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Old 2004-05-05, 09:59 PM   #1
sam
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How can sponsers afford us?

Just thinking...Many of us make most of our sales through trials and how can all these sponsers afford to pay us $20 plus for every trial sign up we send? I know they don't always up sell the surfer either. For example, one of my sponsers offeres a $1 trial and I average 1 sale a day...can somebody tell me how they can afford to do this? I'm just concered about this for obvious reasons. I'd hate to see us put our sponsers out of business and worse have them shave our ass. Didn't ARS change because of this?
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Old 2004-05-05, 10:46 PM   #2
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That's one of those situations where you begin to get a headache when the numbers just don't make sense.

Some say that all sponsors shave. It's that, or they are in some serious debt.
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Old 2004-05-05, 11:16 PM   #3
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There's a lot of factors in it - 1st of & probably the easiest to understand is that every member of a paysite is worth X amount of dollars over a period of time. Say you have a 50/50 revshare program open for 6 months & after looking at the totals, you see that each member is spending an average of $33 (some cancel right away, some stay a month, some stay 3 months, etc) Based on that, you could easily pay $20-25 a sign up & make money. Stretch that out to 12 months or 18 months or whatever & that X amount grows.

Another thing is upsells in the members area, like live one-on-one webcam shows or "products" (dvd, video, panties, etc). Hell, there's even ads for other paysites inside some of them.

Plus you get their email address's - a lot of time even before they see the CC page - a bit of a scam, but an email address is still probably worth about $1

And then there's the consoles that pop off the tours - some places you get credit for the consoles & some you don't - and some you get part of it. Point is that there are sales made off the exit consoles, so there's money in that as well.
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Old 2004-05-05, 11:33 PM   #4
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That's makes since GG, but I'm still not totally convinced.
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Old 2004-05-06, 12:56 AM   #5
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Quote:
Originally posted by sam
That's makes since GG, but I'm still not totally convinced.
LOL... be convinced it can be done by the fact people have been getting paid for quite a while

Cross-sells on the join page can be another way a paysite makes dollars..
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Old 2004-05-06, 01:03 PM   #6
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Speaking as a sponsor, I often ask this question myself .

Seriously though, it is a case of "Many a miccle macks a muckle". For example my program gives 70% to the affiliate and I take 30%, i.e. they get more than twice what I get, and I have to pay for content, bandwidth, design, etc. But the reason I have the affiliate program when I could get the full 100% for selling it myself is that there is a limit to the amount of time I can spend pushing my sites. So when an affiliate sells one of my sites I may only make a few cents out of it, but if I have enough affiliates selling enough memberships, those few cents will multiply to more money than I could make on my own.

Unfortunately I do not yet have that many affiliates so am not making much out of it. (Goes off muttering about the unfairness of the world).
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Old 2004-05-06, 06:06 PM   #7
KristianF
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On the topic of shaving........

Alot of the top notch custom affiliate software generated sales based on the traffic volume and producitivty. Kind of why sales per click on affilite sites offering third party processing always seems worse. In actuality when you see 1:450 or 1:1,350, it could very well be the same thing depending on the sponsor.
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Old 2004-05-06, 06:08 PM   #8
Thiago Dickman
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There's also another fact that could help them get those high payouts: not all of their sales come from affiliates. Let's say they have 70% sales coming from affiliates and 30% from their own traffic sources... The earnings from these 30% go in full to the sponsor, and could be used to finance trial payouts. If they can get enough trial to full conversions, this kind of investment could be benefical... Also, they make money from other sources as GG said. Just a guess though - 18Honeys doesn't do trials

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