Starting a CPA network

18 replies
Hello

I know there are a lot of CPA networks out there which leads me to believe that it must be easy to get the offers that a cpa network recruits. So if someone wanted to start a CPA network the question would be where so the offers come from that one puts into their offerwall?
#cpa #network #starting
  • Profile picture of the author CPATrendPhil
    Originally Posted by Zehxpayer View Post

    Hello

    I know there are a lot of CPA networks out there which leads me to believe that it must be easy to get the offers that a cpa network recruits. So if someone wanted to start a CPA network the question would be where so the offers come from that one puts into their offerwall?

    How could you say it's easy to do something, yet have no idea how to do it lol. It's easy to broker offers from other networks, but it's not easy to work with advertisers directly. Where you find them is the magic question. They come to you, you go to them, you meet at places like Ad tech and Affiliate Summit, etc.
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    • Profile picture of the author Zehxpayer
      Thankss for that. I suppose you would know if you own a cpa. No offense was just saying there were a lot out of networks out there. I wanted to start one as well came here looking for help
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    • Profile picture of the author contentforyou
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      • Profile picture of the author CPATrendPhil
        Originally Posted by contentforyou View Post

        Finding them is one way to win to start find a script that allows cpa network like cpalead.com and find a way to copy them and try to get advertisers.
        CPALead's gateway is very specific to incentives advertisers only. Personally, I only deal with non-incent advertisers, but if you're looking to run an incentives network, you should have some sort of technology in advance that can cater to the affiliates needs.
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        • Profile picture of the author Zehxpayer
          Thanks for all the info. It is very interesting stuff. I see a lot of negative pessimistic comments that border on being dismissive. I believe that is uncalled for. Just because someone is new to a topic does not mean that they are an idiot.

          That being said it seems to me that most CPA networks do not really put out much of their own money as if they collect in advance from a merchant then their risk is limited. Furthermore they could move offers in and out of their network until a relationship is built with a merchant in order to spread out risk. Although I enjoy reading words of wisdom from guys who have been there before.

          However my original question still remains unanswered. Is there a main repository for CPA networks to get their offers from or is it an CPA network to get the offers from merchant or does each merchant offer have to be solicited separately. As I said before I do not think there are 500 CPA lead sales guys running around and talking to the same people. There has to be a main clearing house of some form.

          Or perhaps am I incorrect?
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  • Profile picture of the author Kenster
    It has become easier to start a network with some advances in software, sure, but I don't know if its that easy. Just as many network disappear as pop up.

    At the end of the day whether you are a network, an affilaite, an advertiser, or anywhere else in the CPA foodchain, you just need to be good at what you do and then everything looks easy from the outside!
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    • Profile picture of the author Zehxpayer
      thanks for that. I was looking for some links to the producers of the surveys that would go into my offerwall. ( survey producers etc) With so many CPA networks I would assume that there has to be a level above them that provides the CPA networks with the surveys leads etc so that CPA networks can distrubite to their affliates
      J
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  • Profile picture of the author badboy_Nick
    Originally Posted by Zehxpayer View Post

    Hello

    I know there are a lot of CPA networks out there which leads me to believe that it must be easy to get the offers that a cpa network recruits. So if someone wanted to start a CPA network the question would be where so the offers come from that one puts into their offerwall?
    Starting a CPA Network is easy. Running a successful CPA Network is just like every other business.

    To be fair, every Joe Schmoe can make a site, have a few offers on their network and maybe recruit a few affiliates ... but making them PRODUCE quality sales/leads is a completely different matter.

    Maybe you just bitten a bit too much off the CPA sandwich there? Tip: Find an offer that works for you, then approach the merchant and get a direct deal. Then recruit some affiliates, take a small margin on top and let them take part. Share the wealth. Thats how you grow, not by adding the same ****ty zip submits you can find on every network these days.

    Any questions just let me know
    Nick
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    • Profile picture of the author Zehxpayer
      Thanks for that...they have Joe Schmoe in the UK as well? The question is where do those have a few "offers on their network " come from? Is there a main site that offers them like a media group or something>?
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  • Profile picture of the author williamrs
    I know exactly what to do to start my own CPA network in less than week. However, I have no idea on how to make it a successful network competing with the big guys in this industry.

    So just because you see many new networks out there it doesn't mean that all of them are successful. There are quite a few very good networks for any affiliate to work with, so why would an affiliate start doing business with a new network that brokers offers, has low payouts and no experienced affiliate managers?


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    • Profile picture of the author Freeman77
      I'm actually a little confused as to which networks deal directly with advertisers, and which networks use an assortment of offers from other networks.

      I realize that someone like me could just install HasOffers and collect affiliates to run offers that are linked to my various accounts (and probably fail miserably because I don't know what I'm doing). But are there some well-known networks primarily use these...indirect offers (I don't know what else to call them). I'm not saying it's a bad thing, though you'd expect that there's more room for profit (and therefore, more room for paybumps) by going direct.

      Can anyone provide info on which big networks solely do direct deals, and which pull from other networks? I'm just curious.
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    • Profile picture of the author Zehxpayer
      Wow all of that is a great great advice and I appericate it, even the harsh advice. Yes I had noticed all of the little guys and that was more my question as to how these guys got started. Seems to me that there are a lot of cpa networks that sign up affliates however their offers are not that strong. However where do you draw the line? A lot of the big boy networks seem to eat steak and leave scraps for the affliates even more so for the content provider.

      That being said my thought was that is exactly why there were so many "mini cpas" popping up. I am considering going to the convention in Vegas. It is a reason to go to Vegas as if you need one.

      So the answer to my original question still remains. Is there a central place ( website, company whatever) that all of these mini cpas get their leads from or are all the leads hunted down directly?

      I cannot believe that there are 500 sales guys from 500 mini cpas all knocking on the same doors

      Thanks for the replies
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  • Here is the thing, since hasoffers has hit the scene thousands of these "mini cpa networks" have started popping up, and the majority of them shut down about as quickly as they pop up.

    To run a sucessful CPA network, you need a lot of experience, capital, and strong relationships with your merchants and power affiliates. And one of the largest obstacles, is managing your companies risk. Anyone who has ever run a network will tell you, that they have got stiffed by a merchant at least once.

    So what generally happens with these small hasoffers type affiliate networks, is either someone starts pushing junk traffic and the merchant refuses to pay out or the merchant disapears alltogether. Leaving you with a bunch of affiliates that want $1000's of dollars, and since you started the network with $300 in capital, nothing to pay your affiliates. So of course, many get pissed and leave of those that stick around, most no longer start pushing traffic and before you know it... Your "affiliate network" which was nothing more than a glorified affiliate brokering network has shutdown.
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  • Profile picture of the author sidd23
    It's a double edged sword really, because on one hand you have to provide a greater return for investment but on the other hand you're a small fish in a big pond
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    • Profile picture of the author Kenster
      Originally Posted by sidd23 View Post

      It's a double edged sword really, because on one hand you have to provide a greater return for investment but on the other hand you're a small fish in a big pond

      As a small network you need to offer something to give yourself a competitive edge over other companies. Maybe you can provide better payouts, faster payouts, better service, better training, etc.

      But that is easier said than done.



      Better Payouts: Sure a new network may have less overhead (can be a one man operation out of a basement) so naturally you would assume they can pass that reduction in overhead to the affiliate in terms of a better payout. BUT the problem is that a lot of their offers may be brokered and rebrokered more than once and of course the payout drops at each step. So though they may provide a better margin to the affiliate, that doesnt always translate to a better payout because they are sometimes starting with a lower original payout!

      Faster Payouts: Newer networks can provide faster payouts, sure. The problem here is that newer networks dont have the capital to do this in many circumstances. Networks sometimes have to "front" money or pay out of pocket to affiliates to give them a faster payout term than the network is even receiving from the advertiser. Lets say the advertiser pays the network for leads once a month. If the affiliate wants to get paid weekly, then this means the network must spot the money. New networks dont have a huge budget as well.

      Affiliates: New networks need affiliates. They can soften up the application process but naturally this would lead to more scammers and fraudsters..a huge problem in this industry. So, its not as easy as just opening your doors to get good affiliates.

      At the end of the day, running a network is just like any other business. There are challenges you need to overcome, you need to differentiate yourself, and you need to work your butt off. The concept of taking a small cut of every transaction may seem like rainbows and butterflies, but there is a lot of work going on behind the scenes to run and grow a successful network.

      Of course this is just from what I've heard...I've never tried and don't plan on trying to open a network! Stick to what you're good at right!

      Ken
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  • Profile picture of the author armahsan
    To find a big brokering network is very hard. Because no one even shows that they are brokering offers because most of advertiser's don't like it. They want to broker their offers after reviewing carefully because they want quality that's why I prefer to go to Ad Tech, Affiliate Summit etc.
    Because in my point of view this is the best place where you can promote your network by finding several advertisers and affiliates.
    If you can't attend that then i advice to contact each network quietly to get some valuable offers for your new network.
    But it's always hard to manage offers but if you pay attention to your affiliates and always be connected with your affiliates and advertisers both then you will achieve your goal.
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  • Profile picture of the author Cash37
    Starting a network isn't hard. It is sustaining and growing it that is the problem. You need lots of cash and probably over $1+ m in the bank to sustain a decent sized affiliate base to get you going. I doubt you are ready considering you don't know where to get offers.
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    • Profile picture of the author CPATrendPhil
      Originally Posted by Cash37 View Post

      Starting a network isn't hard. It is sustaining and growing it that is the problem. You need lots of cash and probably over $1+ m in the bank to sustain a decent sized affiliate base to get you going. I doubt you are ready considering you don't know where to get offers.
      You definitely don't need a million dollars to sustain a new/growing network. You need enough money to float payments, meaning you need enough money to payout your publishers before being paid by your advertisers. You can instantly tell which networks have floating cash, and which do not by their payment terms. If you see a network with NET-30, NET-45, NET-60 payment terms, it's safe to say they're taking absolutely no risk and are not floating payments. Networks that are paying NET-15, Bi-weekly, and weekly are all floating payments. It's higher risk, but these networks tend to have much more strict fraud policies to ensure the safety of the networks' money that they've dished out before being paid by the advertisers.

      Zehxpayer, I didn't mean to offend you in any way. I think you should definitely do a LOT of research before starting a network. Making a post is one form of research, but if somebody looks at your history after starting a network, they're going to see this post and think differently about your company.

      I made a post in the past, so I'm just going to quote it here:

      Originally Posted by CPATrendPhil View Post

      Best of luck man. I know it seems easy, but it's really not.

      My best advice to you:

      Develop a legitimate business plan. Include your plans to deal with the following:

      1) Your approval process
      2) Fraudulent applicants
      3) Fraudulent affiliates who slit through
      3) How you'll advertise your network
      4) How you'll deal with advertiser
      5) Your payment terms
      6) How you'll deal with advertisers that withhold payments
      7) Your payment methods
      8) How much money you have to pay affiliates BEFORE you receive payments from advertisers (if you don't take these risks, people are less inclined to work with you, as payment terms are a big deal for affiliates)
      9) Your short term goals
      10) Your long term goals

      There's so much more that should be included in your CPA network business plan, but these are a couple thing you'll want to include. And I do recommend doing this, even if it's just for you and your friends to see. If you don't write everything down and really set proper daily goals for yourself, you wont get as much done as necessary.

      I'd also recommend a hosted affiliate network platform, otherwise you're going to have issues with billing, and other functionality like fraud protection.

      Hope this helps, and again, best of luck!

      edit: Here's a couple more..

      11) What jobs will each person/partner do?
      12) How many affiliates will you assign to each affiliate manager?
      13) How much will you pay your affiliate managers?
      14) Obviously, if you have partners, what percentage does each one get? You should relate this to the amount one invests, and the amount one puts in in terms of work/effort to getting this running. Never short yourself your true worth.
      Hope this helps!
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  • Profile picture of the author ChrisBa
    Originally Posted by Zehxpayer View Post

    Hello

    I know there are a lot of CPA networks out there which leads me to believe that it must be easy to get the offers that a cpa network recruits. So if someone wanted to start a CPA network the question would be where so the offers come from that one puts into their offerwall?
    You would either need to speak with the merchant directly or speak with networks and broker offers..
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