Quote:
Originally Posted by notime
Question 2
About Business models.
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Question 2:
Bandwidth is not an issue.
I have a 30 terrabyte a month package with a couple of servers..cost me $2628.00
The tour uses far more than the members area so what the members do or don't do isn't really a blip on the radar screen.
Giving the surfer what they want:
One of the first things I did when we opened up was become one of the first people to use Phantom Flicks. Bill at PhantomFrog told me that he had just finished testing it on a paysite and was ready to market it and asked if I wanted it right out of the gate. I did. What that does is give a VOD option to download to own. Thanks to piracy I only have the scenes that were available before I started protecting my content available in the VOD section. But still, it's nice. I've found that some people just don't like commitment. So they would rather spend $1,000 buying scene by scene over a couple of months time rather than spend $29.99 for everything.
I've also given them options for buying a membership. When an affiliate sends the surfer they get a $29.99/30 day option OR a $79.99 / 90 day non-recurring option (if an affiliate chooses his PPS code then the $29.99 option becomes $34.99 so I can break even)
Type in traffic gets both of those options PLUS a $10 / 5 day non-recurring option
Funny thing...if we get a $29.99 sale from an affiliate I end up with only a $9.52 profit for all of our work. (after affiliate 50% and processing fee) But I can sell that $10 / 5 day type in only option and make $8.17 ! And those guys that buy that $10 membership will come back and buy another one when that one is up! (they don't like the thought of rebills)
So I have the potential to make $8.17 x 4 = $32.68 profit off of the $10 non-affiliate sales a month as opposed to making only $9.52 for a month off of an affiliate sale.
That is one of the big reasons that all the paysites are starting to develop their own traffic and we are watching the affiliate model slowly ride off to the sunset with the bigger programs out there.
So the readers digest version: I offer them both "regular" memberships and VOD sales. I also give different pricing and membership durations. I try to search and find every last penny that might be out there at all times.
And oh yeah...we also do some price cascading. For instance if a person is up for a rebill and their card is maxed out...we aren't going to just automatically decline them. We start searching for what they can afford at the moment. Card isn't gonna make $29.99? No problem we'll try it again at a lower price and keep trying until we hit it.
People don't always have their credit card paid on time or under the limit for a lot of reasons. Just because a person is strapped this month doesn't mean I'm going to throw them under the bus. Next month they may rebill just fine.