Remember, everyone has different outside earnings potential, based on what country they are in, their other skills (creative, programming, etc), access to other promotional opportunities, and many other factors. If you think you have a fairly low outside earning potential, you need to aim for ad price to be a fairly high proportion of ad value. If you think you have a fairly high outside earning potential, you can afford ad prices to be lower proportion of ad value. Perhaps you don't want to depend on any outside income at all - in that case ad price must actually be set HIGHER than ad cost, as you will also have to pay for the 'other costs' - at a minimum, hosting fees.

If you are thinking you can manage to survive while selling ads really cheaply - say, a 5 cent ad to all 5000 members for $10 - you will see from the ad cost calculator that you will need a great deal of outside income to support that. And even then it would make no sense at all to do so, unless the outside income is being generated as a direct result of your PTR program. In short, we believe it is extremely unlikely a program can find adequate outside earnings to sustain ad prices any lower than 50% of ad costs.

Above all, the success of your outside earnings MUST be monitored at ALL TIMES, and if it doesn't go as well as expected, some figures must be adjusted. And once your program has launched the only figures it is reasonable to change is ad prices. Members will be extremely unhappy if you start changing referral commission levels after launch.

If you follow the above plan, you will have a much better chance of having a financially viable program that is sustainable and will continue to be able to pay its members on time for years to come.

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