|
ElvisManson: thanks for the time you put into respond, you gave alot of great input. Value Per Click (VPC) is certainly a good way to analyze your ROI since that number tracks your overall track record. VPC is a stat that is computed on your side, so it would be an unfactorable variable to include shaving, since that would be the same as an opportunity cost (lost). The bottom line from VPC perspective is overall what works and to make adjustments in what you do and have the VPC quantify your overall results. So if shaving is a known factor on the paysite side, then the end result of that shave does affects your VPC number, you just don't know it. As long as you maintain a comfort level of a VPC, then shaving is not a factor; managing where you send your traffic, the conversions, and the payouts are the key factors.
Lenny2: excellent examples and posts! Very interesting point you made that lowering payouts could be a problem for programs, because it could mean less traffic that they receive from affiliates,therefore less possible sales, and reduces the number of good charges they have against chargebacks to maintain their 1%. So yet again, another numbers game issue.
Wizzo: thanks for the link..long thread and going through it now. MarcDe's input about how PPS works for paysites in the long run is a great one, and it highlights the point that you need alot of short term bankroll to handle the PPS, that makes you more money in the long run. Having alot of signups occur is usually "a good problem to have", but various factors as discussed in this thread does cause the paysite to get to a real problem of being able to make those weekly/bi-monthly payouts without much of a float. I have heard where some paysites had to tell their big affiliates to stop sending them traffic because they were getting too many signups. It seems like a steady flow of signups could work well with the high PPS model, until a big wave comes in.
Aly: agreed, and in looking at the analysis that wizzo and others have provided, doing a high PPS now means making more money for the paysite in the long run, if you can manage the float. Being able to upsell other products to a current member where you don't have to pay any commissions, certainly is another "tool" that a paysite can use, and one that had not been brought up til you mentioned it...
There are alot of newbies and mainstream businesses coming into the adult space, lured by get-rich-quick dreams. It's my observation that the golden days up to 1999/2000 are now seeing paysites working through the logistics with more business (and luck) precision. Same is true with affiliates, that it's not as simple as just putting up some sponsor-provided images and signing up to the highest paying programs.
It's the knowing of the "science" and the experimenting with the "art" that illuminates those that are successful.
Any other issues or points missed that might be factors on paysites or affiliate sides?
Fight the Summary!
|