Different Country Pricing = More Income?

[Rolo]

As more and more traffic is comming from elsewhere than from the US, then it might be the time for the adult internet to look more at the price/payout models we use. Credit Card signups usual carries 1 price for all countries - $2.95 trial, $39.95 recurring - however I feel this is not the best solution.

$39.95 recurring might be a small fortune in some countries, other surfers might be used to very different price level for adult products. This means less new sells, however it is also one of the reasons to cancel a trial membership before it recurres, or doing "multiple" chargebacks.

Ofcourse this "high price" model is used mainly, so paysites can pay their affiliates/resellers top dollars. Lowering the price will bring less income per membership to the reseller/paysite owner, but should also incress the number of NEW memberships, and lower the trial cancel rate, and fight of multiple chargebacks.

Today pay per signup programs usual pays a flat rate on all countries, and with a future "local price" model worked into this, then they would need to pay less per signup for some countries (ex. $10/Russia)... BUT it could also mean that those countries which really converts/recurres at a high price would be much more valuable (ex. $45/UK). Recurring programs should not change their payout %, since they already have a % spilt worked in.

Dialers are already using this payout model, because they are used to local pricing worked into their billing, so I´m sure most affilates/resellers would understand the concept/idea from the start... also they would probably like to see their traffic convert better /and get higher payout for some countries :)

To get an idea about the difference in pricing, then the Big Mac index is a good place to visit: http://www.economist.com/markets/Bigmac/Index.cfm
These are latest numbers from the Big Mac index: http://www.economist.com/markets/bigmac/di...tory_id=1537385 (http://www.economist.com/markets/bigmac/displayStory.cfm?story_id=1537385)

"Value" is different around the world, and maybe paysites should start to think in local pricing, when selling to an world audience.

So what do paysite owners AND webmasters/affiliates/resellers think about this?

Would it be ok to lower pricing for some countries, and pay less for those signups, but hopefully get more signups/recurrings + less chargebacks?



Last edited by Rolo at Feb 5 2003, 09:30 AM

[PHmike]

The big mac index is certainly cool. But what are you promoting Rolo?

[originalheather]

The Big Mac index is way off for Mexico. The last time I was in a McDonald's here, the prices for every menu item were about 20% higher than in the US, making McDonald's a place where only the wealthy go to eat.

Considering that the average wage here is probably 30% of that of the US, a couple bucks for a big mac is a hell of a lot of money.

But, Rolo's point is valid. I see very few Latin American conversions from trial. 29.95 a month is prohibitive to all but the upper classes here. I'm sure that that is the same for many, many other countries.

This McDonald's anamoly isn't rare, though. Here a refrigerator, television or other electronics can cost up to a month's wages for the average worker, and I'm not talking about the desperately poor. All electronics here are considerably more expensive than the US..makes zip sense to me, since most of the time when I look at the box, the item says, "Made in Mexico"..and it's a Sony or whatever.

[PHmike]

I was wondering why Rolo is posting all these topics related to pricing and TP when he has nothing in his sig?

[Ironhorse]

But you have nothing in your sig too :o

[*KK*]

Rolo
what an excellent premise -- I really like the idea!

Wouldn't be hard to integrate and still stay compliant if you did things the right way in the setup on the join strategies.

[Rolo]

Originally posted by PHmike@Feb 5 2003, 04:20 PM
I was wondering why Rolo is posting all these topics related to pricing and TP when he has nothing in his sig?
I find that some of the more intelligent people hang out on Oprano... lots of posters, but also alot of lurkers working with big companies in the biz - maybe something I say can be used by someone - I know that I do learn from other board members...

In the era of shamless sigs, then I probably do stand out with nothing in my... getting attention by making useful posts and not spamming is the future :okthumb:

Nah... I´m not better then anyone else on this board, but I have reserved the sig spam to some new projects/concepts, which are currently in development. When they are ready to roll out, then you will see them in my sig - I promiss :)

[Rolo]

Originally posted by *KK*@Feb 5 2003, 09:23 PM
Wouldn't be hard to integrate and still stay compliant if you did things the right way in the setup on the join strategies.
Do you think 3rd party processors would take this and use it? I mean they do alot of things to prevent chargebacks, and still work on getting more sales to their clients? And since they control the join forms, then it would be easy to setup.
Would also mean a whole industry could use this, and not just those who have the programming skills/money.

I remember when Epoch made their 3rd party recurring public - boy did that change things :)

[*KK*]

I think it could be used with or without the third parties adding to the setup actually, though it would be much easier if they were to do it with their clients.

I can see in my head exactly how it would set up in two of the processors, that I have a pretty good idea of how the tech works...

two page join forms are the key.

[Rolo]

Just one more point regarding local pricing is that it would also mean higher membership price for some countries... ex. most german sites do not offer a cheap quick trial (ex. $1.99/3 days), but are usual selling weekly or monthly membership from $28-$50... will be good for most paysites cashflow (get the $28-$50 per membership the first day of the membership, insted of waiting 2-6 months).

[*KK*]

I agree, I agree, I agree.

Whats your email Rolo, I'd like to talk to you about this a little more