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$100,000 is not big money

by goneebo
7 replies
i know i am a complete newbie to this place< but that inspires me to work that much harder. this concept i am about to speak might be common practice in the industry but i think its a great idea......
this is the concept.....


become an advertiser with large affiliate networks, then it is up to you to find advertisers (your clients). you negotiate a offer price with your client per lead. pass off a smaller offer to the network and eat off the commission??

the only real catch is you need to create the landing pages and in most cases lay down large deposits with the networks....


WHAT DO YOU THINK????

Also i need someone to create landing pages, will pay good!
#$100 #big #money
  • Profile picture of the author Kenster
    Give me some hypothetical numbers to work with so I can see your concept more clearly
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    • Profile picture of the author goneebo
      Originally Posted by Kenster View Post

      Give me some hypothetical numbers to work with so I can see your concept more clearly
      kenster,


      the numbers are simple its "a numbers game"

      a client is willing to pay 15 dollars a lead> i can position that lead competitively @ $12 on the networks. then i see $3 profit per lead.

      these are just made up #'s.

      now why would a client be willing to pay me when they can go to the network them self??

      majority of people have no idea what an affiliate network is, also they dont have 10,000 dollars or more to advertise on these networks. or the ability to create landing pages
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      • Profile picture of the author Kenster
        Originally Posted by goneebo View Post

        kenster,


        the numbers are simple its "a numbers game"

        a client is willing to pay 15 dollars a lead> i can position that lead competitively @ $12 on the networks. then i see $3 profit per lead.

        these are just made up #'s.

        now why would a client be willing to pay me when they can go to the network them self??

        majority of people have no idea what an affiliate network is, also they dont have 10,000 dollars or more to advertise on these networks. or the ability to create landing pages

        Everything in this business is a numbers game


        This has been done but in my personal opinion I see it as a shrinking proposition. Affiliate marketing and marketing online in general is getting more prevalent and known by most companies and outfits needing leads. I can see in the next few years this happening even more.

        Further, you are right, the merchant can just bypass you altogether and that is a risk. Especially when you start seeing volume, meaning you are making more money, then the advertiser will have more incentive to figure out how you fit into the whole supply chain. This happens with most businesses...as they scale, the middle men typically get squeezed out. The trick then becomes adding some value proposition that cant be match. At this point having money to host these on CPA networks wont be a value proposition. Perhaps if you can build good relationships with the networks and get better terms for the offer, that may be where your value can be derived in the long term!

        So I dont have a lot of experience with it, but I always like to look at business ventures in terms of 1-5-10 year viability/opportunity and this doesn't seem ideal for that. With that said, may be good for a quick buck and is probably better suited for those with a salesman personality!
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  • Profile picture of the author ChadH
    You're brokering leads. Lot's of people do it. Some guys broker offers between competing networks.

    With brokering leads, it's a good idea to have a plan in addition to just selling the leads. The advantage from an affiliate view point in CPA is that the leads generated are "typically" paid to you, regardless of how it backs out for the advertiser, up to a point of course. But when you put yourself as the lead broker, and I've seen this happen, a lot of times the end buyer of the leads will simply say that the leads are low quality and not pay, meanwhile you still need to pay the CPA network.

    Is it a bad business model? No, guys do it successfully all the time. However, I suggest that you are doing something more with the data than just selling it. This could mean brokering it to a few different buyers, mailing the data with relevant offers, and list swapping. Lot's of stuff you can do on the back end.

    Landing pages and deposits are imo the smallest hurdles to keep in mind here. A lot of networks don't require, or can be negotiated past, a 10k deposit.
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    • Profile picture of the author goneebo
      Originally Posted by ChadH View Post

      You're brokering leads. Lot's of people do it. Some guys broker offers between competing networks.

      With brokering leads, it's a good idea to have a plan in addition to just selling the leads. The advantage from an affiliate view point in CPA is that the leads generated are "typically" paid to you, regardless of how it backs out for the advertiser, up to a point of course. But when you put yourself as the lead broker, and I've seen this happen, a lot of times the end buyer of the leads will simply say that the leads are low quality and not pay, meanwhile you still need to pay the CPA network.

      Is it a bad business model? No, guys do it successfully all the time. However, I suggest that you are doing something more with the data than just selling it. This could mean brokering it to a few different buyers, mailing the data with relevant offers, and list swapping. Lot's of stuff you can do on the back end.

      Landing pages and deposits are imo the smallest hurdles to keep in mind here. A lot of networks don't require, or can be negotiated past, a 10k deposit.
      sounds like you know what your talking about, im interested to know what more is involved in brokering leads?

      i intend to capitalize on the leads in all forms possible, but i need to know that i can generate quality leads for my clients.
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  • Profile picture of the author Dr.faizan
    It needs a big budget to start with because if advertisers won't pay on time then you have to pay the affiliates from your own pocket. I too felt of starting that work but later left it however the idea has so much potential.. It can make good $$$$ if you succeed..
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  • Profile picture of the author the_velvet
    Banned
    Well you are on the right track and there is a lot of work to be done, but it you need a clear plan, and was to have selected your plan, you need to jump into and get it done.

    All the best of luck!
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