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757jterrell
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« on: September 12, 2010, 01:01:45 PM » |
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Hello all, we have been getting a lot of request from new owners on how to set up your site. There are various ways and how each owner does it is a little different with each owner. The biggest thing no matter what method you use is to set up your terms, make them public, and FOLLOW them. But I will go over quickly the different methods:
Cash Site: This is where what the member sees in his balance from viewing ads is what they get. This is the method that most members are looking for. There are differences in the program, such as low earning/low cashout; high earning/high cashout; etc. The biggest thing with this one is that you really need to look at what it cost you to place an ad. Here is the basic formula on how to do that:
Cost of an ad: 1=cost to the member viewing the ad 1=cost of the referral viewing the ad (just assume for pricing that it will be viewed by the most expensive referral option you have) 1=percentage added for hosting expenses 1=unexpected cost 1=profit
so if you see, cost of an ad to an advertiser should be either 5 or 4(if you take out unexpected) times the ad value. So what this means if you place an ad for .01 then an advertiser should pay for that ad either .04 or .05. So in summary, its very easy to get members, but this method is the hardest to get advertisers because its the most expensive.
Ad Only: This method is where your members can only use their earnings for conversion to ads. There are several different setups with the method, for example some owners allow members to use the balance to purchase items and some only allow members to use the convertor. I run several traffic exchanges and I do not allow members to use their balance for purchases, but just the convertor. The reason I do this, is I have set up "Advertising Memberships" where the members get really good advertising packages and this is how the site makes money. Now, most members do not like ad only or traffic exchange types of sites. So growth is slow, but as membership and traffic increase, so do profits.
The nice part about these types of sites is that you can offer really cheap advertising packages and advertisers like that. So its easier to get advertisers; but harder to get members and traffic.
Upgrade Payment Only: This method is a combo of cash and ad only. What it is basically an ads only site except for members that have upgraded, then it works as a cash site. I have experimented with this option and works best if the memberships are only set to annual other wise you will get members that run up their balance, buy a monthly membership and cash out, which can ruin the site if the memberships are not done annually.
This is also a slow growing option, but with the combo type its a little easier to get members, esp if you have some people that have upgraded, because they will really advertise the site for you, and you can offer cheaper advertising packages than a cash site, so getting advertisers is a little easier.
Profit Sharing: This is the most sustainable type of program in my mind. However, its not very well liked by members so growth is slow. This program is where what a member see in his balance is not what he makes, payments to members is based on what a the site makes. Let me show you how I have set up this program to work with great success:
Put something like this on the first part of your terms:
MYSITE is a profit sharing paid to click site. Please remember this is a profit sharing site and payments are done per Item 4, Payments
and here is how the payments are explained:
4. MYSITE Payments 4.1 All payments are made via AlertPay or Paypal and no other payment method is being used at this time.
4.2 You must manually request for payment to be processed. You must accumulate at least $20 before payment will be issued.
4.3 Payouts are based on the income that the site makes each month. Account earnings are not actual earnings, they are simply a basis to decide what you've earned, depending upon what the site makes. Once a payout request is made, it will be recalculated based on the current value of a dollar at the time of that payout. All payouts start on the 10th and take roughly two weeks for all payments to be made. Members will not paid early, it takes time to calculate everyones earnings. The payout rate per click will probably be less then 1 cent per click and it changes each month.
4.4 1/2 of the site earnings go to standard members and 1/2 of the sites earnings go to upgraded members.
4.5 Standard Members calculation of earnings:
(site monthly profit x .5) / (total payment request from standard members) = payout factor
Your payment request is then multiplied by the payout factor to get your payment.
Standard Members should only expect to earn 1 to 2 % of their earning.
4.6 Upgraded Members calculation of earnings:
(site monthly profit x .5) / (total payment request from upgraded members) = payout factor
Your payment request is then multiplied by the payout factor to get your payment.
4.7 All members payment request during a month will be combined into one payment.
4.8 If your payment is less than .75, your payment request will be denied and your earnings will be returned to your account. If you payment is .75 to $1.00, then you will receive the min. payment of $1.00.
4.9 Members from China MUST upgrade in order to receive a cash payment. We will check not only the country you fill in on the registration form; but, also your IP address.
4.10 Payments go out the month AFTER the payment request is submitted. For example, if placed in Aug. it will be paid in Sept.
This has worked very well and this is how I ran several sites until I finally just moved to the traffic exchange model I developed. Now, you must remember if you are doing profit sharing, YOUR PAY is part of the cost. I used to take out hosting, advertising expenses, than 20% of what was left for admin pay, then the rest went to the members. It works pretty well, but you really need to keep up with it. The draw back is that at the moment payments have to be done manually, so I really need to make a profit sharing model that works with this program (which is scheduled LOL).
Now with this method growth is slow, but steady as long as you continue to follow your terms, advertising packages are relatively cheap so getting advertisers is pretty easy also.
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