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Old 08-14-2009, 09:01 AM  
weekly
So Fucking Banned
 
Join Date: Dec 2005
Posts: 1,785
Quote:
Originally Posted by Paul Markham View Post
IMO it depends on a few things, how good are you at generating traffic that does not cost as much as an affiliate, how well does your site convert and retain and more things.

If a site lost all traffic costs it could sell memberships at $10 a month no problem. The ratios would be better and the profit margin the same. I know this from the $5 sites you guys take the piss out of all the time. I can see why because if the business moved to this model it would be worse for you than Tubes. But the ratios are great on little traffic. Never pushed it because we never had the CMS to handle 200 sites which is what we planned.

The problem is directing traffic, buying ads and spots can cost as much affiliates. IMO sites like Paul Markham Teens need affiliates and we know from the traffic that types in or returns we could pay out more, might put up the rates soon for guys sending more than 10 hits a month.



Rev Share is best for the industry. Normally PPS depends on the customer buying at least two memberships off the site to afford $39.95 at $75 even more and most of the time it's about selling more sites. Rev share depends customers staying as long as possible. One method is about up selling the other about retaining, guess which one is best in the long run? If a site does not satisfy the customer you should not be selling it, no matter what you get today. Because tomorrow he may decide not to buy anything and in a business that's totally about repeat sales customer satisfaction is essential.

Fucking over the customer is bad policy, but one many in porn don't care about.
If you charge less for your memberships with no affiliate costs, do you earn more in the end? It would seem that volume sales from affiliates at a higher price would be more profitable. Huge sign up bonuses seem like a recipe for problems down the road.
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