Initial cost of starting a PPS program?

[Trev]

Originally Posted by xenigo

Yes, I've taken that into account. I'm only speaking in terms of how much it will cost to have enough in reserves to offer PPS payouts. Not anything additional like content. That is a seperate budget.

I tried to setup my own program and it went and died, if you need to ask how much then you've not got enough!

[xenigo]

Originally Posted by Trev

I tried to setup my own program and it went and died, if you need to ask how much then you've not got enough!

I need to ask how much because if I don't, I'd be a fool. Any smart businessman knows the costs associated with doing business, forwards and backwards.

I've got a program right now but it's flawed in some critical ways. I'm in the process of revising my plan so it will be successful.

[Trev]

Originally Posted by xenigo

I need to ask how much because if I don't, I'd be a fool. Any smart businessman knows the costs associated with doing business, forwards and backwards.

I've got a program right now but it's flawed in some critical ways. I'm in the process of revising my plan so it will be successful.

Could you explain how it's flawed and the revisions you intend to make?

[xenigo]

Originally Posted by Trev

Could you explain how it's flawed and the revisions you intend to make?

Well, a number of reasons. First of which is the amount of content I've currently got. In order to be convert initial joins, you must first SHOW you have a lot of content. In order to retain those joins, you must HAVE a lot of content. To make an easier transition from lookers to paying members, trials are attractive. But again, to convert trials to join, you must give them a compelling reason to not cancel. You must have a large amount of content. This also plays a roll attracting affiliates. Who's going to send you traffic if you don't have enough compelling content on your tour? Right now my most critical flaw is having started my current site without having enough models. As a result, it's not growing fast enough because I don't have enough affiliates pushing traffic.

Second of which "Is the program attractive to affiliates?". Currently the answer for me is no. Who wants half of $25 after processing? Hmm, not really something that gets people jumping to send traffic.

Tertiary, is updates. If you don't have a high enough initial join volume, you won't have many members to retain. If you don't have the member base, updates aren't easy to justify. No updates = no retention = no growth.

I intend on improving all of these aspects with the next site I create.

[JR]

Originally Posted by xenigo

I need to ask how much because if I don't, I'd be a fool. Any smart businessman knows the costs associated with doing business, forwards and backwards.

I've got a program right now but it's flawed in some critical ways. I'm in the process of revising my plan so it will be successful.

you are looking at things backwards in my opinion. you are trying to figure things out based on what you might make, potential income and revenue, expenses and so on. thats a very naive approach to business. you should be asking the first and most important question. you should be asking yourself is "how much money am i willing to lose and how fast would i burn through WHEN everything goes wrong"... and then work forward from there and see if it makes any sense at all.

jmho.