The "Re-Bill option is better for the longterm LIE"!
 

I've been thinking about rebilling vs PPS.

Usually I deal in the webcam industry so it's more a revshare vs PPS and overall a revshare option (with a site with good girls) comes out the winner.

But now I'm doing some adult sites through CCBill and its rebill or PPS. Let's look at the numbers:

For this one site, this month I've done 20 signups - the site owner says that customers are rebilling at 45% but Im seeing after 1 month a rebill percentage of 75%.

So is this how I'd calculate it:

Month 1 -
New Signups: 20
Rebill Customers: 0
Total Payouts: 20 ($10 x 20 = $200)


Month 2 -
New Signups: 20
Rebill Customers (working on 75% and rounding down): 15
Total Payouts: 35 ($10 x 35 = $350)


Month 3 -
New Signups: 20
Rebill Customers: 26
Total Payouts: 46 ($10 x 35 = $460)

Ok. Now let's pretend we STOP getting new signups and we let it rebill at the 75% rebill rate.

Month 4:
New Signups: 0
Rebill Customers: 34
Total Payouts ($10 x 34 = $340)

Month 5:
New Signups: 0
Rebill Customers: 25
Total Payouts ($10 x 25 = $250)

Month 6:
New Signups: 0
Rebill Customers: 18
Total Payouts ($10 x 18 = $180)

Month 7:
New Signups: 0
Rebill Customers: 13
Total Payouts ($10 x 13 = $130)

Month 8:
New Signups: 0
Rebill Customers: 9
Total Payouts ($10 x 9 = $90)

Month 9:
New Signups: 0
Rebill Customers: 6
Total Payouts ($10 x 6 = $60)

Month 10:
New Signups: 0
Rebill Customers: 3
Total Payouts ($10 x 3 = $30)

Month 11:
New Signups: 0
Rebill Customers: 1
Total Payouts ($10 x 1 = $10)

Total: $1090 over 11 months for a total of 60 customers.

If you'd taken the PSS option you'd of got $1800 ($30 x 60) over just 3 months.

I know that some customers stay much longer, I hear of people who have rebillers for years until their CC expires which is great. But do you need to rely in that rare breed to bring in the money to make up what you loose of the PSS?


Is my maths wrong (I hope so!)?? Is rebill as a good option all an industry lie?

:helpme:helpme

Your math is wrong. you have 210 transactions at $10... total of $2100.

1+3+6+9+13+18+25+34+46+35+20=210 * $10 = $2100.

So net not a huge difference, but more money in the recur (if the recur is that high).

One of the things you have to look at in that situation is the PPS payout rate versus the recur payout rate. You have to retain every customer 3 months to break even, retain them 4 to have an advantage. In that situation, the PPS is a better bet (low risk). If the monthly billing was $30 instead of $20 (so net $15 instead of $10) you would only need 2 month retention to get the same money. Then it would be more difficult to choose.

Why did you assume only $10 per revshare signup? That's 50% revshare apx. on a $19.95/mo membership. Most programs are anywhere between $24.95-$39.95/mo, most pay 60%, most have bonus days paying 70-100% revshare and you're also forgetting other membership options like 2, 3, 6 months, etc.

As far as whether revshare is a good option, we let our affiliates decide. We recently started offering $25pps console free and 90% of our affiliates stayed with revshare..

Regardless, as TGP owners and affiliates ourselves, it's always a good idea to diversify. We still get rebills from programs/sites we stopped promoting over 1 year ago.

:2 cents:

Fade, I have an interesting theory:

PPS is the affiliate betting the site retains poorly.
revshare is the affiliate betting the site retains well.

PPS is the program better thier site retains well.
revshare is the program not being able to afford to do PPS! :)

(last one is a bit of a joke). There are some programs I love revshare on, others where I know the pay per signup is just a better bottom line for me.

Yeah, we do the same as well with our sponsors. We always look at the site, check out members if we get logins and we actually try both pps and revshare over 1-2 months.

And it's not that hard to do PPS model these days, add rebills, xsales, upsales, cancel discounts, ex-member emails and promotions, its very feasible to cover the $30-$40pps in the longrun, even if you bite the bullet in the beginning.

<plug>I love PPS on www.reelpass.com btw, rebills make us a killing</plug> :winkwink:

I have always promoted PPS in adult dating .. just got a question in mind that what is avg membership length of a adult dating surfer? Avg.

voodoo math

What is this rebill thing you are speaking of?

Anyone who doesnt hop onto revshare when selling cams is kinda clueless.

revshare FTW!

hit me up - let's try our webcamclub.com
we can start you at 20% (recurring for life).
or if you want to test us out, $50 PPS doesn't sound bad either.

if you have dating traffic, we can pay you $75/PPS as well.

i'll make it easier, if you show me stats from our competitors, we can even talk about prepaying your traffic. :thumbsup

hope to hear from you soon.

Prepay FTW!

Revshare used to kickass back in the day, not anymore though

Blame the landslide of shitty paysites that have opened up in the past few years. In fact some paysites exist only to cross sale and upsell to other, better paysites.

Revshare still rocks hard if you know which sites to push, and it's really less than 1% of them these days.

Personally I prefer PPS. I have yet to find a revshare sponsor that will make me as much per member as their PPS payout, and the ones that do, well I would prefer having that money up front rather than waiting 2 years for the rebills to catch up.

I wonder how many affiliates actually took their total earnings and divided it by the amount of total initial sales...