How do Free Trial CPA offers make money?

12 years ago

Generally those companies are confident enough in their products and use affiliates for brand awareness advertising. Or they are sneaky and make the next subscriptions huge, and most people don't bother with the cancellation and refunds

Just my 2 cents

[ 1 ] Thanks

Signature

Get Weekly Payouts Stream -Using- My Autopilot Money Machine

Discover & Jump into the 2015's Hottest Income Opportunity -- (Viral Stuff.)

{{ DiscussionBoard.errors[9881469].message }}

ChrisBa

12 years ago

Often these are rebills, they charge the customer shipping on the first order then next month charge much more and automatically ship the customer another product and this goes on again and again

[ 1 ] Thanks

Signature

$ POPS GUIDE - YOUR FIRST CONVERSION GUARANTEED! $

{{ DiscussionBoard.errors[9881509].message }}

Matthew Ohms

12 years ago

Like others said, rebills, and additional products sold on the backend.

Thanks

{{ DiscussionBoard.errors[9881524].message }}

Taloucci

12 years ago

Very interesting!
I'm assuming the product itself cost them almost nothing. So they only make their money after the first rebill.

I wonder what the retention rate is? And what is the cancelation rate as well.

I ask because I'm looking to launch a cpa offer for my skin care product and want to know what route to go��

Thanks

{{ DiscussionBoard.errors[9881528].message }}

Matthew Ohms

12 years ago

A dirty little secret is to cover the cost of the product in the "shipping and handling" charge that is usually associated with a "free offer". Though, feasibility of this would depend on your product.

Thanks

{{ DiscussionBoard.errors[9881536].message }}

Samrath Gupta

12 years ago

This is How It Works:

1- Affiliates find a free trial offer ( These Offers Pay more then $30+ Mostly)
2- Affiliates promotes it to people who are interested in such products
3- Buyer pays shipping and handling which is generally $49.95 or so..
4- Affiliate gets his money and everyone happy!

The Catch?

Once the buyer has entered his/her CC details, He will be charged a subscription cost after 14 days or so.. They are generally charged like $80 or so..

Hope this helps

[ 1 ] Thanks
1 reply

Signature

Find CPA Prosperity Offers On OfferBlu.Com

What Our Affiliates Say About CPA Prosperity? Find It On Our AffPaying Page!

|| Email: sam@cpaprosperity.com || SKYPE: samrath.gupta || AIM: cpaprosam ||

{{ DiscussionBoard.errors[9881752].message }}

gluckspilz

12 years ago

Pretty much this.

Basically, before a company is willing to pay an affiliate for a "Lead or Customer". They already know their numbers, their customer lifetime value and so on.

Originally Posted by Samrath Gupta

This is How It Works:

1- Affiliates find a free trial offer ( These Offers Pay more then $30+ Mostly)
2- Affiliates promotes it to people who are interested in such products
3- Buyer pays shipping and handling which is generally $49.95 or so..
4- Affiliate gets his money and everyone happy!

The Catch?

Once the buyer has entered his/her CC details, He will be charged a subscription cost after 14 days or so.. They are generally charged like $80 or so..

Hope this helps

Thanks

Signature

FREE COURSE: Discover How To Crush Affiliate Marketing The Ethical Way

{{ DiscussionBoard.errors[9882125].message }}

Taloucci

12 years ago

How hard I sit to find affiliates that an promote my offer outside an affiliate network?

I mean people with lists ready to send an offer?
Or is there such service wherei can hire an affiliate recruiter?

Thanks
1 reply

{{ DiscussionBoard.errors[9883064].message }}

SohmaNutra 12 years ago

You'd have to be comfortable with the business model..

Years back there was a ton of scamming, people being billed $180 for a single bottle, and of course it was mentioned in the fine print, but then no way to cancel the subscription.

now the key is smart Call-Centers that catch an angry customer and offer 50% discount to keep them as customers after them being charged $80 for a bottle.

So it becomes worth it to pay that much for a lead.

Again, you have to be comfortable "tricking" a customer into buying..
- [ 1 ] Thanks
- 1 reply
Signature

I'm looking for great affiliates to work with on https://www.optimumgarciniacambogia.com/
{{ DiscussionBoard.errors[9883087].message }}
- Taloucci 12 years ago
  
  I think my product is worth the money, and I would never try to pull a fast one onpeople like that. It's just not my style.
  
  The product they would be trying for fee is definitely worth $49.88 that is what most my competition sells it for. Plus mine is Eco certified and USDA certified as well.
  
  Thanks
  
  {{ DiscussionBoard.errors[9883211].message }}

ChrisBa

12 years ago

Can you share more details around your product??

[ 1 ] Thanks
1 reply

Signature

$ POPS GUIDE - YOUR FIRST CONVERSION GUARANTEED! $

{{ DiscussionBoard.errors[9883390].message }}

SohmaNutra 12 years ago

That sounds good Taloucci!

It's definitely worth whatever people are willing to pay for it.
I'm curious about your product as well.
And you know there might be a way to put it in a trial setup that would fit within your business ethics.
What I do for instance in one offer is to offer a 50% discount for people that sign up for an auto shipping/billing option after they have bought the first bottle for full price so I don't loose my shirt on a CPA. Just one way to go about it..
- [ 1 ] Thanks
- 1 reply
Signature

I'm looking for great affiliates to work with on https://www.optimumgarciniacambogia.com/
{{ DiscussionBoard.errors[9883515].message }}
- Taloucci 12 years ago
  
  Out of curiosity, what e-commerce platform are you currently using for your Garcinia offer?
  
  Thanks
  
  {{ DiscussionBoard.errors[9889219].message }}

S1YMY

12 years ago

Its a volume game.

Cover costs by increasing the shipping charge.

Sell a product that people will buy on a good %age conversion.

Use repeat billing to get easy money thereafter.

Use their email details to sell other off-site products.

I do a lot in dating where a lead is worth about $70, and you can publicly check - Google charge over $7 a click (yes really, just a click) for the term dating

[ 1 ] Thanks

{{ DiscussionBoard.errors[9884282].message }}

badboy_Nick

12 years ago

Originally Posted by Taloucci

Just like the title said, how can a company give a free product and still afford to pay $45 to $60 to an affiliate for giving their product away?

I see so many offers like that! I know they all bill monthly the customer after 21 days, but the cancellation rate must be extremely high!

Anyone here knows or owns one of those campaigns?

It's the same business model as supermarkets have when they use "loss leaders" to entice customers to come into the store. Remember, 10 times more resources are needed to create that first paying customer compared to re-selling something else to an existing customer.

So in your case, once they have a "lead" or a "trial customer" they simply re-sell other products to him and are able to make a profit on the back-end