N E W B I E W E B M A S T E R S . C O M

PER SIGNUP VS. RECURRING

This is one of the big topics in this industry as their is a ton of disagreements when this topic is brought about!! It simply is a numbers game and nothing else. Before I start I would highly recommned using both systems as they compliment each other VERY WELL!! First I will talk about the PROS and CONS of each system, and then do some numbers, so you can understand each system just a little better:

Per Signup

PROS

You get paid a flat fee regardless of whether the customer signs up for a trial, or 1 month membership.

You do not have to worry about the member staying for more than 1 month as it doesn't matter to you. This is great since you get paid rightof the top, without having to worry that your sponsors member section is any good or being updated regularly, etc...

CONS

No long term recurring income. Thus if you stop marketing adult sites today and take ALL your sites offline, you will NOT receive another dollar! Not so ewith Recurring.

Recurring

PROS

Huge possibility for long term income. If you send a customer to them and he stays a member for 2 years you get paid each and every month for him 60% of the membership cost. Which means each month this one customer can make you (.60 X $29.95 = $17.97 before credit card fees) Thus ($17.97 X 12 months s = $215.64 for that ONE customer. As you can see it is much higher than the base $40 per signup if you would have sent the same member to a per signup program. With the above example, i will tell you it DOES happen, but in my experience I find it rare. But if you can send lets say 200 signups a month and just 10 stay for 1 year, those ten will be making you a good amount of money throughout the year for doing nothing!!

So to sum it up, if you get a GOOD amount of these recurring signups for a good program, that stay members a long while, you can easily make HUGE amounts of money for years after getting out of the adult industry. It is also good for keeping income coming during the summer months, which tend to be the slower months in this industry!!

CONS

If a sigup you send only signs up for a trial membership and cancels after the 3 day trial, you get paid 60% of the trial price (.60 X $2.95, average trial, = $1.77) If you sent this same person to a per signup sponsor that paid on TRIALS (many do) then you would have gotten $35 - $40 for that customer rather than $1.77.

You are relying on the sponsors site to hold the member for a specified amount of time. Thus if the recurring sponsor can hold the member for 3 months you make MORE than you would have if you sent him to a per signup. But when calculating your dollars you also have to take into account the members than didnt recur from a trial in which you only made $1.77

With the PROS and CONS listed on the above two methods of sponsorship programs, I would now like to touch on another issure with "Per Signup" programs. ALWAYS READ THE FINE PRINT! Some sponsors do NOT pay on trial memberships (VividVIP), while others pay on trials, and even more so if the customer buys a 3 month membership you get more for that as well (MaxCash). Some sponsors also take out chargebacks, while others have yet to implement this. All I can say is READ the terms and conditions very carfully as it is all usually listed plain as day in them!! If you find a fraudulent advertiser feel free to drop me an email at webmaster@newbiewebmasters.com and i will look into it!! With the above PROS and CONS laid out, lets look at the numbres then the decision is up to you on which programs you would like to promote!!

Ok lets ge a scenario down here: Lets say you send a sponsorship program 15 members a month for 3 months. Lets say the per signup sponsor pays$35 even on trials, and the recurring sponsor program is a 60% recurring program! So in 3 months you have a total of 45 members sent to both programs! The per signup math will be easy but the reucrring one will be rough estimates!

Recurring by the Numbers

Here are some rough estimates:
20 of the 45 cancel after the trial period. 20 X $1.77 ($2.95 X 60%) = $35.40
15 of the members are members for 1 month 15 X $17.97 ($29.95 X .60%) = $269.55
5 of the members stay 3 months 5 X $53.91 ($17.97 X 3 months) = $269.55
4 members recur 6 months 4 X $107.82 ($17.97 X 6 months) = $431.28
1 members recurs for 1 year 1 X $215.64 ($17.97 X 12 months) = $215.64
A grand total of....... $1,221.42

Per Signup by the Numbers

45 members X $35 per signup = $1,575

As you probably noticed you can play with those recurring numbers all day long. Add 2 of those members as yearly subscribers to bring the total of 3 and your recurring dollars total goes up $500. BUT would you ratehr make a hundred or two hundred dollars extra in a YEARS TIME or make a little less up front and reinvest it however you wish?? Also remembering it is not always a guarantee you will make more in recurring over the long run sa it ALL depends on how well the program retains members. I have lost thousands of dollars playing the recuring game, but that is just me :) Members nowadays don't stay members usually longer than 3 months, as the web is filled with so much free porn!! Don't let the above persuade you, as I have noticed a lot of people really ENJOY the thought of getting money in the long run for doing nothing!! It is purely a sense of satisfaction but the numbers don't lie and if you invest correctly that $1,575 will far outweigh any recurring program in my opinion. Well that should have more than covered the per signup vs. recurring argument, and go over the Pro's and Con's numerous times till you have decided which one you would like to promote the most. As I said a mixture of both is the best way to go, as I do promote some recurring, but 80% of my promotion is based on per signup programs!! Now onto the next topic at hand....

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