Advertising works. The money you spend to advertise your adult paysite should in theory- increase your profits because the effort should bring more surfers to your page. There are other factors that play into the formula for successful marketing such as choosing the right customer base and ad effectiveness. Probably the most important factor (when considering paysite advertising) is one of affordability.
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"Probably the most important factor (when considering paysite advertising) is one of affordability. " |
Sure, your paysite is making income. You are earning enough to cover overall costs plus a ten percent profit. You want to invest this profit into sources that will increase your revenues. You want to make your money work for you. You want to advertise your paysite and you want to buy spots that will produce the biggest return on your investment.
If you own an adult paysite but you haven’t spent money on ads -even if you’re making profits- it’s best to crunch the numbers before you buy. Here are three basic figures you should consider:
Conversion Ratio
How many signups is your paysite generating from your existing traffic? For instance, say that your site garners one join for every 500 unique journeys through your tour. Your Conversion Ratio is 1:500.
Retention Rate
This figure is based on the life of the average membership. How long is it? One month? Two? If you’re doing a good job with your paysite then a good retention average is three months. IE: Your average member keeps their account for three months before canceling.
Average Per-Member Gross
Multiply the cost of one Membership x Retention Rate = Average Gross Per Member. If your membership fee is $29.95 then you multiply that by your average Retention Rate (3 months) and you come up with a figure of $89.85.
Now here comes the tricky part. Where do you turn when you want to buy advertising? Much like television, the more popular the venue, the higher the price of advertising. Superbowl ads cost millions of dollars because the game is one of the most-watched programming blocks in the history of the medium. By that same token, the major mainstream search engines are considered to be the best advertising vehicle for virtually all Internet marketing because everyone uses them to find websites. So, a natural choice for effective ad placement might be Yahoo or Google. Then again, a lot of paysite owners spend ad dollars for exposure on alternative high-traffic web sites like ConsumptionJunction.com. Yet others buy ads in several different Internet locations as well as print and television.
Examine two ad programs: Google AdWords and Consumption Junction’s CJTraffic.
1. Google AdWords: With this program you pick three keywords that you feel are most relevant to those surfers you want on your site. You probably already have a good idea of what SE keywords garner your page the most hits from studying your traffic logs. With AdWords you place a bid on how much you will pay Google for each time a surfer clicks on your ad in the AdWord Group. The AdWord Group is that box of sponsored ads you see to the right or on top of Google search results links. If you bid on the keyword Anal, then you have to bid higher than the other members of that AdWord Group in order to be at the top of search results pages. In other words, Google’s AdWords charge you (aside from a few operating fees) only when a surfer clicks your Ad.
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Now take the original figures of your existing paysite numbers and apply them to the Google AdWords program. You know that you average one signup for every 500 uniques. You know that your average member keeps an account for three months. You know that one membership pays you $29.95 x 3 months = $89.85. So, imagine that you want to bid for the keyword 'Ass' with AdWords. Imagine that the lowest bid price is $.20 per click. It takes 500 clicks before you get a signup that will result in an average member payout of $89.85 to you after three months. However at twenty cents a click, the AdWords program costs you $100.00 for 500 clicks. With this particular ad campaign, you lose $10.15 on each signup. For more information on AdWords please visit: https://adwords.google.com/
Now look at the rates for text link advertising on Consumption Junction.
2. Consumption Junction: Whereas with Google Adwords you pay only for clicks, with CJ you pay for exposure. You can buy a rotating text link on the entire network of CJ Traffic sites for $1100.00. Consumption Junction/CJ Traffic runs four sites and they receive a combined average of 445,445 unique visitors per day. Those visitors reach a daily average of 9,774,548 total views. The text ad program displays your link on all four CJ sites. You choose three text phrases and those phrases are rotated. Your text ad appears on prominent page locations and even those locations are rotated among text advertisers. According to the CJ Traffic site, your text link is estimated to receive approximately 14,447 clicks in one week. Using your 1:500 Conversion Ratio, that averages out to 29 signups, give or take.
With Adwords you would have to pay $2,900.00 for 14,447 clicks at the bidding rate we used as an example above. With a CJ text link you have the chance to make a profit of $29.95 x 29 = $868.55 x 3 = $2,605.65. For more information on Consumption Junction ads, please contact Marc @ http://www.cjtraffic.com.
As you can see by the above examples, paysite advertising is not an easy process. Just because the price looks good, doesn’t mean the cheaper ad campaign with give you the best return on your investment. You have to look at your costs, not just your profits. Before you spend your profits on advertising, take the time to crunch your numbers. Don’t let the numbers crunch you!