How do you profit with such high payouts?
Consider this example.
100 sign ups
$4.95 trial
$39.95 monthly
$1.00 x sell
$39.95 monthly x sell
25% x sell opts
100 sign ups * $4.95 = $495
25 x sell opts * $1.00 = $25
35% trials convert = 35 * $39.95 = $1398.25
35% x sell convert = 8 * $39.95 = $319.60
Membership Income in 3 days = $2237.85 gross
Processing Fees, Refunds, C/Bs, Revokes = 20% = $1790.28 net
Payout $35 * 100 = $3500
Additional Income (mailing, upsells, www sales, consoles) of 20% = $700 net
Total Income in 3 days = $2490.28
That leaves a $1009.72 defecit from 3 days of activity, after averaging out 10 months of additional recurring income from those 100 members will far outweigh that $1010 defecit and retrun a gross profit. This is where volume comes in order to handle overhead and product costs which should not be very significant.
If I made minor mathematical errors, please forgive me. This is a VERY simple example. To be more accurate, you need a more sophisticated spreadsheet. However, it shows how to set up your minimum performance variables on controllables.
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