Starting a CPA Network

34 replies
Anyone give some pointers on how I would go about doing so. Also how much do CPA networks make? About how much does it cost to start up a CPA network?
#cpa #network #starting
  • Profile picture of the author loss1988
    pm me at aim captaincpa, I have an offer for you
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  • Profile picture of the author ChrisBa
    I think the thing that most people overlook is the capital required to start a network.. you need enough to cover your expenses and pay your affiliates for a few months with 0 income.. (assume 0, due to delays in payments, etc)
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    • Profile picture of the author nickdamodda
      Originally Posted by ChrisBa View Post

      I think the thing that most people overlook is the capital required to start a network.. you need enough to cover your expenses and pay your affiliates for a few months with 0 income.. (assume 0, due to delays in payments, etc)
      Exactly. More than likely you'll fail badly unless you learn from a current owner of a big network which might be hard.
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    • Profile picture of the author ExquisiteMedia
      Originally Posted by ChrisBa View Post

      I think the thing that most people overlook is the capital required to start a network.. you need enough to cover your expenses and pay your affiliates for a few months with 0 income.. (assume 0, due to delays in payments, etc)
      You hit it dead on.
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  • Profile picture of the author kiwilx
    hey guys looking for a CPA Wso like wana make a website with CPA offers from all countrys, anyone? reply here
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  • Profile picture of the author mafai44
    Hm well that didn't really help except for chrisbas post..
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  • Profile picture of the author Clyde
    If you have to ask you're not ready.

    How much does it cost to make Microsoft?
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    • Profile picture of the author aminur
      Originally Posted by Clyde View Post

      If you have to ask you're not ready.

      How much does it cost to make Microsoft?
      Lol.ha ha ha. you can open cpa network any time with Has Offers Etc. But you need to know how to grab advertisiers and get affiliates to promote your offers.
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  • Profile picture of the author mtmjohn
    Originally Posted by mafai44 View Post

    Anyone give some pointers on how I would go about doing so. Also how much do CPA networks make? About how much does it cost to start up a CPA network?
    It's pretty easy to start a new CPA network but to success with, its another story. Do you have enough budgets, experience? Do you know how to prevent frauds?? ....
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    • Profile picture of the author Kenster
      Originally Posted by mtmjohn View Post

      It's pretty easy to start a new CPA network but to success with, its another story. Do you have enough budgets, experience? Do you know how to prevent frauds?? ....

      This is the key here. It's easy to start a network. The tough part is growing a network because you need to stand out from the countless other networks. Because of the low barrier to entry, there are many many networks out there.

      Also, capital requirement can be heavy. You can start small, but there is financial risk...because of pay periods becoming shorter to stay competitive, networks are normally on the line for a decent amount of money at any one time. It's not as easy as taking a cut of profits and calling it a day...it's not arbitrage by any means.

      But if you do it right, it can be lucrative...its just a lot of work...like anything else where you can make a lot of money i suppose!
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  • Profile picture of the author Sam Young
    Hi Mafai44,

    If you want to build your business with starting a CPA network then you will need quite big investment.

    You will need some employee's too because you can't manage and do everything your ownself.

    Plus if you are new to CPA industry and want to start then How will you catch fraud affiliate's applying to join your network.

    As the part of Earning-

    If you manage to do all this thing then I think you can make really a very good and healthy income..

    But all this will require patience.


    Regards
    Sam Young
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  • Profile picture of the author loss1988
    You will need to pay for domain, hosting, platform, full design and money to pay your publisher ( when you are waiting for your payment ). You will have to have a lot of experience for cpa to get approval of bigger network ( how to run campaign, how to find fraud...) and you will spend much time for it. I do own a cpanetwork but I feel that it's not the right way to success for me then I decide to hold on and go for to be a single affiliate
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  • Profile picture of the author jordanberg2311
    its not as easy as you think. You'll probably need a 6 figures for a ok reputable network. Too much paperwork and hassle.
    Again, make sure you can catch fraud etc. Rebills offers pays high but face alot of CC# chargeback etc.
    What if advertiser do not pay you that leads?
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  • Profile picture of the author imback
    Focus on Brand development and social networking!



    CHAD
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  • Profile picture of the author 1GreatCPA
    If you come with hasoffers, You will get some advertiser too.
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  • Profile picture of the author Cash37
    I think if you are serious you should ask for an internship with one of the other networks to learn how it all works while not having to spend any of your own money. You might even get a paycheck too. Win-Win.
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  • Profile picture of the author WiiLoveSuccess
    Do you have experience as a user of CPA Networks? What have you learned? What have you earned?

    Can you take what you've learned and apply it yourself to build your own network?

    Have you taken any of what you've earned and set it aside to implement your vision of establishing your own network?

    Learn
    Earn
    Save
    Apply
    Implement.

    From an Accountant's point of view ...

    Ray Delworth
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  • Profile picture of the author williamrs
    Buddy, I think starting your own network is the toughest route, specially if you haven't been successful as an affiliate or have a business background.

    I know it seems to be a lot easier just to set up a network and watch the affiliates make money for you, but it doesn't work like this.

    Getting good offers, high payouts, good support service, etc isn't something easy for a new network, and if you don't have these things you will be destroyed by the big players.

    So, my advice to you is:

    Be an affiliate

    or

    Create your own product


    W
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    >> Download Now <<
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  • Profile picture of the author mafai44
    thanks for everyones advice
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  • Profile picture of the author badboy_Nick
    Originally Posted by mafai44 View Post

    Anyone give some pointers on how I would go about doing so. Also how much do CPA networks make? About how much does it cost to start up a CPA network?
    A CPA Network is just like any other business, so it requires CASH, BRAINS, DEDICATION and a hell of a lot of WORK!

    I admire you attitude but if you are asking that question in the first place, you "may" be biting more off than you can chew right now.

    Any questions just let me know
    Nick
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  • Profile picture of the author sloanjim
    i see many Affiliates knocking it but whilst you need money, time, hard work, etc..I think the rewards are much better if you can pull it off.

    Like Nick say above, it's like putting together any new bizz. You need capital, a plan and little luck, presistance, determination and plenty of time....but my guess, it will be worth it.
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  • Profile picture of the author Dr.faizan
    Starting a CPA network is not a big issue. You can do that in less than $1000 or may be $600 but you need a strong capital of around $20k to $30k at least.. That is because if there is delay in payment from advertisers to you then you can pay your affiliates from your own budget otherwise you will lose reputation. Like we all know success depends on reputation. The more positive reviews you get the more you will succeed.
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    • Profile picture of the author hsk2010
      I am starting a CPA network soon and just starting out on the preliminaries and it is a tough job yet exciting thinking about future prospects. I have a financial backing of 6 figures put up by myself and my 2 cousins equally. This would take us few months into paying affiliates and advertising if and when we may not get the finance from the advertisers. The tracking software costs quite a bit so you must make a feasibility report before you embark on actually opening your own network.

      Its great but it involves eating,thinking,sleeping and breathing your CPA network so yeah, you're looking at quite a bit of work involved here. Also, I have looked into hiring full time managers who can take care of things when I may not be around which is questionable. But, from a financial point of view you would be better off by:
      a) Creation of a feasibility report
      b) Strong business plan pertaining to the countries and advertisers you wish to aim and how
      c) Payment systems
      d) Fraud tracking software costs estimation (These dont come cheap!)

      Oh and did I mention you have to be an all rounder affiliate to actually think of doing the above. You must have knowledge of all verticals, all forms of advertising to distinguish between what is allowed and not, tracking.....

      I can go on and on...so basically it boils down to :
      a) Time
      b) Experience
      c) Money!

      As for how they operate, your job is to find advertisers who want to work on a cost per action (CPA) model. You help them find a profitable CPA model for them, charge them on a per action basis (lead/sale/call/click/etc), knock a % off the top, and then pay the rest to the affiliate.

      Take Care

      I wish you all the best
      Best Regards
      Hana
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  • Profile picture of the author mafai44
    Thanks HSK great advice.
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  • Profile picture of the author FidelityNat
    hsk2010 - that's a very thoughtful and informative reply. If all CPANetwork starters and actually any start-uppers would plan everything like you do, they would definitely have more chances to succeed. Good luck with your endeavour! Make sure you annoince the launch of your project! I would be definitely interested to have a look at it.
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  • Profile picture of the author hsk2010
    Thank you very much for your best wishes, these things can take a person a very long way

    I shall keep you all posted for sure because it is from this platform that I got a foothold in life...I cannot thank my fellow warriors enough

    Take Care
    Hana
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  • Profile picture of the author focused
    That initial capital requirement is a big hurdle for starting up a CPA network.
    Before any income actually starts to be realized you're going to have to maintain
    your network for the first months.
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  • Profile picture of the author PPC-Coach
    Here's some advice from someone who has been there and done that:

    1.) Do NOT take every tom, dick and harry that applies, be very selective when starting out. Get affiliates to send you a copy of their ID and speak to every one on the phone before letting them in. This will reduce your daily fraud workload dramatically, (not totally though).

    2.) Hire someone to be in charge of fraud. That alone is a full time job for at least one person if not FIVE depending on the size of your network. It's going to be the biggest ongoing pain in the ass you deal with and you have to have someone dedicated to watching everyone all day long or you will get into trouble with merchants.

    3.) Force all merchants to pay you at least 50% in advance, 100% eventually. Merchants do this with a lot of networks that they have established relationships with. All this talk about 30 to 60 day delays is a merchant seeing a rookie owner and bending them over. Don't be the perosn.

    4.) Get a physical office and have all your affiliate managers report there. You could even run 3 shifts, 9 to 5, 5 to 1 and 1 to 9 so you cover all timezones. NEVER let affiliate managers work from home. 98% of them will screw you over if you do.

    5.) Hire an affiliate manager manager. Let them control and manager all the issues your affiliate managers are going to have. Let them figure out pay bumps. You work on your business, not in it.

    6.) Have a year long written marketing plan and a large marketing budget as you're going to need it.

    7.) Pay affiliates fast to make sure you're competitive with every other network out there.

    8.) Get exclusive deals. I would hire a business development person who has to bring in at least 7 exclusive deals per week. Networks share so many offers with each other that by the time it gets to your affiliates, it's been handed through 5 networks before you. Go direct and go exclusive if you want to attract bigger affiliate marketers.

    9.) Pucker up and get ready to kiss some serious behind. You have to. Super affiliates have fragile egos and if you don't stroke them, they're gone. Make sure you kiss their behinds as often as possible. Find out what they like doing and give that to them often. They'll make you a lot of money, but you've got to kiss butt to get it. If you're not a butt kisser, don't bother chasing these guys. Their in deep with their buddies so it'll be tough to make them jump ship.

    10.) Get ready for ZERO loyalty from affiliates. They will jump ship for a penny more any time of the day no matter how well you treat them. Be prepared for it. They will use you to get raises from their existing networks too.

    That's about it off the top of my head. If you're going to do it, don't half ass it and don't make the mistakes I did, (most are listed above). Oh and when a merchant does screw you, (it will happen), get ready to pay affiliates out of your own pocket taking 100% of the loss. If you don't, you're dead as a network as it just takes one guy who hates you to really put a dent in your reputation.

    Just my 2 cents.

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    • Profile picture of the author Jetmir
      Originally Posted by PPC-Coach View Post

      Here's some advice from someone who has been there and done that:

      1.) Do NOT take every tom, dick and harry that applies, be very selective when starting out. Get affiliates to send you a copy of their ID and speak to every one on the phone before letting them in. This will reduce your daily fraud workload dramatically, (not totally though).

      2.) Hire someone to be in charge of fraud. That alone is a full time job for at least one person if not FIVE depending on the size of your network. It's going to be the biggest ongoing pain in the ass you deal with and you have to have someone dedicated to watching everyone all day long or you will get into trouble with merchants.

      3.) Force all merchants to pay you at least 50% in advance, 100% eventually. Merchants do this with a lot of networks that they have established relationships with. All this talk about 30 to 60 day delays is a merchant seeing a rookie owner and bending them over. Don't be the perosn.

      4.) Get a physical office and have all your affiliate managers report there. You could even run 3 shifts, 9 to 5, 5 to 1 and 1 to 9 so you cover all timezones. NEVER let affiliate managers work from home. 98% of them will screw you over if you do.

      5.) Hire an affiliate manager manager. Let them control and manager all the issues your affiliate managers are going to have. Let them figure out pay bumps. You work on your business, not in it.

      6.) Have a year long written marketing plan and a large marketing budget as you're going to need it.

      7.) Pay affiliates fast to make sure you're competitive with every other network out there.

      8.) Get exclusive deals. I would hire a business development person who has to bring in at least 7 exclusive deals per week. Networks share so many offers with each other that by the time it gets to your affiliates, it's been handed through 5 networks before you. Go direct and go exclusive if you want to attract bigger affiliate marketers.

      9.) Pucker up and get ready to kiss some serious behind. You have to. Super affiliates have fragile egos and if you don't stroke them, they're gone. Make sure you kiss their behinds as often as possible. Find out what they like doing and give that to them often. They'll make you a lot of money, but you've got to kiss butt to get it. If you're not a butt kisser, don't bother chasing these guys. Their in deep with their buddies so it'll be tough to make them jump ship.

      10.) Get ready for ZERO loyalty from affiliates. They will jump ship for a penny more any time of the day no matter how well you treat them. Be prepared for it. They will use you to get raises from their existing networks too.

      That's about it off the top of my head. If you're going to do it, don't half ass it and don't make the mistakes I did, (most are listed above). Oh and when a merchant does screw you, (it will happen), get ready to pay affiliates out of your own pocket taking 100% of the loss. If you don't, you're dead as a network as it just takes one guy who hates you to really put a dent in your reputation.

      Just my 2 cents.

      Very nice post, buddy!
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  • Profile picture of the author TheMagic
    Good luck! There is a good deal of information here to help you on your way.

    If there is one pickle that always seems to come to light when a new network is born....Many say that you need a great deal of capital to back payouts. This is not entirely true. This factor will depend on how much you can afford to earn and then payout. There are, hypothetically, networks that can/will invest $300K at the start and let the affiliates earn $3mill, which left a very wide payout gap, and then bottoms up.

    Any wise affiliate will start small and work their way up with any new network, never invest too much at the beginning, and create a REAL relationship overtime. It is also wise for the Network to not let them hit the ground running for the first few months unless a prior solid and established relation between the Network and Affiliate already exist.

    Ultimately....take the current US economy for example. Never spend more than you are earning. This goes for any business. Cap & Balance your payouts in advance and once you can not float the payouts for a 3 month period, let your people know so they will not create bad reviews. Build loyalty. Grow your bottom line. Continue to outsource. Expand
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  • Profile picture of the author mafai44
    When affiliates scam networks, is there anyway to punish them other then banning them from the network. For example do networks sue for affiliate scammers if they steal a lot of money or do they just deal with it and take a loss.
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  • Profile picture of the author s2n4life
    Iv had this conversation with a friend that owned his own network. Basically you need to first become a "Master" with marketing CPA products. If you dont have the mindset to do that..you will not succeed.
    Then, you need to work as an affiliate manager to learn that site of it......and if you survive both of those..you will needs tons of capital and connections!
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