Big 3 PPC Networks versus 2nd Tier PPC Networks - Insurance Quote and Payday Loans - Your Opinion?

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Ok. I have been in the IM niche for years and have been transitioning over to full blown Affiliate Marketing and into the PPC world.

Doing PPC is not easy and can cost a lot of money.

I wanted to get opinions from experienced PPC warriors on using the Big 3 PPC networks (Adwords, Bing, Yahoo) versus the 2nd Tier Networks such as 7Search, Miva, Ask, etc.

After using the 2nd tier networks to generate traffic for Auto Insurance Quotes and Payday Loans, I am finding the traffic was cheaper and it was also pretty crappy.

My Affiliate Networks (not mentioned) said the traffic quality from these 2nd tier networks is not that good and they highly prefer just traffic from Adwords, Bing, and Yahoo.

I also found that hiring people to generate traffic from Freelancer or ODesk just resulted in getting accounts shutdown since most of these people are generating bogus clicks or the traffic is crap.

The problem with the Big 3 particularly with Insurance Quotes (Zip/submit) and Payday loans is that the keyword are very expensive. At times, the cost exceeds the amount of the profit that can be generated per click.

So I am looking for some advice on this situation. If I have to use the Big 3 what is the best way to get the cheapest clicks and compete in these areas?

Any other traffic ideas, comments on Facebook traffic?

Thanks,

Kevin
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  • Profile picture of the author dburk
    Hi Kevin,

    The problem you have with those particular market niches is that you are competing with professional lead brokers. Lead brokers are able to resale the leads generated, many times over, so they can afford to pay several times the average profit that a business that purchases that same lead might earn.

    Let's say that you have a keyword that generates sales the result in a $50 VPC (value per click) for your business model. You could afford to pay $25 per click and make a respectable profit. A lead broker can also sell leads generated from that same campaign to their clients for that same $25. However, the lead broker can and does resell that same lead a few days later to several more clients for another $10-$15 each. And then a week later they will resell the exact same lead for $5 - $7 to as many as a dozen more clients. Two weeks later the same lead may be sold again to dozens of clients for $1-$3 each. A month later $0.25 - $0.50 to hundreds of clients.

    So for you, the lead that breaks even at $50 per click may be worth $150 or more for a lead broker.
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