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Recurring vs. Per Sign-Up: What's Right for You?
by Kath Blackwell
As an adult webmaster you have MANY choices available to you with regard to the sponsor or affiliate programs you choose. Just about every niche has been covered - every brand has something for every niche - but choosing between a recurring "partnership" setup versus a pay-per-sign-up program is often the toughest decision to make. Weighing in on how much money you could make up front for the initial sign-up as compared to how much you "might make" on a recurring member can depend upon many different factors. Like, how much money do you need? How long do you plan on "being in the business?" Or even just how much time you want to spend trying to attract "sticky" traffic with surfers that are more likely to recur?
First of all, let's start with finding this out: "What IS a recurring program anyway?" A recurring - or sometimes called a "partnership" - program is a program that pays you a percentage of each sale, PLUS a percentage of each recurring - or renewing membership. Let's say Company A's recurring partnership program pays 50/50 - a typical amount. You would get 50% of the income on the initial sale (a $25 membership would yield $12.50 to you), and you would get 50% of the income on every renewal that the member makes each month afterwards. So, say the member renews for another 3 months at $60 - you would get 50% of that renewal fee ($30), plus you would be eligible to receive another 50% commission from any other renewal that this same member makes. So over the course of 13 months (a year plus the first initial sign-up month), you could potentially make $12.50 from the initial sale, $120 for four more three month re-newals. That's a whopping $132.50 versus that $25 up-front pay per-sign-up commission that Company B is offering!
So why would anyone choose to just make $25 instead of $132.50? It's a very personal decision, one that should be made with at least some thought. Here are some pros and cons to help you make your own decision on this weighty subject.
RECURRING (PRO)
PRO: It's Like Money in the Bank! A lot of webmasters prefer the partnership/recurring programs to the pay-per-sign-up offerings. Why? Because the long-term pay-off effects from recurring programs usually pays off in the end. Webmasters who prefer this type of program call it "money in the bank," because they see it as an investment in getting a predictable monthly check from their sponsor rather than trying to just "hook" new sales every month with the pay-per-sign-up program.
PRO: Webmasters who like this program also like the benefits of working as a "partnership" with the sponsoring company. Both have a vested interest in seeing the sale go well, and webmasters believe that the sponsors who run this type of program work more on customer service to encourage additional renewals of the initial sign-up.
RECURRING (CON)
CON: You Gonna Count on Fickle Surfers for Your Paycheck? Some webmasters who've used this program say that it's not worth the 50% cut in sign-up pay just to "hope" that the surfers will sign up for additional months. Many believe that surfers join sites, see all they can see and then move on to the next big thing.
CON: Only a few big "crash and burns" have happened in the adult industry with regard to sponsorship programs going out of business, and not paying their webmasters what was due to them. But, even though there was only a small handful, it doesn't mean that the lesson wasn't learned - and learned hard. A lot of veteran webmasters who were around "in the day," prefer to take their money and run while the company is still in business.
PER SIGN-UP (PRO)
PRO: A Bird in the Hand is Worth Two in the Bush. Webmasters who use the per-sign-up method say they prefer it because you get paid for the join you sent, right away. No waiting around for those recurring checks - it's fast money, NOW.
You can also make "more money" up front using a pay-per-sign-up program. Payout for initial sales is usually double (at least) that for recurring programs. Of course you don't get the long-term payout, but you do get your cash right away.
It's easier to know what's been paid and what is due; say some webmasters. They feel that making sign-ups, getting a statistics page for the whole month and receiving a check for the whole amount is the best way to monitor what the sponsor is doing.
PER SIGN-UP (CON)
CON: Cutting Off Your Nose to Spite Your Face? The downside to taking the money up front is that you miss out on the opportunity to make more money on the renewal sign-ups, and you miss out on the opportunity to work in a "partnership" with the sponsors. Some webmasters feel they have a better relationship with their sponsors if they work as recurring webmasters.
With all the pros and cons laid out, it makes the decision seem even more overwhelming. Well, here's an insider hint that a lot of top adult webmasters use, and that is - simply use both! Both? What do you mean both? After all this worry over which one was best, I can really use both?
Yes, you can! And a lot of webmasters do! They use a mixture of not only recurring and pay per sign-up programs, but also add in per-click, per-impression, free e-mail sign-ups and dialer programs. The options are out there - the choices are limitless and the opportunity to make it in this industry is MORE than in your favor. The best way to succeed with ANY program is to keep your banners fresh, target your traffic and stick to working with reputable companies. If you can balance all of that on your site, then you'll be making money in no time!
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