Your Site's Break Even/Make Money Point

[Dzinerbear]

Hey all,

desslock, you mentioned in an earlier thread that if you were to charge a cheaper rate to Canadian members, i.e. $32.95, that your site wouldn't make money.

How do you figure? Can you explain how you arrived at that conclusion?

I run AVS sites, so I figure once I've paid for a gallery's pictures, everything is making money. I guess it's different for a pay site?

Cheers
Dzinerbear

[Lee]

Michael,

For the most part a surfer has a 'expiry' time and from our own exeriences from figures we have gained we tend to adjust the price points accordingly to remain profitable.

However, with that said, many of the sites that are operating on a PPS (Pay Per Signup) model simply cant afford to even adjust the membership costs by more than a dollar.

Unfortunately it is a fact of business when it comes to specific pricing options and affiliate payouts that either the surfer, webmaster or, program owner has to lose out. 9 out of 10 times, its the surfer that loses out

Regards,

Lee

[desslock]

Originally posted by Dzinerbear
desslock, you mentioned in an earlier thread that if you were to charge a cheaper rate to Canadian members, i.e. $32.95, that your site wouldn't make money.

I run AVS sites, so I figure once I've paid for a gallery's pictures, everything is making money. I guess it's different for a pay site?

Heya:

I think for you or me a break-even point is not as important. Our costs are low, and we can simply keep adding more websites to our portfolio.

My reference was applicable to a content producer like Bedfellow. They have a payroll, fixed expences, budgets, etc. Or selecting a non Canadian company - let's say NakedSword.

They have to make XXX amount of money every month to keep the lights on. If they are discounting memberships to the point that they aren't able to pay the bills, then it would be time to ask for that government bailout (like United or Delta Airlines)

Economists seems to all agree that you want a nice strong US dollar. The Fed raised interest rates a quarter of a point today. The stock market closed higher. That's probably why.

Steve

[Dzinerbear]

Originally posted by desslock My reference was applicable to a content producer like Bedfellow. They have a payroll, fixed expences, budgets, etc. Or selecting a non Canadian company - let's say NakedSword.

They have to make XXX amount of money every month to keep the lights on. If they are discounting memberships to the point that they aren't able to pay the bills, then it would be time to ask for that government bailout (like United or Delta Airlines)[/B]

Okay, I understand this. However, if you reduce the cost of a membership, let's say for Canadians only and handle the presentation of this new price point through geo-tracking, and you end up selling another 1,000 memberships over the course of the month, then you're break-even point is no longer the same because you've added another $25k to the pot (1000 x 24.95).

Am I on the right track here?

Dzinerbear

[desslock]

Hmmmmmmmmm

:turtle: :turtle:

I think you would be correct. The big *if* is selling all those extra discounted memberships to the Canadians.

Steve