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need some input on my monetization method
Old 01-26-2007, 12:56 AM need some input on my monetization method
tuxidomasx's Avatar
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i am at the final stages of building my site. before i started building, i came up with a monetization method. i just kinda assumed it'd work, but i never really got any input from people who have experience with this kidna stuff.

The site itself is a social network. It looks and operates very similar to facebook, but it also has a forum. (all coded from scratch).

It targets a very specific niche-- 10 greek letter organizations (all college fraternities and sororities) that interoperate with each other on a national organizational level. Alumni are typically VERY active after they graduate-- usually joining graduate chapters and attending conventions. and every year, thousands of new inductees join.

My site caters specifically to these 10 organizations. The reason is to get as many members to my site in order to sell them.... paraphernalia.

Thats right, the whole point of the social network is to target my products that have greek letters and symbols on them at my members. I am creating a cafepress (or Zazzle) account where i sell everything from t-shirts to coffee mugs, and the precious ad space on my site will show ads targeted to each user's respective org.

But... i need some input. Is this a good idea, or should i look for affiliate sales or perhaps sell links or ads to other sites that sell paraphernalia? Any drawbacks to using Cafepress in a revenue model.

FYI-- "adsense and friends" dont have very targeted ads for the niche-- they tend to group it all into general "fraternities and sororities" which is less targeted to my members.
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Old 01-26-2007, 09:17 AM
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I think it's a good idea but with an idea like this I would also look into doing some CPA or even contextual. I think you could still get some clicks with adsense ads displaying fraternities and sororities, but I guess you know more about the niche than me.
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Old 01-27-2007, 03:16 PM
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I'd go for private, paid members areas. If people are really that active, and
they're in these special groups anyway, I think there's a strong chance they
will want to be part of another exclusive paid members group.

Sites like FriendsReunited charge for "full" membership, so you could do the
same thing.

Or, offer some service for a small monthly fee. I'm not sure what, but I'm
sure you can think of something
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Old 01-27-2007, 03:53 PM
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I thought about that. The problem is, about 3 years ago, there was a site that did what my site is attempting to do. They were free for about a year. Got over 17 thousand members in about 8 months time.

Then they decided to change revenue models. they gradually reduced the privileges of being a free member and started charging people for full membership. (it was a small amount too. like $5 / month).

Needless to say, they failed miserably. Which is why i'd want my site to be free for all, at least at the beginning. Wouldnt want to repeat the same mistakes that the other site made.
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Old 01-27-2007, 04:38 PM
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Reducing the privileges is a great way to alienate existing users. Once
you give someone something for free, unless you've explicitly told them
that you may one day start charging, they will expect it for free, for
ever.

If you start off with a free package, then offer a paid upgrade to a more
feature rich package, I don't think you'll lose any users. Taking away a
feature that a user has become dependant on and then demanding money
is not a good tactic.
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Old 01-27-2007, 05:26 PM
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hmmm. i see.

i'll look into it then. do you know any simple ways to offer a paid membership package?

i wouldnt want to do the whole paypal and then manually add them. maybe a more automated approach. i guess i'd need a merchant account to accept credit cards.
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Old 01-28-2007, 05:59 PM
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PayPal will let you manage subscriptions. You can set up a subscription
button just like a single payment button.

If you want some membership software, I've got a package here:

http://ViralMembershipSites.com

There's also AMember, EasyMemberPro and tons of other offerings, all
at varying prices.
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Old 01-30-2007, 06:44 AM
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Originally Posted by tuxidomasx View Post
I thought about that. The problem is, about 3 years ago, there was a site that did what my site is attempting to do. They were free for about a year. Got over 17 thousand members in about 8 months time.

Then they decided to change revenue models. they gradually reduced the privileges of being a free member and started charging people for full membership. (it was a small amount too. like $5 / month).

Needless to say, they failed miserably. Which is why i'd want my site to be free for all, at least at the beginning. Wouldnt want to repeat the same mistakes that the other site made.
I feel you have a valid point. You can keep it free and at the same time offer some special features which will be paid. Try to keep the fees at a minimum level and as low as possible.
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Old 02-09-2007, 04:59 AM
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Start with the free model and gradually offer paid memberships as well. Depending on your niche about 1-5% of the total members in a specific community would pay for a membership.
This means, that if you are asking $5 / month, you need to have 100,000 members (or 20,000 members) to make $5k / month. The hard thing is to get the 100,000 members....
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