Affiliate Program Question

Status
Not open for further replies.
buckatspinsix

buckatspinsix

New member
Jun 23, 2009
9
0
0
Rhode Island and Arizona
www.spinsix.com
So I run a program for auto leads in two networks. We are doing well, but want to know what the affiliates would prefer. After talking with my client, we have some options.

Currently, we pay $8-$11 per lead (depending on the network). What we could do is pay $3-$4 per lead, and $50 per sale (if a lead buys a car).

Would any affiliate be interested in a lead/sale? Or should we stick with pure pay per lead?

Thanks.
 


We are good at getting leads for you. But are you good enough to convert them into buying customers?

This should answer your question :)
 
Why would an affiliate trade a guaranteed payout on a quality lead that HE generates for a possible payout on a car sale that someone who McDonalds rejected is trying to close?

Yea, no thanks.
 
bb_wolfe said:
Why would an affiliate trade a guaranteed payout on a quality lead that HE generates for a possible payout on a car sale that someone who McDonalds rejected is trying to close?

Yea, no thanks.
Click to expand...
I think the OP meant you would get paid for the lead and the sale.
 
jlknauff said:
I think the OP meant you would get paid for the lead and the sale.
Click to expand...
Whatever. What if I send 100 leads at 3$ if he cannot convert the customer? I lose my commission on sales. I'd better go with higher payouts for leads.
 
$3-$4 for an auto lead is pathetic.

Two things happen:

1) Lower payout: The leads become shittier and the dealer becomes overwhelmed with work
or
2) Higher payout: The leads become better and the dealer closes some deals.

Geographically, the lead payout is all over the place, but in a town like LA, Chicago, Minneapolis, etc., it's not uncommon for quality leads to go for $50-100 with the right dealer. It just takes time, a LOT of Friday night happy hour drinks, and some good results.
 
industry standard for an auto lead sold to a car dealer is around $25 - Not to mention that the lead is typically sold to like 5 dealers, meaning the lead gen company makes a cool $100+ per lead. Trust me I know auto!

Come back with a better offer like $3 per lead and $1000 per sale or i'm gonna ban your dirty ass for self promotion.
 
In theory, CPC should be the best Ratio for an advertiser, and Affiliate should make the least amount here.
Next CPA or CPL
Then CPS
And finally, the affiliate should make the most money if they do Rev Share.

However, most Affiliates Desires are usually reverse this.

IMO.
 
bb_wolfe said:
Why would an affiliate trade a guaranteed payout on a quality lead that HE generates for a possible payout on a car sale that someone who McDonalds rejected is trying to close?

Yea, no thanks.
Click to expand...

On top of that, there would be absolutely no transparency. How would an affiliate know if the car was sold or not? You could fuck them over big time and no one would have a clue. Leave the payment structure as is.
 
Yeah the CPS system is really, really stupid.

Get a better converting LP and auto affiliates will flock to your offer. It's really that simple.
 
FatalError said:
Whatever. What if I send 100 leads at 3$ if he cannot convert the customer? I lose my commission on sales. I'd better go with higher payouts for leads.
Click to expand...
Theoretically, if you send leads that convert at a worse rate than the average affiliate, the advertiser can just cut you from the program or cut the payout. Just because a lead program doesn't have a lead+sale commission structure doesn't mean that the advertiser is ignoring the quality (Singlesnet is a great example). If you're really driving quality traffic, a lower lead + higher sale payout can work - I've done it in one case before, and it worked out much better. There needs to be a good history and trust involved, but that kind of trust is the same that's involved with expecting a lead advertiser not to shave leads. The foreclosure listing business has a number of advertisers who pay ~$10/lead + ~$30/sale, but there are others who just pay $15 or so for a lead and nothing on the sale. If I'm driving quality traffic that I know will convert, I'll go with the lower lead + sale payout.

Each case is unique - Most affiliates won't want to do a structure like that, but some successful affiliate programs have that structure flat out (such as Rhapsody). Sometimes affiliates get so fixated on the leads that they don't even explorer per-sale programs. Leads are easier, but programs involving sale commissions can pay more (per lead, when backed out to a lead basis) since there's less risk to the advertiser.
 
hannahmcintyre said:
Yeah the CPS system is really, really stupid.

Get a better converting LP and auto affiliates will flock to your offer. It's really that simple.
Click to expand...

I wouldn't say that it's that simple... In our business... affiliates that do rev share make way more as some members will leave their card billing for a year or more. That makes up for a lot that cancel quickly, and this way, we have no cash risk, so we're willing to push it further than a PPL.

Larger affiliates or companies generally push rev share. Affiliate networks push PPL or PPA. To each his own.
 
Here's my perspective:

For paid traffic it is not tenable. Send $1k in traffic then wait two weeks to see what converted so I can update campaign? Nightmare. Even with daily conversion data it can take dozens of iterations to hit +ve ROI.

For organic it might be more desirable.


Also, trusting car salesman to be honest :uhoh2:
 
offer both......, some may find one that works best for them. I think both would work, you just have to find out which media streams produce good sales and/or which streams are good just for leads.
 
TVensor said:
Here's my perspective:

For paid traffic it is not tenable. Send $1k in traffic then wait two weeks to see what converted so I can update campaign? Nightmare. Even with daily conversion data it can take dozens of iterations to hit +ve ROI.

For organic it might be more desirable.


Also, trusting car salesman to be honest :uhoh2:
Click to expand...

Agreed. :music06:
 
Status
Not open for further replies.
Top Bottom