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Old 03-20-2006, 01:48 PM  
SilentKnight
Megan Fox's fluffer
 
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Join Date: Oct 2005
Location: shooting pool in Elysium
Posts: 24,818
Quote:
Originally Posted by After Shock Media
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.
Interesting numbers, thanks ASM.

Although we're using Verotel as our primary @ 15% - we also have the option of handling the affiliate transactions through our hosting service, which I'm told is as low as 4% (unconfirmed at this stage). So we'd have to sort that part out first.

The biggest concern is that we're currently on a revshare deal with the webhosting - so a significant percentage of the affiliate sales is eaten up right there.
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