Quote:
Originally Posted by Pornopat
Amount of sales increases. Margin might be less but gross is higher. Part of the costs are variable but general costs can be devided over more sales.  |
There is also returning customers, upsales and follow up emails etc etc .... definitely not impossible to turn a profit on 30% if you got a good product and FreeOnes traffic is extremely well targeted.
Though should add you need to take another 7-13% out of those 30% for processing fees depending on your setup and if you swallow the fees or share them with the webmaster.
So yeah, the margin becomes significantly lower but at the same time, this is business, if you can't cope with what FreeOnes is asking for you'll just have to move on. Obviously it's a stunt on their side, like if they would go back to 60% once the dollar goes back up lol ... but still, business is business and they are holding the cards so all you can do is play it their way and try to get the best out of the deal.
Then again, if you run solo model sites where you're the sole promoter of the model then you really have nothing to worry about. It would be a bad decision on FreeOnes part to remove your model from their index seeing they got SEO and surfers looking for her whether you pay them 50% or 70% ... this is rather something that will play in for the guys that has the content to get on their main page. Their archive pages I doubt will change or they would be shooting themselves in the foot.