Quote:
Originally posted by Jak
OK let's see...
Quick calculation (disregarding processing fees, chargebacks, things like that):
100 3 day trial signups for Ams. Teens x $2.95(cost per trial) = $295.00 total sales
50% conversion (say half of the trials convert to monthly) = $1747.50 converted sales
100 webmaster payouts of $30.00 = $3000.00 payout
$1747.50(Actual sales) + $295.00(initial trial sales) - $3000.00(payout) = -$957.50 (negative!)
Besides shaving, how the hell else would these companies be able to pay out so much on trial signups? In the regular world, if I paid a salesman $50.00 for every $3.00 item he sold for me, I wouldn't be in business very long. Why is it that people let this shit go in the adult world? Strange.
Jak
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Your logic is flawed. If you pay a guy $50.00 for selling a single $3 item, you're out of business. However, that isn't the model we're working with. This is more like selling a guy a $3 item that, if he forgets about it for a couple of days, will become a $40 item. Also, when you sold him the item, you threw in a shitload of catalogs of similar items for him to look through and you'll pick up extra money if he buys any of that (upsells).
Also, don't forget that you are paying your salesman $50 for selling a $3 item, but he also gets $50 is he sells a $500 item. A lot of those sales were multiple-month sales, rebills, whatever. A lot of them were showing several hundred dollars charged to the customer with the same small payouts to the webmasters.
SpaceAce