Spotting Bad Traffic Exchanges Part 2: What’s it giving out?
There is a lack of understanding of how inventory affects traffic exchanges. Many beleive you can simply add more credits into the system, and all is well. In reality, inventory plays a large role in an exchange. Too little inventory and people start to see the same ads over and over again, too high and people start to wonder if people are even surfing the exchange. Part of spotting bad traffic exchanges, is spotting owners who lack this understanding of inventory balance.
Signup Bonus
The first indicator is how many credits you receive when you first join. Simply put, there are exchanges out there giving way too many credits to new users. The magic number of a good or bad signup bonus depends entirely on the exchange. An exchange can afford to give away a bigger signup bonus if A) it is a larger, established exchange with active members B) it requires you to surf to receive this bonus (IE: Surf 100 pages get 100 bonus credits) C) it is a brand spanking new exchange with 0 inventory and the bonus is removed after so many members (or when the owner finds the correct balance). Of course C is harder to detirmine without joining first.
Referral Bonus
Just like the signup bonus, but for the referral. If it’s too high the same out of balance inventory can happen. The same A/B/C factors apply as the signup bonus.
Surfing Ratio
If the surfing ratio is too high, the exchange will have problems with inventory. Anywhere above a 2:1 ratio, especially on new exchanges, use caution. Especially when you see a 1:1 ratio. Many new owners who only look at an exchange from a surfer’s point of view will open up an exchange to proclaim they have the best ratio in town! Little do they realize this essentially leaves them no room to sell traffic or give out bonuses. Any selling and any bonuses will max out their inventory.
So then, how do exchanges like EasyHits4U do it? There are various ways it can be done. For instance they have a 1:1 surfbar and a 2:1 surfbar. You can also pay members to surf, or allow credits to be used to display banners. It can happen, but delivery will be slower than an exchange where the ratio is lower.
Referral Earnings
And finally we’ve got referral earnings. This is where you receive a % of your downline’s surfing. Some go one level, some go multiple levels.
Adding It All Up
First add up the signup bonus and the referral bonus. Then convert the ratio to a % and add that to the referral earnings percentages. (IE: 2:1 = 50% + one 10% level = 60% total). If the total % is equal to or greater than 100, then red flags should go off. If the total bonuses is higher than 100, red flags should go off. Realize the idea here isn’t to drop an exchange with one red flag, but at the end of the series to add them up. The more red flags you’ve got, the more caution you should use before joining.
Just a little confused on ratios and %’s. Most exchanges start off with a couple of hundred credits with a 2-1 ratio.
But I never was good in math so I really don’t understand all the rest.
Barbara
I competely understand now why I get so few hits per day from the traffic exchange you specifically mentioned above. I quit surfing it about a week ago, and I have still got credits there. I am wondering if they cut you hits back, when you don’t surf. I have a suspicion they do, but only a suspicion.
Thanks
Banifid
Hey Tim,
congrats dude, another excellent article.
And Barbara, if an exchange is giving away 200 credits for free on joining then take Tim’s advice – that’s a HUGE red flag! Really don’t expect those hits to be delivered too quickly, if at all. You won’t find that sort of join bonus at any of the top exchanges. Most of us give no bonus at all and those that do, like me at traffic-splash, ensure that members earn it by surfing.
This would be impossible for Tim to add to his equation but one thing that sets off alarm bells for me is solo ads.
I HATE when I see owners allowing solo ads regularly if they give away credits for reading because I know it is probably pointless advertising at that exchange – surf activity will be low if people can earn their credits from solo ads (except WebBizInsider – their math works)
Credits are supposed to be surfed for – if exchanges give them away for solo ads, or bribes to join other programs then be wary. Traffic delivery will be slow.
I joined one and found a bug in it where I’m suppose to loose credits for a certain activity and it actual gives me credits instead. They probably used math like: X minus -Y which would be X plus Y. Or maybe just a simple mistake of a + instead of a -. Eitherway, this happens to be a *standard* default script out there on a few exchanges and the ones I see are doing the same thing so it is a problem with original coder and is manifesting to all similar traffic sites.
Well, it certainly means people will be getting more credits and thus surfing less. This is a real bad problem. Will be compounded when others learn what I did. Though, not sure how many people pay that close attention.
Point is, I agree you have to monitor and not waste efforts on poor resulting exchanges.
Oh, and what do you think about sites that offer raffles. Say, 10 surf credits to get into a raffle. If the raffle is for more credits, and it pays out less credits than it takes in, this would help. Or, just raffle off banners or referrals or something like that. So, if a 1:1 exchange were set up that offered the raffle, then it could help keep credits low enough so people are surfing.
What do you think on that?
Thanks,
Dan
excellent article Tim. knowing simple math is a requirement for owning a te.
Hi Tim,
Another great article. I launched my exchange with a 3:1 ratio and no credits up front. It’s actually a 2:1 for the users that play the game that a brilliant script writer wrote for me. Funny thing is I have many members that opt out of the game thinking they earn credits that way. No problem, more for me to sell. I find that I prefer to join new exchange that offer no credits to join. Everyone starts out the same and my credits get seen alot faster then from a exchange giving away 50 or more credits.
I will see a nice splash page or banner for a new exchange. They were smart enough to put up a nice design but they turn around and give away 200 to 500 credits to join or more in some cases. Any exchange that gives away more then 50 credits I refuse to join. If they offer no credits to join and have a 3:1 ratio I know I have found a really great new exchange. I think this article will make alot of users re think about joining exchanges with lower ratios and higher join credits! Wat To Go!
Rich Morris
Thanks for explaining Tim. Paul also thank you for your imput. I belong to some that do solo adds. But it is just once a month or twice.
One that I belong to is if you are the highest surfer your solo add goes out free, besides other free ads on the site, with banners
Barbara
Another caution I would think is TE’s that offer cash to join if you one of the first 500 members. Trust me you will NEVER be one of the first 500 members. Te’ s that provide steady traffic witj a large amount of sites to view are still the best. If you start seeing the same ads over and over, move on. People stop reading them.
Hi Tim,
I have enjoyed both articles in this series, well done. Informative for both owners and surfers alike. I look forward to your future installments.
Keep up the good work,
Mark Brown
It’s discutable this question. Basically you’re right Tim.
I think the main problem is not with the bonus delivering, but how stable is that TE. There are some owners who sustain their TE from an another business they have and TE is just an additional opportunity for traffic, or income resource. The problem indeed is if they can afford these bonuses and traffic delivery. If they can it’s ok, if not it’s a problem. So we have to be caution and alert with these bonuses.
What i don’t like in many TEs is that the owners change too many times their credit/bonus system, in the last time even the timer or surf ratio are very often changed, randomely. Honestly i don’t like these kind of changes at all. That means they are not stable. Ok i agree sometimes, but even in these situations the basic elements like surf timer, surf ratio have to remain the same.
So one of my criteria for a TE is if that TE is stable or not, that means stable members, if the members surf regularly, the basic elements surf timer, surf ratio, traffic delivery are stable or not. Even the bonuses delivery has to be somehow balanced, not too low, not too high.
So in conclusion i like stable TEs.
Thank you,
Erzsebet
I have been receiving your email about these blogs, but honestly I didn’t pay much attention to it, out of curiosity I click the link, browse the pages and blogs you had, I find it interesting, the reactions, the arguments about your blogs and so on.
I am a newbie to these exchanges, I have joined several of these and that includes startXchange, but frankly from what I have read in your blogs and the comments, I think I have to re study again each of these exchanges I have joined to find if any of these falls as a bad site or program as what you have describe.
[...] This entry is part 1 of 2 in the series Spotting Bad Traffic ExchangesSpotting Bad Traffic ExchangesSpotting Bad Traffic Exchanges Part 3: What kind of history does it have?Spotting Bad Traffic Exchanges Part 1: What does it look like?This is Part 3 of the series “Spotting Bad Traffic Exchanges”. You can read Part 1 – “What does it look like” and Part 2 – “What’s it giving out” [...]