GoFuckYourself.com - Adult Webmaster Forum - View Single Post - Pay Per Sign vs. Revshare vs. Pay Per Click

MarkTiarra · 12-20-2002, 04:50 PM

Here's a lil free info for you guys based on the culmination of a few years research and through three revisions of a very detailed and complex set of spreadsheets...

If you are trying to decide what kind of webmaster program to offer compare these results over a three year period. Given:

1) Growth rate of traffic to sites of about 15% per month with the curve increasing and peaking at the end of 36 months. Starting traffic about 3500 per day, after 36 months almost 200,000 per day across how many ever sites.

2) Avg conversion of traffic being 1 in 500

3) Trial converting to full sale of 42% (I realize this is higher than most guys see nowadays but this study backdates and I'm giving you the aggregate).

4) Retention of full monthly members is 86% (in other words you lose 14% of your full members every month).

5) In this study the avg group generated 9% of their traffic internally and did not have to make payouts on those signups.

6) Lastly there are a host of figures for payroll, live feed costs, etc... I'm not going to get into all that as the point here is just to compare in general.

Pay Per Sign ($35 per sign):
Year one: Profit is NEGATIVE ($6300)... You will actually need about $175,000 to cover the float because it takes a good deal of time for profits to add up.

Year two: Profit is $1.4 million

Yeat three: Profit is $5.2 million

Revshare (50%):
Year one: Profit is $5000

Year two: Profit is $1.1 million

Year three: Profit is $4.1 million

Pay Per Click (avg. $0.06 per RAW):
Year One: Profit is $45,000 (again though you need almost $175,000 to cover the losses very early until recurring builds up)

Year Two: Profit is $1.6 million

Year Three: Profit is $5.7 million

I should add that with pay per click you have all kinds of fraud prevention to deal with to keep those numbers.

So anyway, there is some free info for ya... if you have questions about it, hit me up on icq (34826418) or email me ([email protected]).

I'm sure there are plenty of varying stories out there from different people because we all have different experiences but this is an aggregate study on past business and extrapolation via the P&L Excel sheet in its recently done version 3.

12-20-2002, 04:50 PM
MarkTiarra Confirmed User Industry Role: Join Date: Aug 2002 Location: NJ Posts: 3,833	Pay Per Sign vs. Revshare vs. Pay Per Click Here's a lil free info for you guys based on the culmination of a few years research and through three revisions of a very detailed and complex set of spreadsheets... If you are trying to decide what kind of webmaster program to offer compare these results over a three year period. Given: 1) Growth rate of traffic to sites of about 15% per month with the curve increasing and peaking at the end of 36 months. Starting traffic about 3500 per day, after 36 months almost 200,000 per day across how many ever sites. 2) Avg conversion of traffic being 1 in 500 3) Trial converting to full sale of 42% (I realize this is higher than most guys see nowadays but this study backdates and I'm giving you the aggregate). 4) Retention of full monthly members is 86% (in other words you lose 14% of your full members every month). 5) In this study the avg group generated 9% of their traffic internally and did not have to make payouts on those signups. 6) Lastly there are a host of figures for payroll, live feed costs, etc... I'm not going to get into all that as the point here is just to compare in general. Pay Per Sign ($35 per sign): Year one: Profit is NEGATIVE ($6300)... You will actually need about $175,000 to cover the float because it takes a good deal of time for profits to add up. Year two: Profit is $1.4 million Yeat three: Profit is $5.2 million Revshare (50%): Year one: Profit is $5000 Year two: Profit is $1.1 million Year three: Profit is $4.1 million Pay Per Click (avg. $0.06 per RAW): Year One: Profit is $45,000 (again though you need almost $175,000 to cover the losses very early until recurring builds up) Year Two: Profit is $1.6 million Year Three: Profit is $5.7 million I should add that with pay per click you have all kinds of fraud prevention to deal with to keep those numbers. So anyway, there is some free info for ya... if you have questions about it, hit me up on icq (34826418) or email me ([email protected]). I'm sure there are plenty of varying stories out there from different people because we all have different experiences but this is an aggregate study on past business and extrapolation via the P&L Excel sheet in its recently done version 3. __________________ Retired Pornosticator Last edited by MarkTiarra; 12-20-2002 at 04:54 PM..