How the network works 10 years ago, I had a website with online trainings. This site brought me a pretty good income of $ 1000 a month. And the most interesting is that I did not sell advertising on the site.
So what was the monetization model if I had nothing to do with the trainings? It’s very simple, I got a commission on the sale. Just like in the CPA network model. Talk about it and only for the classic business.
The dream of every entrepreneur is to find a marketer / advertiser / PR manager. Which will not ask for a budget for advertising, but will receive a percentage of each transaction.
From the series “you will receive how much has gained”. Or find a company that will also work for the attracted number of people. Of course, with payment after the transaction.
It is possible to find such people on the Internet. Which you can pay a certain percentage of the recommendations. More precisely for those people who came and bought your product. And this is called an affiliate network (or referral program).
They work on the following principle:
- Fixed amount;
- Which gets the owner of the site, if his affiliate link will buy the product advertised by him.
That is what CP is … Not guessed, not CPA, but CPS. Unclear? Let’s figure it out.
Types of CPA networks
As for these networks, they are of 4 types. The difference is small, literally in the last letter. And it consists in a very simple separation – how the end result ends.
But before I tell you everything, let’s fix a few more concepts in order not to get confused in the future:
- Advertiser – a person who has a product, and for the sale of which he wants to pay;
- A webmaster is a person who advertises these products. More accepted they are called “arbitrazhnik”;
- Offer is a product that you are promoting with the help of the networks;
And now, when you practically speak the same language with us, we can move on to the following types:
1. CPA – (Cost per Action)
If the user who came on the referral link. Performs certain actions (registered on the site, subscribes to the newsletter and so on). That is precisely for these actions webmaster (the one who brought the client) receives a certain fee.
This model, with pay per action, is actively used in infobusiness.
2. CPS (Cost per Sale)
It is at that moment when the user who came on the webmaster’s referral link. Pays the purchase on the advertiser’s site, webmaster and receives a commission for the sale (partner reward).
This model of the affiliate program is actively used in online stores and various online services.
3. (Cost per View)
Remuneration is received either when the user clicks on the advertisement shown to him (pay per click). Or for a certain number of banner impressions on the site.
If the first model most often work only the most famous sites. By type of search engines, namely in contextual advertising.
Then on the second model almost all less popular sites work, placing advertising banners for a certain time.
CPI (Cost per Install)
I think you have seen more than once when you are watching a Facebook or Instagram feed. Then periodically you are offered to install the “newest” and “most awesome” games and applications.
It is at that moment when you install it on your phone or computer that the webmaster gets his 2% (for an explanation about%, see the end of the article). The model is extremely popular among mobile games and all kinds of applications.
THIS IS NOT FOR YOU
I will not hide. Honestly, this kind of network is not suitable for everyone. Since I am sure you are scratching your hands in order to quickly start paying for the client, and not for advertising. The main problem in the arbitrage. They, as a rule, live by the principle “It’s good now, it’s bad afterwards”.
Webmasters prefer fast and easy sales. Where trend inexpensive products (up to $ 50) most often enter. With massive demand across the country.
- Slimming powder;
- Glowing sneakers;
- Corsets for weight loss;
- Leather clutches;
- Armor-piercing phone case.
This does not mean that only with this product you can enter the market. There are experts who are ready to attract people to online stores. And on services and B2B deals. But, as a rule, the longer the transaction cycle and the more expensive the product, the less willing to respond.
With complex products to attract good webmasters, you need to act as follows:
You give a test budget of $ 100 – $ 200 (each has its own amount). And you agree that after he uses the budget and understands the cost of attracting the lead / client. You go to pay for the client.
Thus, he does not risk. And you get the opportunity to find a good specialist.
HOW TO CHOOSE A NETWORK
Now with the basics almost everything is clear. Therefore, we proceed to the very networks. Or rather, how to choose an affiliate CPA network and how to use them.
Determine the model
You need to decide on which model you want to work. If you have running and not expensive goods. Which every month on the CPS model is sold for tens of thousands of dollars across the country. So you need a model with pay per sale.
If you need to increase the subscription base or catch up with webinar subscribers. That perfect CPA model. And everything in this spirit. That is, everything will depend on the offer anyway.
In addition to defining the model, you must understand how much you will pay per transaction and how many transactions you need per day / week.
And at this step you should clearly realize that 5-10% will not work here. As the arbitrazhnik suffers losses on advertising and invests his time. Which in the opposite case you would pay a freelance specialist.
Based on your wishes and preferences, you need to find a certain network of affiliate programs. Networks are sites that unite arbitrageurs and advertisers.
There are dozens of them and it’s easy to find them by typing “crap networks” in the search.
And all of them are divided in the following directions:
- info products
If you are going to sell and promote an inexpensive product. Then you need a product affiliate network on which you sign up as an advertiser. There are mixed networks. Defining them is also not difficult, everything is usually written in the header of the site.
Examine partner networks for their rating. After all, it is no secret to anyone that not everyone conducts their business honestly, it is especially easy to run into scammers on the Internet.
Therefore, look at the reviews on the network, at the time of work and so on. In a word, study the information about this network.
Preparation of materials
There are two options for events:
- You give everything in outsourcing and say “I don’t care what you do, the main thing is to have applications”:
- Or you prepare all the promotional materials for them (banners, websites, articles, videos, photos) and regulate strictly work on them.
From our experience, it is better to prepare your promotional materials. This way you will be sure that your reputation will not suffer.
The only disadvantage with their materials is their preparation and location on their hosting. After all, if there are 10 webmasters, then you need to make 10 sites or set up analytics system using utm-tags. Which for many already sounds scary.
The choice of arbitrator
On some resources, you yourself have the right to indicate who to work with you and who to refuse. This is due to their ratings, their methods of promotion (there are hundreds of them) and the required number of applications per day.
After all, for 30 applications per day, 1-3 specialists will be enough for you. When already for 2000 applications a day you need a couple of dozen. Although there are cases when a webmaster can block such a volume.
Networks also make certain casting inside their sites. But as with the most popular version of the work – “Payment for lead”.
Here the webmaster first invests his money. And only then after the application gets them back. In this case, you can not worry too much, except for their reputation.
Chips and tears
Well, now that the theory is over. I will tell you about all the chips, the secrets and the tears that await you. If you risk selling your product through cpa-networks.
Although no, probably I’m wrong, the services will be easier. Therefore, I will tell the whole truth about the goods, and for other areas make your own conclusions.
You need money (a very logical conclusion). In order to “drag” a new product to any affiliate program, and more or less establish its sale.
You need $ 30,000 – $ 80,000. And this is just for a couple of months. And this is the minimum minimum.
This money will go to:
- Purchase of goods;
- Preparation of promotional materials;
- Payment for the work of webmasters;
- Call center operation;
- Payment of delivery to the client:
- Non-repayment and return of goods;
- Sender’s commission;
- Affiliate commission.
As soon as a person makes an application on your site for the purchase of goods, the webmaster’s fee is automatically frozen.
One experienced webmaster can catch 50-100 applications per day to your site. The average reward for a confirmed application is $ 7- $ 10. So count for the day.
Webmasters do not like working with small volumes, so if you think that you are just testing, you can test it yourself.
No normal affiliate program will agree to a volume of less than 100 applications per day. Exceptions – personal agreements with webmasters.
Do not forget about no ransom (people do not come for a purchase). Not ransom is almost 50%. That is, in the fastest case, you will get your money back in 2-4 weeks. Accordingly, at this time you need working capital.
You can not guess with the goods and it just will not work. Then you have to sell everything yourself, because no smart webmaster will advertise a product that is a loss for him.
You will have to hire a call center because you are unlikely to cope with the flow of orders. And also people who “just want to clarify” will call.
I can immediately say that this model of business, even more correctly, the sale of goods and services. Not very relevant for most classic businesses.
After all, in practice, their product does not have such a high demand and so large mark-up that up to 70% is given to a specialist.
But if you borrow services that webmasters are already actively promoting in the network. So you have all the chances to get rid of the heavy share of attracting new customers.
The B2b sector can completely forget about the “sold-received commission” approach in the networks. Sales stretch in time and webmasters will never go for it. But to get a commission for a person who “downloads the price list” is their pleasure 😉