Many of you are familiar with iPowerWeb.com's high pay-out rating for each person you sign up ($40 per each person you sign up).

View here for more info: http://www.ipowerweb.com/affiliates/affiliates.html

Do you think this tactic is successful? Obviously, iPowerWeb has been made famous from its payout-rate, but do you think a high profit would be made from this type of marketing solution?

a one time payout is a good way to get customers because once you pay the initial $40 for the customer, they are yours on a recurring basis, and your job as a host shoudl be to generate recurring customers. I'd say ipowerweb had a great idea and ran with it

I must've missed iPowerWeb having a one-time payout (I originally thought they used a pay-per-month system). Profit gain from a 3-month package price is as follows:

$30 setup fee + $9.95 x 3 months - $40 affiliate payout = $19.85 (profit gain) per month / per customer.

Sounds good. :)

but your also missing all the server costs, and overhead. that $19.85 per customer would dwindle to more like $5 to maybe even $10 a month per customer

If their customers pre-pay on a one-year basis (for economical reasons+freebies):
$7.95*12=$95.40

Pay $40 comm. and they keep $55.40 ... isn't that a good deal? ;)

not really....do the math, its simple

$55.40 for 12 months? that comes out to $4.62 a month...

A lot comes into play though. Guys like iPowerWeb don't have to see profit on each sale, or even after a few months of service (recurring), they also gain by the referals their customers bring in, and its all about volume.

Another thing is, its like free advertising for them. Most sales on the Internet are not impulse buys, meaning the customer comes from an affiliate page (free branding), they like what they see, but they look around a bit more. They come across iPowerWeb again, and then the chances for a signup have increased. Customer signs up, iPowerWeb pays nothing to the affiliate. Thats the problem on the Internet, and the people that expect imediate results in advertising online should be careful. It's all about branding in a competitive market, and thats why most of the WHT guys business comes from local markets.

iPowerweb for example have a ****load of affiliates, all of the web hosting directories, and other sponsorships. A typical soon-to-be customer will be referred by an affiliate, search for more hosts, end up at a directory, and will see iPowerWeb for the second time. Maybe they come from Overture, search to find other results, and find them on a directory-- thats the power of the Internet. It's hardly affordable to have your name on channel 16, and then when the person switches to channel 25 to also have your name there.

My personal opinion at least-- sorry, I'm way off topic
:rolleyes:

With 70,000 customers + 2505th Alexa ranking, they must be doing it right ;)

and enron had a lot of employees =]

I always thought they had to keep the high affiliate payout because they do not get much word-of-mouth business. I don't know anyone who has stayed with them past their contract.

But strangely, thinking about it, it is probably a winning program for them. Those who actually use their site drop them for poor service, those who plan on building a site, but never get around to it don't notice the poor service and stay on. So their constant churn gives them a base of non-demanding customers.

Just a guess.

Chet

Originally posted by chet
I always thought they had to keep the high affiliate payout because they do not get much word-of-mouth business. I don't know anyone who has stayed with them past their contract.

But strangely, thinking about it, it is probably a winning program for them. Those who actually use their site drop them for poor service, those who plan on building a site, but never get around to it don't notice the poor service and stay on. So their constant churn gives them a base of non-demanding customers.

Just a guess.

Chet

You hit it on the dot. iPowerWeb, along with the other powerful marketing hosts target the non-demanding customers. There are several benefits with this. The customers put up an "About Me" page, and use a 50th of what they were allocated, and they can easily be bull****ted when it comes to technical problems/support. I'm sure a big portion of iPowerWeb's business is from word of mouth, because the majority of their users do not demand 99% uptime, and as long as their email works, they tell their friends that iPowerWeb is good.

Thats why if I owned a hosting company I would use heavy marketing gimmicks on entertainment sites, or sites that are outside of other competition and would attract newbs.

Zak

Originally posted by rusko
and enron had a lot of employees =]


LOL

iPowerweb.... the Mac-Do of the internet? Good replacement for for real food, but not if you want quality meal?

I didn't know they paid out so high :) Wow.

May i ask..if they pay you only if the customer sign up for their yearly plan or mthly?
guess yearly...

hmmm....i would think monthly?

You hit it on the dot. iPowerWeb, along with the other powerful marketing hosts target the non-demanding customers. There are several benefits with this. The customers put up an "About Me" page, and use a 50th of what they were allocated, and they can easily be bull****ted when it comes to technical problems/support. I'm sure a big portion of iPowerWeb's business is from word of mouth, because the majority of their users do not demand 99% uptime, and as long as their email works, they tell their friends that iPowerWeb is good.

Thats why if I owned a hosting company I would use heavy marketing gimmicks on entertainment sites, or sites that are outside of other competition and would attract newbs.


Exactally
One of my current clients, who happens to be a friend also signed up with Ipower web. Not only did they take almost 2 weeks to actually get his account setup, they sent a bunch of mumbo jumbo bull when he complained, then offered a year of free hosting when he asked for a refund. Then refused to give the refund. He had to contest the charge on his card (don't worry, he won! :)

Your description of their service is perfect.

I host one of my sites with them and haven't had any major problems ... their support response has been pretty good and the server uptime is good. :stickout:

Originally posted by HostAZ
I host one of my sites with them and haven't had any major problems ... their support response has been pretty good and the server uptime is good. :stickout:

you arent serious, omg. you should have signed up as an affiliate and collected the cash =]

From IPowerWeb.com's website:

This year alone we have paid out more than $2 Million Dollars in commissions.

:eek:

hmmm....i would think monthly?

I have e-mailed them to find out. ;)

Here's the reply from iPowerWeb on the monthly/yearly-based sales referral:

Affiliate checks are cut on the 15th & last day of every month for those sales made the previous 30-45 days prior.

Hi

I am currently hosting with IPOWERWEB and I find them very good. Their support is good as well as uptime. They also have many other features.

Cheers

Originally posted by rusko
and enron had a lot of employees =]

lol

I think IPowerWeb's commission has increased to $50. I just checked my cj account and they credited me $50 for each of my 4 sales this month.

Red

The rest of the hosting boys at CJ increased theirs ... so iPowerweb had to do it to remain competitive ...

Ipower seem to be engaged in a large branding exercise. Even at $50 a sale the eventual CPM and the reach are probably impressive

Yes, they now offer $50 for each sign up

These days it's not what you sell but how you sell it, how much you pour into your marketing, and how you present the product is what matters... You don't really need a great product anymore... You just need a great marketing budget and you can even sell shi* in thousands if nicely packaged! ;)

hasn't that always been the case :)

Originally posted by NovaW

hasn't that always been the case :)
Well, I am not so sure about that.

100 years ago people used to buy candies made from pure boiled sugar. Now you have a half page list of shi* ingredients in an innocent looking candy bar... and they shift them in millions thanks to mass advertising.

That's just one small example... ;)

A great product isn't made of the raw materials only ... in our world today, the marketing, packaging, branding play determining roles in successes and flops ;)

I guess they got a good overall strategy in place ... worth learning from ... my $.02 ;)

A great product --> You probably mean a great-selling product... ;)