Quote:
|
A 30% fee plus a 10% commission on other sites does sound more appealing But why have you capped the commission at $10 per surfer? An uncapped 10% would provide a more persuasive offset for your (still) comparatively high fees.
|
Thanks Groove.
The reason is that we want some flexibility to adjust this in the future. If we said that there was a perpetual 10% commission, we could never turn around to you and say we were going to stop paying that.
In a year's time, we hope to have huge volumes of surfers and webmasters. There will be a lot of money coming through PAYC. We'll negotiate our topup payments down to 5% with no holdbacks, our costs will go down (maybe!), and there will already be a lot of surfers. The pressure will then be on to pass on the savings to you, and we will. But if we're stuck still paying 10% for the surfers that signed up in the first wave, you'll be stuck with the high percentages.
That's why we're capping it at a $10 commission. It gives us the flexibility to maximise the income for everyone according to the surfer and webmaster numbers we get.
We thought of capping at 6 months spend rather than $10, but our model is based on an average spend of $10 per surfer per month, so we beleive $10 is more generous. If this turns out to be an underestimate, we may adjust it so you get more.
By the way once a large number of surfers have spent their $100, so we're getting 20% of their spend, you can use this to put pressure on us to bring the rates down. But it depends on the growth rate, the average spend per month and so on.
Hope this answers that question OK.