Quote:
Originally posted by European Lee
So you are saying there are no legitamate reasons why a sponsor wouldnt instantly change processors at a certain part of the day? Interesting.
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Actually, I did not say that. I said that it would be obvious if you switch from a NATS join and biller to a non-nats join and biller.
Quote:
Originally posted by European Lee
If an affiliate program is shaving @ 15% and losing 20% of 'affiliate' sales, the sponsor program gains more in the long term. Simple mathematics tells us that a $3.95 trial paying out $35 loses the sponsor more money.
Its actually cost effective for a sponsor program to shave 15% of their affiliates sales.. they save $35 for each regular sale they do make PLUS the make money on the rebills.
Lose 5% of a $3.95 sale or lose $35 from a $3.95 sale.. which is the option that works out better for the sponsor program here? ;)
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On a NATS controlled site, if you have a $3.95 trial join, converting to $34.95, using all features NATS offers to maximize your retention, lets say your average retention is only 1.5 months (which is very low). Meaning per member you make around $56,38.
You payout $35 leaving 21,38 for you.
Going by my example, shaving 15% off would mean you are really only paying $29.75 meaning you keep $26.63 instead. Considering now that due to the shaving you lose 20% of the sales while you shave since cascading is nolonger possible for those, means you lose 3% of all your sales or $1.69 per member. Meaning you only make $24.94.
On TOP of that your retention on those sales, considering you use the same join options, are going to drop a LOT compared to NATS, simply because of our features that we offer which will be very complicated to still use without using our join form. Lets say you lose 0.5 retention, keeping only 1 month on average, means you lose $17.48 on 15% of your sales which means $2.62 per sale. Meaning you now keep $22.32.
Ok, great, you just shaved your affiliates 15%, ruined your reputation because we have found that you shave and now you make $0 instead, and all that for NOT EVEN $1 per member?! Now thats awesome business thinking...