What is a good amount to payout per lead

30 replies
Hi guys,

I am after a payout number that affiliates would think is good generating leads for the following business:

This is the business:

It is an international investment company which sells investments such as bonds, notes and direct investment in various projects like social housing, alternative energy such as solar, even oil.

Then there is real estate, by real estate I don't mean a house for you and your family to live in, I mean a property that you buy for $60k-$1m to earn you 15% returns a year. Or else a plot of land for $20k that you sit on for a few years and double your money.

The market:

The market is worldwide as people are always interested in investing internationally. Customers come from US, UK, EU, Brazil, Argentina, Middle East and SE Asia.

Volume:

Sales volumes are generally high, nothing like the forex industry, but much larger transaction values.

I am also looking at a combination of CPL and CPA as this probably works better for both parties, so any ideas on numbers would be great.
#amount #good #lead #payout
  • Profile picture of the author ChrisWJohnson
    Banned
    Hey stanton, Good working!

    I think you should go to Offervault or Oddiger and find a high converting offer with more payouts!

    Good Luck!
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  • Profile picture of the author egoldzone
    1. CPL for $3 or less
    2. Hibrid : Cpl $1 and CPA commission
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  • Profile picture of the author badboy_Nick
    Originally Posted by stanton View Post

    I am also looking at a combination of CPL and CPA as this probably works better for both parties, so any ideas on numbers would be great.
    You are asking the wrong question. This all depends on the ability of your merchants to close deals, their price points and business model within the industry ... and the quality of the leads received.

    Once that is established, you have more of a framework to build on. So, let's make an example:

    First, it depends on the lead quality itself (conversion rate for your merchant) and the commissions they make per sale. Let's say they make £1000 per sale. You sell them 100 leads and they convert at 10% because your quality is spot on and they have qualified sales-staff.

    They have overhead to pay and also want to make a profit. They give you £5 per lead. The person generating the leads generate a lead for £1 so everyone is happy. The problems occur when the person can't get the leads in for under £5 ... or the merchant can't close the leads at 10% conversion rate.

    So you see, this really is a question of which price points are doable from all angles. Without knowing the commission points from the company and knowing the market, this will be quite tricky to assess without more info.

    Nick
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    • Profile picture of the author stanton
      Originally Posted by badboy_Nick View Post

      You are asking the wrong question. This all depends on the ability of your merchants to close deals, their price points and business model within the industry ... and the quality of the leads received.

      Once that is established, you have more of a framework to build on. So, let's make an example:

      First, it depends on the lead quality itself (conversion rate for your merchant) and the commissions they make per sale. Let's say they make £1000 per sale. You sell them 100 leads and they convert at 10% because your quality is spot on and they have qualified sales-staff.

      They have overhead to pay and also want to make a profit. They give you £5 per lead. The person generating the leads generate a lead for £1 so everyone is happy. The problems occur when the person can't get the leads in for under £5 ... or the merchant can't close the leads at 10% conversion rate.

      So you see, this really is a question of which price points are doable from all angles. Without knowing the commission points from the company and knowing the market, this will be quite tricky to assess without more info.

      Nick
      Thanks for the answer, I am not too worried about what the merchant has to pay (obviously there is a limit), but more interested in what numbers are going to attract decent affiliates to get me leads.

      Rob.
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  • Profile picture of the author badboy_Nick
    Considering your transaction values will be a lot higher, you are looking for med/higher net worth individuals ... as the cash changing hands has to be available right away.

    I can tell you that you are roughly looking at £40 minimum for a good quality lead in that type of "investor leads" market. Criteria would be (apart from contact details) funds available to invest ... and interested in speaking to alternative investment strategies that give a higher yield.

    Everyone is scrambling to make a decent yield nowadays, so the average investor is being forced to take on more risk to make a decent return.

    You will however need to screen affiliates and approve their sites including traffic methods. A high CPL rate sounds very attractive on paper to at least get the attention of seasoned affiliates ... but getting the volume AND the quality right you still need to have a feedback/monitoring system in place.

    Another very important question you need to know the answer to is this: How many daily leads can the merchant handle? Both from a budget perspective ... and from a number of sales-staff available to call up these leads perspective?

    Nick
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    • Profile picture of the author stanton
      I think 40 quid is a fairly good deal for a lead like that as the conversion rate would be good, but leads like that are available from suppliers like TPG.

      I think I would rather have someone signup to a newsletter on investments as even if they aren't ready to buy now they might well be in the future.

      So then the question is what is a good figure to get newsletter signups with a much bigger payout on a sale?
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      • Profile picture of the author badboy_Nick
        Originally Posted by stanton View Post

        I think 40 quid is a fairly good deal for a lead like that as the conversion rate would be good, but leads like that are available from suppliers like TPG.

        I think I would rather have someone signup to a newsletter on investments as even if they aren't ready to buy now they might well be in the future.

        So then the question is what is a good figure to get newsletter signups with a much bigger payout on a sale?
        Tough one, if you are looking just for newsletter signups I would at least ensure they only get the report/newsletter by also providing their phone number. At least that way you have something a bit more tangible from the beginning than just an email address.

        Then you can work the leads by newsletter, but we found that the best leads are generated when they signup, provide a number in order to enquire or get a quote or more information ... and immediately receive a phone call.

        Nick
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        • Profile picture of the author stanton
          Originally Posted by badboy_Nick View Post

          Tough one, if you are looking just for newsletter signups I would at least ensure they only get the report/newsletter by also providing their phone number. At least that way you have something a bit more tangible from the beginning than just an email address.

          Then you can work the leads by newsletter, but we found that the best leads are generated when they signup, provide a number in order to enquire or get a quote or more information ... and immediately receive a phone call.

          Nick
          Yes, a good point, right now I try and get a name/phone number/email address and if that fails I show a popup when they exit the site (exit intent not a blocker) which only asks for name/email to signup for the newsletter.
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        • Profile picture of the author stanton
          Originally Posted by badboy_Nick View Post

          Then you can work the leads by newsletter, but we found that the best leads are generated when they signup, provide a number in order to enquire or get a quote or more information ... and immediately receive a phone call.

          Nick
          The immediate phone call depends on the product you are selling, you can't do that in this industry unless you want to sound desperate, which will work against you as no-one wants to buy something that isn't selling.
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  • Profile picture of the author CarynDavis
    Banned
    Stanton, I have worked into the same niche, which type of funnel are you trying to build once you get the leads by the way?
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    • Profile picture of the author stanton
      Originally Posted by CarynDavis View Post

      Stanton, I have worked into the same niche, which type of funnel are you trying to build once you get the leads by the way?

      The funnel itself depends on the lead, a newsletter signup, we leave alone to just read the newsletter and make sure they get a range of products to look at.

      If someone makes contact (either through the newsletter or the site) asking for more information about a product then we do have a couple of ways to deal with them, but usually a combination of phone and email depending on what the client wants.

      Our conversion rate from query to sale is 5-10% depending on the product.
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  • Profile picture of the author stanton
    Ok, after talking to a few people this seems like a good option, but would affiliates be interested in these sorts of numbers?

    $3-5 per confirmed newsletter signup or contact form completion.

    $500 for each and every sale made to the referred client for life (20% of clients are repeat clients).
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  • Profile picture of the author FannieLaine
    for CPL I would say anything above $20 is decent payout, good progress so far btw!
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    • Profile picture of the author stanton
      Originally Posted by FannieLaine View Post

      for CPL I would say anything above $20 is decent payout, good progress so far btw!
      I am sure that is a decent payout, but I am getting leads right now from facebook for $25 and without the hassle of dealing with affiliates.

      Rob.
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      • Profile picture of the author badboy_Nick
        Originally Posted by stanton View Post

        I am getting leads right now from facebook for $25 and without the hassle of dealing with affiliates.

        Rob.
        You might find that in order to scale up and drive a lot more volume, your costs will go up as well. It's like sitting in the #1 spot in Adwords for a keyword. Your volume goes up but so does your acquisition cost ... but because of the sheer number of leads you generate you will make more profit overall despite the smaller margin.

        Your case could be a similar scenario: in order to get a ton of leads, you may need to be prepared to pay more. You could however simply pay high-volume affiliates more per lead and adopt a tiered commission system ... of course depending on how many leads you are essentially looking for.

        Nick
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        • Profile picture of the author stanton
          Originally Posted by badboy_Nick View Post

          You might find that in order to scale up and drive a lot more volume, your costs will go up as well. It's like sitting in the #1 spot in Adwords for a keyword. Your volume goes up but so does your acquisition cost ... but because of the sheer number of leads you generate you will make more profit overall despite the smaller margin.

          Your case could be a similar scenario: in order to get a ton of leads, you may need to be prepared to pay more. You could however simply pay high-volume affiliates more per lead and adopt a tiered commission system ... of course depending on how many leads you are essentially looking for.

          Nick
          I hear you on the price with advertising, I have had that experience before.

          Volume can be a problem if it spikes, that is why I prefer to get them on a newsletter/investment guide list so we can prioritise leads and get the hot ones converting right away, and keep the rest engaged with new products and content until they are ready to convert.

          Right now I am after 50 leads from affiliates a day and then will start scaling depending on the conversion rates.
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  • Profile picture of the author DerekSmooth
    if you are just starting out you should stick with offers w/ $5 or more payout as you can do good amount of testings and find the winners in real time..
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  • Profile picture of the author stanton
    The next question is where to get decent affiliates from?

    So far from WF I have had two Nigerians offering to be my affiliate, one whom insisted he was a "genuine online marketer" but could only do business with me if he was paid the instant a deal went through.
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    • Profile picture of the author svetod
      Originally Posted by stanton View Post

      The next question is where to get decent affiliates from?

      So far from WF I have had two Nigerians offering to be my affiliate, one whom insisted he was a "genuine online marketer" but could only do business with me if he was paid the instant a deal went through.
      Is there any particular niche, which you are interested in?
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      • Profile picture of the author stanton
        Originally Posted by svetod View Post

        Is there any particular niche, which you are interested in?

        I am after affiliates not affiliate programs
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  • Profile picture of the author stanton
    So where is the best place to get affiliates?
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  • Profile picture of the author winddragon
    Originally Posted by stanton View Post

    Hi guys,

    I am after a payout number that affiliates would think is good generating leads for the following business:

    This is the business:

    It is an international investment company which sells investments such as bonds, notes and direct investment in various projects like social housing, alternative energy such as solar, even oil.

    Then there is real estate, by real estate I don't mean a house for you and your family to live in, I mean a property that you buy for $60k-$1m to earn you 15% returns a year. Or else a plot of land for $20k that you sit on for a few years and double your money.

    The market:

    The market is worldwide as people are always interested in investing internationally. Customers come from US, UK, EU, Brazil, Argentina, Middle East and SE Asia.

    Volume:

    Sales volumes are generally high, nothing like the forex industry, but much larger transaction values.

    I am also looking at a combination of CPL and CPA as this probably works better for both parties, so any ideas on numbers would be great.
    Hi Stanton,

    I'm not really sure how you are asking the question from the affiliates point of view. You need to know your backend numbers and what you can afford to buy leads for based on those numbers and your ongoing marketing numbers.
    For instance (I run an affiliate program for an Australian investment education company)
    We know from our testing and conversions numbers that we can afford to spend $30 per lead on a CPA / CPL basis because we have tested the crap out of the landing page (obviously that comes down to the leads being targeted)
    We have even gone more than that in some cases...
    This attracts affiliates... but more importantly it allows us a small upfront profit based on our conversion numbers...

    You must have those numbers in place first... There are heaps of companies who just have a shot at CPA advertising and go broke pretty fast because they haven't tested conversions first... If you dont do this with a number of different traffic sources then you are kinda flying blind and crossing your fingers and hoping.
    Throw some money at some facey advertising, some ppc and some banner ads and start building a picture of the value and attractiveness of your offer...
    also do whatever you can to monitize your backend so you know where the money is coming from and for how long.


    One final thought (added later) once you ahve these numbers in place and you know what you can afford you can take your offer to CPA networks like peerfly or affiliaxe and they will find you as many affiliates as you want...
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  • Profile picture of the author JosephGipson
    I'd say standard rate for CPA offer is anywhere from $5 to $10 but again, it highly differs from niche to niche..
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  • Profile picture of the author Action Man
    pay the Scots 50 percent, because that is shit, you don't need leeds
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    "Love conquers all things except poverty and toothache" (Mae West)

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    • Profile picture of the author stanton
      Originally Posted by Action Man View Post

      pay the Scots 50 percent, because that is shit, you don't need leeds
      I am not sure I understand what you are saying?
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  • Profile picture of the author Action Man
    great question

    God said love your neighbour as yourself..mmm

    well give them the same return as you..bless

    JIm (from scotland)
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    "Love conquers all things except poverty and toothache" (Mae West)

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    • Profile picture of the author stanton
      Originally Posted by Action Man View Post

      great question

      God said love your neighbour as yourself..mmm

      well give them the same return as you..bless

      JIm (from scotland)
      Ah, sweaty sock speak.
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  • Profile picture of the author LindaIvy
    I would say between $30 to $50, most of the trial offers have it..
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    • Profile picture of the author stanton
      Originally Posted by LindaIvy View Post

      I would say between $30 to $50, most of the trial offers have it..
      Trial offer of what?
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      • Profile picture of the author starsign
        Hi Warriors

        I have an information chiropractor website collecting emails and want to sell fresh leads to local chiropractors.

        Does anyone know the going rate for a chiropractor lead?

        Cheers.
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        Thank your lucky stars, that your unlucky stars, are only as unlucky as they are!!

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