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Becoming an advertiser, what is the risk?

by yukinara
5 replies
I have some products(such as biz op for example) which I can put on aff networks, the thing is that I'm not sure what is the risk associated with it in order to promote them. The product is legit, but with most CPA practice such as putting the little line "we will charge you xxx amount" somewhere so that people have a hard time to see it, there will be lots of charge back and FTC may come after company with enough complain
anyway, so what do you think?
#advertiser #risk
  • Profile picture of the author Colton
    I was wanting to know more about this also.
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  • Profile picture of the author Kenster
    The FTC has all kinds of good (long and boring though) info on their site.

    In terms of the risk, your greatest risk is going to be paying for the leads and not being able to convert. If you are paying $1 per lead and only able to get a lifetime value of $.80...=not good.

    A lot of the big offers have very knowledgeable people/teams running them. Its probably easier to make money on this end unless you are good and have a good budget!
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  • Profile picture of the author Jcsarokin
    Also, a lot of the big networks require a down payment that will scare most people that are not extremely serious off.

    You just have to test and make sure that the money coming in is equal to, or greater that what your paying out to the affiliates/network.

    Try your offer on a smaller network first, because your going to be dealing with less money, then once you have everything ironed out, go for the big dogs.
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  • Profile picture of the author roguestatus
    you'll definitely need good credit and good credit references.
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  • Profile picture of the author CPAPJason
    With a good IO there isn't any risk, unless your product, landing page, creatives, or all, suck.

    You pay per sale or lead, and, the network drives you traffic till it is met.

    How much you pay and what kinds of traffic you are willing to take means a lot. The more you pay the more the network pays the publishers, and, as we all know, the more the offer is worth the better the chances are that they publishers push it.

    For a per sale campaign.
    Figure your cost with paying the network to run the offer, and, take 20% off the top for charge backs. This 20% is variable, but from my experience is about the high average. Will you profit from what remains? Profit and expand.

    For a per lead.
    What is the over all, or life time value, of the info that is collected? Are you good enough to upsell things to these contact?

    Your biggest risk is in the lack of planning.
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