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Old 12-30-2004, 08:08 AM  
Alex From San Diego
Confirmed User
 
Join Date: May 2001
Location: San Diego
Posts: 1,642
Quote:
Originally Posted by Varius
I think PPS is a completely viable program option.

You don't even have to complicate matters, estimate everything conservatively and throw out any extra revenue that isnt from your membership price (cross-sales, upsells, etc...)

Let's say you charge 24.95/mth and your average member rebills twice.

24.95 x 3 x 0.85 (we'll take off 15% processing fees to be conservative, this can be 5%-10% though)

1 average member = $63.63 in revenue

If you offer $25-$40 PPS you still have enough for you which should easily cover the bandwidth fees and any potential refunds/chargebacks that are incurred, while making profit.

Add in the revenue from the extras and that's a bonus

For sites with very low rebills, unless they make a killing on the extras, they are probably the only ones who have to worry about offering high PPS payouts
It is not the value of a member that matters but more the value of each and every join regardless if they stay a member or not...there is a big difference.
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