question for program owners...
 

Considering there's more experienced people out there for running a successful program, I'm considering outsourcing someone with experience to run my own. I'm thinking paying some kind of percentage based on sales would probably be the best way to motivate... the question is, what do you think would be fair? 50% up to a capped flat dollar amount? Any ideas?

I doubt someone will take 50% (after affiliates) if there is a cap, unless that cap is pretty durn high.

Ok, so what do you think would be a favorable deal that would provoke some serious motivation?

You've heard some of my thoughts in ICQ... One piece of advice I can give you here is that people will be more interested if they know what *you* have to offer. Show us your sites.

Ok, the sites are officially not ready to be disclosed because they're still in development, however I can assure you the content is excellent. I am shooting all of the content myself... and there will be lots of high-quality videos. I'm just trying to figure out how I should be running the affiliate program, and who I should have running it. I am 100% positive it will convert very well once everything is complete.

What percentage of sales do you think would be reasonable for a program manager?

I will let people who have done work like that, or hired someone, comment on what fair or average pay is.

I am curious what kinds of sites they are, at least... I always like to ask people what they have to add to the massive adult industry.

Ok specifically they're two sites, an amateur teen site, and an amateur gay "twinks" site. The pics specifically are NOT amateur, however... just the models :). I shoot with pro equipment, and pro lighting.

So... You're a content provider with a novel method of marketing your product.

Content is worth something, but probably not as much as you'd like it to be.

Initial sales can be created with almost any decent content. Your edge is in producing the kind of excellent quality content on a continuous basis that generates high recurring.

I'd say the affil manager should get most of the money from initial sales, because initial sales is almost completely due to his work and little to do with your content.

You pick up 50% of proceeds from rebills only. That way you're getting paid for what you're providing (recurring sales due to excellent content) and the affil manager is getting paid for what he does (initial sales, plus share of recurring).

I'd make affil manager pay bandwidth from his share, that gives him free hand in marketing.

The good news is that if you make truly great content, and you get a good webmaster to manage the affil proggy, you'll still make more money than most content providers are making today.

Interesting content is a big part of the draw of any good site. I disagree about how you see the breakdown of who causes what sales...

100% initial and 50% recurring sounds a tad on the high side. I think I'd be ripping myself off like that. I think 50% initial and recurring might be a little more fair, considering the content is what's leading people to buy to begin with.

you'll never succeed if you can't do it yourself.
If you can't, find a different line of work.

Yeah, but without traffic you have nothing. And content can be purchased, then the proggy manager doesn't need to cut you in at all. (But then he has the cost of the content, which probably won't be quite as good as yours. Still he can go that way so you gotta price it so he won't.)

Getting traffic is a critical and rare skill, worth every bit as much as what you bring to the table, plus he needs to do ongoing affil proggy management, too, which ain't a free ride.

Look at it this way: he has traffic, so he can go out and sell it for 60% recurring with no ongoing work. So why work for you for less? (yeah yeah, shaving, etc. There's always some fucking thing to watch out for.)

Traffic is worth more than content.

That's the way, all right. But there are lots of people who can only make content, others who can only drive traffic. If they can get together it works, too. Sucks having a partner though.

so far this is just an untested theory in this biz. :glugglug

yeah, there are really 3 things here.
Content
Proggy management
Traffic generation

proggy management is considered traffic generation by many people, but it ain't. It's management. The affiliates are the traffic generators. If you think of it like that, the different skills do come together all the time.

btw, I consider site design, market testing, usability testing, etc all part of the proggy manager's job. If the close rate ain't high enough to attract affiliates he has nothing to manage, so he's got to have all that shit under control.

if you're strong in one area and you hire someone that is strong in the area that you're weakest at, it could be better than a one man operation.

and if you're going into a partnership with someone, save yourself some headaches in the future and hire a lawyer to do up a partnership contract.

You're always so positive, man.

My point exactly. I can shoot content all day long, but I must admit I'm not the sharpest when it comes to generating shitloads of traffic. If I don't partner with someone who can bring this to the table, I'm fucked.