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Originally Posted by JoesHO1
and not be stealing or shaving ?
I mean even a good account has to pay 6 - 7 % processing so now they are left with 13% gross margin.
less hosting/bandwith
customer Service/affiliate issues
Graphics
Promo material
content
content management
Fraud control
etc....
I mean can someone please explain a rational formula for this to be possible ?
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Same way you do PPS with cheap trials.
And you may or may not remember there are/were some 100% programs back in the day. Also, pay attention as to whether the 80% is 80% of gross or 80% after transaction fee's. If it's after transaction fee's, then you can actually have a small margin of profit.
Standard answer is upsells, cross sells, exits, email addresses, etc are what you gain.
In reality, I think the real secret is that you're using it to draw webmasters and traffic. You're not making money on your signups, so you have to have a plan to make money off that base of webmasters in another way. And/or you have to have a way to make money off all that traffic that does NOT buy anything.