Quote:
Originally posted by Kimmykim
Somehow those numbers don't add up for me
Let's say you've got a pay per join of 30 bucks. You get paid on trials. You do 10 sales. Thats 300 bucks.
Then you've got a recurring. You also do 10 sales at 5 bucks per trial with a 35 dollar rebill. And you get 50%. So you have now collected 2.50 x 10 (if you arent getting stuck with processor fees on half), making 25 dollars so far.
Now 35% (the industry average on a good day any more) of those people take the full month... so that's 3.5, hell we'll say 4 -- at 17.50 for you. That's what, 70 more dollars? So you are at 95 bucks now.
The second month, of those 4 people, let's be generous and say that 2 recur. so thats another 35 for you.
We are now 64 days into this process and you've got a whopping 130 coming at you.
When you'd have had 300 right off the bat on pay per join...
Correct my math if I am wrong, by all means.
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kimmykim,
I get your point - don't see what could be wrong in your numbers and percentages BUT, as mentioned before: if this is reality, how can PPS even exist today?!?
sponsors aren't charity so at the end of the day the PPS sponsor needs to have some profit left. this means his cash in is actually more than the $300 that flowed out... which means recurring should be making more than pps on the long term, because the sponsor is earning its money on a recurring basis as well!!
conclusion: your recur-percentages are to pessimistic - recurring occurs during a longer period and/or the percentage of the trials that buy the full month is higher than 35%.
just my
if you have other clues, i'm very curious...
tim