Originally Posted by pompousjohn

The problem is fraud. Not "poor risk management" You get paid $3 for a customer who spends thousands on cams, because you also got paid for hundreds of others who never spent a dime. That's risk management.

Programs calculate their PPS based on the amount of customers they know will spend money, and the amount they know they will spend. And they have years of history and 100's of thousands of joins to get stats and averages from. Until you own your own camsite you don't know anything about it and you aren't supposed to, it's none of your business.

But if you intentionally send customers you know aren't going to spend, then you are committing fraud. Whatever the underlying reasons or circumstances may be, the most effective way to deal with fraud is still to eliminate the affiliates who send it.

Now, regarding prepaid cards, there is a reason credit card joins are valuable, and worth paying for, and most of those reasons go away when prepaids are factored in.

In a PPS program, 2/3rds of the customers who join are a loss and it's up to the other 3rd to make the program profitable. 99% of prepaid card users are in the first 2/3rds.

People use prepaids because either they don't want to spend money, (No program wants to spend money on customers who don't want to spend money) or, they don't have a credit card - People who don't have credit cards have bad credit. People with bad credit have no money. People with no money are not good customer material.