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John Marco · 10-29-2005, 05:28 PM

Explaining $60k/month advertising budget:

1. This does not cover fixed costs. I am not sure what your fixed costs would be for a site like this. It depends on what you pay the girls, etc. but I would surmise that you need a lot of sales to establish an economy of scale for it to be worth it.

2. $60,000/month will get you about 40-50 sign ups per day at that pricing point if you have good ads. If you did a trial or free join you could get more but I think it would work out to about the same as far as ROI goes. That would come to about $40-50 per sign up. The sign ups have to recur before you make money.

At your pricing point: $30 per membership you would make about $30k (after fees) the first month, so would effectively lose, but would see a return in subsequent months. But everyone knows that rebills are what makes money on those types of sites.

I would say that you could probably get about a 30% ROI from paid advertising over a 6 month period.

3. The $10,000/month affiliate budget is a negligble amount that wouldn't see any real return for at least a year, as I noted earlier. If you spent about $10,000/month consistently coupled with a good sales person following up with every affiliate I would guess you could get another 20-30 sales/day from affiliates in a year or so.

Hope this helps. In my opinion, the site is a bad idea because the fixed costs are probably too high without a large sign up base to make them insignificant. If you can get a good economy of scale going it could be good.

10-29-2005, 05:28 PM
John Marco Confirmed User Join Date: May 2005 Posts: 912	Explaining $60k/month advertising budget: 1. This does not cover fixed costs. I am not sure what your fixed costs would be for a site like this. It depends on what you pay the girls, etc. but I would surmise that you need a lot of sales to establish an economy of scale for it to be worth it. 2. $60,000/month will get you about 40-50 sign ups per day at that pricing point if you have good ads. If you did a trial or free join you could get more but I think it would work out to about the same as far as ROI goes. That would come to about $40-50 per sign up. The sign ups have to recur before you make money. At your pricing point: $30 per membership you would make about $30k (after fees) the first month, so would effectively lose, but would see a return in subsequent months. But everyone knows that rebills are what makes money on those types of sites. I would say that you could probably get about a 30% ROI from paid advertising over a 6 month period. 3. The $10,000/month affiliate budget is a negligble amount that wouldn't see any real return for at least a year, as I noted earlier. If you spent about $10,000/month consistently coupled with a good sales person following up with every affiliate I would guess you could get another 20-30 sales/day from affiliates in a year or so. Hope this helps. In my opinion, the site is a bad idea because the fixed costs are probably too high without a large sign up base to make them insignificant. If you can get a good economy of scale going it could be good. __________________ WEBCAMS.COM $42+ PPS or revshare ICQ: 476-111 Google Talk: Webcams.com