I'm working on a couple of scripts and I'd need your feedback regarding the credits system.
Basically, the two options are:

1. cash for every action (user clicks on a link and gets credited a fixed, known amount) -- used extensively by today's GPT sites
2. points converted into cash at the end of a period (e.g. weekly or monthly) -- used by myecom.net

Second option would allow wm's to pay a fixed percentage of profits to the members. The income and expenses and estimated cost per point should be listed on the site.

Advantages:
- since a percentage of the profits is paid, the wm never pays out of his pocket if business goes bad
- the wm has more freedom in adjusting the advertising prices
e.g. if a wm has a package worth $30 from which he makes a $5 profit he cannot afford to sell
it on ebay for $20 (unless the loss is covered by selling banner impressions or something of the kind). with a points system he could technically sell it for $10, he wouldnt make a loss, just that the percentage per "point" would go down

I can't think of any disadvantage for this system, except maybe for the members not being able to cash out until the end of the period, when the points are converted to cash.

Please post your ideas.

baph0met

Two obvious disadvantages...

First, for as long as rewards programs have existed, cash has always been more popular than points.

Second, a lot of these webmasters ARE making money selling a $30 ad for $5... You're not taking the percentage of members who don't reach payment minimum into consideration.

And, you're right, the earnings delay discourages a lot of members.

On the other hand, since you're going to sell you scripts to webmasters... points aren't a bad idea, webmasters love points. Points = pay members less money. :-)