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  1. #1
    Newbie
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    August 2nd, 2007
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    42
    Question Questions Regarding a Subscription Based Site
    Hello all,

    I'm thinking about starting a program for my subscription based website and had a few questions.

    If I offer as commission the one month membership fee ($25), would it be possible/wise to withhold commission payment until the subscriber sticks around for month #2 and pays the 2nd $25?

    Also, this is an information based B2B website containing information that is valuable only to those doing business in the state of Texas. How much of a hindrance, if any, to program success would the geographic and demographic restrictions be, in your view?

    Thanks very much for any info

    - Steve

  2. #2
    Newbie
    Join Date
    August 2nd, 2007
    Posts
    42
    I just read the following in another thread:

    "BEFORE you even THINK about an affiliate program, you MUST FIRST develop a successful merchant site."

    My site is brand new and does not get any traffic. It's a useful product and a nice site, but it has zero track record.

    Do I need to wait until I am rolling on my own before considering an affiliate program?

    Thanks

    - Steve

  3. #3
    Newbie
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    August 2nd, 2007
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    Ok. I'll chalk it up to "stupid question" and move on.

  4. #4
    Moderator MichaelColey's Avatar
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    January 18th, 2005
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    Mansfield, TX
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    I just wanted to warn you to be very careful running a lead-based program like you describe. When programs like yours are promoted through CPA Networks, they attract tremendous amounts of fraud.

    I'm not sure there's a good solution. If you withhold payment for an extra month or two, you're hurting (and driving away) your legitimate affiliates. If you don't, you're going to have major fraud problems.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  5. #5
    Newbie
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    August 2nd, 2007
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    It sounds like it's probably just not worth it to get mixed up in that. Oh well.

    Thank you for the reply, Michael.

  6. #6
    Moderator MichaelColey's Avatar
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    January 18th, 2005
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    With both B2B and a lead-based offer, you would have some pretty big challenges.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  7. #7
    Affiliate Manager
    Join Date
    February 10th, 2010
    Location
    On a Lake in the Middle of No Place
    Posts
    79
    Ten years ago, I started my first subscription based web site. Now I have several.

    I can tell you from personal experience that you really need to offer both a monthly and an annual members. 80% of the people will pick annual IF you have a lot of content. And out of those 80% you'll get 95% annual renewal rates IF you update your content frequently.

    With monthly members you'll have high turn over, people asking for refunds, and a very low renewal rate after 6 months.

    I guess the difference is people who are dipping their toe in the water vs. those who jump in head first.

    On one of my membership sites I stopped offering monthly membership all together and only offer

    When you offer annual membership then it is easier to pay a HIGH commission to affiliates up front.

  8. #8
    Newbie
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    April 30th, 2010
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    London UK
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    Regarding withholding payment
    If you are a new company then you should launch when you are financially secure. If you get into this business of dirty tricks from the earliest stage it could pose long-term threat to your business. Are you trying to run an affilate business or a scam?

  9. #9
    Newbie
    Join Date
    August 2nd, 2007
    Posts
    42
    TxJackie,

    Thanks very much for that reply. I'm going to set up an annual subscription.

    Society_girl,

    I guess that was one of my questions. Can I BUILD a new business via an affiliate program? The answer seems to be no. I'm not sure how to respond to your last question. Why would you ask me if I'm trying to run a scam? Seriously?

    - Steve

  10. #10
    Newbie
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    April 30th, 2010
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    London UK
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    Wink Regarding withholding payment
    Well i was thinking that affiliate market has a very bad reputation anyway, and just thinking about doing something that will harm your business in its inception is a bad start. After all how many people are going to join in the first month that you would have to wait for a payout. That was my rationale behind the question.

  11. #11
    Affiliate Manager brett-e2's Avatar
    Join Date
    March 19th, 2009
    Posts
    97
    Some of the problems that Michael pointed out also come up if you offer a money back guarantee for your services. Fraud can get particularly heavy when a program is set up with one.

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