Quote:
Originally posted by heymatty
they buy pretty much all the content plugins they can find
and charge $49.95 a month
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and they can still make money on that? if the trial is say $5 and they get 100 of them, that is $500 they bring in. Now they had to pay out $35 x 100 = $3500 to the webmasters...now lets say that they convert at 40% meaning 40 percent of the people pay the monthly fee of $50...thats $2000...now lets say the retention is 40%...so 16 stay for a month, thats another $900. the next month 40% retention so there is another 6 times $50 for $300...then 2 for $100...if my calculations are right thats a toal of $3550 a profit of $50 at a 40% retention...this is not to mention fees to the credit card companines, so it would have ended up in a loss...and I missing something? This is at $50 now they wanted to do their site at $34.95 monthly, they wont make money. Please reply, this is my outlook on their idea....
I think they should skip trials by looking at these numbers.