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Originally Posted by MaDalton
content is not necessarily cheap in the sense of low costs per item, content is cheap in the total context of running a site
let's say you run a site with 52 exclusive updates per year that costs you $2000 each -thats $104,000 a year
lets say you make 1 million gross - thats about 90 signups and rebills a day - there are MANY sites that make way more.
in that case the content is only 10% of your expenses.
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Let's say it doesn't work!!!!
Yes if only it was as easy as saying, "let's say".
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but typically about 30%-35% on the average are payouts to affiliates (revshare program)
and that could be a reason why people nowadays rather skip the affiliate (who then thinks the business is dying) and invest that saved money into inhouse traffic generation.
thats why some people are doing very well with their programs and some content producers still do good business.
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Generally speaking you hit the nail on the head. It's absurd to pay out 30%-35% plus all the tools. To drive traffic that simply doesn't convert and retain well enough these days. It worked earlier when the alternatives to a membership were poor. Today the surfer is far more picky and educated and getting more traffic that converts, is harder.
How many people do you employ to drive traffic for you? I imagine Manwin have loads.
Ultimately it all relies on someone seeing something he/she wants to see more of and willing to buy it. The reliance on the traffic model to solve problems was always flawed. Even people telling us "Traffic is King." Were sending traffic where conversions was the reason for sending.