good post

its too early for 10 buck sites

Good point......but its hard to say what the future brings

right on, and people WILL pay for what they want. Even if the price is a bit too high.

I learned this when I was 5 or 6 and have been reminded of it 1000 times over the years. While I don't think cheap sites or bad FOR FUCKS SAKE DON'T MAKE YOUR $40 PAYSITES $10.00! Sell them on a site with less content and make them feel stupid for not spending $40 or $50 for more.

Indeed, I see no long term gain in making the same product 4 times cheaper. What you have to do is find the highest possible price someone is willing to pay for your product, not the lowest. And you have to force them to wanting to pay that mutch. Dropping your price by 4 will indeed result in a HUGE spike in revenue but you're killing your own product. Believe me.

Why doesn't someone plug in the info into Excel.. and see where it takes them ?


1000 people Month one at 10.00 ( 50 % retention )

VS.

250 people Month one at 29.95 ( 20 % retention )

Build on that...

The tour that I am talking about in this thread is
doing 20-30 sales everyday at 10.00.

The retention has been 60% or better for each sale.

65% first month rebills at $30? sure!!

Can you throw a column in a spreadsheet that factors in the competition you are creating? I didn't say you would make less money off the bat, I'm very sure you convert and retain much better. Well guess what, as soon as everyone catches on $10 sites will be the norm and some big "innovator" is going to come along with $5 premium sites. Once the competition picks up on that your $10 sites conversions and retention will start to drop.

How low are you willing to go and how much extra b/w, customer support, etc are you willing to provide in the name of retention? Like I said, I have some nice domains for cheap sites well under $10 a month but no way in hell I'm putting tens of thousands of $$$ in content behind the join page.

In my opinion, this will end up being worse on the industry as a whole than TGP's have been. Once you charge $10, $5, or whatever for the same content you once charged $30 or $40 for you won't be able to charge that same surfer full price again.

Stop smoking those funny cigarettes, they impair your brains.

<font face="verdana" size="+2">50 CENTS PER JOIN!</font>

lol, I've got an idea... let's give surfers FREE ACCESS for 30 days and let em rebill. I'm sure 28% will rebill

I'm afraid the downward spiral has started. $10 sites are already picking up steam and I'm sure the next run of cheaper is better sites will be popping up in the near future.

lets give them 1 month 100% free access ! im sure they will rebill 100% !!!

If you have not noticed, surfers join less and less
due to all the free stuff out there.

I can find more, better stuff for free then anyones
paysite..not to mention password sites who fuck us all!

I myself would pay 10.00 rather then dick around
with free sites etc.

Odd, my conversions are right where they've been for a long, long time. In fact, I tweaked a little a couple of months ago and got my conversions a little better than they had been all along.

I think the rate of rebills is no greater if its the same old tired bought content and plugins. Also the $10 web site longterm will be the death of the affiliate. They will begin to realize you cant afford to pay a high commissions on a low number give out hosted galleries, produce content, throw whose got the biggest dick parties at the shows, give out prizes on a $10 dollar sign up. The money isnt there. In our niche we are on the expensive side and have rebill rate that hovers around 70% because we give them creative new very exclusive content . Also you cant compare the price to a porno mag , magazines make their money on advertising more than the $10 they get from you, thats why if you subscribe the price goes down to almost nothing.

If the retention is a lot higher you made a good deal otherwise it is not a big biz for you:
1:1000 $39,95
1:300 $10.00 it is 3,33:1000 so $33
the math says that you losed 6$ every 1000 surfers
6$ that you have to recover with recurring.
But I repeat if you have a lot higher retention it works.

What you don't factor is that you'll have more members.

and more members mean you have more power to flow that traffic into mailers and other upsells

Yes they are doing fantastic :thumbsup

I think someone who signs up for a website only because its $10 isnt going to buying a alot of upsells. lol

I am not offering any upsells, we are offering
the same content we produce.

We have many doors into our sites, the 10$ one is
doing really well considering.

If you do the math, you will make more money over
the following months as the members base grows.


Would rather make 10 or make nothing off of the surfer ?

I have been trying to tell certain people this, but haven't been getting through. I'm happy to see that someone else has proved my theory. :) Cheers!

I fully agree with that. There are always webmasters that don?t make any or much money and if they will see a chance they will lower prices and start making some money, even on $5 sites?

What we shouldn?t forget is that the big boys started $10 sites only to lower their chargeback ratios and to stay alive, not because they thought there is more money to be made from it.

Lowering the prices is extremely bad for this industry, if all programs would charge more per month it would be much better for everybody.

Less free porn, higher prices ? Amen!