PPS programs ALL shave

[Nickatilynx]

Posted in another thread

by BillPMB

of http://www.pornmegabucks.com

around and paying on time , everytime since 1997

IMHO this post is so critical to this bussiness I did not want it missed by anyone

ALL pps programs shave. Wake up and smell the coffee. Just do the math.

Variables

Number of Signups 500
Trial $2.95
Regular $39.95
PPS $35.00
% of Referred Signups 85%
Fixed Expenses $20,000.00

Monthly Retention Levels
Trial to Full 40%
Month 2 28%
Month 3 17%
Month 4 10%
Month 5 5%


Month 1
Initial $45,208.75
Recurring $244,893.50
Additional Income $31,546.88
Advertising Expenses $(455,918.75)
Processing Expenses $(72,147.04)
Fixed Expenses $(20,000.00)
Profit $(226,416.66)


At 500 signups per day paying $35 per signup billing $39.95 per monthly membership with fixed expenses at 20 grand a month for hosting, content, employees, etc with a chargeback ratio of 1% and billing fees at 10% a pay per signup program is almost a quarter mil in the hole at month 1 of the start of measurement. That's with a 40% trial to regular member conversion which is probably a fair number in surfing some of the member areas out there to see what is what.

That is at an 85% shave, where 15% of the incoming sales aren't reported or credited to the webmaster. At this rate of shave, the program starts making money at month 5 and actually starts doing ok thereafter.

If a program were not shaving at all, using just the income derived from the signups. No cross selling, upselling, NADA. Then at month 5 they would be 20 grand in the black for THAT MONTH, but still be over a half million in the red from the previous 4 months.

Now, if there were some method of only allowing your traffic to leave your sites when there were green lights at the intersections, then you'd have it licked.

BTW, if you'd like to know the point where you could start a PPS program and make money right out of the gate the shave % would be 42% . Where 58% of the incoming signups are not counted, credited or reported/paid.

42% would probably be the "weasel factor"

[Nickatilynx]

Originally posted by Rolo@Dec 19 2004, 02:53 PM
PPS is just another way of slicing the pie...

Many have made up their mind saying they will only do PPS, recurrings or clicks... they are just different ways of slicing the same pie. Now if you want a bigger piece of that pie, then watch your wires at the end of the month - that will tell you who really gives you the most pie

monthly!!!


Are you crazy!!

Wires no less than 3 days after the traffic these days ;-)))

Next day in non adult ;-))

[Rolo]

PPS is just another way of slicing the pie...

Many have made up their mind saying they will only do PPS, recurrings or clicks... they are just different ways of slicing the same pie. Now if you want a bigger piece of that pie, then watch your wires at the end of the month - that will tell you who really gives you the most pie

[Rolo]

Thats the good thing about the numbers game... the bigger the numbers you have - the faster it takes for you to find out what works...

Personally I love prepay

[Lee]

Posted on Weasles board by the man himself..

You can shave with any program.

But, 99% of affilate programs do not shave IMHO. The # is high, but not 90%.

So that would make it 98% then

Although, if the number is high but 99% of programs dont shave.. 1% must be a real high number

Creative accounting 101.

[BillPMB]

Variables

Number of Signups 500
Trial $2.95
Regular $39.95
PPS $35.00
% of Referred Signups 85%
Fixed Expenses $20,000.00

Monthly Retention Levels
Trial to Full 40%
Month 2 28%
Month 3 17%
Month 4 10%
Month 5 5%


Month 1 Month 2 Month 3
Initial $45,208.75 $45,208.75 $45,208.75
Recurring $244,893.50 $416,318.95 $520,398.69
Additional Income $31,546.88 $31,546.88 $31,546.88
Advertising Expenses $(455,918.75) $(455,918.75) $(455,918.75)
Processing Expenses $(72,147.04) $(91,003.83) $(102,452.61)
Fixed Expenses $(20,000.00) $(20,000.00) $(20,000.00)
Profit $(226,416.66) $(73,848.01) $18,782.96


Thought you might like to see month's 1 through 3. You'll notice that you've beat the power curve at month three and are into positive cash flow at that point. You're now paying off the loss from the previous 2 months with the next 3. After that, it's painless.

[Nickatilynx]

Originally posted by *KK*@Dec 19 2004, 05:23 PM
Ha, an appropriate time to throw up a link to how little webmasters in this business understand what the fuck to do to make money.

http://www.FuckYouLensman.com/showthread.p...197#post6137197

LOL!!!

a week?

heather never EVER got it ;-)))

She also never got the fact that all money is "bearer".
It all spends.
Doesn't matter who gave it to you , once they do , its yours.

"Oh I'd never deal with so and so , he's a so and so"
"Yes , heather , that may be true , but the money spends just fine "


(Looks around)...oh she's not here anymore

Please also always remember 90% of GFY are surfers first , webmasters second.

Hard to be a lion, when you have the instincts of a mouse ;-))

and one of the best pearls ever...

Scotts Law.

"One good webmaster can send you as much traffic as 200 gfyers.And give you a thousandth the headaches."

;-))

[Nickatilynx]

that is very true , slavdogg LOL

Yeah I'm gonna ask Mike or Nick to put that alteration back to normal..

I was like...WTF!! lol

[*KK*]

Ha, an appropriate time to throw up a link to how little webmasters in this business understand what the fuck to do to make money.

http://www.FuckYouLensman.com/showthread.p...197#post6137197

[slavdogg]

Originally posted by Nickatilynx@Dec 19 2004, 07:55 PM


Scotts Law.

"One good webmaster can send you as much traffic as 200 gfyers.And give you a thousandth the headaches."

;-))

true but that one good webmaster can also burn your program by pulling his traffic, leaving you with a lot less transactions thus sending your CBs through the roof.

[slavdogg]

Originally posted by *KK*@Dec 19 2004, 08:23 PM
Ha, an appropriate time to throw up a link to how little webmasters in this business understand what the fuck to do to make money.

http://www.FuckYouLensman.com/showthread.p...197#post6137197

hahaha this is funny Netster registered FuckYouLensman.com domain.

i wonder how they found it ? i know they dont read this board.
My guess the lead came from one of their adware style toolbars.

[Timon]

[Biggy]

A wise man (no pun intended) once told me, never ever send traffic to a PPS program - they all shave and its impossible to pay $35/sale on a $1.95 trial...

I soon found this is true....

This man does ~400 sales a day to his own site, and 80% of it is sent by himself (non-spam)

[Rolo]

Originally posted by slavdogg+Dec 19 2004, 05:51 PM-->