts of money for members each day. If there is no income for that day, members will not be able to earn for that day. I will be glad to introduce to you the most respected profit sharing site which is also the site that first launched this profit sharing concept in early November 2006, CEP Coast. I benefited a lot from CEP Coast and I am sure you will too. This is a registered LLC company run by a team of honest Christian admins.
Without a doubt, the million dollar autosurf industry is phasing gradually to profit sharing model. There are already about 8 such sites as far as I know at this moment of writing. Expect to see more of it appearing online in 2007. If the admins behind these sites are honest, I can’t see why we won’t have a properous 2007.