If you’ve embarked on the affiliate marketer route, you might already be very successful with pay-per-sale, pay-per-lead/pay-per-action, and maybe even the new-fangled pay-per-call business model for a network or merchant-direct program. But are you awesome of the awesome profit potential of lead generation for local businesses?
There’re a number of marketers who’ve shared their experience in this space:
Taking an example. If you got a $100-200 payout for a finance-related lead, at a cost of $30-50 in lead generation costs, which works out to a 275% margin. Which sounds attractive.
However, the finance service provider might make a commission/profit in the magnitude of $1,000 to $5,000 on the customer, about a 19,000% gross margin. Factoring in a 20% default rate and operating expenses of 30%, the customer value is a healthy $1,500 (assuming the provider manages their risks prudently).
So if you’re an affiliate, would you prefer to make a $150 commission per lead or $1,500 per customer?
Just remember that a number of CPA affiliates who’ve tried to (more…)
This is a continuing series of “Affiliate Marketing Tips” posts to share marketing and promotion strategies for affiliate marketers. If you’re new to the series, you might like to check out the first in the series “The Industry and Getting Accepted”
Knowing how to promote a lead generation (ie CPA) offer effectively means knowing how the advertiser/merchant generates income from the lead offer. By matching the advertisers business model with your own, you have a higher chance of monetizing the traffic and leads you’re generating.
Here’re a couple:
Zip/email submit offers: Typically in the $0.50 – $2 range, these offers require a name and email address or zip code. Some form of bait is usually involved, such as a gas card, gift card, xbox, iphone or other item. Although it sounds like almost any lead will be able to get the prize, do note that they’ll have to complete the offer conditions to receive the prize. This might involve filling in a series of other CPA or pay-per-sale offers.
If you’re familiar with (more…)