Sounds too good to be true!

How does RhumbLine Progress make any money building
and maintaining web sites?

We become your business partner in a secondary business venture.  We will provide you with market research and information in an effort to build the best opportunities for you on the internet.  The information we provide will be comprehensive, and give us appropriate directions to work in.  Once we’ve built a site for you, we are due a portion of your net proceeds, on a monthly basis, as fees for building, maintaining (including marketing) and site hosting fees that you reimburse us for.

Here’s an example of what a year’s contract income might look like.
(Example for illustrative purposes only. Your site and what you choose to market will without a doubt be different from these examples.  The success of your site is dependent upon a lot of things, and we will work with you to constantly evaluate and adjust elements of your site for maximum exposure and profitability.)

Hypothetically, this web site takes RhumbLine Progress (RLP) 30 hours to build.  We will charge $1800 for building fees.  We negotiate a 30% on monthly net to repay these fees.  We negotiate a 10% on monthly net for maintenance and marketing, (these could be different, based on complexity of the site), and $40 hosting fee (this includes your domain name and is subject to increase; this is a fee we have to pay).  This relationship depends upon an “open book” relationship between us.  Net income is defined as your profit, after the cost of goods sold, advertising (if any) and the costs of selling the merchandise, including your merchant banking fees.  It does not include the cost of RLP’s fees – those come off your profits, as illustrated here:

The first month this site goes live:

Net site income$2000           
30% build fees  <600>       new build fees balance: $1200
10% maintenance     <200>
Hosting fees       <40>
Net/net                          $1160

Month 2:
Net site income$1200
30% build fees  <360>       new build fees balance: $840
10% maintenance     <120>
Hosting fees              <40>
Net/net     $680

Month 3:
Net site income$6000
30% build fees  <840>      new build fees balance: $0
10% maintenance     <600>
Hosting fees       <40>
Net/net           $4520

Month 4:
Net site income$5500
*No build fees          0new build fees balance: $0
10% maintenance    <550>
Hosting fees      <40>
Net/net    $4910

Month 5:
Net site income$7200
*No build fees          0new build fees balance: $0
10% maintenance     <720>
Hosting fees      <40>
Net/net    $6440

Month 6:
Site has undergone some changes and additions, as well as extra marketing (a sale was run), totaling 6 hours.

Net site income$8400new build fees: $300
30% build fees  <300>       new build fees balance: $0
10% maintenance     <840>
Hosting fees       <40>
Net/net    $7220

Month 7:
Net site income$5900
*No build fees          0new build fees balance: $0
10% maintenance     <590>
Hosting fees       <40>
Net/net    $5270

Month 8:
Net site income$6100
*No build fees          0new build fees balance: $0
10% maintenance     <610>
Hosting fees       <40>
Net/net    $5450

Month 9:
Net site income$7100
*No build fees          0new build fees balance: $0
10% maintenance     <710>
Hosting fees       <40>
Net/net    $6350

Month 10:
Net site income$7300
*No build fees          0new build fees balance: $0
10% maintenance     <730>
Hosting fees      <40>
Net/net    $6530

Month 11:
Net site income$7400
*No build fees          0new build fees balance: $0
10% maintenance     <740>
Hosting fees       <40>
             $6620

Month 12:
Net site income$5900
*No build fees          0new build fees balance: $0
10% maintenance     <590>
Hosting fees       <40>
Net/net    $5270


NET INCOME FROM THIS SITE   $70,000.
(reflecting cost of goods sold, advertising/pay per clicks, cost of sales)

Annual net/net (after site fees) income from this site:     $60,420.

RLP’s income (site maintenance and build fees) from this site:        $9,100.

Annual hosting fees           $480.

Advertising: There are numerous ways to market your site, and some may cost minimally.  This is considered a cost of doing business and therefore would be included before the net figures are calculated. The amount of time it takes RLP to make those advertising arrangements and get them up and working would be added to “new build” costs.

**Your experience will be different.  This is a hypothetical illustration only, shown to better understand how we work with our partners.  Your choice of what to market on the internet may or may not work well.  It could work extraordinarily well – and that’s what we’ll work towards.  We will provide you with statistical materials to help depict how successful your choices may be.  We will work with you to make the best choices so that we can all be as profitable as possible. We reserve the right to refuse to participate in any business practices that we deem to be unethical, illegal or immoral. 




© Copyright 2008 RhumbLine Progress



Rhumb Line Progress

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