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$40/sale..too good to be true? hmmmm?
Whats your opinions?
40/sale = bring out the gillette razor and cream because there is gonna be a whole lot of shaving going on? I aint talking about if you have been with sponsors for months and then you get a raise to like 40/signup...i am talking about initially ... What are your opinions? |
First instinct... Shave
Its tough. Depends on the company and the reputation. But Id be weary.. Only way to see is try and see what your sigups are like.. Not your ratios, but your sigups.. Everyone talks about ratios.. Ratios dont make you $$, the actual signups and the $$ in your pocket do. Sponsors all have ways to make ratios look good, but watch the bottom line, it's whats important. |
It's also possible that they just keep their sales recurring. cheap trial, though cancellations and $40/month recurring prices...
------------------ http://www.sponsorreport.com - Maximize your Cash using the Smart Method ! |
Juicylinks -
here is what I have found in my experience regarding shaving - standard is 10% accept it. Now it could be natural (not paying on exits or declines) or set in their system. Look at the numbers they never lie: What are they charging per trial? What are they charging per rebill? What is their cancellation policy? (note there are sites out there that don't cancel unless you go through the billing company) What kind of content? Everything is qualitive- example: Nice teen site, 1.95 with 39.95 rebill average retention is 2 months They are making an average of $81.85 per sign up. They pay your $40 per. Even with adjustments, (chargebacks, refunds, etc) paying for bandwidth, staff, content, etc. They are still looking at least a 30% profit margin.. Now considering most businesses are happy with a 5-10% profit margin. It works!!! Now take into account that they have up sells, toy sales, movie sales, viagra sales, etc. Once they get them into the members area, and on their e-mail list, etc. Are they shaving? maybe? Can they afford to pay you $40 and still make money? More than likely. ------------------ Melissa Davies [email protected] www.BillinGuru.com 954 856-3071 mobile 954 227-0926 office 954 827-0335 fax 15566387 ICQ Nobody is better than me!! |
SilverCash pays $40 per trial signup and let me tell you we dont make much at all if anything from the signup. You can say average retention is 2 months and if we rebill at $34.95 you have to take away the 10-15% of what the billing company charges you. Now take away the chargeback fees. Take away bandwidth, advertising costs, employees, and so on and there is no profit. Probably a loss from what you'll actually make from the new member. Its hard to tell for sure. All I know is that we are able to pay $40 per trial and the company is still making money. So why change? Boneprone had a good point when he said that 'its not the ratios that matter, its the bottom line dollars" Take you're traffic and send it to one company and see how much you make after a week. Then send the same amount to another company and compare checks. There is a number of programs out there that pay $40 per signup but then they take away for cancels, credits, and chargebacks and you really end up making 15-25 bucks per join. Where with a flat rate company its $40 no matter what.
Basically as I said we probably lose after paying the webmasters, even considering we have just about every peice of content you can imagine in our sites, but we do things like collect email addresses, upsell our members, push traffic to other sponsors on exits and so forth. So in answer to you're question, Yes you can pay $40 per trial and make money but you have to be carefull and its not easy. With Visa and everyone tightening up and fraud being such a problem payouts are going down everywhere. |
So if i send send 5k traffic
to you and 5k to sponsor No1. eg. and i get 5 signups from you and only4 from sponsor one ! Then i should be happy right ? What if 8 people signed up but i only got paid for 5 does high conversion or payout $ make shaving OK ? It's not conversion ratio only true! but it can not be ignored also If i send 8 signups i want to be paid for 8 signups http://bbs.gofuckyourself.com/board/wink.gif I personaly would preffere a sponsor that pays less and doesn't shave ( it's about doing the right thing and trust ) shaving = cheating ( am i right ?) but then again i am kinda new http://bbs.gofuckyourself.com/board/wink.gif lol my 2.5cents (shaved) |
Hunter, by me explaining what I did in the previous post was by no means to be taken that shaving is ok. Shaving is not ok. But the person who started the topic asked if its possible to pay $40 per signup and not shave. And I was just showing how it is possible.
If you think that someone paying $40 per join has to shave the I suggest you test a site the you feel is equal in another program that pays $25 per signup and check you're own results... Just my 2.5 cents. Had to make up for the .5 you shaved http://bbs.gofuckyourself.com/board/smile.gif |
I really don't understand how these companies can afford it, but they can. I plan on joining more partnership programs in the future to get a better feel on the industry. Right now, $40 is what I need. I need money up front and these companies are willing to give it to me.
I was using CEN for a while, but they only pay for active signups and I actually do much better with TopBucks - more sales no matter how you slice it. Of course exit consoles and the like all come into play, but the question you have to ask yourself is who do I make more money with. Shaving is really irrelevant. It seems like when ever something bad happens people jump on this shavingh bandwagon without any proof. Even if there is shaving - who cares (besides the moral ramifications). If I can make $1000 a week with sponsor a that shaves vs $500 a week with sponsor b that doesn't - what difference does it make to me? I find it odd that very few people really are testing things properly with their designs and sponsors. Everything you do should be a test - if you can do it and have the time. My 2 cents ------------------ TopBucks.com - Converting at better than 1:130 David Lace Content - Highest Quality Teen Content |
Cen only pay for active signups?!
Are you sure? |
LAMike there is no difference in conversions numbers from $34.95 to $39.95. Check with your billing companies, they should show you the stats, if not hit me up I have them.
$40 per is pretty standard, you can get better, you can get worse, remember that lots play into conversions - type of traffic, tour design etc, not to mention how many hoops or site the surfer has been to... There are some good resources to make a more educated guess, http://www.thestatistician.com/ You might find that you actually make more money from a $35 program vs. a $40 program. And you might find that one program works great for a couple of weeks and then falls off. Remember this is a liquid market be flexible. Shaving isn't right its a fact of life, deal with it. ------------------ Melissa Davies [email protected] www.BillinGuru.com 954 856-3071 mobile 954 227-0926 office 954 827-0335 fax 15566387 ICQ Nobody is better than me!! |
One very important other point that we have forgotten in this whole thing-
MOST sponsors are not in the business of supporting webmasters, they are in the business of making money. Why would they offer it if they weren't making money. This isn't a lifestyle its a business. Don't forget that. ------------------ Melissa Davies [email protected] www.BillinGuru.com 954 856-3071 mobile 954 227-0926 office 954 827-0335 fax 15566387 ICQ Nobody is better than me!! |
"So if i send send 5k traffic
to you and 5k to sponsor No1. eg. and i get 5 signups from you and only4 from sponsor one ! Then i should be happy right ?" --------------------------- Well that would depend -- if you got 20 bucks a join each on 5 joins, and 30 bucks each on 4 joins, which joins would be better for you??? It's the numbers that are printed on the check that count, nothing else really matters. |
Mellissa, not sure that I agree with you there. Would like to know where you are getting you're numbers from. We do well over 1000 signups a day and have been running paysites for over 5 years. Starting with no rebilling and charging 9.99 for a membership. I have gone up 5 bucks at a time for years but have stopped at $34.95 now over a year. We have done alot of testing and have alot of traffic to test it with. And I really dont think from my experience that $39.95 does better. It also creates more chargebacks from our testing. But then again sites, content, billing company, and customer service all come in to play. Its hard to tell for sure, but for now I'm sticking with $34.95
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Once again reputation is key..
I would much rather trust someone like Silvercash paying 40.00 a signup rather than some Joe Blow with a new website and probably the cheapest content available.. Use your common sence. Look at the paysite program, and programs. You can tell when a program has quality writen on it, and when one doesnt. If they are of quality then they retain members, which means $$, which means paying you 40.00 a member isnt too ahrd to believe.. Also look at the rebilling amount the member is rebilled for.. Like LA Mike said when you rebill at 34.95 the 40.00 becomes only reasonable. But like I said before.. Reputation, and quality are everything. 40.00 a signup is something to be weary of, first thing that comes to mind is shave. If they are paying that much, the site has to be of quality, the company known, and the rebill high. ------------------ And That's The Bottom Line Cause Boneprone Said So. |
nice new description Bone btw http://bbs.gofuckyourself.com/board/smile.gif
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I agree with B... reputation is everything, it does pay to do your research. Actually it can not pay when you don't.
It never hurts to ask for references and actually check them. ------------------ Melissa Davies [email protected] www.BillinGuru.com 954 856-3071 mobile 954 227-0926 office 954 827-0335 fax 15566387 ICQ Nobody is better than me!! |
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