Update:
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Since we re-launched, things have been going great! We are getting a lot of uploaders and a lot of traffic.
Because we're trying to be the most transparent video host, let me share some numbers:
Yesterday we had 201,000 users
- We generated $249 in ad revenue yesterday
- Affiliates earned $619 yesterday
- Plus additional server/employee costs
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Is it profitable right now, no. We also don't want to bombard the users with ads. There are some other hosts (not gonna say names) who have 30 pop ads.....
Our goal is to be a stable host with generous earnings and fast support. I am never going to "shave" people's earnings. I'd rather be honest and up-front and tell them that we may need to decrease our rates. Some hosts like to have "high rates" but just shave views. I don't like this and we're not going to go that route.
But good thing I have a lot of capital and can keep these rates for a while longer.
One thing I've been thinking about is how many uploaders/users will leave if we ever decrease our rates.
- If any of you guys have any input on this that would be appreciated.
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Let's crunch some "hypothetical" numbers.
Let's say we can grow to 10x the size:
That would mean 2,000,000 daily users;
That would mean $2,500 ad revenue daily;
That would mean affiliates earn $6,000 daily;
- We would have to increase ad revenue by 58% or decrease affiliate's rates by 58%. Or a split combination of both.
Here are Doodstream's rates compared to
SaveFiles' rates:
Tier 1: $33 --->
$53
Tier 2: $22--->
$30
Tier 3: $11--->
$25
Tier 4: $7--->
$15
Doodstream has an average 43% decrease than our current rates (Likely above 60% if you count the difference in some of the countries).
They also count 3 views/ip while we count 4 views/ip. Therefore, Doodstream has 25% decrease in ip view counting.
They give a lot less to affiliates, and are still the biggest host. So would decreasing rates lose a bunch of traffic/uploaders? I'm not sure....
- I think uploaders just want the most stable host that doesn't cheat them (Am I right?)
Based on these numbers, Doodstream pays affiliates 85% less than SaveFiles does (If you combine 60% + 25%)
If we decreased our affiliate rates by 85% (We're not, just hypothetically) we would then be very profitable.
At 2,000,000 daily users, we would pay affiliates only $900 per day,
making us very profitable.
One thing I'll point out is that at 2,000,000 daily users, we can negotiate with our ad networks for higher cpms / more earnings.
And so, we may naturally increase our proportional revenue by 25% just because we're bigger. Meaning we'd just have to decrease rates by 25%. Or decrease daily view counting to 3/ip.
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If we ever decrease rates, it's important to note that we'll likely lose uploaders and traffic, but the main question is how many people will we lose?
There's a lot of different routes we can go with, but the end goal is to be the most stable, highest paying, most transparent, and best support host there is.
