Why is the fees paid to astrologers low ?
GoAstrologer is a platform for astrological advice. Astrologers answer questions and earn fees. Some astrologers have complained about the fees being low. Here is an attempt to explain why it is necessary to keep this site viable.
"Pay later" for users
The most important point to remember is that users pay AFTER receiving answers. Only a fraction of users (around 20%) pay for the questions. The conversion rate can get as low as 2% for certain astrologers.
Some users ask for a refund if they are unhappy. We also give users free readings and discount coupons as a promotion.
"Credit instantly" for astrologers
On the other side, astrologers are credited as soon as they submit readings. So the effective fees earned by the site is very different from the sticker price of ₹199.
Note that these numbers are illustrative only.
| Legend | Calculation | Total |
|---|---|---|
| Customer Fees | 199₹ | |
| PG fees | 3.5% of 199 | 7₹ |
| Average discount | 20₹ | |
| Discounted Fees | 199-7-20 | 172₹ |
| Conversion rate (users who pay) | 20% | |
| Average revenue per user (ARPU) | 20% of 172 | 34₹ |
| Expenses: | ||
| Customer acquisition cost (CAC) | ~20₹ | |
| Margin per question | 34-20 | 14₹ |
So as illustrated above, we have a margin of only 14₹ per question. And this does not include fixed costs like taxes, web hosting, email hosting, infrastructure, salaries etc. So the fees paid to astrologers will have to be lower than this number.
We apologize to anyone who feels that the fees is too low. But this is the only way to keep the site viable.
PG: Payment gateway, ARPU: Average revenue per user, CAC: Customer acquisition cost (Adwords/Fb Etc)
Tags: help