Hooper,
Although alot of what you said maybe true, you fucked up in a couple spots.
#1 I have my own merchant account, and I do run several paysites, I lose less than 5% on processing.
#2
Yes the first few months maybe a loss, but I DO have an assload of cash lying around, in my safe at home, in my bank accountS, in several offshore accounts, and I have alot of people that want to give me another assload of money to get something new started.
#3
You have no idea how much extra moneey sponsor programs make for upselling their members services like phonesex, videos, DVD, toys, other member programs, selling email lists etc... When was the last time you peeped inside a TrafficCash Gold site? almost the whole membership section is an upsell to something else. Of course this effect rebill percent, and that is why these mega sites average member retentions at 1.85 months. The sooner they get em signed up on another site or program, the sooner they get to keep more money by not for example having to pay rebills.
These guys have done the math, they make more money upselling their members to other services than trying to keep them for more than 2 months.
So Hooper, and all you other Math proffesors, you can do the math on the numbers that are obvious (member rebills and initial sales) but you haven't got a clue what are all the correct variables are to do the math on.
Yes you lose money at first, but you make a fuckload of cash later. Same with any of the handful of successful partner programs out there. Most of these guys lost 100's of thousands of dollars trying to get their programs working, but when they got a winner, they laughed at all the "naysayers" like you. I know of several people who have invested and lost over $100,000 only to have made 10x that back a year later with a revamped program.
I have 3 DVD players by the way, but one of them broke. Need to replace it and circuit city is out. Don't like it?
Go fuck yourself, let me show you how!yourself:
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