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-   -   New Visa Regs Beg For A Change In Payouts (https://gfy.com/showthread.php?t=151523)

thefreakybeaver 07-12-2003 01:30 PM

Quote:

Originally posted by LAMike
FreakyBeaver.. lol

As much as you type in each of your posts you could always go get a job as a court reporter when the 10 dollar drop kicks in :)

yeah I thought about that, I used to work for a lawyer and that was on the top of the list to go to school for next. But I don't think the judge would let me work in my pjs :)

LA Mike 07-12-2003 01:32 PM

Quote:

Originally posted by thefreakybeaver


yeah I thought about that, I used to work for a lawyer and that was on the top of the list to go to school for next. But I don't think the judge would let me work in my pjs :)



LoL :thumbsup

timmahan 07-12-2003 05:19 PM

Quote:

Originally posted by stocktrader23
Clickcash raised their payouts $5 across the board last week. :glugglug
The iFriends/ClickCash model is truly a FREE program. No rebills or opt-out. You only pay for what you want. Either per-min or upgrade to VIP or fan clubs.

I think this is a good model for free signups, people WILL opt-in for content they want! But of course they don't get too much with the free sign up, just enough to tease them.

fantasyman 07-12-2003 07:19 PM

Quote:

Originally posted by polish_aristocrat
another idea was "rewards points" for surfers...
I'd also prefer ARS to stop rewarding webmasters with that points, but instead giving them to surfers... that could be a huge thing, sure noone joins a porn site and stays 6 months only to get free sunglasses, but this - together with paysites being more customer oriented - could perhaps really increase retention...

CECash has giving surfers/members vault points for 9 months.

For each month they rebill they receive CEVault points.

Pornkings 07-12-2003 07:36 PM

Quote:

Originally posted by polish_aristocrat


why do you think thias is going to happen...?
do you think that Visa simply doesn't like porn at all so that every year they make life harder for adult webmasters and finally they stop processing adult at all...?
IMO if the new accounced rules are going to clean up the situation, then they probably will ( = there will be less scammers and dubius billing practises )... if that is achieved, why should they suddenly stop processing adult sites ???


Not sure it would happen but it is a known fact the CEO of visa is totally against porn.:2 cents:

polish_aristocrat 07-13-2003 02:10 AM

Quote:

Originally posted by Pornkings



it is a known fact the CEO of visa is totally against porn.:2 cents:

he won't be CEO of Visa all the time...
perhaps he will be replaced by someone with a "better" attitude ?

Ambergirl 07-14-2003 02:09 AM

Quote:

Originally posted by CGI
It's about time the industry is finally getting back to the way things used to be. Anyone who's been around for a few years knows exactly what I'm saying :)

Back in 1998 (97?) when revenues from running sites like in 1996-97 started dropping, everyone started to migrate to free trials. By the end of 1998 the rules changed and "oh my god, the sky is falling - no more free trials! what are we going to do now?" I watched our conversions from trials shoot through the roof overnight. What seemed like the end of the world at the time ended up being a great thing -- less free porn = more paid signups and trial conversions. The industry adjusted and survived.

A while later (don't remember exactly when) MC came down with the 1% chargeback rule. And "Oh my god, the sky is falling - 1% chargeback limits?". I think we were running at under .05% at the time and we were worried about it. But the industry adjusted and survived.

Last October came the $750 "sponsored merchant" crap and again, the sky was falling. Visa has gotten that fee from us for each of our IPSPs and as much as I hate paying it, it's a cost of doing business. And guess what -- pretty much everyone is still around and the industry survived.

Now comes the new 1% chargeback rule from Visa. How many other people were wondering when it was coming? I figured it would have come within a few months of the mastercard ruling, but it didn't. We're still below 1% across the board, but as surfers start getting smart (dumb, actually - as I'll explain with another short story in a minute) it goes up. We provide high quality sites with lots of content focused on the niche we are marketing. We don't lie about what we offer, nor do we allow affiliates to do it. We also give access to our other sites (although we don't promote it on the outside of the sites) as a tactic to increase retention and reduce unhappy subscribers who may have had second thoughts about spending $30/month after they bought access.

It's simply a time to adjust tactics, cut some of the bullshit (multiple pre-checked cross sells, etc) and get back to basics. I don't see anyone who's on the level going anywhere anytime soon and if this all ends up going as I expect it will, we're all going to be better off in the long run due to this.

There is also a pretty big lesson to be learned -- if we don't watch what we're doing and keep clean, someone is going to clean us up again.

Anyway, one of my non-industry friends was talking to me the other day and I asked what their take was on some of the sites out there. "Do you ever worry about getting screwed by the site?" Her response - "No, I just call my bank and get a refund". Thank you V/MC for teaching people that there is nothing wrong with calling your bank and "getting a refund" (charging back) because you didn't want to pay for the porn.

Anyway, this is long winded so I'll cut it here - as much as I want to post oh so much more about this :)

Beautifully said, CGI. Especially, "I don't see anyone who's on the level going anywhere anytime soon and if this all ends up going as I expect it will, we're all going to be better off in the long run due to this."

So true!

DamageX 07-14-2003 02:19 AM

Quote:

Originally posted by Pornkings
sponsors are in this business to make money and the only way that is possible is if the webmasters are happy. It takes two. webmasters and sponsors
It takes THREE.

Webmasters, sponsors and CUSTOMERS. No porn surfers --> no porn sponsors --> no porn webmasters.

PattyeCake* 07-15-2003 12:56 PM

I'd like to jump on this bandwagon and applaud Marc, Mike, Lens and all of the others for taking the plunge and being upfront and honest about lowering payouts etc....

Also I send Cudos to Fantasyman and CE for being right there to say they are NOT lowering payouts at this time....

I believe the result of what is happening will be good for our industry and I welcome the change

We are still running the numbers over here at Fetish Cash, but I really don't forsee much of a change if any in store for our webmasters...
We have had our own merchant account with low chargebacks, low membership fees, no free trials, no pre-checked up sells, and we have always paid high payouts with GREAT conversions.


Interesting to watch this conversation across all of the boards...

:thumbsup

Pornkings 07-15-2003 02:12 PM

Quote:

Originally posted by DamageX


It takes THREE.

Webmasters, sponsors and CUSTOMERS. No porn surfers --> no porn sponsors --> no porn webmasters.

I agree

but why have paysites when surfers can get all the harcore porn they need to spank to for FREE

all I'm saying is Webmasters and sponsors need to work together to fix the problem from the ground up.

NETbilling 07-15-2003 03:21 PM

Quote:

Originally posted by PattyeCake*
I'd like to jump on this bandwagon and applaud Marc, Mike, Lens and all of the others for taking the plunge and being upfront and honest about lowering payouts etc....

Also I send Cudos to Fantasyman and CE for being right there to say they are NOT lowering payouts at this time....

I believe the result of what is happening will be good for our industry and I welcome the change

We are still running the numbers over here at Fetish Cash, but I really don't forsee much of a change if any in store for our webmasters...
We have had our own merchant account with low chargebacks, low membership fees, no free trials, no pre-checked up sells, and we have always paid high payouts with GREAT conversions.


Interesting to watch this conversation across all of the boards...

:thumbsup

I agree with you totally Pattye! And your processor keeps it all happenin', right?

Mitch

DamageX 07-16-2003 11:50 PM

Quote:

Originally posted by Pornkings


I agree

but why have paysites when surfers can get all the harcore porn they need to spank to for FREE

all I'm saying is Webmasters and sponsors need to work together to fix the problem from the ground up.

I've been saying this for years.

Want to eradicate FREE? Stop paying for TGP traffic.

Mr.Fiction 07-16-2003 11:59 PM

Quote:

Originally posted by Pornkings

why have paysites when surfers can get all the harcore porn they need to spank to for FREE

HBO and Showtime seem to do fine even with NBC, ABC, and CBS available for free.

Surfers ca not get all the porn they want for free. If they want, for example, full length name brand MILF Hunter movies, they will have to pay. If they want Jenna Jameson content they will have to pay. If they want to see a Hustler Centerfold, they will have to pay. You might be able to find that content somewhere on the web stolen, but that's irrelevant to the free vs. pay debate.

DamageX 07-17-2003 12:39 AM

Quote:

Originally posted by Mr.Fiction


HBO and Showtime seem to do fine even with NBC, ABC, and CBS available for free.

Surfers ca not get all the porn they want for free. If they want, for example, full length name brand MILF Hunter movies, they will have to pay. If they want Jenna Jameson content they will have to pay. If they want to see a Hustler Centerfold, they will have to pay. You might be able to find that content somewhere on the web stolen, but that's irrelevant to the free vs. pay debate.

Either that, or hit KaZaa

Mr.Fiction 07-17-2003 12:51 AM

Quote:

Originally posted by DamageX


Either that, or hit KaZaa

I agree that surfers can find a lot of stolen content if they are willing to look, but that's a different issue than the free site debate.

When people talk about the free content issue, they always bring up The Hun, Sleazy, Sublime, etc. Those are not sites that promote stolen content, those are sites with legal free content. However, there is plenty of exclusive content that you cannot get from any free site (unless it's stolen.)

DamageX 07-17-2003 01:09 AM

Quote:

Originally posted by Mr.Fiction


I agree that surfers can find a lot of stolen content if they are willing to look, but that's a different issue than the free site debate.

When people talk about the free content issue, they always bring up The Hun, Sleazy, Sublime, etc. Those are not sites that promote stolen content, those are sites with legal free content. However, there is plenty of exclusive content that you cannot get from any free site (unless it's stolen.)

Agreed.

And I agree that a free business model can co-exist with a paid model, in a healthy relation.

The biggest problem with most TGP's is that many of them hit the surfer with the title/heading tag already, making sure he knows that he can find 100000000000000 free pics and movies on there. Now the amount may vary and it's not always as huge as they want to tell the surfers, but it's there. And if a surfer hits 10-20 TGP's via tradelinks, he's pretty much indoctrinated with the fact that there's shitloads of free porn out there and that he probably never have to pay for porn again. This behaviour pretty much conditions the surfer into an anti-pay mindset and makes any remotely potential sale even harder to make.

Add to that all the galleries advertising free memberships and whatnot, and you've got yourself a veritable, lean, mean, freeloader-creating machine.

Porn caters to a repeated, easy-to-satisfy need. The need to get off. It's not like watching an old movie on a free network and planning on getting HBO so you can get all the premieres. The surfer wants to get off, period. And if he's found something to get off to on ANY TGP, good luck selling him a porn membership. :Graucho

Validus 07-17-2003 04:11 AM

Hello everybody,

I have been following this thread for quiet some time now, I think it is time for me to comment on the subject.

First of all I would like to thank people such as FantasyMan, Mike Price, and Brad Shaw for sharing their knowledge with all of us. We all can learn from their experiences and use these to improve our industry.

Will Mainstream and the adult industry fade together over the next ten or twenty years? I say, yes it will! there will be a few ?survivors? with potential to turn their profitable business into a Powerhouse.

One can either react or respond to these recent changes. In my opinion it is best to respond.

sexeducation 07-17-2003 04:13 AM

way to go ... thefreakybeaver...
I applaud your honesty and willingness to discuss the issues.

This is a discussion thread - this is a discussion.

You made this thread a valuable source of information and it truly is revealing who's who ...

I believe there is a huge silent majority that is not speaking up because they do not want to bite the hand that feeds them - HUGE!

There are many people who have worked very hard to build a respectable quality online business that just keep getting screwed over by their suppliers.

For one of the biggest names in the industry (not mentioning names) ... I joined their affiliate program for their pay-site because they advertised on their website that "you keep your traffic for pop-ups, pop-unders and exit" etc ... etc..

When I tracked the affiliate ID in the first pop-up it wasn't mine.
I emailed their tech and they fixed it.

Then when the first pop-up popped another pop-up ...and the second pop-up had someone elses affilate ID I emailed them again ... and they fixed that one too ...

Then when the second pop-up went to the sign-up page ... it was someone elses affilate ID again ...

After the course of a months worth of constant emails ... and telling them about this "tech" problem of other peoples affiliate IDs showing up on the traffic I was sending them ... their reply was ... that's just the way it is in the industry ... get used to it.
Just one of many suppliers wasting HUNDREDS of hours of my time.

The supplier was one of the original founding members of ASACP.

These new VISA regulations I am not sure about yet.
But this has been an interesting thread for sure and you made it.
hats off to ...
thefreakybeaver ... for being willing to discuss the issues openly.

Dad@

Marc De 07-17-2003 06:24 AM

Validus - that is a pretty damn good assumption :) In fact, I'd say I'm ahead of the curve. Watch the ARS closely in the coming weeks :)

DamageX 07-18-2003 09:20 AM

Quote:

Originally posted by Validus
One can either react or respond to these recent changes. In my opinion it is best to respond.
React = you DO something
Respond = you SAY something

Wanna motivate your choice? :Graucho

Pornkings 07-18-2003 10:32 AM

Quote:

Originally posted by DamageX


Agreed.

And I agree that a free business model can co-exist with a paid model, in a healthy relation.

The biggest problem with most TGP's is that many of them hit the surfer with the title/heading tag already, making sure he knows that he can find 100000000000000 free pics and movies on there. Now the amount may vary and it's not always as huge as they want to tell the surfers, but it's there. And if a surfer hits 10-20 TGP's via tradelinks, he's pretty much indoctrinated with the fact that there's shitloads of free porn out there and that he probably never have to pay for porn again. This behaviour pretty much conditions the surfer into an anti-pay mindset and makes any remotely potential sale even harder to make.

Add to that all the galleries advertising free memberships and whatnot, and you've got yourself a veritable, lean, mean, freeloader-creating machine.

Porn caters to a repeated, easy-to-satisfy need. The need to get off. It's not like watching an old movie on a free network and planning on getting HBO so you can get all the premieres. The surfer wants to get off, period. And if he's found something to get off to on ANY TGP, good luck selling him a porn membership. :Graucho

I totally agree:thumbsup

We don't need to remove the Free stuff just censor it and not show pink. maybe the TGP owners and paysite owners need to get together and work it out.

it would just mean better conversions and more sales if we put a squeeze on the free hardcore

docjohnson 07-18-2003 10:37 AM

Quote:

Originally posted by Mr.Fiction


HBO and Showtime seem to do fine even with NBC, ABC, and CBS available for free.

Surfers ca not get all the porn they want for free. If they want, for example, full length name brand MILF Hunter movies, they will have to pay. If they want Jenna Jameson content they will have to pay. If they want to see a Hustler Centerfold, they will have to pay. You might be able to find that content somewhere on the web stolen, but that's irrelevant to the free vs. pay debate.


This is the most flawed analogy I've heard in a while. The business model NBC and major networks have been using since the 50's is based on product advertising. They make money from advertising, not the shows themselves. HBO makes money from advertising, but mostly from memberships.

The difference with the porn industry is that within mainstream television, an advertiser can promote ANY product. While within the porn industry, we can promote only porn related products. If NBC was trying to make money by promoting it's OWN shows, while still airing them free of charge, they would have been out of business a long time ago.

I'd like to issue a request to any sponsor who has the data available on tgp traffic. What are your average conversions as compared to other types of non-free traffic? What are your Chargeback rates as compared to non-free traffic? If tgp traffic is playing a role in high chargeback ratios, I'd certainly be interested to hear it. I think many of us don't want to be thrown into the same boat as webmasters that give it away for free. If the data proves this traffic source to be a contribution to the problem, I'd definately agree with damage: Stop paying out for this type of traffic, because at the same time you are penalizing those webmasters with quality traffic.

fatbaby 07-18-2003 05:43 PM

Quote:

There are many factors involved in programs paying the high rate per sign up they do now. These factors include

$39.99 monthly charges
2 FREE cross sells per page rebilling at $30 to $40 / mo

there are other factors as well but its these factors in specific I would like to address.

Chargebacks occur for a number of reasons but a lot have to do with very high monthly charges. Obviously these prices bring in more money which allows a much higher payout.

In an effort to reduce chargebacks, free cross sells will become single micro $1 payments that rebill at a much lesser rate. Much more importantly monthly rates must drop from the rate of $39.99 to $29.99

Obviously this will drastically hit the top of line of many sponsors (those who choose to take the path of 'correcting' some of the problems in the industry. Because of this cut in revenue payouts of $35 and $40 per trial will no longer exist (again for that group of sponsors who attempt to make the proper changes)

Payout will drop below the $30 range. Also FREE trials (which ARS recently began offering) will no longer exist. These changes will take place in the coming days.

Webmasters use this post as for warning of things to come.
This was the original post on this tread... or at least the majority of it...

This is from the ARS website members area:

Quote:

In an effort to keep charge-backs to a minimum in light of Visa's new ruling of 1% domestic c/b levels effective 10/1/03, we will have to discontinue free trials. Free trials will automatically be set to a $1, 3 day trial payment option. There will still be (4) membership options for you to promote. They are the $1, 3 day trial, $2.99 trial which will now be a 4 day trial, the $4.99, 5 day trial and the $39.99 monthly memberships. Payouts reamain unchanged with the $1 trials receiving what the free trials were paying. The effective change date has not yet been determined, but it will happen before Oct 1.
I'm confused....

I thought the $39.95 Monthly was supposed to drop to help with this issue

Quote:

Much more importantly monthly rates must drop from the rate of $39.99 to $29.99
I'm sure I'm missing something.. so figured I'd ask....

I asked elsewhere, but got no response.. figured someone around here could help me with it...

:helpme

KidCock 07-18-2003 06:00 PM

I don't see this as much of a big problem....build your own processing system instead of using a 3rd-party (as you'll have to follow whatever rules they put in place).

Now obviously this means more hassles for you, but in the long-run even without the fact you can pretty much do as you wish (long as you keep those cb % down), most processors/gateways charge quite a bit less % than 3rd-party billing.

Something to think about ;p

This is not to bash any 3rd-party processors out there, as you do your jobs well as a "service". I'm just wondering why more people (especially who have the money), just don't invest a little in their future.

Mr.Fiction 07-18-2003 06:17 PM

Quote:

Originally posted by docjohnson



This is the most flawed analogy I've heard in a while. The business model NBC and major networks have been using since the 50's is based on product advertising. They make money from advertising, not the shows themselves. HBO makes money from advertising, but mostly from memberships.


People pay for HBO when a free advertising supported version of the same thing (with different content) already exists. That is not an analogy, it's a fact. Your argument actually would seem to be that free sites should exist, but that they should be advertising a wider variety of products. Nowhere do you make any argument that takes away from the idea that free and pay versions of the same service can (and do) co-exist successfully.

Would you also argue that HBO should never buy ads on broadcast TV because they would supporting the free version of themselves?

As far as free sites selling other products or services, Sleazy Dream made plenty of money without selling porn site memberships for a long time. He sold personals memberships. The reason he changed his system was because there was (obviously) more money in selling the advertising to the highest bidder. That highest bidder today appears to mostly be porn sites.

The fact that cable TV and broadcast TV co-exist shows that free and pay entertainment content can make money simultaneously. Perhaps free sites need to expand what the promote and pay sites need to make sure that their content is, like HBO, of such high quality, that people are willing to pay for it.


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