iBanker - your point are EASILY refuted.
Yes rebills are the answer. See you generated NET from the processors $1700 in change from the trial to fulls (which are approx 35% of initial trials) The good news is that members average 1+ month overall retention... that means that there are over 65% of rebills to go (I'm not sure you understand that but I'll lay it out).
If you get 25% x sells @ $1 trial, if you have $4.95 trial and if both the regular initial and x sell opt ins average 1 month memberships you have
25% of $41 ($39.95 * 1.0 month average + initial $1.00) or $10.25
$45 ($4.95 initial trial + 1.0 month average * $39.95)
Total member value = $55.25
20% processing, refunds, c/bs, revokes = 80% of $55.25 = $44.20
If you payout $35 per trial you're profiting $9.20 PLUS your additional income of $7.00 per member or $16.20.
So yes, $16.20 per member will cover hosting, content, employees, rent, etc... When I say insignificant, your overhead should be 10% or less of your income (and the higher the volume, the lower the %) Also, don't forget that you only pay TAXES on your PROFIT, not your gross revenue!
These numbers are PURELY hypothetical and in no way indicate how ARS performs. Each and every program's performance varies. This simple shows mathematically and REALISTICALLY that PPS programs do profit!
