Recurring Revenue - Is $1.00 per month too low?

19 replies
Recurring Revenue is Great,


I just started marketing this program and would like to get some feedback from other imers


program has a $4.95 subscription charge, and pays affiliates $1.00 monthly for each sign-up

Affiliates who reach 100 sign-ups get $2.00 a month for all new AND prior sign ups.

As fellow imers your thoughts....?:confused:
#$100 #low #month #recurring #revenue
  • Profile picture of the author TheInternet
    Is $xx/month enough to improve your life? I'm at a point where I'd be happy for an extra $1, $10, or $100/month to put into PPC campaigns, but it's probably not worth it to a moderately successful IMer.
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  • Profile picture of the author nicolas simpson
    well you said for each sign up. That sounds like your are more likely to get more than a $1.00 to me.

    Your thread states that you will get $1.00 per per sign up e.g. 2 sign up equal $2.00. However your title state otherwise. Base on my interpretation of the title it is saying that you will get only $1.00 per month.

    I don't fully get what you are saying.

    However if its that you will get $1.00 per per sign up e.g. 2 sign up equal $2.00.I think that's good.

    Best regards
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    • Profile picture of the author goneebo
      The program pays $1.00 for every sign-up until you reach 100 sign-ups.

      as soon as you reach 100 sign-ups you are paid $2.00 for each new and prior sign-up.


      so as soon as you hit 100 sign-ups you are good
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      • Profile picture of the author Psst
        Banned
        Originally Posted by goneebo View Post

        The program pays $1.00 for every sign-up until you reach 100 sign-ups.

        as soon as you reach 100 sign-ups you are paid $2.00 for each new and prior sign-up.


        so as soon as you hit 100 sign-ups you are good
        Most of the time, these types of offers are easy to promote. So promote mainly other higher end products and in context promote these types of products.
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  • Profile picture of the author Adnimated
    This all sounds a bit too low to me. Unless you can convert at incredible rates and make it worth the affiliates resources.

    But I would NEVER promote this personally UNLESS you got a killer backend where I'd get paid, too. And your conversions need to be off the charts.

    If your conversions are good, you may have a good chance putting this into CPA companies if you are in some mass market.
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  • Profile picture of the author Psst
    Banned
    Get 1,000 sign ups and you will be making $1,000 every month on autopilot.

    $1 is not very low. Depending on the type of the offer or the niche, it can even be too high.
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    • Profile picture of the author Adnimated
      Originally Posted by Psst View Post

      Get 1,000 sign ups and you will be making $1,000 every month on autopilot.

      $1 is not very low. Depending on the type of the offer or the niche, it can even be too high.
      I'll take an example from my own business:

      I got 2 membership programs. Each are $37 a month. And contain around 500 members, give or take. I pay 60% to my affiliates, every single month. Up-to $5000 bonuses in some cases due to backend sales, etc.

      Who do you think affiliates rather promote in that case?

      Getting 1000 signups is not all that easy. And with PPC on such a small profit margin its going to be tough to recoup your investment. So for most affiliates it won't be worth their time nor their resources to promote such affiliate programs.

      I also promote other peoples membership sites. And if I have to choose the guy that gives me $1 per month over someone paying me $15 a month... I'm going for $15 a month every single time. Unless there's an awesome JV possibility with the other guy.

      So no, $1 per month is not too much.
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      • Profile picture of the author Psst
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        Originally Posted by jkhunter View Post

        I'll take an example from my own business:

        I got 2 membership programs. Each are $37 a month. And contain around 500 members, give or take. I pay 60% to my affiliates, every single month. Up-to $5000 bonuses in some cases due to backend sales, etc.

        Who do you think affiliates rather promote in that case?

        Getting 1000 signups is not all that easy. And with PPC on such a small profit margin its going to be tough to recoup your investment. So for most affiliates it won't be worth their time nor their resources to promote such affiliate programs.

        I also promote other peoples membership sites. And if I have to choose the guy that gives me $1 per month over someone paying me $15 a month... I'm going for $15 a month every single time. Unless there's an awesome JV possibility with the other guy.

        So no, $1 per month is not too much.
        $1 a month is not too much. And I understand it's not easy to generate 1000 signups despite the price. But if you mainly promote other higher end products that pay higher commissions, promoting these types of offers in contexts doesn't hurt.
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        • Profile picture of the author Adnimated
          Originally Posted by Psst View Post

          $1 a month is not too much. And I understand it's not easy to generate 1000 signups despite the price. But if you mainly promote other higher end products that pay higher commissions, promoting these types of offers in contexts doesn't hurt.
          I don't promote a lot of products as an affiliate anyway. Mainly my own products. Just the occassional JV. And all products I promote range from $10 to $500.

          @the 40% comment:

          Yeah but 40% of $4,95 is still not a lot. And that's the whole point:

          Let's say we go to the max of $2. IF people stay on for an entire year, it would be $24 for me as an affiliate. For an entire year!

          If I promote just 1 product, I'd make that all at ones.

          The only advantage may be that you get higher conversions. But if I put it against all the disadvantages... I still wouldn't promote it.

          A good suggestion is the $15 suggestion a previous commenter gave. I like that. You can have that money back within 3 months. And everything beyond that is pure profit.

          Heck, if you get 10% conversions and you make it $10, depending on the market it's still pretty awesome. If you add that to CPA networks... you may get more signups as you can handle if you can make that happen.
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  • Profile picture of the author thadbong
    Tell you what, turn it around.

    Lets say you're the affiliate, and you're getting paid $1 per sale to do the marketing work.

    Would you?
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  • Profile picture of the author goneebo
    $4.95 with a $2.00 payout is still roughly a 40% payout...
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    • Profile picture of the author Cru
      How long would the average member stay at the site? There is sure to be some turnover...

      Unless you are splitting commissions of all of the products they subsequently purchase as well, that figure is way too low.

      Edit:

      To add to this, I think you'd be better off seeing how long the average customer stays and then offering 50% of that total figure. So if the average person stays for 6 months (6*$5 = $30) you would pay $15 per signup, no residual, just $15 per signup. That might be a model that works, depending on your conversion
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  • Profile picture of the author Michael Oksa
    The first word that pops into my head when I hear of programs like this is "pyramid".

    What do they get for the $4.95?

    Do you focus in what they get? Or do you push the revenue they can make for signing people up?

    What is YOUR main selling point?

    What is your AFFILIATES main selling point?

    Is new stuff constantly being added to the membership area, or is it static?

    I'm not saying that you are running a pyramid, but when you structure it that way, some people may be left with a negative impression.

    All the best,
    Michael
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    • Profile picture of the author Adnimated
      I don't see why it would look like a pyramid. affiliate marketing is the most usual thing in the world. And adding extra incentives when you hit certain targets even happens in the biggest companies in the world.

      I don't assume he's giving NOTHING for $4,95. Which is a pyramid scheme. Trading money for money. But then you also don't have affiliates etc.

      So yeah, I don't make that association whatsoever. Unless he'd say he wouldn't have any type of product for that.

      Originally Posted by Michael Oksa View Post

      The first word that pops into my head when I hear of programs like this is "pyramid".

      What do they get for the $4.95?

      Do you focus in what they get? Or do you push the revenue they can make for signing people up?

      What is YOUR main selling point?

      What is your AFFILIATES main selling point?

      Is new stuff constantly being added to the membership area, or is it static?

      I'm not saying that you are running a pyramid, but when you structure it that way, some people may be left with a negative impression.

      All the best,
      Michael
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      • Profile picture of the author Michael Oksa
        Originally Posted by jkhunter View Post

        I don't see why it would look like a pyramid. affiliate marketing is the most usual thing in the world. And adding extra incentives when you hit certain targets even happens in the biggest companies in the world.

        I don't assume he's giving NOTHING for $4,95. Which is a pyramid scheme. Trading money for money. But then you also don't have affiliates etc.

        So yeah, I don't make that association whatsoever. Unless he'd say he wouldn't have any type of product for that.
        I just re-read the OP and realized it doesn't claim to be the OP's program...they say they are "marketing" the program, which could be run by somebody else.

        And if you don't even see how it could possibly be seen as a pyramid - especially with the little bit of information we have - then you're not looking close enough.

        The low price, the payment structure, the things I mentioned...all could give the wrong impression of the program. If it's NOT a pyramid, then that's awesome, but I still see how others could be turned off if it were explained the same way the OP explained it.

        All the best,
        Michael

        p.s. The needle on my shill detector may be faulty, but I swear I see it twitching a bit.
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  • Sounds like a waste of time to me. You'd be spending your time promoting something for a $1 commission... When you could be spending that same amount of time promoting a $97 product where you get a 75% commission.
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  • Profile picture of the author stoogefest
    Screw this, it seems too slow and it's not paying well. 100 sign-ups for a 1 dollar increase You'll never reach that number and it won't pay well after you've reached it either.
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  • Profile picture of the author Kupad
    It's relative depends on each people. In my opinion, its quite good for similar stuff. Just focus to search traffic and promote your affiliate
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  • Profile picture of the author goneebo
    The program is web based software, anti-scam application for people to have auto reporting options along with email protection, and email tracing options. With good branding+ an ongoing community

    The post above stating $15 dollars per sign-up makes sense, but what about the sexiness of the residual??

    $4.95 is a lower price point, and lower price points are correlated to higher stick rates.

    and the post above about 1,000 sign-ups would equal $2,000 per month, because after you hit 100 sign-ups you get paid $2.00 for all new and old sign-ups
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