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Phil,
I will not deny the fact that this goes on in our business, but I feel like a lot of people here are missing some key points to running a profitable paysite / sponsor program. I will not claim to be an expert on paysites, but I spent a good bit of time researching our figures before we chose to offer per signup as we insist on running an honest business.
First off ... KRL is the only one to have mentioned popups.. exit consoles make up for a huge portion of that $35-40 payout. You'd be very surprised.
Cross-sells.. not everyone has / uses them, but it is becoming more & more popular & also makes up for a huge portion of the payout. Paysites can put these on the credit card page, on the approval page (after they've been billed), and even in members areas & member e-mailings.
Upsells.. live feeds / chats, phone sex, viagra, sex toys, dvds, etc..
Cancel offers.. most sponsors are now offering members access to all their sites or even lower monthly rates if they stay. Of course this adds to the pot, every little bit helps.
Finally .. You mentioned retention rates at 30% .. that seems to be a common figure for trial-to-monthly conversions. HOWEVER, you applied that number to the entire length of a member's stay.. That number changes as time goes on..
For example, during the trial there is perhaps a 30% chance they'll rebill to a full month. There is then a 40% chance they'll rebill a 2nd time. Every month that goes by, the more likely the member is to stay (to a point). The exact numbers vary by site obviously, but eventually you might be keeping around 80-90%+ of your members base..
So as you can see, there are a lot of variables in the equation.. it IS possible to pay an honest $35-40 per signup and make a profit. How many sponsors do, I have no idea..
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Adult Paymaster - Mr. Big Bucks - Decline Dollars - Adult Comic Cash
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