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Originally Posted by SilentKnight
Lately we've been toying with the idea of starting an affiliate program for our various Kastle Archives sites.
We'll likely go with the typical 50/50 revshare split.
But after crunching a few numbers, subtracting our various expenses (hosting, Verotel fees, etc.) and whatnot, it came down to only a 15% net profit for ourselves.
So for example, on every $100 in affiliate sales, we'd only see $15 of that.
Is this typical?
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You are getting hosed somewhere.
First off very few webmasters will want to nor promote a paysite that uses Verotel as the primary.
Now some numbers to play with:
- CCbill fee's 12.5% or so, often split with affiliates on revshare.
- Bandwidth cost per member per month: $2.69 for myself
- Content production & purchases per month: $3.54 per member.
- Affiliate cut: 50%
- Average membership price: $30.00
Affiliate earns $13.13 per sale (no ccbill split fee)
Owner earns $7.75 per sale
As you will see that is more than 15% profit for yourself. Of course as your member numbers go up your content costs per members go down. Also depending on your hosting often the more you use the less you pay per MBPS.
This also does not include any self generated traffic and sales.