Why do VOD's pay less than Regular Sites?
 

Is there a reason that the video on demand sites pay less % then other sites. I am pushing traffic to vod's but seem to do better pushing paysites ...

I thought for sure someone could answer this one :(

Because all the VOD's pay so little, they convert and regardles of the percentage people would like to promote them. It'd be the same with paysites..if EVERYONE paid 20% revshare or $10 per signup, you'd promote them because you would have to in the absense of other alternatives. :)

However I'm just dreaming and don't know if that's a fact.

Thanks for the information :thumbsup

Because most of the VOD systems don't have a license for all the content they broadcast, but are just brokering content for the producers and they already pay like 40 / 50 % to the owner of the videos + 20 / 25 % to the affiliates + processing fees.

There is not too much margin left to raise affiliate payouts IMO.

Hmm interesting. I am trying to decide if I should keep links up. I guess I have to give it a bit more time ...

Why? Hmm..First the structure is such that we also have to pay out the studio. We also pay all bandwith and processing charges.
We are not a paysite so people are free to buy as much or as little as they want so Retention is infinately better than pay sites so once you get a member signed up the revenue is going to be there for years to come!!!

There is big overhead in maintaining a ongoing VOD site so giving out large percentages just does not work for us. But once you get started and realize the profit potential 25% does not seem so bad!!!!

Pretty accurate statement ... almost accurate numbers.

They license fro Producers for around 30% on average based on a revshare.

Webmasters 20 - 30%

Encoding, bandwidth, processing, staff costs, etc combined around 20 -25%

They earn a slimmer margin than paysites but hopefully make it up based on volume

:2 cents:

Our standard content agreement with Studios is 25%...A few over that a few under that.

Still haven't forgot about you, Mindy - waiting on some documents from the person that has "the marketing riights"

:winkwink:

Im ready when you are bubbalah!!!

Ok thanks everyone for making sense of this to me. I am going to try for another month or so if not some good results by then I will move them down on my sites :winkwink:

Have you contacted them to discuss ways you could improve your conversion? Just a thought.

Its similar to promoting live cam sites where the model gets a hefty cut of the per minute charges. That's why cam sites can't pay 60% recurring like paysites do.

Only in this case the cam model is the video company.
There's lots of content on VOD sites that you can't get elsewhere on the web because it isn't licensed out to webmasters.

Great post thank u !

I would encourage you to try our ondemand sites. Best converting are-

ondemandreality
ondemandbroadband
ondemandgay

and our premier site bestmovies
Also, feel free to hit us up w/questions or if you need some suggestions/assistance -we're here for you.

That is what I am using. I am doing pretty good. But did not know what to expect vs paysites.

One thing you also need to remember is that a good VOD program pays you for the life of that customer not just a one time fee. Over time VOD pays great I have accounts I stopped sending traffic to last year and still get weekly checks form those VOD programs without fail.

I though most were reccuring ?

PR_Dave - that site rocks.

Reminds me of videosz.

take off the vod links and push the traffic to us instead :)

When we launch an affiliate program we will pay 60%.

producers of the content must be paid. the profit margin for vod sites is smaller.

sorry for the double post.

you should check out www.videopasscash.com they pay more than any other VOD program out there.

30% lifetime to the affiliate on pay-per-view and pay-per-minute
and
50% lifetime on all access VOD monthly memberships