Looking at Pay-Per-Sale (PPS) and Revenue Sharing (RevShare)
Introduction.PPS and revshare are relatively similar. There is no magic tweak for PPS versus revshare. They both work by the same fundamentals.Using Pay-Per-Sale (PPS) and Revenue Sharing (RevShare).Surfer comes to site A. They either subscribe or they don't.If they subscribe, both PPS and revshare allow a cross-sale. Getting a Join.Once a subscriber is approved, they are redirected to an approval page. Here, you attempt to upsell them on another site, or a product. If they decline, they enter the members area. This is where the content is delivered, along with up-sells to other sites, or products.Once the subscriber cancels, you have an opportunity. Offer a discounted rate, to continue as a member. Or, worst-case scenario, you have their email to solicit them into joining another site, or purchase a product. Losing a Join.If the surfer doesn't join, present various consoles. This is an attempt to convince them to purchase another site. Or, simply capture their email, through an opt-in.The Outcome.As you can see, there is nothing different, between the options you have, with one model vs. the other. Sure, there are variances. How do you set up the members area? Or, how do you upsell? But, that is about it. It isn't rocket science.Real-word example.After sampling 1500 new subscribers, this shows an actual breakdown. In fact, it might be ventured, this is exactly how the PPS model works.The breakdown.501 subscribers came from type-in/www.160 subscribers came from check processing. 252 subscribers came from foreign traffic. The 587 remaining subscribers came from primary or secondary processing. 1500 subscribers initially generated ~$13,600.00. The bottom-line.Those 1500 subscribers, so far, generated an additional ~$20,450.00 in rebills. This is after one month. Therefore, those subscribers, so far, have a value of $22.70 each. That value, for each join, increases as the months go by "X" number of rebills.Here is where the difference, between the two models, comes into play. The outcome.With revshare, typically, there is a payment on EVERY join coming through the system.With PPS, if ONLY paying on primary and secondary processor transactions, a pay-out of $30.00/subscriber is possible. 587 subscribers X $30.00 = $17,610.00 in payouts. After one month, you have already collected ~$34,050.00. An Objection.Some might say, "But, affiliate conversions look terrible." They won't, if you count second page uniques. Or, worse, if you count join page uniques.Typically, revshare programs count first page uniques. Again, this is typically. It is important to count the clicks you send to a PPS program, as well as a revshare program. Then, do the math. It really shows what your actual click is worth. The Affiliate point-of-view.Now, if offering PPS or revshare, do you disclose what you pay? You bet. In the end, it is their traffic being sent. They have every right to know what the traffic is worth. Whether using PPS or revshare, let the affiliate know.Conclusion.This business is simply a numbers game. There is no magic, or in-depth algorithms, for PPS to work. It is how you want to slice the pie, and distribute it.Xanga Myspace LiveJournal | free pics images | free My space Backrounds |