I am currently working on an affiliation program for a large european gay VOD porn site to be launched in a couple of month. I am wondering about the appropriate level of payout rate I should offer to affliates.
We propose different “pay-per view” purchase prices : 6 ⬠; 10 ⬠; 16 ⬠; 30 â¬. We also propose a monthly membership fee of 60 ⬠for unlimited access.
5,90⬠purchases represent 12% of total sales.
9,90 ⬠purchases represent 18% of total sales
15,90 ⬠purchases represent 25% of sales
29,90 ⬠purchase represent 33% of sales
59,90 ⬠membership fee represent 12% of sales .
I understand market current are 20 to 30% on pay-per view transaction from one week to one month total purchases and 50% on membership.
What is the rationale behind a 50% payout rate on unlimited access membership and a 30% payout on pay-per-view purchases ?
Which payout rate should I propose for Pay per view transactions and on which time base (one week ? 2 weeks ? 1 month ? ).
3)Which payout rate should I propose for membership (unlimited access) ? Lifeended ?
I am an affiliate, and I think your monthly membership for unlimited access of 60 euros is way too high for affiliates. I haven’t had a sale for Naked Sword monthly membership in over a year (only PPV sales) and that’s at a monthly rate of only $39.95 US.
personally i am not a fan of pay per view, and i have always found a membership of $29.95 or below easier to market and sell. besides, there are HUGE sites like gayvideobox that charge $14.95 a month and tons of massive DVD archives and exclusive sites that charge under $40 - in fact, virtually all your competitors charge $40 or less.
I do agree, for at least US / UK surfers the monthly membership is very high. Specially if you compare it to videobox.com which offers 1000s of full dvds.
Its a difficult one though, it all really depends on how good your content is.
Of course it might work IF, say people try out the VOD, like what they say and then buy a membership.
In those cases, what happens to affiliates. Do you get credit for both the VOD, then if he upgrades also the full membership.
In regards to the 7 days limit, it sounds fairly low. A lot of sites have much longer time before the cookies expires.
I still dont get why a cookie should expire. If another webmaster refers the surfer then sure, overwrite my cookie. But if they take 30 days or even a year to join, I still showed them the site in the first place. Why should I loose that credit?
Thank’s to all of you. It helps a lot. Lil Devil, would you please clarify some points ?
When you write: “if another webmaster refers the surfer” what do you mean excatly ? ". To answer your last question I would say it is an arbitrage on client ’ acquisition cost. If I had to pay out 50% of my sales to webmasters, I would clearly consider finding alternative cheaper ways to acquire clients (google, emails etc…).
I mean with cookies, if I refer a surfer to your site and a cookie is stored, the surfer continues surfing and finds your site via another webmasters link, then my cookie would be overwrote and Id except that. But I dont see why my cookie should expire after one week or indeed any amount of time. I know cookies are always set to expire, but imo its wrong to take the credit away from the person who introduced the customer to you.
Also, with your second point, youd do both. Webmasters will push your site for you, and get a cut of the sales, but that doesnt stop you getting your own traffic of which you keep all the money.