General What is the biz model behind pay-to-post forums?

[Jason]

How does the owner come out ahead? I'm confused. Thanks.

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[Dismal_Bliss]

I imagine that income from clicks, impressions, and memberships would generally outweigh the expenses of paying out. Plus if you have a credit based system like many of these sites do, you can entice your members to spend credits internally instead of cashing out.

 

[Jason]

I imagine that income from clicks, impressions, and memberships would generally outweigh the expenses of paying out. Plus if you have a credit based system like many of these sites do, you can entice your members to spend credits internally instead of cashing out.

How? What might be a simple math model?

 

[Dismal_Bliss]

A simple model? I don't know if it's simple.

But if you have a website you could be monetizing it in various ways. Google Adwords, selling ad banner space, selling pro memberships, etc. Then you can provide a reward system for participation. You might offer the ability to convert rewards into actual cash payouts. But you also create an internal store/system where people can spend their accumulated rewards internally, on ads, memberships, etc. This will be preferred because it helps you avoid writing checks, lol. The formula is you want more money coming in than you have going out. Some members will spend points internally. Others will let the accumulate and never cash in at all.

But if you have Google AdWords sending you checks each month for $300, and on average 10 people a month cash in their credits for $10 each, then you are profiting $200/mo. You just have to set a value to each post, reply, reactions, etc, so that you the payouts don't exceed your income.

 

[Jason]

A simple model? I don't know if it's simple.

But if you have a website you could be monetizing it in various ways. Google Adwords, selling ad banner space, selling pro memberships, etc. Then you can provide a reward system for participation. You might offer the ability to convert rewards into actual cash payouts. But you also create an internal store/system where people can spend their accumulated rewards internally, on ads, memberships, etc. This will be preferred because it helps you avoid writing checks, lol. The formula is you want more money coming in than you have going out. Some members will spend points internally. Others will let the accumulate and never cash in at all.

But if you have Google AdWords sending you checks each month for $300, and on average 10 people a month cash in their credits for $10 each, then you are profiting $200/mo. You just have to set a value to each post, reply, reactions, etc, so that you the payouts don't exceed your income.

Yeah, that's probably what these owners are aiming for cause otherwise, it don't work. I did some math model.