Quote:
Originally posted by LongShlong8
Of the signups you get each month how many rebill and for how many months on average do they rebill. Most importantly, is there an equation one would use to show such retention rates. This would be a great stat to offer affiliates I'd think. Just wondering if anyone could help me out with the terminalogy on this topic. Thanks 
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Some of these people are rude. Don't pay any attention to them. They are just mad because they have to finance their S500's instead of paying cash...
Anyway.. Yeah, there is an equation. I figured it out using ms excel.. you can just plug in the variables and it determines automatically.
Different sorts of traffic convert differently, typically speaking. Your question is too broad to give any sort of definitive answer, but in my experience here is a basic idea:
Typical cookie cutter sites typically convert at 30-35% from trial to month, then each person stays about 2 months on average. Expect to make $20-25 per sign up on each sale, for these type of sites. The only way you could afford to pay per sign up to affiliates for sites like these is with a good exit console scheme, cross sales, and mailing your members. This is considering a broad range of traffic sources. In my experience, mail traffic gets you a lot of initial trials, but the conversion rate is in the 20%-25% range. TGP traffic is about 5-10% higher, and SE traffic is another 5% on top of that. Again, these are all just averages for a standard site with a lot of plug in content.
More unique sites, such as sites with good quality movies, or with reality based content convert at about 40-50% from trial to month, and retain on average 2-3 months. So, expect $30-$35 per sign up for these type of sites.
The equation would be something like this:
N = Number of Sign Ups
R = Avg Number of Months Retention
C = Conversion %
T = Trial Price
P = Month Price (Conversion Price too)
A = Affiliate Pay per Join
(N*((P*R)*C))+(N*T) = Avg profit per sign up (Assuming you're not paying affiliates).. if you were paying affiliates, it would be:
[(N*((P*R)*C))+(N*T)]-(A*N) = Net Profit
As you can probably see, paying affiliates w/o shaving, it's hard to make money.....
