Lead Quality & Payouts

mumblejae

mumblejae

***** gremlin
Aug 7, 2009
214
4
0
Buenos Aires
Ahoy folks,

I'm an affiliate manager transitioning from a pay-per-sale environment like ClickBank or DR to a sort of hybrid environment with a merchant.

(i'm not pitching anything whatsoever, just looking for feedback)

I'm starting affiliate programs for both CPL and CPA - we'll do a big payout for conversion-only affiliates, which i'm familiar with and blah blah blah, but what i'm curious about is the lead gen side.

Here's the thing. Crap leads are scary for me as a new affiliate manager. why? because i can potentially flush a ton of the company's money down the toilet. This isn't always the best thing for a new guy to do.

As i do like to ensure i keep at least a moderate supply of food on the table, i want to make this lead gen program effective. my question for you is this:

would a $4-8 payout per lead + commission on any conversions that result from those leads be compelling?

My thinking is that this motivates you to bring me quality traffic instead of crap.

The bullseye is now officially painted on my forehead - please be gentle.
 


Man, Honestly if you get some legit post's back on your thread. Your a step closer to reaching your goal lol

Good Luck
 
mumblejae said:
The bullseye is now officially painted on my forehead - please be gentle.
Click to expand...

Oops.

ShaunDart.jpg
 
Without knowing any details of industry/product/service it is impossible for anybody to give you a helpful answer. Most people who deal with insurance leads for example would laugh at that payout.
 
loading up the commission end would definitely bring the quality but your volume won't be what you want. if you want volume you have to accept the fact that you'll get hosed on some of the lead quality. if you have someone to watch the quality then it's a risk worth taking. that plus scrutinizing every new app that wants to run your offer(s). hope that helps and good luck.
 
Only solution on CPA is to track your ROI on a per publisher and/or per sub-ID basis and adjust their payouts accordingly (or drop them if they don't met a minimum level). End of story.
 
Be prepared to lose money while you figure out your profit averages. Only then can you know what you can pay out.

If you look at the CPA and the CPL payouts on most products, and factor in the average conversions, you will find they are often the same number just presented 2 ways. $60 per join is also the same as $6 per lead if it converts from lead to sale for you on an average of 1:10. But more people are absolutely going to go for the $6 a lead.

Of course I'm not factoring the private bumps that quality traffic holders get.

Any way it goes, you have to start with a good idea of what the traffic could be worth, set an ideal payout, then test test test. If there's no bankroll to test, and possibly lose a bit, then they aren't ready for affiliates.
 
dsiomtw said:
Only solution on CPA is to track your ROI on a per publisher and/or per sub-ID basis and adjust their payouts accordingly (or drop them if they don't met a minimum level). End of story.
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This.

You absolutely have to be able to measure the quality of leads on a publisher per publisher basis. If you do not have the ability to do that, get someone to write you the reports before you even begin to think about opening your campaign(s) up to anyone. Otherwise, your campaigns will last about as long as a DPer posting a intro thread in the StS section.
 
Truffles said:
Without knowing any details of industry/product/service it is impossible for anybody to give you a helpful answer. Most people who deal with insurance leads for example would laugh at that payout.
Click to expand...

Agreed-
Now my question is- is this per submitted lead, per accepted lead, per sold lead, per funded/underwritten lead?

-=Chipmunk=-
 
The lead environment requires a strong process and strong validation as well as keeping an eye on the fraud by implementing the ability to track the sub publishers in a network. You need to know how many leads you expect to need to get a sale and do the math, then work on improving that process for yourself and the affiliate, implement data validation and fraud checks, and watch your numbers everyday, a few times a day.

Depending on the type of lead that will determine its payout. Industry averages are basically the same, if you cant afford to pay that much because your averages arent as good as others, then improve the model, find ways to monetize your web traffic, leads, data in a more efficient and effective way, add on other programs to your customer base so it generates more revenue to fund the marketing growth.

Also dont do a two stage payout, either do a sale, or a lead but a combination of the two requires long term commitment from the networks, and the publishers which you may not get.
 
Cool, thanks guys.

Yes, suffice it to say i will absolutely scrutinize the leads coming from each and every publisher.

The niche is easy business websites.

You sign up, choose a website template, pick a product to sell if you like or integrate with ebay - this is very much geared toward stay at home moms, small startup businesses, etc.

anyhoo, thanks for the feedback, i appreciate it!

-K
 
mumblejae said:
Cool, thanks guys.

Yes, suffice it to say i will absolutely scrutinize the leads coming from each and every publisher.

The niche is easy business websites.

You sign up, choose a website template, pick a product to sell if you like or integrate with ebay - this is very much geared toward stay at home moms, small startup businesses, etc.

anyhoo, thanks for the feedback, i appreciate it!

-K
Click to expand...

If that is the case then what mkron says is absolutely correct. Choose one or the other but don't needlessly complicate it. You can also offer the choice of one or the other so you can measure the ROI on each type of program, but to blend them will drive away affiliates for what should supposedly be a simple transaction, especially at the dollar level I assume you would be charging for such a turnkey website.
 
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