Revshare or Per Signup

[Dzinerbear]

Hi all,

I'd love to hear your thoughts on Revshare versus Per Signup commissions for paysites.

The per sign-up is great because you get all or most of the money upfront, but lose if the customer rebills. If they don't rebill, you don't lose, the sponsor does.

If you take Revshare, you stand to make more money for those surfers who rebill, but you make a lower amount on those who don't rebill.

Is it really six of one, half dozen of another, or is there an advantage to taking the money and running with a Per Signup structure?

Cheers
Michael

[Lee]

Michael,

You initial assesement pretty much says it all however there is more information that you need to consider before using BOTH payout models generally speaking, webmasters usually tend to use one or the other and, this is probably not the best way to go about making money.

For example, on the PPS (Pay Per Signup) model you need to not only consider the rebills you are potentially missing out on but also your traffic sources of course, if you are getting traffic primarily from TGPs then the PPS model is going to be the ideal way for you to make money from those surfers who are already well educated in the fact that they can hit a TGP and get more than enough free daily, high quality porn pictures as well as movies for free. The chances of a TGP surfer actually rebiling is slim although not impossible.

Revshare on the other hand, if you have high quality traffic such as Search Engine traffic then this may be your best route, the surfer has found your site for a specific reason, they like what you are showing on it and they click thru to your sponsor to find more of the same niche images. From the webmasters standpoint however, you also need to look at how the members area inside your sponsors site looks, if it has very little content similar to what you are presenting your surfer or, doesnt update often enough then in all honesty even a surfer that knows what they want isnt going to stick around to long.

The ideal situation for anyone (bear in mind we own a revshare program here ) is to use BOTH types of sponsor in conjunction with each other however, you need to ensure that the niches you are using are available from both PPS and Revshare sponsors you may use.

Ultimately though, you should be concerned with one thing, your bottom line profits, if you think the traffic you have is good quality my immediate recommendation would be to trial out a revshare sponsor however, if you feel the traffic isnt as good as it could be then go with the PPS model

Hope this helps

Regards,

Lee

[Dzinerbear]

Thanks, Lee.

As always, thoughtful answers. Man, you're a smart bugger.

Cheers
Michael

[AusCoding Allan]

I have to say that once again Lee is a champion. He said exactly what I was going to say - cheeky little bugger. I think the method you use also depends on the niche in which your site falls. If it is highly specific, even though the quality of your traffic may not be so good if you align your site with the right revshare sponsor you can still do better than PPS but hey who's to say what works for one person will work for another.

Cheers,

Allan

[McAttack]

What I tend to do is signup and use PPS first. See how the program does. If I see rebills, then I'll switch over to Rev but if I see low rebills, then I stick to PPS.

[mansites-craig]

From now on, I am just going to ask Lee all my questions, internet related or otherwise. That was dead on!!!

I will put my opinions coming from the other side of the fence. If you are considering a Pay Per Sign Up Model, one caution! Make sure the program you are considering has been up for at least 4 months! I have seen webmasters choose the highest paying programs, only to find out the program couldn't justify paying out that much (their program didn't recur as well as expected), and the program owener ends up losing money, and shutting down leaving the webmasters who sent traffic without anything. Most billing companies are quick to make sure the webmaster doing a PPS model have some history, but some programs set themselves up on their own merchant account. Basic answer, if it sounds too good, then be cautious. Bonus Points for knowing who you work with.

[Lee]

Originally posted by mansites-craig
Make sure the program you are considering has been up for at least 4 months!

You know i would probably err on the side of caution and say make sure the program has been up for at least four months and has paid out 90% of their webmasters for the same 4 month period!

3-4 Months on average from what i can gather is about the time that a program starts to have issues if they havent thought out ther marketing plan properly

Regards,

Lee