Im not surprised ringtones arent profitable
Why:
1. lots of competiton from other ringtones providers
That could lead to a loss of profits from the actual providers, but not the affiliates. Additional competition from the provider end only forces them to raise CPAs.
2. Too many people selling ringtones on myspace, adwords ,ect
There is no one selling ringtones on adwords, unless its "artist ringtones". The golden terms are untouched because of QS.
3. alot of the demographic who wants ringtones don't have credit cards on hand to buy the ringtones
You dont use credit cards to buy ringtones (you actually can, but not the type of CPA offers run on Azoogle/Hydra/XY7/CPAEmpire/COPEAC, etc.)
4. poor landing pages with alot of leakage
Where is the leakage? There are no outbound links on the landing pages with the exception of ToS type links on the bottom. They are 1 page landing pages.
5. Buying is a calculated decision that involves weighing pros and cons. Often someone will click and ad and then once he gets to the order form click back because he doesn't feel ready to make a purchase.
There is no "order form" with CPA Ringtone sign-ups.