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Originally Posted by AmeliaG
If you like pay per signup sites, what dollar amount do you feel a site needs to have for you to promote it?
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Evaluate how many signups you expect each month and you'll know how much you'll owe your affiliates. Then evaluate how many will retain from month to month... and you compute the difference...
eg:
Month 1: 100 SU; owed to affiliates: $3500, income: 100*$21 = $2100. ($21 net income for a $25 site minus 16% of biller fees). So you need to have $1400 for the first month.
Month 2: 150 SU + 50 rebills: owed to affiliates: $5250. Income: 200*$21 = 4200. Need $1050 for month 2.
Month 3: 200 SU + 100 rebills: owed to affiliates: $7000. Income: 300*$21 = $6300. Need $700.
etc... (third month: you made 600 total sales, and not only the program hasn't made money yet, but it lost over $3500).
Obviously, you need to make LOTS of rebills (+upsales,...) to compensate for a PPS program... If you make say $25 per SU (say $21 after biller fees + $4 of upsales) and pay affiliates $35, each member needs to stay in average 1.4 month for you to break even.... and 2.8 month for you to get the same share than if you were doing revshare.
So to sum up, sites that pay PPS either:
- have crazy good rebills+upsales, or
- are loosing money, or
- shave.
