Me and my partner is planning to start a CPA or affiliate network. We will start it for limited user. Like 500 affiliate for starting. But the problem is we can't find a way to get advertisers.
My partner is a reputed IT person in NY. So we actually need to know the procedure of getting advertisers. An outline of the procedure will be highly appreciated.

Advertise

Most new networks nowadays start by relaying offers from other networks - then, once your network grows, you can negotiate better deals and also start dealing directly with some advertisers.

I do hope though that you guys have got a solid business plan behind this venture - there's been an enormous amount of new CPA networks launched lately and virtually none of them show any potential for survival.

Actually I run a small SEO service firm and my partner runs 2 big web development firm in NY. Both of our business is quite good but we are trying to develop an alternative. We have a lot of potential affiliates but the problem is advertiser. And actually I don't want to start with other networks offers. I will take time and will try to get direct advertisers. If i get 5 direct advertisers, I will start it in small scale.

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...but i have promises to keep and miles to go before i sleep....

I think if you are a startup CPA company, you can get advertisers only if you have friends in the right places.

Otherwise, its pretty simple, advertisers will go where there is traffic, sales & conversions. If you can show them an army of affiliates with some sites ranking well then I guess you are in business...

Is there any market place for CPA advertiser and networks? We have worked on some advertiser's site for development and SEO. We gonna offer them our new service. Hope they will not mind to start with us.

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...but i have promises to keep and miles to go before i sleep....

Join some networks and checkout the offers they're running and then contact the advertisers for those offers?

You'll need tons of cash to float for affiliate payouts, don't forget that. If you don't pay, they'll flame you on every forum on the net, drag your ass to court, and you're out.

I'm in the process of finishing a business plan for one that's gonna go live early next year, but then on the other hand I have investors pumping in some cash to start it up as well... wouldn't do it without that.

get 2 tier advertisers from CJ, HYDRA and other affiliate programs. these are good for beginners.

To start 5K is enough. I have researched a lot on it. Thats why investing my savings on it. Don't wanna be sued by investors

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...but i have promises to keep and miles to go before i sleep....

Not sure about any market place. You could try business networks like linkedin but I really don't think it'll help...Like the others say, look for companies which are already with other networks... but 2 tier should be good for start

I think that will be less. But if you've done your calculations, then maybe its not.

You should also closely monitor new networks that have come up in the recent past. Read on forums and figure out what worked for them and what didn't...

If I were you I'd phone one of them pretending to be a BIG potential advertiser to get more information (that will be of some use to you) which you won't read on their website or forums.

All the best

You're starting a CPA network with 5k? Only the platform for tracking will cost you that in installation costs... How are you floating cash for 500 affiliates with 5k? Are they all going to make $10 a month? Merchants will give you a net 30 payment (IF they pay), and aff. will want payouts net 7 or 14.

Even if you only run your own products, which you then will have to convince the affiliates that they are converting and making money with no statistical background, it sounds a bit risky. I think you might have to do some more research.

Most affiliates will never get Net 7 unless they're tight with the guys running the network, e.g. big fish that loves NOT being shaved or mullered around like a nobody.

5k for payout is definitely NOT your budget. Some people are making 1000s per day on networks across, but then again; these people wouldn't run on a new network which has no financial backing or reputation - e.g. their margins are cut, they're shaved and they may be accused of providing poor quality leads and not get paid. That is the risk they take when they start up with you, no matter how good your intentions are.

I wish you good luck with your network and hope to see your booth at some of the tech events in '10.

Do you guys think it is really possible to make a network profitable within 2 months?

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...but i have promises to keep and miles to go before i sleep....

Yes, I think it's possible, but you're going to need more than 5k. Do you already have all the tracking software? 5k won't carry you very far, because the networks won't pay you that quickly. Whatever you do, don't start missing payments to your army or they'll be gone -- so you definitely need more than 5k to float.

Anything is possible. With the right kind of connections and marketing, yes...but you'll need more than 5k. The one we're starting has investors pumping in 6 digits, and even then we're carefully planning every little step. Like stated above, NEVER miss payments to your affiliates. You'll get a bad rep everywhere before you can say "But I..."

6 digits investment is quite impossible for me.People of my country prefers to keep their wealth in bank(interest rate is 12%). Even I can't think of 10k right now. I am trying to utilize my current resource at its best level. I am a grad of Urban and Regional Planning but my specialization is on Enterprise Resource Management & Planning. I am trying to keep the investment level low by my management skill and labor(I am not deserving any return of this investment right now).
And thank you for pointing out the affiliate payment. I know they are everything of any network.

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...but i have promises to keep and miles to go before i sleep....

Then you seriously need to wait before you even try to get a network started. If you aren't able to float payments then you're screwed.

what should be the minimum budget for starting a network with 500 affiliate? Can you please give me any idea?
I am planning to set the pay out amount at $100.

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...but i have promises to keep and miles to go before i sleep....

It's good that you are so eager to try it, but I would really look over your plans again. A few months ago one of BHW's ex-members, ****************, tried to start his own CPA company too. Needless to say, he said that he invested nearly $200,000 in it, but in the end the company failed and he lost around half a million. Even with 200k he didn't have the money to float all the payments and still keep affiliates.

Why don't you invest that $5k towards something smaller scale and then build your investment money from there, possibly with a final goal of starting a CPA company?

Hmmmm.....It is time to recheck my plan.

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...but i have promises to keep and miles to go before i sleep....

Yeah, really really think it over and be sure to cover all bases. You don't want to end up like CPARev. If you don't know what that is. Google it. Theres a long ass thread about them....and it's pretty sad.

I took CpaRev as a case study in my planning. Yes, their failure is pathetic at least to me(bit discouraging).

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...but i have promises to keep and miles to go before i sleep....

If your not a successful affiliate already, your wasting everyone's time dreaming about running a network. Wakey wakey hand off snaky.

Grad degree's count for shit in the real world, the only way u learn is thru blood, sweat & tears in doing the do.

The best way to start a network is to become a successful big hitter affiliate for a few advertisers & then tell them your starting a new CPA network. How could they possible say no if you have already proven yourself?

Sorry for wasting your valuable time. Next time i will try to convince Mods to make my threads invisible to you. Hope that will help

As I am a pure idiot, Grad degrees are helping me a lot to learn how to go through blood, sweat & tears in doing the do. To me that is priceless

I am unconventional. Trying to make a difference. I have worked with a lot of advertisers already. but not a big hitter yet. Actually I am trying to monetize my regional population. It is hard for them to get into CPA programmes only for time zone and proper instructions. But they are not worthless. you know what mate, sometimes they drive more US visitors than any other US sites. They ranks high in search results but don't know how to monetize them. They depends on Adsense only.
Anyway, Thanks for your valuable suggestions.

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...but i have promises to keep and miles to go before i sleep....

ok if i understand you right you want to sell other peoples services for a % of the money to start your own cpa...if that is right pm me back.

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With all due respect AutoBlogger, you are asking the kind of questions that clearly indicate you are not ready to run an network of any sort. There is a very distinct need for a network owner to be able to "think on their feet" so to speak. If you cannot figure out on your own how to find advertisers, or you underestimate your initial investment requirement, which are two of the easier things about running a network, how are you going to manage all the complexities of managing the relationships and dealing with difficult issues as they arise?

This is not about intelligence, this is not about how many degrees you have. Running a network requires experience in the business, and based on your questions I don't think you have all that much. You are almost certainly bound to fail as a network.

Save yourself the money, save your potential affiliates the risk of losing their earnings and spend some time gaining experience as an affiliate. Once you've done that, you'll be able to answer the simple advertiser/investment questions you have.

It never ceases to amaze me how many people think running a network is as simple as licencing a cheap copy of HasOffers, rebrokering a few offers, and making a post on a few boards.

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Steven Sauve, MaxBounty

Thanks for the advices Steven. I am checking my plan again and I think, yes I need to be prepared.

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...but i have promises to keep and miles to go before i sleep....

Said it right

After the HasOffers' launch I've seen a heap of wannabes reselling the same products that I can find across networks. I've found every single offer on networks, except for one as that is almost a no-no in aff-marketing.