Right now there are 2 file hosts that have spun off a second file host.
Fileserve -> uploadstation
Filesonic -> wupload
The problem with these spin off file hosts is that it gives these two file hosts more market share and enough power to lower payout rates to uploaders. Its simple economics, less choices for uploaders, means more power to filehosts. Its similar to the oil cartels, there's only so many places to get oil so people with oil can charge whatever.
In the long run, payout rates because of this will go down if people support these spin offs. Their advertised payout rates may not change, but they shave even more. The amount of money you can make with any host will drop and equalize to the point where both file hosts have the same payout rates. When they do, where will you go? You're best option will be to stick with them because you've been helping them gain more and more downloaders.
The best is having different file hosts who are run by different people who are truly competing against each other. Case in point, hotfile was the first host who really paid uploaders and they didn't have to pay much to beat Rapidshare. After hotfile, came filesonic/sharingmatric & fileserve and to compete successfully with hotfile they had to offer better rates than hotfile and thats what they did. But now that hotfile is down, fileserve and filesonic is now trying to lower the payout rates. They are doing this by spinning off more file hosts.
Hopefully people heed this warning.
Fileserve -> uploadstation
Filesonic -> wupload
The problem with these spin off file hosts is that it gives these two file hosts more market share and enough power to lower payout rates to uploaders. Its simple economics, less choices for uploaders, means more power to filehosts. Its similar to the oil cartels, there's only so many places to get oil so people with oil can charge whatever.
In the long run, payout rates because of this will go down if people support these spin offs. Their advertised payout rates may not change, but they shave even more. The amount of money you can make with any host will drop and equalize to the point where both file hosts have the same payout rates. When they do, where will you go? You're best option will be to stick with them because you've been helping them gain more and more downloaders.
The best is having different file hosts who are run by different people who are truly competing against each other. Case in point, hotfile was the first host who really paid uploaders and they didn't have to pay much to beat Rapidshare. After hotfile, came filesonic/sharingmatric & fileserve and to compete successfully with hotfile they had to offer better rates than hotfile and thats what they did. But now that hotfile is down, fileserve and filesonic is now trying to lower the payout rates. They are doing this by spinning off more file hosts.
Hopefully people heed this warning.
