A friend of mine had been generating 6-figs/mth consistently from rebill offers (using somewhat questionable landing pages) and had been banking pretty hard via media buys from early 2009 to around Oct. Since Wells Fargo and other payment processors have turned the tap off the rebill arrangement for many of these offers, the majority of them have gone down.
Are rebills gone for good? Not by a longshot, considering services like your utilities, sat TV, internet service and newspaper/magazine subscriptions all function on a rebill model. The offers that have gone to seed have primarily been in the weight loss, bizop, health/beauty niches. From about 5-10 offers in each niche, most networks are down to 1-2 “quality” offers. How long they’ll stay quality is anyone’s guess.
So back to my friend. He’s been doing tests focused on the US market and are seeing his campaigns at the marginal profit or break even levels. An even larger proportion are in red and chipping away at the nest egg he built over the last year. He’s been smart though, choosing not to blow his cash on a souped-up sports car or a pricey piece of real estate, so he could still coast by for the next 2-3 years even if he didn’t earn a single cent.
It’s unfortunate that most affiliates will not have built up a stockpile of cash to tide themselves over this lean period, but if you’re focused on the US, you might want to check out Lorenzo Green AKA MrGreen’s tips, including his insights on PPV, his case study focused on promoting the worst CPA offers on the various networks, and possibly his Plenty of Fish (PoF) bulk ad uploader.
Aside from getting smarter about the marketing strategies and traffic networks you’re using, I don’t think the CPA industry has changed fundamentally. Switch over to consumer type offers, including the “As Seen on TV” variety and you might be pleasantly surprised by the results.
If you’ve been waiting for an opportunity to break out of the traditional US/Canada geographical focus of 90% of affiliates, now’s the time. Aside from opportunities from markets like the UK, Australia/NZ, France, Germany and Italy, I’ve got the word from industry insiders that rebills are killing it in latam AKA Latin America.
Maybe it’s time to get a move on…