I recently had a interview with Mark Jacobson, CEO of FreeSeoReport.com. FreeSeoReport has been paying out 100% commisions and working on some big things. While I don’t run FreeSeoReport I am a significant investor in the company so I asked Mark questions that I have been getting.
ShoeMoney: Hi Mark first thing that comes to my mind and probably many reading this – why would you pay out 100% to affiliates. Obviously you are encoring expenses so how long can you possibly continue to pay out all the income you are getting to affiliates.
Mark: As of right now about 75% of our paying customers are coming from affiliates. With those 25% we are able to pretty much break even. We see a much larger value in growing the user base than profitability right now.
For the second part of your question… We currently plan to keep paying out 100% until the first of the year.
ShoeMoney: then what is the normal payment?
Mark: 50% lifetime of the customer.
ShoeMoney: can you explain how you are tracking users for affiliates. With ShoeMoney offers I know we have a 60 day cookie but what if users switch computers or sign up after that 60 day period?
Mark: Good question. When someone signs up under your id it is stored in his or her account. No matter when they convert to a paying user you will get commission for the lifetime of the customer.
ShoeMoney: Speaking of converting the users to paying users I know your current conversion rate from free to paying is not that great. What are you planning to increase this?
Mark: Our conversion rate improves every month and we have some really big announcements coming up.
ShoeMoney: Pardon me but that sounds like some corporate bullshit. What exactly are you doing that you are not doing now that would make people want to promote it. I want to know as an investor and an affiliate.
Mark: Wow you were not kidding when you said you were going to be frank.
You want a no bullshit answer? Ok here it is. When we first launched FreeSeoReport we went with the freecreditreport.com model of one free report then a one-time price for another report or a monthly free for unlimited reports.
This was a good initial model but as you said the conversion from free to paying was not that great.
What we have developed here at FreeSeoReport is amazing; there are countless stories about people out there creating their own business from it. Some making thousands of dollars a month generating there own white labeled company reports for their clients.
Our retention for paying customers is really good but getting people to recognize the value of subscribing and getting unlimited reports has been our biggest challenge.
So starting next week (we are shooting for Tuesday) we are going to implement a one month trial for only $1 so that people can really see the power of being a FreeSeoReport.com member. Then if people choose to continue it will re bill at the normal price.
When this launches affiliates who already have lots of users should expect to see a ton of conversions. Overall if we don’t double our existing subscribing user base I would be completely stunned.
ShoeMoney: Well a trial and rebill will definately help get new people in the door but since you brought up retention obviously you are going to see a lot higher percentage drop off who are just testing the $1 trial.
Mark: This is true however we are rolling out more tools for our pro accounts in order to keep the retention rate high. Tools like keyword trackers, backlink analyzers, and other easy to use valuable SEO tools.
ShoeMoney: Well sounds good and I am sure affiliates will be thrilled to hear you are not only continuing to pay out 100% but also going to drastically improve conversion.
ShoeMoney Offers (our affiliate network powered by HasOffers) has the exclusive on this offer. We pay out net30 for balances under $10,000 per month. Over 10,000 per month we can do net3 weekly wires.
Go here to sign up for the Affiliate program and be instantly approved.
Full Disclosure – As mentioned above I am an investor in Free SEO Report.
ShoeMoney: Hi Mark first thing that comes to my mind and probably many reading this – why would you pay out 100% to affiliates. Obviously you are encoring expenses so how long can you possibly continue to pay out all the income you are getting to affiliates.
Mark: As of right now about 75% of our paying customers are coming from affiliates. With those 25% we are able to pretty much break even. We see a much larger value in growing the user base than profitability right now.
For the second part of your question… We currently plan to keep paying out 100% until the first of the year.
ShoeMoney: then what is the normal payment?
Mark: 50% lifetime of the customer.
ShoeMoney: can you explain how you are tracking users for affiliates. With ShoeMoney offers I know we have a 60 day cookie but what if users switch computers or sign up after that 60 day period?
Mark: Good question. When someone signs up under your id it is stored in his or her account. No matter when they convert to a paying user you will get commission for the lifetime of the customer.
ShoeMoney: Speaking of converting the users to paying users I know your current conversion rate from free to paying is not that great. What are you planning to increase this?
Mark: Our conversion rate improves every month and we have some really big announcements coming up.
ShoeMoney: Pardon me but that sounds like some corporate bullshit. What exactly are you doing that you are not doing now that would make people want to promote it. I want to know as an investor and an affiliate.
Mark: Wow you were not kidding when you said you were going to be frank.
You want a no bullshit answer? Ok here it is. When we first launched FreeSeoReport we went with the freecreditreport.com model of one free report then a one-time price for another report or a monthly free for unlimited reports.
This was a good initial model but as you said the conversion from free to paying was not that great.
What we have developed here at FreeSeoReport is amazing; there are countless stories about people out there creating their own business from it. Some making thousands of dollars a month generating there own white labeled company reports for their clients.
Our retention for paying customers is really good but getting people to recognize the value of subscribing and getting unlimited reports has been our biggest challenge.
So starting next week (we are shooting for Tuesday) we are going to implement a one month trial for only $1 so that people can really see the power of being a FreeSeoReport.com member. Then if people choose to continue it will re bill at the normal price.
When this launches affiliates who already have lots of users should expect to see a ton of conversions. Overall if we don’t double our existing subscribing user base I would be completely stunned.
ShoeMoney: Well a trial and rebill will definately help get new people in the door but since you brought up retention obviously you are going to see a lot higher percentage drop off who are just testing the $1 trial.
Mark: This is true however we are rolling out more tools for our pro accounts in order to keep the retention rate high. Tools like keyword trackers, backlink analyzers, and other easy to use valuable SEO tools.
ShoeMoney: Well sounds good and I am sure affiliates will be thrilled to hear you are not only continuing to pay out 100% but also going to drastically improve conversion.
ShoeMoney Offers (our affiliate network powered by HasOffers) has the exclusive on this offer. We pay out net30 for balances under $10,000 per month. Over 10,000 per month we can do net3 weekly wires.
Go here to sign up for the Affiliate program and be instantly approved.
Full Disclosure – As mentioned above I am an investor in Free SEO Report.
ليست هناك تعليقات:
إرسال تعليق