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Old 08-14-2001, 06:48 PM  
MelissaD
Confirmed User
 
Join Date: May 2001
Location: Coral Springs, FL
Posts: 155
Juicylinks -

here is what I have found in my experience regarding shaving - standard is 10% accept it. Now it could be natural (not paying on exits or declines) or set in their system.

Look at the numbers they never lie:

What are they charging per trial?
What are they charging per rebill?
What is their cancellation policy? (note there are sites out there that don't cancel unless you go through the billing company)
What kind of content?

Everything is qualitive- example:

Nice teen site, 1.95 with 39.95 rebill

average retention is 2 months

They are making an average of $81.85 per sign up. They pay your $40 per. Even with adjustments, (chargebacks, refunds, etc) paying for bandwidth, staff, content, etc. They are still looking at least a 30% profit margin.. Now considering most businesses are happy with a 5-10% profit margin. It works!!!

Now take into account that they have up sells, toy sales, movie sales, viagra sales, etc. Once they get them into the members area, and on their e-mail list, etc.

Are they shaving? maybe?
Can they afford to pay you $40 and still make money? More than likely.




------------------
Melissa Davies
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www.BillinGuru.com
954 856-3071 mobile
954 227-0926 office
954 827-0335 fax
15566387 ICQ

Nobody is better than me!!
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