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Old 01-03-2005, 02:52 AM  
xxxjay
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Quote:
Originally Posted by TheDoc
10,000 sign-ups total = payout: $350,000
10,000 sign-ups X 500 uniques = 5 million hits

60% trials = 6,000 trials X $4.95 = $29,700
40% full month = 4,000 full X $39.95 = $159,800

30% trial convert = 1,800 full X $39.95 = $71,910

1st month members = 5800
2nd month members = 2610 @ 55% drop X $39.95 = $104,269
3rd month members = 1174 @ 55% drop X $39.95 = $46,901

Total: $412,580 - 12% processing = $363071


10% of sign-ups is an xsale = $10 per sale = $10,000
50% of the traffic will see the exit, 1:3000 convert to view rate X $35 per sale = $29166

New Total: $402237 profit of = $52237
Still have longer-term retention; e-mails, hope to god better exit results, up sells, and a mixture of other areas pps programs make money. Some don't pay on checks, web900, etc.. Some say they do, but don't. Type-in traffic from webmaster screwups or just for whatever reason.. And a mixture of other BS that paysites can earn income with.


Some programs can run PPS with no xsales and much lower exit rates, as long as retention is good. First off "MOST" programs have a 20% trial to convert rate. 30-35% isn't easy to his these days. 45% month to month, isn't bad, not what most PPS programs sit at.



Fact is, you CAN run a PPS program, and not shave. Well my math could be off some
A good, no bs, recurring program, will crush a PPS in payouts though.. Joins are worth $80-$120 on average.. Do you want $35ps or $40-$60+ after a split.. Invest over time, or instant return. The above math is $36 per join value just after 3 months. Long-term retention would put it over $80 a join. Earning you more than a PPS program. I have to admit though; it needs to be a good revshare system.
Good post, but...

I disagree here...

"New Total: $402237 profit of = $52237"

$52237 is still all part of the gross. Programs have a massive overhead - most have large staffs, offices, advertising, and I don't even want to get into the hosting bills.

The profits that programs once raked in on exit traffic and spam are not what they used to be. Retentention is not what it used to be. Surfers that have joined a few sites are much more savy.

PPS will be around for a while, but the payouts are likely to drop.

You almost must remember that affiliates can be very demanding - they want free hosting, they want this, and they want that. We've had MPEG people we've set up with hosting actually cost us money because of bandwidth.

It's not as cut-and-dry as your numbers make it look.
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