Quote:
Originally posted by .:Frog:.
I think trials suck, and so do high membership costs.
Charge the surfer like $20 a month with no trial.
To answer your question I think sponsors can pay the webmaster on trials for many reasons.
- Often times a surfer will bookmark a site and join later. Maybe days later and the webmaster often won't get this sale credited to them.
- Some sponsors track sales with just cookies, and we all know at least 30% surf with those disabled.
- Sponsors sometimes use exit consoles to their advantage and not the webmaster.
- Sponsors collect e-mails on their tour.
- Upsells in the members area.
- SHAVING, if the above isn't enough.
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Yes I totaly agree that they can seek more revenues out of collateral things.
Let's do some maths :
A webmaster sends 100 Trial Signup
100 x $4.95 + (15% P. Fees) = $420
25% (25 members) converts to a Full Month
25 x $39.95 + (15% P. Fees) = $850
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First Month Total Income = $1,270
Webmaster Payout = $(3,500)
Sponsor's Profit = $(2,230)
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So, with the remaining 25 members, he needs to generate at least $2,230 to break even. So let's say that the site isn't too bad and there is a loss of 30% per month
2nd Month
18 Renewals x $39.95 = (15% P. Fees) = $612
3rd Month
13 Renewals x $39.95 = (15% P. Fees) = $442
4th Month
9 Renewals x $39.95 = (15% P. Fees) = $306
5th Month
6 Renewals x $39.95 = (15% P. Fees) = $204
6th Month
4 Renewals x $39.95 = (15% P. Fees) = $136
Rest...
Approx = $100
Let's say because of the exit and upsells - the sponsor generated $5 for each Trial that the webmasters sent
100 x $5 = $500
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Total Income (after 6 months) of = $3, 570
Webmaster Payout = $(3,500)
Profit = $70
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Everyone knows that a sponsors has to support a payroll, offices and pay a lot for servers and bandwidth expenses - because most of them offer big Movie Trailers on their tour.
So if they are converting at %25 - %35 from the trial to the full month membership - it seems to me that it's not "that much" interresting for them.