PTC sustainability through ads revenue part 5: Thinkbux
October 22, 2008 5:49am CST
Ok so I'm in this venture to find out how sustainable a site is by computing the amount of earnings they get per click. So my fifth one is going to be Thinkbux. Why Thinkbux? I'm planning to go over the top 10 sites in PTCTalk, and Thinkbux is included. They now have a donation link, although it's not that bad...each member giving 100 clicks worth of money will be sufficient enough to sustain the site's additional expenses such as security and servers. My computation will be based on the price of standard ads per 500 clicks, which is $6.99 So that $6.99 will be divided by 500 clicks, which will yield a 0.01398 per click rate. Seeing that, a standard member click is 0.01, and a referral click is .005 So deduct that by the 0.01398 per click rate. 0.01398 - 0.010 -0.005= - 0.00102 So there is a loss of 0.00102 per click. Multiplying that by 500 we then get .51 So for every 500 members clicking on the ads they will loose .51 cents. Hmm...pretty interesting. But then who would order just 500 clicks when the site got lots of members, right? What I've noticed with the site is that they have an increasing rate for the click amounts they offer, but then the good margin is only noticeable with the 1000 clicks, which change the rates from 6.99 to 14.99, an $8 increase. So let's do another computation, and for this one we'll use 1000 clicks for 14.99 and then the last one which is 100,000 visits for $700. First off, the 1000 clicks for 14.99. So dividing the 14.99 we'll get a rate of 0.01499. Doing the same computation we'll get: 0.01499 - 0.01 - 0.005 = - 0.001 I'm not that sure with my computations though. Man these decimals sure makes me stupid when it comes to numbers...So still, there's loss. That's what is clear, although the loss is not marginal, it means that there is still no profits gained from clicks, unless there are members who doesn't continue with the clicking, those clicks that they do that they don't redeem will still earn the company some. Ok, last one...and I hope this one will show signs of earnings... Dividing $700 by 100000 clicks, this will yield a rate of 0.007, which proves that there's much more losses for this one. It will lead a loss rate of .008 per standard click with referrer, and multiplying that will yield a loss of 800 per 100,000 standard clicks with referrers. What do you think guys? Is the site sustainable enough?! I think that in the long run they will just rely on member purchases and quitting members for revenue. Not that sustainable for me. But then just like I say, I don't have any idea how they run the business, I just compute the core and the main source of revenue for PTC sites, which is of course advertisement packages. So what do you think? At this pay rate for standard members as well as the advertisement rates, will they loose money or gain money in the long run? Are they sustainable enough to deal with other expenses such as server costs, domain name and security? Have a nice day. I think the next will be clixmx, although cost of advertisement is still not available on the site at this time. I think Adandel will do. Again, have a nice day.