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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, its quite simple. The affialtes promote the sites and so people start searching for those domains, type ins increase, movies are downloaded and spread around the net, banners and url's are remembered. whatever it is, its about 25% of most programs sales are from sales not tracked to affilates.
And the good thing about promoting a PPS model is you get most of that money because the PPS model programs depend on those untracked signups and all their upsales and mailings to ex members to pay out that $35 per signup. If your promoting recurring programs you dont' get NONE of that money from untracked or type in sales.
Typeins increase with the more affilates pushing the sites, and the more traffic the more typeins and free signups to the program. Doesn't make the PPS programs rich because they already accounted for that 25% and are paying the affilate that as part of the $35 for the $4.95 trial.
Recurring is nice for monthly income but PPS is best for total money.