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Affiliate Program of Hosting Companies

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How does the affiliate program of hosting company works? For example HostGator says they’ll pay you $50 per signup for example if a sale is $0.01 only HostGator is willing to pay $50 commission on that. It’s really not logic they’re losing this way or am I wrong? How they pay $50 for a $0.01 or let say for a the smallest package $66.72 per year they’ll pay you $50 out of it.

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