1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

[Help] How to start a CPA or Affiliate network?

Discussion in 'Affiliate Programs' started by AutoBlogger, Nov 26, 2009.

  1. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    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.
     
  2. bryanon

    bryanon Executive VIP Premium Member

    Joined:
    Oct 16, 2009
    Messages:
    1,395
    Likes Received:
    1,479
    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.
     
    • Thanks Thanks x 1
  3. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village

    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.
     
  4. zeeaq

    zeeaq Junior Member

    Joined:
    Jan 21, 2009
    Messages:
    145
    Likes Received:
    57
    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...
     
  5. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    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.
     
  6. Spydr

    Spydr Registered Member

    Joined:
    Aug 27, 2009
    Messages:
    66
    Likes Received:
    27
    Join some networks and checkout the offers they're running and then contact the advertisers for those offers?
     
    • Thanks Thanks x 1
  7. samspam

    samspam Junior Member

    Joined:
    Feb 6, 2009
    Messages:
    196
    Likes Received:
    308
    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.
     
  8. axina

    axina Junior Member

    Joined:
    Jan 11, 2008
    Messages:
    102
    Likes Received:
    5
    get 2 tier advertisers from CJ, HYDRA and other affiliate programs. these are good for beginners.
     
  9. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village

    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 :D
     
  10. zeeaq

    zeeaq Junior Member

    Joined:
    Jan 21, 2009
    Messages:
    145
    Likes Received:
    57
    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 :)
     
    • Thanks Thanks x 1
  11. samspam

    samspam Junior Member

    Joined:
    Feb 6, 2009
    Messages:
    196
    Likes Received:
    308
    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.
     
    • Thanks Thanks x 1
  12. MrSmith

    MrSmith Newbie

    Joined:
    Sep 15, 2009
    Messages:
    43
    Likes Received:
    88
    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.
     
    • Thanks Thanks x 1
  13. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    Do you guys think it is really possible to make a network profitable within 2 months?
     
  14. BenQs

    BenQs Regular Member

    Joined:
    Jun 12, 2009
    Messages:
    265
    Likes Received:
    39
    Gender:
    Male
    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.
     
    • Thanks Thanks x 1
  15. samspam

    samspam Junior Member

    Joined:
    Feb 6, 2009
    Messages:
    196
    Likes Received:
    308
    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..." :)
     
  16. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    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.
     
  17. absinthekid1

    absinthekid1 Junior Member

    Joined:
    Feb 23, 2008
    Messages:
    176
    Likes Received:
    40
    Occupation:
    student
    Location:
    USA
    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.
     
  18. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    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.
     
  19. TheReaperIM

    TheReaperIM Newbie

    Joined:
    Aug 19, 2009
    Messages:
    26
    Likes Received:
    5
    Occupation:
    Student
    Location:
    Dallas, TX
    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?
     
    • Thanks Thanks x 1
  20. AutoBlogger

    AutoBlogger Power Member

    Joined:
    Oct 20, 2009
    Messages:
    780
    Likes Received:
    928
    Occupation:
    IM, AutoBlogging and Urban Planning
    Location:
    The Global Village
    Hmmmm.....It is time to recheck my plan.:headache: