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Originally Posted by NickJ
Thanks for asking. According to my research, and I started thinking this way before google and Fox got together with the similar idea, and now also Napster too..
The files are wmv format and they are big. The biggest runs at 1.5kb/sec almost full screen so there is no skimpiong on quality. You bring up an excellent point about crap TGP traffic. I have found through trial runs that the reason that people think this traffic is crap is becuast
NO BODY WANTS TO JOIN A SITE AND OWN A MEMBERSHIP AND GET REBILLED OVER AND OVER AND THEN REMEMBER TO CANCEL. It is simple.
But, these people who comprise the "crap" traffic are just dying to get something like I am proposing. I would be happy to open the stats when this thing is operational in 2 weeks. Originally, when I was getting a lot of TGP/MGP traffic from sublime, coversions were so low I thought that maybe the traffic was coming form China. We did some filtering and found that it WAS indeed North AMerican traffic. The traffic is not crap. The way we are asking these guys to pay for our stuff is. Just look at IBill today. They are broke.
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Its an interesting idea....
BUT....
What about processing costs?
Also...
Say I make 35.00 off a sale ,to my own paysites after processing deductions and I send 10,000 hits..that convert at 1 in 500...I make 20 sales = $700.
If yours converts at 10 times better..ie 1 in 50... one makes $400 to ones own paysites.
to stay still you are looking at 1 in 30.......
Now onto recurring...at a flat recurring rate of say 50% that means on average that the join will earn you 17.50 next month...which means the guy you got will have to buy 4 or 5 more videos....
Not gonna happen....
Most likely , At least 50% of the surfers you have don't even have credit cards lol
When the surfer has a hard on whether the downoad is $2 or $ 6 may not matter...
Once you get the surfer ready to put in his credit card extract the maximum dollars from it.
But it will to your bottomline...I'd research the price points...and factor in the member database