Quote:
Originally posted by stocktrader23
In the article I read that I mentioned above they said the average retainment overall was 2 months per member. That is how they justified paying $50 per signup. You have to take into account they have been in business for years. I'm sure their average is great with the members that never leave. But if they weren't retaining 2 months they couldn't pay their affiliates and make a profit.
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Well then the guy that wrote the article you read was smoking crack. NO ONE has a retention rate that would average ALL their members at 2 months stay. Most sites are lucky to get 1/3 or so of their members to make it past the trial and onto a monthly recur.
Most likely you have misunderstood what the article said -- someone saying their average retention is 2 months would generally indicate the surfers that did convert from trial to full stayed that long, NOT directly mean that all their trials converted and stayed two months. Perhaps that sounds ambiguous in its' wording but nonetheless it's the only way to take such a statement to have meaning.
And yes, they could still pay their affiliates and their bills on the numbers I am laying out without stealing from anyone provided their payouts weren't ridiculously high.