Posts Tagged ‘retention’

Sales, conversions, traffic going downhill? We might help!

Thursday, January 21st, 2010

It’s common knowledge for everybody that online sales are taking a hit, conversions are up to 50 times worse and traffic is being affected by new players in the business. Some people may deny it, while a few lucky ones may see better results (although still worse conversions).

This goes for those that are being affected in any or other way, and want to do something proactive about it.

The online adult business was always known as an easy one, with quick cash and lots of money to be made. It’s big yet, the money is there, but it’s not an easy one anymore.

Companies are falling down. Big, small, medium. We can see it every single day. The ones that survive the storm might get stronger than ever. However, many webmasters will fall down and disappear, whether they’re independent webmasters or big companies, everybody could be a victim.

While many actors in adult business are innovating and looking for solutions, there’s a huge mass of webmasters that aren’t willing to risk and will just wait to become trend followers, an approach that might be correct in certain circumstances. But in these harsh times, even trend followers will be taking a risk, since the level of marketing and technological innovation required to succeed nowadays is quite high.

On top of the described situation, it’s easy to realize the adult business paradigm has changed and the already known business models are not correct anymore.

Therefore, most people will need easy to manage solutions to improve their businesses at a low cost, making use of every possible tool available to achieve the best results within an ever-changing context.

And here’s where we can help.

We’ve many options to improve your sites on the following items while taking advantage of the new paradigms and business models that are proven to succeed in today’s online business:

Marketing Enhanced Design

Simply and short: everybody knows our design’s conversions are second to none. There are reasons to that, it’s not a coincidence. We invite you to discover it.

Differential Approach

As said above, the known business models have lost a lot of their effectivity. We can mantain your sites as they are right now while adding new features, or simply revamp them to make the most out of it.

Enhanced Retention Rate / Rebilling

You might be interested in reading our retention rate post where we explain this in detail. Our proposal is extremely simple: we’ll grow your retention rate. Granted. And on top of that, we can tell you how to maximize the monetization of your site. Remember: a new customer is hard (and expensive) to get. Losing customers is extremely easy.

Innovative Marketing Tools

One of the things a successful program needs is innovative marketing tools. Most programs focus their efforts on galleries, which you’ll always need. But there are ways to make them convert better, make them be more original, make them get a better CTR (Click Through Ratio). And once you think outside of the galleries, we can offer sets of marketing tools so innovative your surfers will click like mad.

Social Media and Viral Marketing

Depending on your site and your investing capabilities, we can provide you with solutions to create interest in your site coming from the biggest social media sites. Or, going a step further, even mass media.

Content Protection Techniques

We can tell you how to use content that will be hard to populate on tube sites, how to have unique content people won’t find anywhere else, and how to make the most of it, with really simple and affordable solutions

This is just a tiny part of what we can do. And we do it well. Just contact us using the contact form link and we’ll be happy to discuss your needs. You’ll never regret it.

Just let us be part of your success. Give us the chance to show you what we can do for you. Give yourself the chance to grow


Retention: the key of the game

Monday, January 11th, 2010

This article I wrote was originally posted at GFY. You can follow the discussion after it, with some very valid and interesting points from other people. Just in case, although I wrote and posted it, this article owns everything to Ed and Agnes, our in-site marketing research consultant and psychologist respectively, I just compiled the information and posted it, nothing else.

After some interesting discussion here, that somehow deviated to a “tube wars” thread, I thought it would be cool to add some pizzazz to the discussion.

Personally, I think, I’m convinced, I vouch and I can swear everything is about RETENTION. See, most people tends to believe the so called “mainstream” marketing rules don’t apply to adult, or if they do, they do it just incidentally. Of course, that is the same like saying people surfing adult sites or buying adult products are not rational human beings in a society with given uses, values and habits and they’re some kind of aliens from outer galaxy instead. This is a perception usually maintained and encouraged by people who has no knowledge on the subject and they’re afraid of losing business, power, whatever.

IMHO, not only mainstream marketing techniques applies to adult: it’s basically the same

So yes, I’ve some idea about what I’m talking about. I’ve a degree in Marketing and was a Marketing Manager for several mainstream companies, including Citibank NA, Deutsche Bank AG and Cinemark Mexico and Argentina. And even when I recognize some differences based in PSYCHOLOGY (question: how many psychologists do you know in adult biz?), I can’t see a single difference when it comes to techniques, research and such. As some people knows, I use to research a lot, work with tendencies data, apply it to design, etc. And frankly, everything is exactly the same, no matter if you want to believe it or not.

Going to the point: one of the basic premises in marketing is “getting new clients is difficult. Losing them is really easy”. Hence, most efforts are put in keeping clients, and there are formulas to set the cost of a new client and the time you’ll need to recover the investment in getting that client (yeah yeah, I know). Anyone that knows the “kitchen” of adult biz knows IN MOST CASES (with some honorable exceptions) it’s the exact opposite to adult business, where efforts are set to get new affiliates and/or members (CLIENTS!) and after that, or even in the same proccess they lose it. A perfect example is the crazy xsells and shady rebillings.

So, most webmasters I talked to are perfectly happy with a 50% retention rate, some of them even BRAG if they get a 50% retention rate. IMHO, that’s obnoxiously low. I’ll show you an example I call the “stalled growth paradox”

Rebilling only 5% more every month shows a notable increase in income

the first example takes 60 sales a month (fixed, no sales loss) and a retention rate of 50%. You’ll see that by month 6 you’ll be stucked in the same numbers. No growth but some marginal centesimal. Of course, it’s worst with less than 50%, although the tendency is maintained.

In the second graph, I’m showing you a 51% exponential retention rate. As you can see, you grow and grow. To make it easier, with just less than 6% constant growth in retention, you’ll double your income by 100% in 11 months. Nice, huh? That’s the beauty of rebilling businesses, and it’s the nature of the game. Many programs are setting for “1 buck today, tomorrow we’ll see”.

So, what does it leaves us with? Well, to avoid loses or stalled growth, you need to increment any of the numbers of the constant, whether it’s sales or retention rate. In a context where sales are going down the hill, your only remedy is to increment conversions at the same rate you lose traffic just to be even, or increment conversions beyond your traffic loss rate. Or, increase the amount of traffic in absolute terms. This will increase costs as well, of course. Depending on many factors, it could be worth it or not. In absolute terms, ie absolute amount of money, big programs will have no big deal with this. However, smaller programs will face losses sooner or later. And both of them will decline any growth ratio they may have.

Now, I won’t show you a graph where sales goes down instead of my fixed rate example or you’ll want to shoot yourself.

In the meanwhile, keeping a member happy is relatively easy and with way lower costs in the short/mid range. Some of them are “adult only” solutions, but most of them already exists in the dreaded “mainstream” marketing.

So yes, the short, easy and rational answer is RETENTION is the key of the game

Feel free to discuss this article and share your thoughts!




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