Quote:
Originally posted by charly
I will admit from the beginning that I do not understand how these rev shares and pay per sign ups work. But can someone explain to me how a site can give away 60% or $35 per sign up (for instance). lose 15% to the CC processor plus the 10% hold back. Then pay for.
Hosting.
Bandwidth.
Content.
Staff.
Advertising.
Equipment.
Rent.
Services.
EX's
Out of the 25% that is left?
Including the 10% that is held back for 6 months.
You deduct that and you are left with 15%
The figures do not add up. If I'm honest I would be giving away more money than I'm making.
Mind you I did see a thread from a guy who shaved. Because if he did not offer the amounts that were unprofitable he would not get the business, so he thought it was morally right to shave.
Can someone educate me please.
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Its all about volume. Obviously you're not gonna be able to pay the bills if you're only making a few sales a day and getting only 25% of the revenue, but you'll be making big money if you making 100 sales a day. Its all about volume.
Paysites for the most part are full of fixed costs. Besides the extra bandwidth costs of more members, it generally costs just as much to run a paysite with 10 members as it does to run one with 10,000 members.