Usual payout to an affiliate ?
 

Lets say I have a membership site and charge $ 20 per month and run an affiliate program.

1) is 50% ( $10 ) a reasonable fee for sign up?
2) do I pay the affiliate who sent me this sign up every month $ 10 in perpetuity? Or only once or for some limited period?

1) 50% is probably a standard for revshare.
2) You pay them 50% for the initial signup and then 50% for rebills.

Much thanks Denny....

Since I am not familiar, so a Guy X signs for 6 months ( lets say 120 bucks) he gets 60.
Then, all on his own, he signs for another 6 months, he gets another 60 ?
Then he "skips" a few months and comes back a year later and signs up again, so the Guy X gets another 50 %?

In other words , and if that is so, then as I have said above, Guy X gets 50 % of ALL monies paid to the website in perpetuity...?

Correct ?

You need to know your lifetime customer value (revenue - attributable costs) to pay a pps that makes sense.

A fixed percentage rev-share is always going to be a known cost, but you have to know your costs.

This is why sponsors end up shaving affiliate sales.

If you word the offer 'Lifetime' Rev-share then it is in perpetuity. At cam site, 1/3 of affiliate lifetime rev share is lost in 'slippage' -- the customer makes a new account (lost password, model stalking) and no effort is made to track the source -- the site just grabs the money.

Thanks Barry,

But I need to keep is simple...what is the difference between:

Rebill ( as Danny stated above) and

Lifetime rev. share ( as Barry stated) ?

I am now really confused. I of course do NOT want perpetuity ( not even marriages last that long) and of course I do not want to "give away the farm", but I want to be compatible to other streaming sites.

Just asking a question of "compatible average"...

And kudo to those who are helping....:)

I've got some recurring/rebills sales for long on CCBill as affiliate, same with LiveJasmin cams.

But for adult memberships, I prefer programs who pay with PPS cause too many time, the trial sales are not converting and with some programs I even can't avoid them.

As I result with revshare programs when I do the maths I've learnt less than $20 a sale when I get 25 to 30 with a PPS one.

So on your pay site, if your average membership is higher than two months, you have better to offer PPS at $20 minimum. If it's less than two months, then you have to offer the revshare system.

There is no real difference between the 2 (apart that with cams you do not know when the customer will spend again)


But in general, when offering revshare, the 50% is in perpetuity.
Every program can set its own rules though, just be clear about it upfront.

Every program offers 50% these days (as a base)
so if i can pick a program that offers 50% for 6 months
and another that offers 50% in perpetuity, i would pick the latter.

You could prevent this by setting a little higher base rate (55% for example)

If he can log back on his old account and renew again, then yes you would pay the affiliate again.
if he makes a new account you can't really track it anyways.





But what i dont get, if an affiliate has high quality traffic and sends people that stay that long, be happy with him and just both profit from it. If you cut him short he might switch to promote someone else.

if you're struggling with the concept of "revshare" and "rebill" running affiliate programs might not be for you

Maybe last year I was sending chaturbate 10,000 uniques per day but now I'm sending them 500. I've got lots of people on lifetime revshare but now I'm not sending very many new users.

Or maybe I'm still sending chaturbate 10,000 uniques per day, but chaturbate got massively more popular in the last few years and everyone has already signed up, so none of the people I'm sending are signing up. I've got lot's of people on lifetime revshare, but I'm not sending new users.

Now chaturbate doesn't care much about keeping my traffic, because I'm not sending new customers, so there's not much reason to keep paying me. Skimming becomes likely. Launching camgasm becomes likely.

:thumbsup:thumbsup:1orglaugh

You are correct, I am struggling with these and the whole concept of paying somebody 50 % of my gross ( especially after my processor takes another 10). Indeed I have no clue how all these tubes,dating,chaturbate and cam sites make any real money (.... to me real money is more then $ 15,000 per month).

My OP said "lets say".... So, I was just thinking about the upside as compared to a site I am now running for 11 years. Used to be DVD & Download of SINGLE MOVIES for a fee ( about 30 dollars), now streaming single movies (at about the same prices) and yes, I have some customers for all this time, so we still ship about 100 DVDs a month.

Some of my "young cowboys" are pushing me to go "membership" but all of you guys just convinced me that is NOT a way to go for us.

And BTW: we do have an affiliate program and pay about 3 dollars per stream ( about 10 %), have about 200 affiliates with the top ten performing in $ 100's per month ( and down from there).

Thanks again to all who answered. It was a good lesson for me. My next question in another thread will be about traffic, even more perplexing to me....:1orglaugh

You shouldnt worry to much about the %, (the 40% that is yours)

Thing with the videos/revshare is.
Your main cost are making the videos. and after that you earn 12$ (40% of 29.95) for each person subscribing each month. No (real) extra costs for each one, the more the better.

You can offer affiliates anything you want, ranging from 10% to 80%, its the weigoff.
How many sales will they generate me, how many extra affiliates/sales will i get when i increase the %
So if offering 80% to affiliate would get you 2mil revenue = 200k profit (also -10% for processor)
vs
10% getting you you 50k revenue = 40k profit (also -10% for processor) you would be a lot better off with the 80% offer ofc.

Mainly saying this because i find the 200 affiliate with the TOP 10 in the $100's fairly low. Which doesnt suprise me with the 10% though. (for actual items, like toys/dolls 10% isnt strange, but for streams/downloads it is)

Thanks for your comment but I have decided NOT to go membership.... I also am not sure your math works....for the 200 K profit, I believe that is just a wishful thinking, but hey thanks. :thumbsup