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Interesting question. I think part of the problem is most 'megasites' dont have very good content, and 90% of paysites basically look the same with the whole "free tour" "instant access" "members" buttons on the bottom.
So there is not much good branding going on. To most surfers it all looks the same.
There is some sites with really good content, but I think those have their success in the recurring billing. Good product, good customer service, good retention.
I mean, I could slap up some tour with 3rd party content and it could convert initial signups about as good as a site with awsome exclusive content in the member are.
But I think the bigger problem is at the processor level where not as many signups are going through as they once did.
Pretty much nothing is converting great these days.
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