Okay here is the setup:
I'm working with a guy who writing a financial newsletter and selling subscription online. He's a got a website with some free content and selling access to the members' center (where you see the good stuff) for $300 a year.
Before you start to roll your eyes, independent financial newsletters have been around for decades. There's one guy who has been writing for more than 50 years, no kidding. Three hundred bucks a year is pretty standard, cheap even in this niche.
The guy already has 75 subscribers with an email list of more than 500 people. He's new to the newsletter business, only been doing it since July. Obviously, he is has been in the financial industry (TSE, TSX) longer, about 20 years. Most of his money has come from trading and he has a BIG house in North Vancouver to show for it. (I know this guy as a personal friend, I organized his bachelor party back in 1993).
Okay enough of the background crap. He's at the point where he wants affiliates to sell subscriptions. Again, this is the norm in the industry. The big guys like Cramer sell through CJ, the smaller guys roll their own through Clickbank or ejunkie (through memberwing) or hasoffers. We've had a few talks and I've said at a certain point in time, we should see if companies like Neverblue or Convert2Media or Maxbounty or (add your favorite here) would be interested in acting as broker for the site. And so here are the questions:
1. Are we kidding ourselves? Are those companies interested in this type of business or are they just making too much money with Acai/BizOpps/Email submits?
2. What should you bring to the table so you don't look like a total noob? For example, what sort of cash deposit do these guys want upfront?
3. Do the affiliate brokerage companies want to see landing pages designed before they are approached or after? Do they want to see some attempt at LP optmization before they are approached or do they not care?
4. For a $300 one-year subscription in this line of business, we have seen payouts of $30. Obviously, we would have to give a cut to the brokerage house over and above that. What sort of percentage cut do the affiliate marketing houses take?
5. Are the aff marketing houses motivated by bonuses? That is to say, you break 100 subs, we bonus you 10%, 200 subs 20%. Stuff like that.
If we can't get an affiliate house to look at the business, then we'll have to roll our own affiliate tracking network (and that's a lot of hassle). Plus, let's be honest, if we do it ourselves, then it will take us two years to sell the same # of subscriptions and most of the affiliate marketing community won't touch us with a ten-foot pole (as most prefer to deal with a trusted affiliate marketing company).
Yeah, it's a long post, but hey, complicated problem. If anybody has had any experiences to share, I've got rep to give out (come on, I know you guys really care about that).
I'm working with a guy who writing a financial newsletter and selling subscription online. He's a got a website with some free content and selling access to the members' center (where you see the good stuff) for $300 a year.
Before you start to roll your eyes, independent financial newsletters have been around for decades. There's one guy who has been writing for more than 50 years, no kidding. Three hundred bucks a year is pretty standard, cheap even in this niche.
The guy already has 75 subscribers with an email list of more than 500 people. He's new to the newsletter business, only been doing it since July. Obviously, he is has been in the financial industry (TSE, TSX) longer, about 20 years. Most of his money has come from trading and he has a BIG house in North Vancouver to show for it. (I know this guy as a personal friend, I organized his bachelor party back in 1993).
Okay enough of the background crap. He's at the point where he wants affiliates to sell subscriptions. Again, this is the norm in the industry. The big guys like Cramer sell through CJ, the smaller guys roll their own through Clickbank or ejunkie (through memberwing) or hasoffers. We've had a few talks and I've said at a certain point in time, we should see if companies like Neverblue or Convert2Media or Maxbounty or (add your favorite here) would be interested in acting as broker for the site. And so here are the questions:
1. Are we kidding ourselves? Are those companies interested in this type of business or are they just making too much money with Acai/BizOpps/Email submits?
2. What should you bring to the table so you don't look like a total noob? For example, what sort of cash deposit do these guys want upfront?
3. Do the affiliate brokerage companies want to see landing pages designed before they are approached or after? Do they want to see some attempt at LP optmization before they are approached or do they not care?
4. For a $300 one-year subscription in this line of business, we have seen payouts of $30. Obviously, we would have to give a cut to the brokerage house over and above that. What sort of percentage cut do the affiliate marketing houses take?
5. Are the aff marketing houses motivated by bonuses? That is to say, you break 100 subs, we bonus you 10%, 200 subs 20%. Stuff like that.
If we can't get an affiliate house to look at the business, then we'll have to roll our own affiliate tracking network (and that's a lot of hassle). Plus, let's be honest, if we do it ourselves, then it will take us two years to sell the same # of subscriptions and most of the affiliate marketing community won't touch us with a ten-foot pole (as most prefer to deal with a trusted affiliate marketing company).
Yeah, it's a long post, but hey, complicated problem. If anybody has had any experiences to share, I've got rep to give out (come on, I know you guys really care about that).
