Quote:
Originally posted by HardProfits
Let me try and explain if I can ;-)
Lets do the math on 100 signups.
100 x $2.95 = $295
Lets say 70% cancel within trial (a reasonable average), and of that 30% left, they retain for 2.4 months (another reasonable average for general hardcore) billing at $39.95 per month
30 x $39.95 x 2.4 = $2876.40
Therefore
$295 + $2876.40 = $3171.40
Now presuming you have a premium account with a processor at 10%, you are left with
$3171.40 - 10% = $2854.26
Now lets divide that $2854.26 by the original 100 sign ups
$2854.26 / 100 = $28.54
OMG - What happened there. This cant be right (sarcasm in my voice)
Sponsors pay me $35 per signup?????
The TRUTH is this. Apart from some exceptional programs like MrSkin.com, (which I know has some amazing retentions), most webmaster programs resort to two scams....
Scam 1 - Shave the webmaster
Scam 2 - Rip off the surfer (by hidden upsells, or no cancel buttons etc)
Or a combination of both
The bottom line is this. Find a sponsor with "AUDITABLE" stats, and check their sign up and customer support policies (such as cancel links and upsells)
Then make your decisions from there.
And for all this webmaster programs out there who disagree with me, I am only speaking in generalities about how many webmaster programs operate. I am sure your site is different 
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But you are forgetting that sponsors have income from other sources such as..
dialer income which can be substantial even for those that pay webmasters a share of this..
upsales to members.. not scams but targeted selling to qualified customers - if you treat them good and give them what they paid for then they are more likely to whip out their cc to buy something else you offer assuming you offer what they want..
reduced rate memberships offered to cancelling members..
spamming their mailing lists..
income generated by sponsors own traffic.. traffic they buy from various sources or even just se listings..
lots of other stuff too no doubt.. it all adds up..
