.SPONSOR PROGRAM STRATEGIES PART 3

The Importance Of Recurring Memberships :

By Mark Conrad of SponsorCash

Recurring sales are defined as membership sales that are automatically

made when an adult site subscriber’s credit card is re-billed monthly to

renew their adult site subscription.

It is the central core of the profit that is made in the adult site

business, and one of the reasons why many large sponsorship

programs do not offer Recurring Billing as a part of their payout

structure to adult webmasters who participate as partners in their

affiliate programs.

They would rather pay you a larger sum of money to pay you

off at the outset, to keep you quiet and happy with the few

extra dollars you’ve made, and keep the lion’s share of the

gold for themselves.

There is nothing wrong with that, it’s a business. But make sure you

know the score while you are playing the game.

In the short term, the sponsor loses money on this method,

but in the long term, he profits far more. Large well-capitalized

companies know that if the stats show you are making a lot of

sales, you are going to work harder for them.

Why do most adult webmasters overlook recurring sales when

looking for a sponsor? It’s the old short-term vs. long -term

thinking that gets us into trouble every time.

Most adult memberships don’t result in recurring sales, but for the

percentage that do, are the major source of profit.

When we’re on this subject, a lot of webmasters ask me, well,

how about pay-per-click?

If you look at the math, you will see that most pay-per-click programs

really only pay you about as much as you would get if you were getting

paid per sign up.

However, with most affiliate programs, neither the pay-per-

signup or pay-per-click model will pay you the most important revenue

generator of all:

Recurring Sales.

Recurring sales are the true goldmine in the adult paysite business, and

smart pay adult site owners know it, especially those who offer affiliate

programs.

That is also why most of the big sponsor programs will never offer you

a piece of the recurring sales action, because that is where the real

money gets made. This is not a criticism, it is a statement of fact.

I won’t go into the math here, but if you want to see how it all breaks

down, check out this excellent article by Andy over at Andy’s Trix:

http://trix.sexswap.com/SWAP138.HTM

As the Guru O Gif concludes, the pay-per-click model is built on

the pay-per-sign up model. Never think you are getting a good

deal on pay-per-click, and don’t let the pay-per-click numbers

fool you into a sense of false security.

I think it’s also worth mentioning here that if you play the

TNG posting game, and think you will make out better

with a pay-per-click program because the sponsor won’t

know the difference in the quality of the hits you are sending,

think again.

Most pay per click programs will drop you from their program

if your hits don’t convert to sales at a decent ratio.

Getting paid per sign up, with the additional benefit of sharing

in the recurring sales revenue stream, is the best deal of all

for webmasters seeking the most profitable long term

sponsor program.

Our sponsor program, Sponsorcash, offers recurring sales on

all seven of our affiliate programs. That means that webmasters

getting sales for us make 50% of all sales, both initial and

recurring. It’s a fair way to keep our sales force happy, because

without our webmaster-partners, we are dead.

Another thing to watch is the 50/60 Shuffle.

Many programs offer 60%, but be careful and read the fine print.

You may find that many of the programs that claim to pay 60%

or more, are only paying 50%, because they are charging you a

10%-15% credit card processing fees.

Some of them will even penalize you for charge-backs and holdback

fees. Deducting them from your hard earned checks. Chargebacks

are a fact of adult paysite business, just make sure you are not getting

double dipped at the accounting office.

To quote an old prison veteran, “watch yer asses in the showers, men,

and don’t drop that soap!”

Since I am also a webmaster, I participate in other affiliate

programs too. I find a mixture of high-converting pay per

sign up sponsors, and recurring programs work best.

For instance, I have Maxcash and Webquest’s great programs

on many of my feeder sites, in addition to recurring member-

ship programs. This mix works great as I get the best of both

worlds.

Use the benefit of recurring memberships when selecting your sponsors as

a good long-term sponsor program strategy.

Don’t miss my next article, “Sponsor Strategies Part 4: The Importance Of

Marketing and Sales Support. “

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Mark Conrad is a veteran adult webmaster and director of sales and

marketing at SponsorCash, an adult partner program that features seven

fetish paysites. He is also publisher of TrafficTips, a free monthly

newsletter for adult webmasters.

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