The PTC money cycle... how does it even work?

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So recently I've noticed something about PTC sites. They kind of make their own economy. Think about it. Say you own a PTC site. You charge to put ads up. People pay you.... you put their ad up people click you pay them a % of what you made.... So now for the clickers. The clickers get so little money so they want to make more... so they try to get Referrals and decided to advertise on the vary sites that are paying them to click on ads.... it's like one big cycle of money. I honestly think it would be easiest to just be a PTC site owner. Not only could you advertise for your own refs at a fraction of the cost you charge but you are making money from those trying to get refs. I don't understand why so many PTC sites don't make it. Is their something I'm missing? i can't imagine it costing more then $40 a month in hosting for one of these sites. Do you think they make more or less then that? Also I think the less ads and the more money I get paid per ad makes me actually view the ad. One company pays me .02-.06 cents per ad I view for them and I actually do view the aid because at most their is 16 a day and most days around 5. How do you feel about this? Are you more likely to view the ad if you get paid more for it... and by view I mean actually read? If I had my own ptc site I would pay .02 a click and .01 cent a refs-click. I think people would be more willing to advertise with me because i was paying more so people take the ads more serious. Also another thing to consider is the more you pay people for refs the more likely they are to promote you instead of someone else which gives you backlinks if you know anything about seo and the more members you have the more likely you are to get advertisers. I don't know seems like it would work to me.