Third party driven content website monetization model

Discussion in 'Growing and Managing a Business' started by Abdo, Apr 13, 2016.

  1. Abdo

    Abdo
    uix_expand uix_collapse
    New Member

    Joined:
    Apr 13, 2016
    Messages:
    2
    Likes Received:
    0
    Hi,

    I've created a website where I sell third party comics/games. The website was just started.
    It is so straight forward for them to get a share from sales revenue.

    But I want to enhance the business model I am working with. I want to add support for free comics/web-games from third parties and give them a share from ads.
    Also I want some special content from third parties to be available only to subscribers.

    I tried to think of how the revenue for third party can be calculated and I am still lost.
    There are two main points I am really lost in
    1) In case of free ad based model, can I calculate fixed amount like this site?
    http://www.komikia.com/faq
    It gives $1/1000 views. How can the site be so sure that 1000 views will make more than $1 in ads?
    I am using Google adsenes, and I do not think I am guaranteed $1/1000 views.
    How can I know guaranteed revenue/1000 page views for myself to be able to calculate how much content owner gets per 1000 views?
    Shall I use an ad exchange site? Most ad exchange site reject me because I am still getting too little visits.

    2) In case of subscription model, how much shall I give the content owner per view?
    If a subscriber paid $5/month and viewed every single comic and played every single game on the site, then shall I distribute that $5 among all content owner and my self?
    Is there a popular formula for this?

    Any help is greatly appreciated.
     
  2. Business Attorney

    Business Attorney
    uix_expand uix_collapse
    Premium Member
    Premium Member

    Joined:
    Mar 22, 2009
    Messages:
    604
    Likes Received:
    289
    I can't answer your specific questions but I think I can give you some things to think about.

    1. You will never be able to GUARANTEE that pay-per-click ads (such as AdSense mostly is) will translate into a specific dollar amount on a per view basis, but over time you can get a pretty good feel for what to expect. I have a couple of websites and although the click through rate (CTR) and cost per click (CPC) do fluctuate, there is clearly a pattern. One site gets a fair amount of monthly traffic but very few clicks due to the nature of the website and the visitors. When it does get clicks, they are at a very low CPC, just pennies per click. Another site has a small amount of very targeted traffic and although the CTR is just average (1-2%) the revenue from each click averages around $0.50, so 1,000 page views is probably going to yield over $5. Even then, there is no assurance that every 1,000 views will be at least $5 but unless there is a massive change, I am confident that the revenues per view will eventually average out.

    2. Pricing a subscription model, and sharing the revenues on projections, is even more difficult than translating PPC into PPV payments. There are formulas but it requires much more drilling down into the data. For example, let's say that there is a 50/50 sharing. You simply take 50% of the revenue, divide it by the page views for whatever period you are covering, and then multiply the revenue per page view (which will be a very small number) times the number of views each page of content received.
     
  3. Abdo

    Abdo
    uix_expand uix_collapse
    New Member

    Joined:
    Apr 13, 2016
    Messages:
    2
    Likes Received:
    0
    Thank you very much for your detailed experience sharing!
     

Share This Page