How can a sponsor pay 35.00 per free signup?

[LowryBigwood]

I can't seem to figure this out...

How can a sponsor pay 35.00 per free signup and others can only pay you 25.00 per $1 trial? That is a huge difference when you add up the extra you would make on more sales (maybe?) along with 10 more bucks per signup. I would think free signups would generate more chargebacks, am I wrong on that?

So, what am I missing? Why such a big difference in what one sponsor may be able to payout over another one? I was thinking a points / prizes program may be part of it, but what else might allow the payout difference?

Lets assume both programs are established programs.

[JustRobert]

I do not own a program so I could be completely wrong on this, wouldn't be the first time, but here is my first two thoughts.

1) Retention. Overall their ratios should have a rebill rate that covers the immediate cancels and chargebaacks.
2) Exit consoles. Go to one of those $35 sites and let the whole page completely load up. Now try to leave. See how many pop ups, redirects and back button manipulations happen that are traffic leaks(other programs). Even a 1:200 ratio means that 199 others have been run through their money making pages.

Number 2 is why I like no pop tours, even if it is $10 less. I do not want to loose my ability to cross sell other programs. Just my 2cents.

I'd like to hear other peoples thoughts on this as well.

[Jim]

Originally Posted by LowryBigwood

I can't seem to figure this out...

How can a sponsor pay 35.00 per free signup and others can only pay you 25.00 per $1 trial? That is a huge difference when you add up the extra you would make on more sales (maybe?) along with 10 more bucks per signup. I would think free signups would generate more chargebacks, am I wrong on that?

So, what am I missing? Why such a big difference in what one sponsor may be able to payout over another one? I was thinking a points / prizes program may be part of it, but what else might allow the payout difference?

Lets assume both programs are established programs.

Could this program you are speaking of possibly pay per active after the free trial?

[Ramster]

Many things can happen to offer $35 PPS.

1-recurring membership is $39.95 rather than $25-30
2-popups and exits galore on the tour or join page
3-cross sells on the join page to other paysites/programs
4-proven upsells in the members area
5-good members area that rebills very well

[macker]

I think the last 2 posters in this thread have pretty much covered it.

[LowryBigwood]

Originally Posted by Jim

Could this program you are speaking of possibly pay per active after the free trial?

Unless I am mistaken Jim (which does happen sometimes ), it is 35 per free signup, not if they become active. But maybe I need to recheck that out.

Thanks everyone for the input so far, makes sense to me.

Edited To Add * The 35.00 payout is console free as well.