If you’re a loyal user of our faucet and want to see it continue to operate, please read to the end. I know it’s long, but it contains a lot of information about the faucet and how it’s funded.
I want to start this post by saying the support from many of you has been amazing. The faucet has been growing at a steady rate, most of you leave constructive feedback and are a genuine pleasure to work with. Thank you all for sharing this faucet with others, continuing to visit daily and offering your comments to help the faucet improve.
Now, onto the bad news.
Operating at a loss..
Since the faucet has started, I’ve been operating it at a loss. I pay out anywhere from 300,000 to 1,000,000 Satoshi every day. Advertising revenue only brings in about 150,000 Satoshi per day. 1,000,000 Satoshi is about $40, and when my mining configuration and advertisements don’t cover it, I need to take it directly out of my bank account. I work 40+ hours a week to pay my bills and have a little extra for fun. This faucet has been an interesting hobby of mine, and it has been fun. However, at almost $100 per week taken from my bank account to keep it active, I just can’t sustain it. For this faucet to continue operating, I need to bring daily payouts into the range of 100,000 to 200,000 to reach a rough break even point. Unfortunately, the only way to do this is to reduce payouts.
I fully realize reducing payouts will reduce my traffic and gross revenue generated from the faucet, but it’s currently the only way to arrive at a net break even point. If you feel the faucet is no longer worth visiting because of the lower payouts, I completely understand. For those of you that stick around and continue to use it, I sincerely thank you. You are the ones that help keep the faucet alive. To those of you that leave, I’m sorry to see you go, and am hopeful someday you’ll be back.
The New Payouts
Currently we have several payout tiers. 25, 50, 100, 200 and 500. The higher tiers aren’t the ones costing, as they’re a low percentage. A vast majority of the time you’ll win 25, with anything above being more of a special “treat” or sort of like a “jackpot”. The 25 Satoshi minimum is the one that is costing. Currently we have around 30,000 claims on the faucet a day, with 2,000 to 3,000 visitors. If all those visitors hit the payout threshold, that equals a theoretical maximum payout of 750,000 with the minimum claim alone. Add to that referral payouts, seniority bonus and the small chance at a higher amount, we reach the 1 million Satoshi mark. Not every day do we hit that much in claims, but it has happened.
Our new plan is to have the minimum payout set to 10 Satoshi. That means if everyone got the minimum payout, we’d hit about 300,000 Satoshi in maximum direct payouts. Figure in another 100,000 for referrals and seniority and we have a much more manageable amount to pay. I know 10 Satoshi is substantially lower than the old 25, that’s why we’re increasing the payout chance for 50 Satoshi and keeping the 25 Satoshi payout in the rotation at a lower chance to win. This should keep the faucet at a break even point, or at least a lesser cost than it is now.
Additionally, we’re increasing the referral bonus from 40% to 45% to encourage users to share the faucet with others while still receiving a decent payout from them. Also, the seniority bonuses will be adjusted to reward returning visitors with higher payouts.
Currently we intend to keep the payout threshold of 5,000 Satoshi the same, but this may be lowered in the near future if things start to look up for the faucet.
Why don’t advertisements cover the costs?
Currently we have three advertising partners; BitMedia, A-Ads and SolveMedia. BitMedia is most of the ads you will find on the site, and currently generate a lions share of our revenue. BitMedia can net the faucet an income of 150,000 Satoshi on a good day and around 80,000 Satoshi on a bad day. A-Ads is a much smaller source of income, generating a mere 5,000 to 10,000 Satoshi per day and is mostly used as a filler for variety. SolveMedia is our Captcha system, and that generates about $4 per day, which equates to roughly 94,000 Satoshi.
The main issue with SolveMedia is I need to generate $200 in revenue for payout, and then wait 60 days after that for payout. This makes SolveMedia a very unreliable source of income as the money ins’t available to immediately put back into the faucet.
We have a fourth, tiny revenue stream: Our top faucet list. The faucet list has the potential to pay out a LOT as it’s loaded with other quality faucets which pay out a referral directly to my FaucetHub account. These referral payouts are automatically used for our faucet. Any referral earnings from the faucets list is directly paid back to our users of our own faucet. We do not keep the Satoshi paid out from this source. This is the number one way you can directly support our faucet, it’s a revenue stream you control. Sharing our faucet list with your friends is extremely beneficial to the faucet, but unfortunately it’s underutilized.
You may be asking, “Why not get more advertisers or add more advertisements?”. Sadly, it’s not that simple. We have two other advertisers in mind, but they require an Alexa rank of 200,000 for one of them and 100,000 for the other. Currently our Alexa rank is just under 600,000. To get a higher Alexa rank, we need more traffic. Right now we get around 2,500 unique users per day. We’d need to expand that to around 10,000 users per day to get close to that kind of rank. That takes awhile and doesn’t solve the financial crisis we’re in right now. Adding more advertisements doesn’t really solve the issue, either. There’s limited space on the faucet page, and currently all the advertisement real-estate is taken up and still not covering the costs. Additionally, we refuse to use popups, audio or video ads and never use fake buttons to get you to visit advertisers. Personally, I hate popups and avoid sites that use them. Audio and video ads are just as bad, and fake buttons are just plain shady. From the start I’ve wanted our faucet to stand out from the rest: By offering an easy to use interface that lets you get your Satoshi quickly without distractions. I want it to be easy, simple and quick. I don’t like jumping through hoops to claim Satoshi, so I don’t expect others to do it either.
So what’s the future of the faucet?
The future largely depends on whether the faucet operates at a loss or not. If we reach a break even point where the faucet fully funds itself, I’ll keep it online. I want the faucet to last. I want users to be able to come back months from now and be able to claim just as they do today. Losing $50 to $100 each week doesn’t let me do that, I just don’t have that kind of disposable income.
I hope you all understand why these changes were necessary, and hope you continue to visit after these changes are implemented. Thank you all for your support, and I look forward to hearing what you have to say in the comments below.