Recurring v. Per Sign-up: Which is Better?
This is probably the most important question that a webmaster could ask – and usually the answer is simply a matter of taste or preference. However, the answer could directly affect your bottom line either by inflating it or eating into potential profits. The major factor that webmasters consider when making this choice is time. Do you want to make money NOW – or do you want to make more money in the long run?
WHAT IS THE DIFFERENCE?
For those who don’t know for sure – a recurring program, often called a partnership program – pays its webmasters a certain percentage of the money that they bring in. 40, 50, 60 – sometimes even 70% of the payout goes directly to the webmaster. You get paid on different things depending upon the terms you agree to with the sponsor – sign-ups, membership renewals for 3, 6 or 12 months – maybe upsells as well. The important thing is that a sale is not just a ONE-TIME-ONLY sale. You get paid for the life of the customer. When that customer renews his membership, you get a percentage. When that customer buys something from the upsale program, you get a percentage. It’s the sign-up that keeps on paying.
Of course on the flip side the per-sign-up model pays you only once. If they sign-up, you just get paid one given amount. If they sign-up for a full month – or multi-month membership afterwards, you will not receive any bonuses or additional compensation. This is why the recurring model is usually the preferred choice of the experienced webmaster.
HOW TO MAKE THE CHOICE?
Another factor to consider is – what kind of a webmaster you are. Are you in it for the long haul, or are you looking for some fast money? The per sign-up model is great for the webmaster who lives in the “now” – whereas the recurring program is ideal for those who are looking to build up a customer base and continue to profit off of the return purchases of their surfers.
In essence, this will probably also affect the way that you sell your memberships and sponsors on your site – and how you treat your surfers. If you are looking for repeat business, you will want to make a good impression – make the surfers feel comfortable enough to want to keep coming back. If you just reel em in, send them to a sponsor for sign-ups and then move on to the next guy – that attitude will show through as well. Think about it as the difference between the corporate mini-mart that pops up on every corner - versus the “mom and pop” corner market that has been there for 50 years.
SEXMoney.com has had webmaster programs on the ‘Net since 1996 and has placed its focus on selling memberships to International traffic through a large variety of options – rather than merely dumping your traffic on a dialer. This approach enables you to profit from the recurring billing model and make up to 70% off of each sale and each recurring purchase by that same surfer. And the best news of all? The average retention within our member area is approximately 5.8 months! Upsells and the purchase of additional coins and tokens for our live-show options help to guarantee additional revenues for you, the webmaster. A large variety of live cams and chats in the native tongue of your International surfers will guarantee YOU longer retention and a higher conversion rate.
Working with a solid webmaster program that offers multiple content options, payment options, language and cultural opportunities – and has a strong retention average based upon those features – will increase your bottom line. Instead of just looking at your stats and seeing it as a single sale, a single commission – you will begin to look at your stats as if you were building up your own global customer base of recurring revenues. As a webmaster you need to evaluate what your sponsor is offering to your surfers, because this will directly affect the longevity and effectiveness of your sales through their program.
So think about it – do you want to make that fast single-paid transaction? Or...do you want to work toward future earnings and join a recurring partnership program and make money off of every single sale?