Porn Affilliate earns $1.8 Miilion a year

CAPS Internet Inc. offers a clue. CAPS, a small business housed in a Toronto office building, doesn’t create or sell any adult content. But it serves up millions of pornographic photos and video clips each day on its dozens of Web sites, which have names like HardHut.com and GalleryHeaven.com and are often stumbled upon by Web surfers prowling for free porn.

After visitors click on the free images, they’re directed to sites that charge for porn. If they become paying customers, CAPS receives a commission, often $40 per subscriber. The seven-employee company took in about $1.4 million in revenue last year, and is on track to top $1.8 million this year, according to Matthew Gamble, a senior executive.

Sometimes, keeping affiliates happy means offering them gifts and bonuses, said Clark Chambers, who manages affiliate programs for pay sites OlderWomen.com and AuntJudys.com, among others. Mr. Chambers, based in Los Angeles, said he recently sent a $3,000 TAG Heuer watch to an 18-year-old in Moscow who runs a handful of affiliate Web sites. That was a bonus on top of the $5,000 to $8,000 a month in commissions he has been paying the teen. Mr. Chambers offers affiliates the option of either collecting 50% of referred sales, or receiving a flat $30 finder’s fee per customer. Getting good affiliates to pitch your wares “is super competitive,” Mr. Chambers said.

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