Quote:
Originally Posted by erotola
My questions now, as i am planning our next step in this business, which will most probably take the form of our own pay site:
1- I now make 60% when i sell my clips at clips4sale. If i open my own pay site, how do you think that the operating costs would compare with the 40% i leave to clips4sale? How much percentage do you leave in operating costs for your pay sites?
2- I would like to open a pay site that would offer individual clips download as well as membership. How does this model fit with the standard affiliate-sponsor model? Is selling individual clips interesting for affiliates?
3- What percentage of sales is coming from your affiliate programs compared to your own traffic?
4- What kind of percentage split do you experience or would expect between individual clip and membership sales? Do you expect that individual clip sales could match membership sales anytime soon?
I hope that 2008 will be as exciting for all of you as 2007 was for me ;-)
Best wishes to you all,
Dany.
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Clips for sale is one of the least talked about recent innovations to happen over the years. I myself am working on a project to provide an outlet for am videos. The first one will be in the form of a paysite that breaks all the rules.
Its a loing haul.
Specifically heres what you will be dealing with.
1. You will be making 100% of what you sell as opposed to 60% - BUT you have to pay for the hosting and bandwidth. You will need to pay for the design of a pay site. You will need to fork over the 750 Visa fee. If you dont plan on taking Visa then you have just shit yourself out of 80% of potential purchasers.
Dont believe me. Look at whats in your wallet. Most typically Visa.
But the most important thing you will have to rely on for yourself is traffic.
Which is the hardest to get these days and will and should consume a lot of your time and money.
Not percentages for operating costs but these are issues of major consideration.
2. The membership processing is pretty easy. However I dont know anyone that is processing by the download. They will try and tell you epassporte but thats another thread which I will sum up as STAY AWAY.
Then the affiliate issue is that most affiliates want EVERYTHING. There are many that think you should just depost the money in their account for free and do all the work for them.
I would suggest focusing on learning how to sell you site and build traffic on your own before offering an affiliate program.
Selling the clips will be interesting for the affiliate if you are paying a percentage on them. Again a processing issue... if you arent they will tell you that you have a traffic leak which means your sending out traffic to places that pay and they arent getting paid on it.
3. I would have told you in the past you would see more than 50% of your traffic coming from outside your own efforts but thats generally not the case anymore. Getting anyone to actually promote your site is a bit of a trick now simply because there are so many programs now. I will say again work your own traffic to get an understanding of how it works with a potential eye toward affiliates in the future.
4. Affiliates are going to tell you that they dont like a 50% split and would rather you pay them per sign up. Giving them all the money up front and you taking the risk of chargeback etc yourself.
While this brings in more potential sales it also opens you up to massive fraud as meany like to "card" sales - that means use a related credit card that the have access to in order to get credit for a sale - then once they have taken your money charge it all back.
Even a legit pay per sign up business model requires a fat stockpile of money to get started and once running a dedicated team to monitor fraud.
I do think 50% is a reasonable split and its honestly more money in the long run for the legit webmaster. Its like in the real world....some companies stress long term relationship as business PARTNERS.
Even if it just puts the idea in their mind most should react like they have some skin in the game.
I hope this helps you and some of our exiled ammasters friends.
With AM redirecting all of its traffic to Rude I am sad to say Ive heard of some interesting business practices there which I hope will be addressed in the future.
Its sad to think that my friends have resorted to using Zango to steal sales and are using stolen content to help the numbers.
I however cant pass judgement until they address it themselves.