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Offline/Affiliate Hybrid - Many Questions

by Stranger Danger
1 replies
1) Is it possible to generate leads for my web design business by using an affiliate network, and paying out $10 or so per lead?

2) What are the not-so-obvious pros and cons?

3) As an advertiser, would we have to be capable of handling large volume in order to qualify?

4) If not, can my campaigns be shut off at any time and/or when we reach capacity - then turned back on when we catch up?

5) If my margins prohibit me from paying out no more than $10 - $15 per lead/sale, what would the approximate payout be for the publisher/affiliate vs the network?

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6) If we are unable to use a network, and want to set up an internal affiliate program, is there an easy way to divide, allot and automatically process payouts (e.g. an affiliate sends a buyer to my website with an affiliate ID/hop link, buyer purchases, profits get divided 2 ways [my company/affiliate commission], then, residuals get paid out via subscription to my company, only, each month?

7) If I have affiliates bringing in leads (whether they be online affiliates, or other companies bringing in referrals), is there an easy way to divide, allot and payout residuals automatically (e.g. a computer shop in my town refers his customers to me for website design, splitting the monthly residuals between him and my company each month - for every lead that he brings in etc.)?

8) If I have an LLC, will I be able to pay out commissions/residuals on a contractor (1099) basis? At what point will I be required to do so - or does that vary by state? Is that the best route? (I realize that this question may be best suited for my accountant)

9) Can all of this be easily implemented and automated by way of affiliate network software (everything from affiliate registration, to payouts, to client management and taxes etc.)?

10) Am I dreaming?

Thanks.
#hybrid #offline or affiliate #questions
  • Profile picture of the author Stranger Danger
    In case anyone is interested (doesn't look like it), I sent out emails to 5 or 6 different networks - here are my results so far:

    I received a response from one of the networks stating that they would not be a good fit for my business - as they don't generally provide B2B leads, and that they focus more on providing CPA offers. I realize that this was my fault, as I do not know anything about these networks. I did, however, ask him which network(s) could accommodate our needs, and he was able to refer me to another network.

    I spent the better part of this morning trying to get in contact with someone at this 'other' network that was recommended to me. They do not have a contact form on their website. They do, however, have several phone numbers, for varying local and international offices. Unfortunately, nobody answers the phone at this company, and I refused to leave a message. I was finally able to get in contact with a live person, but I have to follow the same prompts as a current advertiser/current customer would. The guy that answered the phone was very helpful but not very knowledgeable. He told me that they do, in fact, provide the type of leads that we are looking for (pay for performance leads, or, pay per sale), which is good. Unfortunately, after talking with him some more, it seems as though we will need more capital than what we currently have available in order to get things up and running. Since we are a start-up company, we have a very limited budget. He said that it could be a few thousand dollars just to get set up, then we would also have to pay a monthly campaign fee on top of any commissions that the network would receive, per sale etc. He could not quote me any exact rates, as the costs vary by campaign etc.

    He did say that we could get in touch with a sales rep that could answer our questions, more specifically, by filling out the signup form on their website (I asked him if there was a way to contact a sales rep without filling out the signup form - he said no).

    He did recommend two, other networks as a possibility for start-up companies with smaller budgets - one of them was google.

    That's it, for now.
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