| Matt_WildCash |
09-17-2003 08:16 PM |
Quote:
Originally posted by Sly_RJ
Actually, when you think about it and do the numbers, the sponsor makes much more money when the member comes through a referred affiliate.
Let's break it down. For this example we will not include processor fees.
We start with a $20 membership.
Affiliate gets 50%, which is $10.
Referring affiliate gets 10% of 50%, which is a total of 5%, which leads to $1.
Creating a grand total of $9 left for the sponsor after the affiliate and referring affiliate get their cut.
We're talking major bank here!
|
Affliate sends a signup :
$20 signup
Minus 10% of 50% for refurring webmaster = $1
Minus 15% processing fees = $17
Minus 5% held for 6 months = $1
left over = $15
$15 minus $10 payed to affliate = $5 + $1 in 6months time
$5 out of $20 to pay for Free hosting for the pics and movies that the affliate used to get the members, to pay for designers to make the sites, to buy the content, host the content for members, to pay for good hosting for the frontpage of paysites so they load fast and are reliable. + bank fees, employees fees, home broadband. Not to mention after all that your meant to BANK all the profits :)
Yeah its serious bank (NOT), only after you get to a certain level of processing can you lower your fees and also your costs become a less amount of your gross, its a numbers game, your not going to get super rich by having 500 members from affliates most of it will goto paying for hosting and other stuff, but once you hit a certain level your costs are decreased, also its very good to do your own marketing of your sites to help counter this.
Not saying you can't make great money with this but starting out you do not get $9 out of a $20 membership. |
