Here's my quick math of why this won't work:
I send 100 sign-ups:
I get $4000 for them, plus 50% so another $250 you get $250 less cc charges, so you make $213.
So, from the trial you've paid out $4250 and
made $213.
Then, lets say it converts well at 50%, which is a more than fair number when a full membership is $49.95 So, you pay me another $1250 and you make $875(your 50% plus CC fees)
So, now you have paid me, $5500 and you have made $1088.
So, then lets say 80%(again a fair number at 49.95) for the 2nd month. 40x$50=$2000
That's now another $1000 for me and another $850 for you.
After the 2nd month, you've paid out $6500 and made just $1938...
Month 3 80% go for the 3rd month, so that's 32 members which brings in $1600 of which $800 in mine and $680 is yours.
So, after three months which is the average membership, you have made $2618 and paid out $7300. That doesn't include hosting, content, etc...
Those remaining 32 members would have to ALL stay members for 14mo. in order for you to break even and that will never happen, at the very least a few of their cards will expire in that time.
Any Questions?
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