$5 per signup + $5 per month thereafter good?

[ozonew4m]

Hello all you affiliate people

in about a week i plan on releasing a free piece of software and at the same time opening a subscription based forum to go along with it.. the software is a base for all future modules, plugins, and scripts i will be releasing via the forum.. they will simply plugin to the core free software...

the subscription cost of the forum is going to be only $16 per month..

in order to spread the word without having to shell out advertising costs i have also built an affiliate system. For every affiliate that you bring to the forum who subscribes, you would get $5, then for every month that user remains subscribed you would recieve another $5

basically what i want to know is:
a) do you think this is a good offer / affiliate scheme
b) is this an affiliate scheme you would be interested in and willing to take part in.
c) because i would be handling all affiliates on the site and not using a third party such as commision junction and the like, would this put you off?

cheers

 

[AdJumpCM]

My thoughts:

a) So long as the site materials look good and convert well, any offer is a good offer.

b) Why not. If the conversions are there and it's profitable I don't see any reaso why someone WOULDN'T participate.

c) Doesn't matter to me so long as I get paid.

 

[Insomniac]

Given it's a forum, and given it's new, the churn rate is likely to be around three months if not less. Therefore the average return for an affiliate is $15 on a $16 CC/Paypal sale. I can't say that sounds overly appealing.

 

[ozonew4m]

Given it's a forum, and given it's new, the churn rate is likely to be around three months if not less. Therefore the average return for an affiliate is $15 on a $16 CC/Paypal sale. I can't say that sounds overly appealing.

i dont understand... the affiliate scheme is free to join.. so for three months you would get $15 at no cost...

am i misunderstanding you or vice versa?

 

[Insomniac]

You're misunderstanding plenty. Not all traffic is free, and neither is time spent promoting.

 

[ozonew4m]

You're misunderstanding plenty. Not all traffic is free, and neither is time spent promoting.

yes i agree.. but isnt $5 a month per signup better than a one off payment? and isntr the same true for all affiliate offers?

what do you mean by "churn rate" and "$15 on a $16 CC/Paypal sale" ?

 

[drbones]

You should probably offer a two tier program.

PPS/Revshare

Some people just want their money up front, and if the product you offer is worthwhile, others will hammer the revshare.

Maybe do $15 PPS (you still make $1 on the first month), or do $5/month recurring.

Just a thought

 

[Insomniac]

Honestly bro, you need to do some major reading if you don't know what churn rate is.

 

[beejeebers]

$16 per month screams, "you will not get anything useful out of this".

Charge more and hope your free product is worth it. It's all about perceived value.

 

[Kitarist]

yep charge a lil bit more