View Single Post
Old 03-16-2007, 10:30 AM  
Dollarmansteve
Confirmed User
 
Join Date: May 2005
Location: T.O.
Posts: 2,849
Quote:
Originally Posted by Screaming View Post
1) $35 PPS to dollarmachine
2) I will send 100 joins per month for 12 months, or a total of 1200 joins
3) I want $35,000 USD (CASH! NO CHECK, WIRE. CASH) bonus upon 1200

deal, or no deal?
NO DEAL, and I'll tell you why...

1. The average CPA of the deal is $64.17. No one in their right might can pay that much PPS over that long a period of time.

2. Because the length of the deal is so long (1yr) the length of time we would receive residual traffic is lessened. In other words, I can give a bigger bonus if the goal is met in shorter periods of time.

I have a counter proposal that factors in the above and the fact that cash is worth at least 30% more. Also, remember that just by making the deal you have a chance to win $5k. Your deal would be the 14th, so the value of the $5k is (1/14)*$5000 = $357.

The reality is, over a length of 12 months we're not going to commit to more than $40 per join. So, here are 4 possible scenarios:

Deal A

1) $35 PPS
2) 1200 joins over 12 months
3) $6000 in cash

Total effective value of the deal on a CPA basis is (($35*1200) + ($6000*1.3) + $357)/1200 = $41.80 per join

Deal B

1) $30 PPS
2) 1200 joins over 12 months
3) $12000 in cash
4) IF GOAL NOT MET, $5 per join bonus (cheque/wire/epass)

Total effective value of the deal on a CPA basis is (($30*1200) + ($12000*1.3) + $357)/1200 = $43.30 per join

Deal C

1) $25 PPS
2) 1200 joins over 12 months
3) $18000 in cash
4) IF GOAL NOT MET, $10 per join bonus (cheque/wire/epass)

Total effective value of the deal on a CPA basis is (($25*1200) + ($18000*1.3) + $357)/1200 = $44.80 per join

Deal D - if you really want the $35,000 in cash

1) $25 PPS
2) 2400 joins over 12 months
3) $35,000 in cash
4) IF GOAL NOT MET $10 per join bonus (cheque/wire/epass)
__________________
I died.

Last edited by Dollarmansteve; 03-16-2007 at 10:32 AM..
Dollarmansteve is offline   Share thread on Digg Share thread on Twitter Share thread on Reddit Share thread on Facebook Reply With Quote