How much do the networks keep, and how can you get a higher payout?

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darbsllim

darbsllim

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Mar 28, 2008
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Hey guys, it seems like I've stumbled into the heart of the affiliate world here, so I bet you guys will know the answer to these questions.

When I get paid $1.10 for email submits, what is the affiliate network getting paid?

When I get paid like $3 for cell phone submits, what is the affiliate network getting paid?


How can I negotiate a higher payout without pissing off the affiliate network?
 


show them you can do some volume and ask them for a bump in pay.....if they dont wanna give it to ya take the traffic elsewhere, seems pretty simple. You dont expect them to just up the payout for 3 leads a day without asking did ya?
 
I do a really high amount of traffic every day on my end, so I'm sure they are making at least $500 a day off of me, probably more.

I asked for a higher payout and they gave me a 5 cent bump on one offer lol.

They said "sorry we can't make it so that the payout goes higher for individuals, it's network wide payout".

The offer thats converting the best for me are cell phone submits with Wixawin, anyone know how much they pay?
 
I really dont think having the network communicate with the advertisers is going to get you a higher payout. I believe most of the advertisers run a monthly, or quarterly budget, with a payout in mind. The networks take their percentage (as smaxor said I think its somewhere between 15-20%) and pass the rest on to you.
I dont think paybumps are network wide either.
Talk with your AM about your goals and what you expect from them. Be blunt, this is serious business! haha
 
If you run any volume at all, go direct. Most reputable offers are not exclusive to any one network and usually the advertiser will have an in-house system for tracking leads from partners outside of networks.

It is usually not terribly difficult to find these people because they are not hiding behind privacy registered domains. Do a whois on the domain your traffic ends up on and do a little research and you can almost always find the right person to work with.

Since many of the offers are being run by 'real' companies, your payout risk actually goes down and your ability to earn a good payout increases. Plus they can now measure your traffic quality isolated to you instead of whatever other crappy traffic the network might send.

As Smaxor said, the average network is keeping about 20% of your revenue for doing little more than being a matchmaker.

To put that in perspective - take a sample offer with a $20 payout - that means the network is keeping $4... Now if you are running non paid marketing stuff like SEO then that means a 20% lift to your payouts. What if you are running PPC or EMail and your margins are only $10 (meaning it costs you $10 to generate the lead...) Now you have increased your return by 40%. The smaller your margins on an offer, the more important it is you go direct.
 
Thanks for the tips.

Just to give you my situation, my margins are marginal and I'm doing a lot of volume.

Would it be too much to ask the network to give me 90%? Right now I'm getting $3.50 for a lead that someone has told me pays a base of $4.70 and goes as high as $6 directly from the advertiser.

I'm doing about 750-1000 of these leads a day
 
It is beyond me why people play slot machines advertised as giving you only 92.5% of your money back or some such.

I love when people show their new 50 inch plasma TV they got for 'free' from their affiliate network. That $5,000 TV probably cost them $100,000.

If you are doing volume on a single offer and not trying to work directly with the publisher you are leaving significant money on the table.

The only reason to use a network is to have lots of things at your fingertips to test (and then take the winners direct) or if you have an email list that requires lots of different offers to monetize properly (but even that should be direct on the stuff you mail regularly.) PPC at volume should always be direct.

Other reasons to go direct - as if 100% of the payout is not enough...

1. White labels - control the entire process on your servers, collect the data, and be sure of getting paid
2. No loss of tracking - 10-15% of sales get credited to a network but the sub-id does not pass - free money for the network - none for you.
3. Better Tracking - Even if you dont get a white label - you will almost always get better tracking and data from a direct relationship
4. Better Creative - You will almost always be able to test and find better creative - why share that creative with the network
5. Direct Relationships lead to higher payouts
6. Privacy - As much as you love your AM's they almost always benefit by telling other people where you are knocking it dead - thus they are creating your competition.

The only reason a PPC affiliate driving volume should not be direct is because they are too lazy to make it happen. I know guys who were giving hundreds of thousands of dollars a year to networks who captured all of that money and more by making just a few phone calls...
 
Thanks for the input Diorex, I think I'll go straight to the advertiser for a few of these offers I'm promoting heavily.

I know I've given them at LEAST 20k this month alone - and possibly up to 40k depending on how much of a % they keep
 
I keep all the networks on the same level for pricing on the products I give them. So it's more about keeping the affiliates with relationships other than trumping someone else for a damn nickel.
 
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