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Program (A) (credit card sign-ups)
If program (A) gets 200 webmaster sign-ups a day.
200 joins a day X 30 days = 6000 sign-ups
Some NORMAL numbers for paysites: (from total sign-ups)
20% take the full month from start
25% trial to conversion (some are as bad as 15% others as good as 40%)
40% month to month retention (good niche sites can see 50-60%)
3% take 3 month membership
COSTS: (normal rates for flat rate programs)
$2.95 trials
$34.95 full months (some charge $39.95)
$90(ish) - 3 month membership
Out of 6000 sign-ups we end up with these numbers:
1200 sign-ups a month at full rate
1155 sign-ups a month will convert to full month
180 sign-ups a month take the 3 month membership
4620 sign-ups are trials
1200 X $34.95 = $41940
1155 X $34.95 = $38969
180 X $90 = $16200
4620 X 2.95 = $13629
TOTAL (1) : $110738 EARNED
Out of the above memberships we have 2355 full month memberships. If month to month they retain 40%
2nd month = 942
3rd month = 377
TOTAL (2) = $46009
It's safe to say 50% of the total traffic will view the 1st exit. If the paysite converts 1:500 then they get:
3,000,000 uniques a month. If 50% of the total traffic sees the exit 1,500,000.
Paysite exits convert 1:2500 visitors to view the exit. That comes out to 600 sign-ups. (Most tweek the first exit hard, easy to get 1:2000)
600 X $35 to other programs is:
TOTAL (3) = $21,000
TOTAL (1) + TOTAL (2) + TOTAL (3) = $177747
WEBMASTER PAYOUT:
PAYOUT $30 per join X 6000 sign-ups = $180,000
PAYOUT $35 per join X 6000 sign-ups = $210,000
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Flat rate programs make extra money on a huge amount of upsales, 2nd, 3rd, 4th exits, checks & web900 (yes some pay on them), dialers, e-mails of past members, discounted sign-ups rates after cancel, cross sales, and some other shit.
This is also based on stopping at 3 months of retention. Long term retention makes up huge numbers for paysites. 2-5% will bill 9 months + without a problem.
Paysites get huge amount of type-in traffic, error traffic, self promotion traffic, etc.
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Flat rate programs work because of volume and don't need to shave if they know what they are doing. Of course I'm not saying that 'some' don't shave but this proves that they don't ALL HAVE to shave.
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