Wupload.com closed its affiliate program. Why?

Just I wanted to write about Wupload and my success with their affiliate program, as it appeared that they had closed it due to “its no longer financial viability”. Hmm… But this program seemed to me very prosperous one, how could it become "no longer financially viable"

Willy Wupload on the official news blog says “… we were able to surpass our growth expectations in terms of traffic, but as anybody in the file hosting business can tell you, traffic does not always mean profitability.”

Wupload promises to pay all earnings gained till November 28th, that means that I’ll get back my money. That’s cool, but I’ve decided to collect some reasons why services close their affiliate programs. I remember that even Dropbox once had affiliate program, but had closed. So, I have found just two which seemed to me really important.

Reason #1
Taxes or law restrictions

One of the reasons why Amazon.com closed its affiliate programs in some of US states (e.g. California) was the state tax policy. For such large companies as Amazon.com it was inconvenient to pay state sales tax on income of small affiliates.

Reason #2
Hosting problems or non-stable traffic

The main reason why many affiliate programs close their affiliate programs and I think it was also Wupload’s reason is non-stable traffic. What does that mean? Do you remember old rule – “quality – not quantity”. The same is here.
Just beginning your e-business the main goal is to attract traffic to your site, but after that you should turn first-time users into stable subscribers and buyers. This will bring success to your business.

But! Wupload’s Affiliate Program was really great one. Large variety of offers, ability to earn much ($40 for 1000 downloads), 20% on referrals, interest on sales done through your website. More attractive to me among young file-sharing affiliate programs seems just FileTram.com. This service offers up to 100$ per 1000 downloads and I must say that it is rather easy to work with it.
About my earnings with FileTram I’d write later.

Be stable,
Norman