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Originally Posted by Nathan
First of all, very nice thread.. loving it..
There is one thing I would like Marc to actually comment on, since I am unsure about that...
You talk about www sales which help boost profits. What EXACTLY do you count in those? Sales that are coming from people seeing an affiliate banner and typing in the url? Or sales that simply come from non-affiliates? Meaning traffic you generate yourself?
If it is the later, which I bet it is since I see no way of meassuring the first, then is it not lieing to yourself if you include those in your calculations?
Of course, SOME of those sales will be sales from people checking banners, but most of them will be totally non-referrered, no?
I know that your model shows that you can make enough using your own cross sells and mailing already (of course with $4.95 trials and $39.95 rebills, thats almost 20% more than Alex's spreadsheet's numbers), but I have heard many people say in this and another board's thread about the same subject that people seem to count a lot on those "www sales"...
So, to come to my point finally ;) ... If you depend on www sales to break even on pay per signup, why even bother opening a program? You would make more with just your www sales in the first place...
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Nathan, www sales are sales tracked from the type in of a domain. ie - the warning page has an account number on it that is an internal account number (not paid on) and you can track the productivity of that traffic.
Traffic generated from internal sources should NOT be used in determining the profitability of a PPS program. The reason www sales are calculated is because of the high visibility of the sites from being in a program, you get return customers and SE indexes from a lot of links that is in essence 'free'. www sales calculate a portion of the additional income category which include:
www sales
exit consoles
members upsells
mailing
other advertising avenues
I hope that helps
