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One of the testimonials is from the owner.

Then it gets worse.

The OTO is:

http://www.tetoolbox.com/splash/2709/

A splash page you and I can get for free.

If he won't pay for a page on his domain, then why do you expect him to pay you?

Nuff said.

..and well said ^^

I'm glad someone else brought this up because the math
behind this "launch" simply does not add up...

He is paying 50% commissions on the $9.97 OTO and judging
from the main page he is giving away random referrals so I
would assume that nearly every OTO sale means a commission
to someone.

That leaves $4.985 left out of which he has to pay the $2 sign
up bonus (to new member and referrer).

So he would need a 40% conversion on the one time offer to
just break even on this launch... In case you haven't guessed,
that is highly unlikely.

Do I really care? Nope people have to do their own due diligence,
I did and I wouldn't expect to be paid from this exchange unless
the owner has deep pockets.

But it does bother me because Paypal tends to judge all TEs as
one... I just did the $1 per referral offer with my Dragon Surf
relaunch and that was after dicussing the details, changing a
few things and then getting the green light from my Paypal rep.

This $2 offer is a disaster waiting to happen and if it all crumbles
it will reflect poorly on all TEs and certainly make it harder to get
Paypal to accept similar promotions and commissions in the future.

There is nothing wrong with offering a bonus for referring if you do
it the right way... and the key is to know you metrics so you know
you can make a profit from it (or at least break even and recoup on
the backend). I have a feeling this was just tossed up on a site
without any knowledge of conversion rates, metrics etc.

I received 7 dollars for active members (they have to surf x sites before you get paid) and have 5 people of them that bought the OTO. Well over 40% but I see what you are saying hope he will keep this high conversation rate if so he'll be fine if not some cash has to come out of his own pocket as long as he did calculate that in what it might cost he could be fine.

Hi guys,

I was wondering when a lot of you might talk about this and I will be glad to answer your doubts and fears in turn.

Jerry, the testimonial was an oversight, I put it up to show members who submitted a testimonial what it would look like on the page and forgot to take it off. I was also using it to track hits through the testimonial to see if there might have been some traffic that would be generated for members through it. It has been small but there has been some.

As for the OTO page, I will admit a small amount of embarassment on that. I actually have some in development but the script designer has been slow to get them out there. So I grudgingly had to whip one up with TEtoolbox to at least get the offer going since I had set my advertising for this week.

Soren, I actually did the math and I do have the ready reserve of cash to payout quite a bit. My goal for the business was to create a loss-leader to help attract members in then raise the price of the OTO after the beginning of the year. The result would be two things: increased membership and surfing, and along with that more purchases due to higher traffic and more interest.

In case you are wondering the true conversion rate using a ratio of signups to takers on the OTO is about 11%. Not bad if you ask me and better than I had expected.

If Franscisca or anyone else wants their payout, I will be more than ready to pay them when the time comes. I have the cash on hand.

Best regards,

Mike

Some very good points. I did see this TE at a lot of other exchanges while I've been surfing recently. I initially was like a lot of you and hestitated, but I saw that the owner was at least willing to get the name out there on a lot of other exchanges (No idea if he's buying credits or saved them up), and I think that's worth something. I'm not sure if he's using the TE Tool Box page for tracking or what, but the site design indicates extra money has gone into it.

I don't think I'll be making any efforts to promote it but based on what I've seen, I will definitely give the owner the benefit of the doubt in the mean time.

Wow beat me to posting, thanks for coming on to respond to this thread Mike. Good signs for all of us.

Hi Mike I am glad to hear that.

Did you also check with the Paypal Repesentive to make sure that part is ok?

Solomon,

Thank you for your input. I am not trying to scam anyone just trying to get my name out there for now. Some might call it a foolish move. I prefer to think of it as gutsy....

But I will make all payouts that are reached. Unfortuanately the Walker script does not track cash for referrals and signups automatically so I have to do this manually at the beginning of every day and resolve to answer any disputes on referrals positively.

Mike

Franscisca, I am not sure what you mean here. Can you explain that to me in more depth? By the way your payout should have posted already.

Mike

Well Paypal seems to resent it when people pay money to get referrals.
I don't know exactly the place where this is put in the AUP of them, but
I do know one can't pay for recruiting new members.

I am pretty sure one of the members of this forum can show you the
part I am referring to (of the AUP of Paypal).

With things like this the safe way to go is what Soren did:



So basicly my question is did you ask Paypal whether they are ok with it?

I wasn't aware that this was a problem. I will give them a call now.

Mike

Great Please let us know the outcome

11% conversion on an TE OTO is good and if youy
did you metrics and math all is well... but I'm sure
you can see why I raised the question.

Playing with fire... be careful how you word it.

You are offering a free membership with upsell to a membership site that
has real value no matter if people refer a downline or not... you aren't
paying people to recruit in the MLM sense, you are giving people a time
limited bonus for doing what they would do anyway.