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Higher Payout = More Shaving?

by PrivateCitizen
7 replies
Just wondering about this, because I see the same offers having a wide array of payout. Let's say that Peerfly only pays $20 on an offer, but then you can find another (sometimes smaller or newer) company offering $35 for the same exact offer. This makes me nervous to go with the "less known" company, because obviously they are not making as much on each sale as a huge network like Peerfly would be, so there is more temptation to skim from publishers. Does this make sense or am I being paranoid or naive?
#higher #payout #shaving
  • Profile picture of the author COPEAC Stephen
    On the surface it makes sense...

    When new networks come out of no-where, more times than not they will offer insane payouts to get a piece of the market for a specific offer, niche right away...I would be more concerned about receiving payment from a new network you don't know much about rather than them shaving leads...if they're a new network trying to make a name for themselves it would be dumb of them to start shaving and have that associated with their network.

    Also be aware if you see the offer paying $35 at one network, and $20 at the other...the network offer $20 probably doesn't get the offer direct, they probably have it doubled or even triple brokered....also that network getting $35 may have a long standing relationship with the ADV and may have earned that higher payout over time...

    Grab the network link and run it through HTTP Watch and see how many network redirect links you find...i think you're going to find more times than not the network paying much less just doesn't get it direct.

    Your point makes sense but i do think paranoia is coming into play a little bit....bottom line in my opinion is it's an opportunity to make more money at the end of the day and as a business man, you should atleast test it if you think it has potential and is a sound business decision.

    Best of Luck.
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    • Profile picture of the author Kenster
      Originally Posted by COPEAC Stephen View Post

      On the surface it makes sense...

      When new networks come out of no-where, more times than not they will offer insane payouts to get a piece of the market for a specific offer, niche right away...I would be more concerned about receiving payment from a new network you don't know much about rather than them shaving leads...if they're a new network trying to make a name for themselves it would be dumb of them to start shaving and have that associated with their network.

      Also be aware if you see the offer paying $35 at one network, and $20 at the other...the network offer $20 probably doesn't get the offer direct, they probably have it doubled or even triple brokered....also that network getting $35 may have a long standing relationship with the ADV and may have earned that higher payout over time...

      Grab the network link and run it through HTTP Watch and see how many network redirect links you find...i think you're going to find more times than not the network paying much less just doesn't get it direct.

      Your point makes sense but i do think paranoia is coming into play a little bit....bottom line in my opinion is it's an opportunity to make more money at the end of the day and as a business man, you should atleast test it if you think it has potential and is a sound business decision.

      Best of Luck.

      Exactly, assuming its the same offer, it will mainly be due to margin on the networks end and even more so, the amount of brokering going on.


      ALWAYS ALWAYS cross network split test if its an offer on multiple networks.
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      • Profile picture of the author bigbrian
        More than likely the lower paying network has the offer brokered from another network but then again it could be because the network offering it for $20 has a wider margin.

        $30 and $20 is a big difference in an offer payout. I would look around at other networks and get an idea of what the standard payout is. If you find most networks are in the $20-25 range and the unknown network is offering it at $35 I would be concerned why the payout is so high at the unknown network.

        Like Stephen said... You can watch the http headers/traffic and see how many redirects the offer takes. This will tell you if it's brokered.

        Brian
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        • Profile picture of the author mtmjohn
          Originally Posted by bigbrian View Post

          More than likely the lower paying network has the offer brokered from another network. It could be because the network offering it for $20 has a wider margin.

          $30 and $20 is a big difference in an offer payout. I would look around at other networks and get an idea of what the standard payout is. If you find most networks are in the $20-25 range and the unknown network is offering it at $35 I would be concerned why the payout is so high at the unknown network.

          Like Stephen said... You can watch the http headers/traffic and see how many redirects the offer takes. This will tell you if it's brokered.

          Brian
          Thanks for the great content as usual Brian, I always learn something from your post
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  • Profile picture of the author Affiliatebuddy
    hi

    $35 and $20 probably does not give any indication of scrubbing by network who is paying more.

    If somebody is trying to give you $20 for an offer for which you can get paid $35... the network paying $20 should fire their sales guy.

    Check if they shave leads.. your doubt is baseless till now.

    @B
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  • Profile picture of the author cpagirl
    A few things could be playing a factor.. one network could be taking a slim margin and paying out more to get more traffic to the offer, and the other one could be taking a bigger margin. Or the network with the better payout could have it direct.. if a network gets a brokered offer, then its 15% that the first network keeps, then 15% that they'll need to keep.. cuts the payout down.

    As far as scrubbing.. its possible but you can't tell with just that info. I know I was promoting insurance finders and had one payout... was offered it for $3 more and split tested.. made more off the offer for a lower payout cause there was a scrub with the higher payout. If you're concerned split test and find out which works best.

    It's not always about the payout, its about the end result.
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  • Profile picture of the author Affiliatebuddy
    who told you peerfly is Huge?

    lol

    Ab
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