Different Country Pricing = More Income?

Rolo · 02-05-2003

As more and more traffic is comming from elsewhere than from the US, then it might be the time for the adult internet to look more at the price/payout models we use. Credit Card signups usual carries 1 price for all countries - $2.95 trial, $39.95 recurring - however I feel this is not the best solution.

$39.95 recurring might be a small fortune in some countries, other surfers might be used to very different price level for adult products. This means less new sells, however it is also one of the reasons to cancel a trial membership before it recurres, or doing "multiple" chargebacks.

Ofcourse this "high price" model is used mainly, so paysites can pay their affiliates/resellers top dollars. Lowering the price will bring less income per membership to the reseller/paysite owner, but should also incress the number of NEW memberships, and lower the trial cancel rate, and fight of multiple chargebacks.

Today pay per signup programs usual pays a flat rate on all countries, and with a future "local price" model worked into this, then they would need to pay less per signup for some countries (ex. $10/Russia)... BUT it could also mean that those countries which really converts/recurres at a high price would be much more valuable (ex. $45/UK). Recurring programs should not change their payout %, since they already have a % spilt worked in.

Dialers are already using this payout model, because they are used to local pricing worked into their billing, so I´m sure most affilates/resellers would understand the concept/idea from the start... also they would probably like to see their traffic convert better /and get higher payout for some countries

To get an idea about the difference in pricing, then the Big Mac index is a good place to visit: http://www.economist.com/markets/Bigmac/Index.cfm
These are latest numbers from the Big Mac index: http://www.economist.com/markets/bigmac/di...tory_id=1537385

"Value" is different around the world, and maybe paysites should start to think in local pricing, when selling to an world audience.

So what do paysite owners AND webmasters/affiliates/resellers think about this?

Would it be ok to lower pricing for some countries, and pay less for those signups, but hopefully get more signups/recurrings + less chargebacks?

Last edited by Rolo at Feb 5 2003, 09:30 AM

02-05-2003	#1
Rolo Members Join Date: Dec 2002 Location: Six Feet Under Posts: 2,150	As more and more traffic is comming from elsewhere than from the US, then it might be the time for the adult internet to look more at the price/payout models we use. Credit Card signups usual carries 1 price for all countries - $2.95 trial, $39.95 recurring - however I feel this is not the best solution. $39.95 recurring might be a small fortune in some countries, other surfers might be used to very different price level for adult products. This means less new sells, however it is also one of the reasons to cancel a trial membership before it recurres, or doing "multiple" chargebacks. Ofcourse this "high price" model is used mainly, so paysites can pay their affiliates/resellers top dollars. Lowering the price will bring less income per membership to the reseller/paysite owner, but should also incress the number of NEW memberships, and lower the trial cancel rate, and fight of multiple chargebacks. Today pay per signup programs usual pays a flat rate on all countries, and with a future "local price" model worked into this, then they would need to pay less per signup for some countries (ex. $10/Russia)... BUT it could also mean that those countries which really converts/recurres at a high price would be much more valuable (ex. $45/UK). Recurring programs should not change their payout %, since they already have a % spilt worked in. Dialers are already using this payout model, because they are used to local pricing worked into their billing, so I´m sure most affilates/resellers would understand the concept/idea from the start... also they would probably like to see their traffic convert better /and get higher payout for some countries To get an idea about the difference in pricing, then the Big Mac index is a good place to visit: http://www.economist.com/markets/Bigmac/Index.cfm These are latest numbers from the Big Mac index: http://www.economist.com/markets/bigmac/di...tory_id=1537385 "Value" is different around the world, and maybe paysites should start to think in local pricing, when selling to an world audience. So what do paysite owners AND webmasters/affiliates/resellers think about this? Would it be ok to lower pricing for some countries, and pay less for those signups, but hopefully get more signups/recurrings + less chargebacks? Last edited by Rolo at Feb 5 2003, 09:30 AM __________________ "Chaos is the law of nature, order is the dream of man." ~Henry B. Adams (Historian) 1838-1918