(This is a business case study. It will be used to guide discussions during the session: “Money Making Member Shaking – Making More with Members” with co-host Kenny from YourPaysitePartner at the Paysite Meetup.)
Kenny was in line early at the classic cinema in his hometown for the first showing of Star Wars: The Last Jedi. After buying his tickets the movie attendants shuffled him and the rest of the expectant crowd into the bar / concession stand to wait as the earlier show ended.
He’d happily paid $15 per seat for the show. As he waited in the bar / concession stand he took in his options. A very large popcorn, yes. Some gummy bears, yep, those too please. What else? Maybe some chocolate. Why not? Total bill: $15 for the show + $16 for popcorn, gummy bears and chocolate = $31. He bought each of them at a price that was triple what he would have paid outside of the movie theatre.
As he waited, arms full, he thought about his own sites and the experience of his end users. It wasn’t so different from the movie theatre. They come to see the main show. Yet, they are also still hungry. They want more and are in a buying mood. How could Kenny satisfy his clients like the cinema was satisfying him? What else could he sell that they would like?
He thought about the classic upsell mix. Dating, livecams, other paysites, toys. Each of these categories needed to be sold in a way that maximized revenue while not making the paysite look like a tube. How to find the right balance?
In Kenny’s experience one-click cams worked great. It made the most on a per member basis. Dating didn’t seem to work. Content partnerships – like mini-sites within his site – worked great. At least he thought that was the case but he wasn’t 100% sure. The truth was that he needed better tools to really understand and optimize his upsales.
It wasn’t easy. Besides the lack of data there were other challenges. One complication was the tradition of link trades. “I send you a sale, you send me a sale” began twenty years ago when there were no practically no analytic tools. Yes, it helped get members to your site but what were the chances that your link trading maximized your overall revenue? Close to zero. Also, those deals were not easy to set up.
In a perfect world there would be one-clicks with everyone and Kenny would be able to go from 10% / 15% in total revenue from upsales to 20%. How to get there?
He pondered these challenges as he sat down into his seat, watched the curtains pull back, listened as John Williams musical score filled the theatre and he reached for some popcorn.
Questions for discussion:
- What is working for you? Are you selling like minded sites or unrelated and which works better for you?
- Do you work with content exchanges, link exchanges or both?
- Does dating work for you? Sex toy stores?