program owners - something that confuse me

[lil2rich4u2]

i am currently working on a project.

my billing model will be as follows:

1 month = $19.99 (recurring)
2 month = $39,99 (recurring)
3 month = $59.99 (recurring)
6 month = $75.00 - Save $45.00 !!!

i am imagining that a good portion of my signups will be for the 1 month plan.

I have a partner on this program, 50.50 we will split.

now i can easily push the same nich at another sponsor for $30 per signup.

This all of a sudden doesnt look so great, lol

1) is the other sponsor shaving that much that id see a better profit off my own program?

2) is a 4 month rebill actually possible, or likely anymore? (just enough for me to make more than if using other sponsor)

3) do i just hope to hell i get a few 3 or 6 month signups to show a good margin?

since i am splitting all financing, fee;s, and profits with my partner.

if we subtract EVERYTHING, and just look at gross profit, its only $10 per sale for each of us.

What advantage does this have over pushing some big program and maing $30 per signup (if any) ?

i am sure many of you have faced this math before. How does it work out to your benefit?

[fiveyes]

Your 19.99/month is too low. You need to not only make a profit, but allow room for promotion (like your own program eventually!). Also, develop a strong back end and upsells, that subscription payment isn't half the money possible.

[the Shemp]

Originally posted by lil2rich4u2
i am currently working on a project.

my billing model will be as follows:

1 month = $19.99 (recurring)
2 month = $39,99 (recurring)
3 month = $59.99 (recurring)
6 month = $75.00 - Save $45.00 !!!

i am imagining that a good portion of my signups will be for the 1 month plan.

I have a partner on this program, 50.50 we will split.

now i can easily push the same nich at another sponsor for $30 per signup.

This all of a sudden doesnt look so great, lol

1) is the other sponsor shaving that much that id see a better profit off my own program?

2) is a 4 month rebill actually possible, or likely anymore? (just enough for me to make more than if using other sponsor)

3) do i just hope to hell i get a few 3 or 6 month signups to show a good margin?

since i am splitting all financing, fee;s, and profits with my partner.

if we subtract EVERYTHING, and just look at gross profit, its only $10 per sale for each of us.

What advantage does this have over pushing some big program and maing $30 per signup (if any) ?

i am sure many of you have faced this math before. How does it work out to your benefit?

Rich, i think you are using some kind of Voodoo math there.
However, i dont understand the pricing, 1 month@20, [email protected], [email protected]. There is no incentive to sign up for more than 1 month.

[lil2rich4u2]

shemp there are other incentives that go along with the pricing, that id rather not give out here.

thats why it isnt discounted.

[lil2rich4u2]

Originally posted by fiveyes
Your 19.99/month is too low. You need to not only make a profit, but allow room for promotion (like your own program eventually!). Also, develop a strong back end and upsells, that subscription payment isn't half the money possible.

I was rolling this out with another site that sort of goes along with this one, hoping i can use each other for upsells.

good point though, i hadnt concidered internal or exit upsell money.

[quiet]

Originally posted by the Shemp


Rich, i think you are using some kind of Voodoo math there.
However, i dont understand the pricing, 1 month@20, [email protected], [email protected]. There is no incentive to sign up for more than 1 month.

agreed.

[lil2rich4u2]

Originally posted by quiet


agreed.

if you agree witht he part of how its not discounted, see post above. it is explainable, but not at the moment.

btw id really like to here your opnion on the question, if its even understandable.

Thanks.

[Dirty F]

Originally posted by lil2rich4u2


if you agree witht he part of how its not discounted, see post above. it is explainable, but not at the moment.

btw id really like to here your opnion on the question, if its even understandable.

Thanks.

Is it a big secret what youre gonna do? Something new? something everybody will copy?

[quiet]

Originally posted by lil2rich4u2


if you agree witht he part of how its not discounted, see post above. it is explainable, but not at the moment.

btw id really like to here your opnion on the question, if its even understandable.

Thanks.

i'm not really sure exactly what you're asking, but basically - the price you are putting forth to the surfer whom you want to make a purchase - is very, very important.

at least in my experience it's always been a very big deal. offering some freebee's along with a 2 month membership (vs a single month) will likely do jack shit as far as incentives go, if the price/month stays the same.

anyway, i'm done...

[4Pics]

Actually it costs more to join for 2 months then to do a monthly membership

$19.99 x 2 = $39.98

So actually it costs a penny more!


Also you will find that most who join for the multi-month deals chargeback.

You are better off just offering a one month membership and a one month with no recur maybe?

[lil2rich4u2]

Originally posted by Battuss


Is it a big secret what youre gonna do? Something new? something everybody will copy?

big secret for now.

[lil2rich4u2]

Originally posted by quiet


i'm not really sure exactly what you're asking, but basically - the price you are putting forth to the surfer whom you want to make a purchase - is very, very important.

at least in my experience it's always been a very big deal. offering some freebee's along with a 2 month membership (vs a single month) will likely do jack shit as far as incentives go, if the price/month stays the same.

anyway, i'm done...

interesting. Thanks.

[doggiestyle_ec]

replace *.99 w/ *.84 and you will be one step ahead of the game.

class is over.

[media]

Lil2Rich, your also forgetting about the processors take, so really your loosing another $1-4 depending on your price model..

Is the processor fee gonna come out of your end, their end, or both? Alot of things to account for..

Media

[the Shemp]

Rich, your program is recurring and you are comparing it to a pay per sign? The first month will be lean, but assuming a portion of your members will stick around, subsequent months will be better.

[SomeCreep]

Industry doesnt need another paysite. Stick to sponsors

[neuromancer]

WTF?

[media]

Originally posted by doggiestyle_ec
replace *.99 w/ *.84 and you will be one step ahead of the game.

class is over.

Good point Doggie, Surfers are far to used to seeing .99 and thinking its high.. the .84 throws their ass off a lil =)

Media

[The Other Steve]

and what about re-investing in more content for more updates. If you want surfers to recur you have to encourage them by providing lots of regular updates with fresh stuff.

Unless you are shooting your own content with models who do it for nix you are going to need a lot of money behind you to buy content even before you start out.

[JamesK]

Make the prices 35$ a month and make sure webmasters get 90% revenue. And you'll be popular.

[nxventures]

Or. Don't run an affiliate program. And you will be 1) happy and 2) rich.

[lil2rich4u2]

Originally posted by nxventures
Or. Don't run an affiliate program. And you will be 1) happy and 2) rich.

Initially i will have no affiliates, or very few on an invite only basis.

They will be paid on a 60% recurring model, as well as an email program that is built into the system as well.

content is covered, hosting is taken care of with isprime, and processing fee's will be split 50/50 by the 2 partners.

shemp you hit the nail on the head with your post above, you are perfectly right. I was making the mistake of comparing recurring vs. pay-per.

thats what was throwing me off.


Thanks guys ... i think im all set unless anyone has anything else to add?

[sexeducation]

The final investigations into "sigs" is being completed.
This is an interesting concept.
In a sense the rawest form of blogging there is.
http://www.ePassporte.com should be investigated for transaction payments regarding your sigs.

SexEducation.com is entering final stages of investigation but it looks like ... RSS 2.0 will become incorporated within the next version of the site.

Go here guys ...
http://blogs.law.harvard.edu/tech/rss

[lil2rich4u2]

Originally posted by sexeducation
The final investigations into "sigs" is being completed.
This is an interesting concept.
In a sense the rawest form of blogging there is.
http://www.ePassporte.com should be investigated for transaction payments regarding your sigs.

SexEducation.com is entering final stages of investigation but it looks like ... RSS 2.0 will become incorporated within the next version of the site.

Go here guys ...
http://blogs.law.harvard.edu/tech/rss

this is second time your doing this ..

what the fuck are you babbling about man?!?

[justsexxx]

Over your question of 35-40 dollar per signup pprograms are shaving, becayse you can't imagine that ppl stay for 4-6 months...I think they DON'T stay that long at some PPS. But when you look at the exits, crossales, and internal upselling they can offer that high payouts...

And over our own sites, I think the pricing structure is not that good. Why not make it like

1 month 24,83
2 months 44.69 (safe 10%)
3 months 63.32 (safe 15%)
6 months 74,82 (safe an amazing 50%!)

Something like that? Just some thought

Andre

[sexeducation]

Originally posted by lil2rich4u2


this is second time your doing this ..

what the fuck are you babbling about man?!?

RSS 2.0 will allow you to sell your "sig" across multiple boards .... soon ...

On July 15th 2003 the patent was transferred to
http://blogs.law.harvard.edu/tech/rss


If you are serious on selling your "sig" then I would recommend ... reading this website.

[easyfun]

Profits in the main come from re-bills. The more you have for your member, the higher the re-bills.

The only thing I would change about your pricing structure is this: Do not offer quite so many choices - If the guy takes a while in working out which price to go for, he may lose his urge to join -

Getting the right price is also 99% of the battle - Even tho my main members are offers targetted, unique content and gigs load more than sites charging 39.95 monthly, my proffits go through the roof at 19.95.




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[stocktrader23]

Originally posted by media


Good point Doggie, Surfers are far to used to seeing .99 and thinking its high.. the .84 throws their ass off a lil =)

Media

Helps rebills too.

[nobull]

Originally posted by sexeducation


RSS 2.0 will allow you to sell your "sig" across multiple boards .... soon ...

On July 15th 2003 the patent was transferred to
http://blogs.law.harvard.edu/tech/rss


If you are serious on selling your "sig" then I would recommend ... reading this website.

WTF

[Vivaldi]

Personally, I would advice to raise the price to 29,95 or 34,95.

The thing is that this "another sponsor" pays for a signup without recurring.

If you have 50% of rebills (which is not that bad, but not as good as it could be), then you can afford to pay you affiliates $30.

With 15% transaction fee and 10% on hold if you're using a usual billing system you'll be able to cover this in 2 months (with 29.95) and a bit faster with 34,95 per signup. It will work if your affiliates will continue working with you and making signups.

I think for a start you can leave 60% recurring model, and in the next two month add a "$30 per signup" model...

[lil2rich4u2]

Originally posted by Vivaldi
Personally, I would advice to raise the price to 29,95 or 34,95.

The thing is that this "another sponsor" pays for a signup without recurring.

If you have 50% of rebills (which is not that bad, but not as good as it could be), then you can afford to pay you affiliates $30.

With 15% transaction fee and 10% on hold if you're using a usual billing system you'll be able to cover this in 2 months (with 29.95) and a bit faster with 34,95 per signup. It will work if your affiliates will continue working with you and making signups.

I think for a start you can leave 60% recurring model, and in the next two month add a "$30 per signup" model...

at first i was going to ask how you can suggest a selling price when you dont even know what im selling.

but i understand, and it makes alot of sense. obviously you know what your talking about.

Thanks for feedback, helps alot.

[Vivaldi]