How does e-junkie make money? Anything... fishy?

by iOutshine

Posted: 13 years ago 17 replies

INTERNET MARKETING

I've been using e-junkie to sell my ebooks for a while now and wanted to test out some competing services to see how they compare (like clickbank, plimus, 1shoppingcart, etc.).

What I've noticed about all of them is the difference in price. E-junkie is $5 a month... and that's it. No fees. No percentage of every sale. No nothing. Just $5 per month no matter what.

By comparison, 1shoppingcart is $99 per month, and clickbank and plimus take a percentage of every sale.

So... how the hell does e-junkie make any money? Seriously. $5 per month isn't even enough to cover the costs of hosting the product delivery/email/download service they provide for me, of which I get 20-30 sales a day x 30 days per month = 600-900 sales they have to take care of. All for just $5 per month.

It makes me wonder if anything is like secretly happening that I'm not aware of. I've seen strange patterns of sales for a while now (for example, one site will average 5 sales a day for a week, then go three days with literally 0 sales, then suddenly get 3 sales in 1 hour on the fourth day... all with consistent levels of traffic).

When I see something like this and combine it with e-junkie's crazy low price, it makes me wonder if there is anything fishy going on.

So, I guess I'm looking for someone to either call me totally crazy... or maybe agree that you've sometimes felt "strange" things might be happening.

And in either case... seriously, how the hell do they make money at just $5 per month?

#ejunkie #fishy #make #money

ChristopherTheron 13 years ago

I agree with the totally crazy part e-Junkie is a service that many, many internet marketers use, and I have never heard of anything fishy going on with their service. You have to understand, at $5 per month, they are very appealing to all internet marketers, no matter what their budget. In this day and age, I know it's hard to comprehend that a service can be honest with such a low price point, but that is what makes e-junkie even more appealing. Also, think about this... Due to their low price point and great value, they most likely have tens of thousands (if not more) of customers. 10,000 customers x $5 per month is $50,000 per month, which is $600,000 per year. I am pretty confident they have way more than 10,000 customers. If that number was 20,000 even, they would be generating $1.2 million in annual revenue.

It's not about how much they charge per customer, but rather, how many customer's they lock in on a monthly basis. Small dollars become big dollars.
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CDarklock

13 years ago

Originally Posted by iOutshine

$5 per month isn't even enough to cover the costs of hosting the product delivery/email/download service they provide for me

E-Junkie promotes heavily to the crafting crowd, who sign up for an extended free trial, then don't do anything but continually tell themselves they're going to do something "ANY DAY NOW" - so they keep paying the $5.

So multiply $5 for nothing by thousands.

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Doug Wakefield

13 years ago

I run my PLR purely based upon the download protection of E-Junkie. Your $5 a month is my $15 a month (and not far from going up.)

I'm not the only one paying more than $5 either. You don't detail your pricing plan as far as they do to not have people in most of them.

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Lea Karana

13 years ago

Originally Posted by Doug Wakefield

with the $15 membership, are the links protected? or do they expire?
how is it more protected with paying more?

Lea

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Doug Wakefield 13 years ago

You get more products for more money. I continually add to my inventory, thus the need for more storage space.
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iOutshine

13 years ago

It's not about how much they charge per customer, but rather, how many customer's they lock in on a monthly basis. Small dollars become big dollars.

I hear ya, and I know a ton of people in IM are using it, but it still seems crazy. I mean, their competitors are sometimes taking $5 per SALE compared to e-junkie's $5 per month.

There are great prices and there are "how-is-that-even-possible, something-must-be-up" prices... this falls into the latter category where you almost have to assume something "not right" is taking place.

Ha, good point, and I'm sure there are plenty of people who do actually use it but aren't selling much. But with the amount of usage it has gotten over the last year or two among people who DO sell quite a bit, you'd think it would sort of even out.

I honestly wouldn't even think anything of it, but my occasionally weird pattern of sales (mentioned in the OP) has made me take extra notice of stuff like this.

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Kay King 13 years ago

A few years ago the "membership site craze" was in full swing. A very smart marketer (I could be wrong but I think it was Willie C) had a membership site that was so cheap no one ever canceled.

Brilliant strategy, isn't it?
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CDarklock 13 years ago

Originally Posted by iOutshine

But with the amount of usage it has gotten over the last year or two among people who DO sell quite a bit, you'd think it would sort of even out.

Not even close. You are seriously underestimating the size of the knitting, quilting, and scrapbooking niches.
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- gettincrafty 13 years ago
  
  Originally Posted by CDarklock
  
  Not even close. You are seriously underestimating the size of the knitting, quilting, and scrapbooking niches.
  
  please don't take this as me being rude, but you are really under estimating the crafting world. I for one sell tutorials using ejunkie and sell at least 4-500.00+ a month. There are a lot of crafters out there like me that are doing the same if not better.
  
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  CDarklock 13 years ago
  
  Originally Posted by gettincrafty
  
  please don't take this as me being rude, but you are really under estimating the crafting world.
  
  And you're really missing the point.
  
  Crafters, no matter how much or how little money they make, use near-zero system resources. Their products are small and their volume is low.
  
  So by targeting crafters as their primary market, E-Junkie can charge dirt for an account and still make a sizeable profit. In fact, if they charged MORE than dirt for an account, they couldn't target crafters at all.
  
  But crafters typically have profit margins and product development times that would make most IMers' lungs fall out.
  
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  "The Golden Town is the Golden Town no longer. They have sold their pillars for brass and their temples for money, they have made coins out of their golden doors. It is become a dark town full of trouble, there is no ease in its streets, beauty has left it and the old songs are gone." - Lord Dunsany, The Messengers
  
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rondo 13 years ago

I've been paying them for 4 or 5 years, so all their 1000's of residual payments will add up to huge amounts.

The others get 5% or more per sale because they are also payment processors.

Andrew
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George Wright 13 years ago

Another thing,

e-Junkie is not competing with the others. They work along with them. You need a payment processor other than e-Junkie to take payments. They never have or hold or pay you your money. They just store and serve up your downloads and in some cases they don't even do that, many use them just for the email notification that links to the product on another server.

George Wright
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Lloyd Buchinski

13 years ago

Originally Posted by iOutshine

I've seen strange patterns of sales for a while now (for example, one site will average 5 sales a day for a week, then go three days with literally 0 sales, then suddenly get 3 sales in 1 hour on the fourth day... all with consistent levels of traffic).

When I see something like this and combine it with e-junkie's crazy low price, it makes me wonder if there is anything fishy going on.

There is absolutely nothing wrong with that statistically. What would be weird would be if you got the same number of sales each day, day in and day out.

If you take 6 coins and flip them, once in awhile 4 out of 6 will turn up heads. Sometimes even 6 out of 6 will be heads.

Now if you were talking about 60000 sales a day and none for 3 days in a row, then maybe three times that in a couple of hours, that would be a different story. That would indicate something is wrong.

With the low numbers, they are going to fluctuate all over the place naturally.

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Rob Whisonant 13 years ago

I have always said get your own delivery script and do it yourself. But this thread has got me thinking... Maybe I need to start a service similar to e-junkie.

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- nilius2 13 years ago
  
  Well, e-junkie is $5 for up to 10 products , after that price goes up...i pay e-junkie $18 a month for up to 60 products and that's not the end...
  And i guess there is many many users pay even more than me....and that is not even for payment handling, only shopping cart and link distribution, off course email sending etc....which is all automated anyway. So i believe that e-jukie makes decent money from customers over the world so there is nothing really fishy here, only good business
  
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  sbucciarel Banned 13 years ago
  
  Originally Posted by nilius2
  
  Well, e-junkie is $5 for up to 10 products , after that price goes up...i pay e-junkie $18 a month for up to 60 products and that's not the end...
  
  ejunkie might be a good solution for up to 10 products, but once you exceed that, you're far better off with just buying DLGuard. One payment only and you can deliver unlimited amount of products. No monthly charge. It's dynamite software.
  
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digitalproductreporter 13 years ago

also, if you send out an "update" or a newsletter through their system it will cost you extra fees, it's an option in the admin

it can get expensive quick if you have sold a few hundred copies of something and you update often
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How does e-junkie make money? Anything... fishy?

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