How Good Are You REALLY? The Importance of Quality Content in the 1% Age
By Kath Blackwell
As affiliate program owners scramble to lower their
charge back ratios to 1% or under as a result of the new Visa regulations
that are to take effect on October 1st, 2003, new focus is finally
placed upon quality-versus-quantity with regard to membership site
content.
 So
here's the million-dollar question - how good is YOUR content - really?
Let's be honest... do you fill your site with content that will keep
your members happy and recurring for months to come - or do you just
slap together whatever you can find "for cheap," and hope that they
won't notice? Do you fill your members' area with 500,000+ photos
from the 80's; one or two video feeds from an over-used content dealer,
and throw in a few badly written erotic stories for good measure?
Some companies do - and have done so for many years - but things are
about to change. As the value of the member - and more specifically
the highly prized recurring member - continues to increase, more companies
will recognize the power of quality content and put these behind-the-times
companies with old, out-dated and over-used content- out of business.
Site owners must become much more content savvy and aware of the needs
and desires of his customers - especially after the Visa changes and
regulations that have caused the "trickle down" effect upon the industry
as a whole. But don't just be concerned with the quality of the content
- also pay great attention to targeting the niche content effectively,
in order to satisfy your customers.
In light of all these changes to business approach and procedure,
today's new industry motto should be "give the customer what he wants"
instead of the old "f*** the surfer" mantra that was chanted by webmasters
just a few years ago. It's such a basic and fundamental concept -
improving the site owner and customer relationship - that it's almost
silly. Still it's one that many site owners just don't "get." Giving
your members the content that you promised during the tour, fresh
content on a regular basis, exclusive content whenever possible -
plus featured events and other must-see content, will help your member
retention and increase your overall profits. It's really - honestly
- just as simple as that!
THE 1% CHARGE BACK REQUIREMENTS
When Visa announced that it was going to lower it's domestic charge-back
ratio from 2.5% to 1% and its foreign ratio from 2.5% to 2.0% effective
this October, it caused a major panic within the industry. As a result
of the new regulations, many webmaster affiliate programs scrambled
to find new ways to cut their current ratios closer to the new figure
in order to reach compliance in time. Webmasters with higher-than-average
charge-back ratio accounts were given notice to improve - some were
just dropped altogether. Webmaster payouts dropped on average about
$10 per sign-up across the board - and monthly membership fees for
surfers also dropped on average, about $10 per month.
However, is dropping the monthly membership rate and dropping webmasters
with poor charge-back records the whole answer - or just part of what's
needed to find a solution? When you drop the monthly membership rates
to try and cut back on monthly charge-backs - and you cut the opportunity
for cross-sells and other "unsavory" means of income generation from
certain Web sites - you finish up at the end of the day making $10
less per sale (or more). Multiply that $10 per customer, times the
number of total customers within your membership database, and that
adds up to quite a lot!
How can you find new and creative ways to make back that ten bucks,
without increasing your charge-back ratio, and do it honestly? Quality
is the answer. Building a quality site filled with quality content
increases your chances for a recurring membership.
THE RECURRING SCENARIO
Whether you pay your webmasters per sign-up or with a recurring percentage
in a partner program, all site owners need to become more concerned
with increasing their recurring members. Recurring members are kind
of like "money in the bank" - it's keeping someone happy rather than
having to sell someone on your program from scratch. It may seem harder
to do, but when done right - it's actually a much easier less time-consuming
approach.
Let's say Joe Surfer joins Membership Company XYZ for $25 per month.
Company XYZ used to sell memberships at $35 per month, but recently
dropped their rates in hopes that their charge-back ratio would drop
as well. Company XYZ has also increased their membership area, making
it into a high-quality site with fresh content - updated weekly, live
monthly events, new videos and other FREE membership bonuses.
Joe Surfer enjoys Company XYZ's site, and renews his one-month membership
for another 3-months. At the end of his 4th month of membership, Joe
Surfer receives an e-mail from Company XYZ letting him know that next
month his favorite porn star will be live in their video chat room
as a bonus for recurring members. (Hint: you can find out more about
your members with surveys, interactive polls and questionnaires!)
What does Joe Surfer do? Cancel his membership, or hang around Company
XYZ's site for an extra month to see his favorite celebrity porn star
and enjoy some more regularly updated and fresh content that he's
been enjoying anyway?
Chances are good that if a customer is happy and knows that there's
something cool to look forward to - he'll stick around. And so would
all of the other members if their needs were met, the content was
fresh and regularly updated - and if the site owner paid attention
to his members, keeping them informed about upcoming updates, events
and new opportunities. So instead of $35 per join with the "old model"
- Company XYZ could now make $25 for the initial sign-up, but would
also make an additional $100+ for subsequent months, from just one
surfer. Multiply that again by the number of surfers in your database,
and you'll see that the attention to detail and the other benefits
surrounding good customer service are worth their weight in gold!
THE COST OF A QUALITY BUSINESS
I know what you're saying - first Visa hit us with new fees, now a
new regulation that will cause us to dip into our pockets, dip into
the pockets of our webmasters (possibly causing us to LOSE webmasters)
- and now you want us to buy MORE content? It seems like another way
to lose more cash - but you really have to think about buying content
as investing in your future. Buying fresh content, having exclusive
content produced - even adding special events, feeds or recurring
content is what today's paysite owner needs, to compete in the NEW
world of the adult 'Net. Sure, it's going to cost you a little up
front, but it will pay off in the long run as it brings in more customers,
keeps current customers happy and renewing their memberships longer
- and gives you more content overall to promote on your site.
Don't limit yourself just to photos, videos and feeds. Add interactive
features, such as live video chats, message boards, a "porn star diary"
written by one of your models, or a good text writer. These kinds
of "personal touches" are what will separate your site from the endless
sea of competitors' sites out there. You need to find special little
things that help make you stand out and get noticed by potential customers.
Another great way to increase your customers' satisfaction is to address
their needs as specifically and directly as possible. If your customers
signed up to your site expecting to see a specific fetish or niche
- give it to them. Don't sell them redheads and give them blondes
- it just doesn't work. If you buy a hamburger because the road-side
sign looked so good you just couldn't pass it up, then get five miles
down the road, unwrap it and discover that it's actually a hot dog
- you aren't going to be pleased. Sure, you might like hot dogs, but
you didn't get the hamburger you really wanted - and you probably
will either go back to make the exchange (a la charge-back?) or just
won't come back to that store again (cancel membership - non recurring
member). Either way, it's bad for the store's business no matter what.
THINKING OUTSIDE THE BOX
The good thing about change is that it's something totally new. Sure,
it's the same old business with the same sites - the same problems
and the same issues. But - change opens completely new doors, and
brings opportunities that you otherwise might not have considered.
You aren't tied down to any one business model or way of doing things.
Finding new ways to keep members, keep members satisfied, and attract
new members, could be just the "shot in the arm" that your business
probably needed anyway. Giving members a bonus for referring friends
to your site - like a free baseball cap, a free autographed pic of
their favorite site model or adult star - even tickets to upcoming
adult consumer conventions and fan fairs, the possibilities are endless.
Using the same model - bonus "prizes" can be given to recurring members.
3-month members receive a ball cap, 6-month members receive a T-shirt,
and 12-month members receive the ball cap, T-shirt and a bonus access
to a special Platinum-Members-Only area.
NOTE: Before shipping ANYTHING to members, please check with your
attorney. Adult content related materials - i.e. videos, photos, etc.
- are illegal to send or receive in some areas of the US and the world.
Know what you are doing before you just do it. Consult with an experienced
industry attorney or send PG-rated materials every time. A ball cap
with a non-adult looking site logo or non-offensive text should be
OK, but your best bet is to get a professional opinion.
Remember to just let your mind wander while you ponder your path -
get creative - truly, the possibilities are endless. Think like a
surfer - or get some non-industry friends together for beers, and
ask them what would get them to sign up to an adult site, what would
get them to renew memberships, and what's lacking on sites that they've
visited in the past. Getting feedback - both from your members, friends
and other non-industry folks - can be vital to helping you get your
business on the road to profit and popularity.
PAY ATTENTION TO THE DETAILS...
This cannot be stressed enough. Keep in touch with your customer base;
know what your members truly want in a membership site and stay creative
and open-minded at all times. Don't forget that the customer is your
boss - the one that you answer to at the end of the day, and at the
end of the month when the membership renewal is due. They are evaluating
you, your site and your content when they weigh the decision between
renewing and canceling their membership. If they are well satisfied
with the site then renewing is a strong possibility. However, if they
are just "OK" with it or not pleased, then you can kiss that customer
good-bye.
Establish a good working relationship with your membership base via
message boards, live chat, e-mail or telephone availability, and your
hard work will go a long way. They are paying you for a monthly service
- and it should be treated as such. It's really no different than
cable, satellite or other entertainment subscriptions. Just think
about the kind of relationship and service that you would like to
receive from your entertainment services, and pass that feeling and
work ethic on to your Web sites. Your customers will be happy, and
in the end, you will be too.
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