Experienced affiliates, need some guidance..

12 replies
So i attempted to sign up for click booth and they told me my form was too long and i would have to offer something crazy like $20 per free lead sign up.....

I have a somewhat long form... not bad though, ive driven forum posting traffic which ive gotten many sign ups...

So my sign up is similar to match.com, something like that... its a monthly subscription business.

What are my options?

1) Do i create a shorter sign up page to use only with affiliates?
Problem: this is kind of screwing up the purpose, we need to build a profile of the user.


2) Do i try other affiliate networks? Maybe clickbooth just doesnt work for my type of business


Rather than changing around the entire sign up process, i was thinking could i solve all of this by telling affiliates ill give them 40%-50% of all reoccuring monthly revenue they generate?

So if you (the affiliate) drive users there.... you get nothing unless they sign up... but if somoene pays $29.99/m youll get $14.99 as long as they stay.


I mean i do not want to be unrealistic, is this something affiliates would be interested in or am i going to have to give money even on free leads plus monthly revenue share from their users....

The business has barriers to entry so its something i believe if their traffic source matches with they could do very well with, but will that be a hard sale to affiliates with a ton of opportunities?

thank you very much
#affiliates #experienced #guidance
  • Profile picture of the author Matt Kendo
    I'm not familiar with click booth, but this is something you should be able to easily set up on clickbank. I'd say 50% commission is the low end of acceptable, for your pricepoints I would recommend giving 75% if you really want to attract the most affiliates. Most of the products on clickbank do not offer any affiliate commission unless people buy the product.
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  • Profile picture of the author marketingg
    Hey Matt, really appreciate the advice, thank you.

    Wow 75%.... Havent scaled this yet but im assuming i will have a decent charge back percentage (again it is similar to match.com) so i can't provide a end result only the opportunity to one, which many people obviously dont like..... so giving away 75% is tough considering i may have to deal with charge backs.

    Maybe im being too greedy, i do have other other revenue streams in the business besides the $/ monthly revenue...

    It just seems by the time im done paying the 4-5% to process the card ..... what am i really making?

    Maybe i should just raise my price... i have a three tier pay wall, is that a pro or con?

    So its $29.99/m $49.99/m or $79.99/m

    Here is the other issue.... i currently change the pricing to test, is that going to go against terms and conditions or something? Rather than spending my own money testing which

    price 1, price 2, and price 3 model converts best i figured id do it for free with affiliates traffic..... at the end of the day, they will still get the same cut of the monthly services....

    This is why i need an experienced person so they can tell me if im just kidding myself or im being realistic...

    So basically 75%+5 for my merchant (high risk) now im down to 20%..... at the end of the day i just want to get the business going so maybe it still makes sense.
    What is this that clickbank wants 7.5% per transaction and $1 per sale!? So im supposed to give out 75% to affiliates, 5% to merchant, and 7.5% to clickbank + $1....
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  • Profile picture of the author Bonadza Vojo
    Originally Posted by marketingg View Post

    So i attempted to sign up for click booth and they told me my form was too long and i would have to offer something crazy like $20 per free lead sign up.....

    I have a somewhat long form... not bad though, ive driven forum posting traffic which ive gotten many sign ups...

    So my sign up is similar to match.com, something like that... its a monthly subscription business.

    What are my options?

    1) Do i create a shorter sign up page to use only with affiliates?
    Problem: this is kind of screwing up the purpose, we need to build a profile of the user.


    2) Do i try other affiliate networks? Maybe clickbooth just doesnt work for my type of business


    Rather than changing around the entire sign up process, i was thinking could i solve all of this by telling affiliates ill give them 40%-50% of all reoccuring monthly revenue they generate?

    So if you (the affiliate) drive users there.... you get nothing unless they sign up... but if somoene pays $29.99/m youll get $14.99 as long as they stay.


    I mean i do not want to be unrealistic, is this something affiliates would be interested in or am i going to have to give money even on free leads plus monthly revenue share from their users....

    The business has barriers to entry so its something i believe if their traffic source matches with they could do very well with, but will that be a hard sale to affiliates with a ton of opportunities?

    thank you very much

    The thing is, most CPA networks are unable to effectively provide recurring commission to their affiliates. This means that the actual affiliate only gets paid once, doesn't get recurring commission. So you need to offer a fixed one-time amount per sale.

    What it means for you is that you can do things differently. You could calculate your average retention rate, let's say the users quit the rebill after 5 months, which is 5 x $30 = $150, you could give a 50% commission, or around $75 per sale as a one time commission.

    IMO, this would be much more appealing to the affiliates, the $75 per sale.
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    • Profile picture of the author marketingg
      Hey BV, thank you for your response... im sorry if im not following

      most CPA networks are unable to effectively provide recurring commission to their affiliates
      You didnt give a reason why this is the case....?

      I can see how billing and accounting would be a pain if i got chargebacks, not sure if i have to take money back from affiliate.. or how that works? but why would they not get paid, every month i get paid, they would get a %. How does it work, i use authorize.net.... and i think my merchant has a contract where i can only use them for the business...... So do i have to use my own tracking software, will the affiliate network even let me?

      Alot of questions, pretty confused on a few factors, now we have added the confusion of billing and if im even legally permitted to use someone else for payment.
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      • Profile picture of the author Bonadza Vojo
        Originally Posted by marketingg View Post

        Hey BV, thank you for your response... im sorry if im not following



        You didnt give a reason why this is the case....?

        I can see how billing and accounting would be a pain if i got chargebacks, not sure if i have to take money back from affiliate.. or how that works? but why would they not get paid, every month i get paid, they would get a %. How does it work, i use authorize.net.... and i think my merchant has a contract where i can only use them for the business...... So do i have to use my own tracking software, will the affiliate network even let me?

        Alot of questions, pretty confused on a few factors, now we have added the confusion of billing and if im even legally permitted to use someone else for payment.
        Well, the most common CPA platforms, do not have a recurring feature for tracking recurring commissions for the AFFILIATE. It's a technical issue related to the tracking of recurring affiliate commission. Check out any of the popular CPA networks, you won't find any offers with recurring commissions.

        The platforms do not have a feature which allows the affiliate to get commission on a recurring basis.

        However, this shouldn't concern you too much. It's up to you and the CPA network to work things out. The actual CPA network might accept the recurring commission, and offer the affiliate a flat-rate single commission per sale (non-recurring).

        Basically, the CPA network will be pocketing the recurring commission in your case. It's not too much of a concern for you if they found a way to keep their affiliates happy with the (non-recurring) commission they're giving them, and of course if you're making money.
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  • Profile picture of the author marketingg
    damn this is kind of difficult to do considering i have 3 packages with 3 different price points....


    I cant say hey ill give you $49.99 for anyone that signs up...

    if im charging $5/m $10/m or $49.99/m and my retention rate is 2 months..... the only time it would make sense is on the high package obviously.... i really do not want to change the business model or way i bill (offer 3 packages) just to utilize affiliates although i see it will be a major part of driving traffic... hmm not sure what to do.
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    • Profile picture of the author Bonadza Vojo
      Originally Posted by marketingg View Post

      damn this is kind of difficult to do considering i have 3 packages with 3 different price points....


      I cant say hey ill give you $49.99 for anyone that signs up...

      if im charging $5/m $10/m or $49.99/m and my retention rate is 2 months..... the only time it would make sense is on the high package obviously.... i really do not want to change the business model or way i bill (offer 3 packages) just to utilize affiliates although i see it will be a major part of driving traffic... hmm not sure what to do.
      Having 3 packages is not an issue at all, just have the CPA network make 3 separate offers for each package, each at the appropriate price point.

      So in your case, there will be a separate offer for $5, $10 and $49.99 each.
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    • Profile picture of the author Gordon P
      Originally Posted by marketingg View Post

      damn this is kind of difficult to do considering i have 3 packages with 3 different price points....


      I cant say hey ill give you $49.99 for anyone that signs up...

      if im charging $5/m $10/m or $49.99/m and my retention rate is 2 months..... the only time it would make sense is on the high package obviously.... i really do not want to change the business model or way i bill (offer 3 packages) just to utilize affiliates although i see it will be a major part of driving traffic... hmm not sure what to do.
      Have you even tested your website? If you don't spend your own money testing it, don't expect to get great results just from putting it into an Affiliate network.
      A good starting point would be to evaluate the average lifetime of a user. From there you could offer 50-75% from the profit on a CPA basis.
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  • Profile picture of the author ChrisBa
    Originally Posted by marketingg View Post

    So i attempted to sign up for click booth and they told me my form was too long and i would have to offer something crazy like $20 per free lead sign up.....

    I have a somewhat long form... not bad though, ive driven forum posting traffic which ive gotten many sign ups...

    So my sign up is similar to match.com, something like that... its a monthly subscription business.

    What are my options?

    1) Do i create a shorter sign up page to use only with affiliates?
    Problem: this is kind of screwing up the purpose, we need to build a profile of the user.


    2) Do i try other affiliate networks? Maybe clickbooth just doesnt work for my type of business


    Rather than changing around the entire sign up process, i was thinking could i solve all of this by telling affiliates ill give them 40%-50% of all reoccuring monthly revenue they generate?

    So if you (the affiliate) drive users there.... you get nothing unless they sign up... but if somoene pays $29.99/m youll get $14.99 as long as they stay.


    I mean i do not want to be unrealistic, is this something affiliates would be interested in or am i going to have to give money even on free leads plus monthly revenue share from their users....

    The business has barriers to entry so its something i believe if their traffic source matches with they could do very well with, but will that be a hard sale to affiliates with a ton of opportunities?

    thank you very much
    Both of your ideas are decent.. i dont think it could hurt to experiment with shorter forms.. and i dont think it could hurt trying other networks as well..

    maybe see if another network or two can review your page and give their thoughts..
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  • Affiliate networks are always going to try to get a higher price per lead from you. Simply put they make more money this way. A couple of points:

    Affiliate marketing is a free market in many respects. Affiliates will push traffic to whatever offers get the highest EPC. If your offer has the highest EPC, it will get the affiliates' traffic.

    If you are looking to work on the lead model, i.e. paying affiliates per lead, which you then monetize on the back end, then you need to work out how you are going to manage cash-flow. In particular:

    When do you wish to break even on the leads back-end monetization?

    Are you looking to break even on DAY0?

    Or do you have enough float to wait a bit longer?

    What I mean by this, is if you buy 1000 leads from a network at $10 each as a test, this would have cost you $10,000. Do you need to recoup that $10,000 from their monetization immediately? Or do you have enough float to be able to wait until, say, day60 until you have broken even?

    From seeing the inner workings of advertisers, some insist on having a day0 break even, whereas some of the very large ones in fact plan on waiting 18 months until break even.

    The longer you can wait until break even, then the more you can afford to spend per lead to the network, and hence the higher EPC you give the affiliates, and then the higher volume you will receive.

    Worthy of note - the 18 month break even merchant is a publicly traded company, and things become a complete different ball game in this sphere.
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  • Profile picture of the author marketingg
    From seeing the inner workings of advertisers, some insist on having a day0 break even, whereas some of the very large ones in fact plan on waiting 18 months until break even.

    The longer you can wait until break even, then the more you can afford to spend per lead to the network, and hence the higher EPC you give the affiliates, and then the higher volume you will receive.

    Worthy of note - the 18 month break even merchant is a publicly traded company, and things become a complete different ball game in this sphere.

    Thank you, yes ive realized this over time, ive also realized thinking you can just get someones money on first hit may be a bit unrealistic but it has been working, i dont have enough stats to have a real sign up %. It really works just like match does, you sign up i prompt you with payment page, then if you click out your gone.... then i can just keep emaling you a link logged into the site in which everytime you try to perform an action..... it again prompts you payment page.... so considering what ive seen similar type of sites (business model wise) they wait months before they get money, but still ask for it upfront. Again, not enough stats on anything, i will sign up and give large % to affiliates on cj and well see what happens.
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