Quote:
|
Originally Posted by SteveLightspeed
Wait, let's do some math here. If you want us to offer a discount to your surfers, we potentialy eat way more than you in the process.
Let me explain:
------------------------------
Per Signup Payout
Normal:
$40 site with $35 payout --- sponsor makes $5
Price and flat payout both reduced by $15:
$25 site with $20 payout --- sponsor makes $5
But carry that out with rebills:
1 rebill = $45 vs $30
2 rebills = $85 vs $55
3 rebills = $125 vs $80
4 rebills = $165 vs $105
So even though it looks like YOU absorb the discount,you would actaully reduce OUR net by 33% or more, right?
|
You're forgetting two important variables:
1. # of Sales Produced with one price vs. the other.
2. Retention with one price vs. the other.
Let's say sales double due to the lower price (we usually see a higher increase). Let's say retention improves by an avg of one month. I don't know your avg retention, but let's say it's 3 months.
Discount ($25): $25 x 4 months x 2 = $200
Original ($40): $40 x 3 months = $120
Even if retention stays the same (3 months), that's still $150 vs $120. So we split more money overall. Results vary, but in almost every case the total is significantly more.