Quote:
Originally Posted by Dennis Rodman
Ok, explain to me $55.00 on $1.99 trials... or MORE! Come on, there are very few programs that can claim their retention rate is that high that they can claim to make money off of this.
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I'll explain it to you, it's actually very simple.
Bussiness people work in percents. 10% to this, 25% to that. It's how business is run.
When starting up a new site, for instance, money is spent, x% for content, y% for design, z% for promos.
If the paysite cost 10,000 to make, that leaves some decent dollars for promos, say a k or 2.
Now, to blow those dollars, you offer a limited time deal to affiliates.
There's two parameters you can set : premium (how much you pay over what traffic's worth, to entice affiliates) and duration (how long it lasts). There's a third you can not set : affiliate's traffic.
Now, if you're looking to spend 1k, and discover that the average affiliate sends 18 hits, you suddenly realise that heck, unless i pay these bums 55+ per signup, or else make the promo last till 2025, there is no way in fuck I'll spend the budget.
Not spending the budget is BAD in business, by the way. It means you failed.
That's the whole fucking mystery. Satisfied ?