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How do Networks make money with Zip Submits?

Discussion in 'CPA' started by locknload007, Dec 14, 2010.

  1. locknload007

    locknload007 Jr. VIP Jr. VIP Premium Member

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    I was just wondering how Networks make their money with zip submits.

    Drop a cookie?
    Hope to get them to enter their email and get some offers completed?

    My AM complained about my traffic today. No tricks with the traffic, they just did not convert as much as they wanted.

    Thanks
     
  2. irancrude

    irancrude Jr. VIP Jr. VIP Premium Member

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    I guess they use the data to legally spam them to death, trick them on trials, one time offers etc Zip submits I guess will help them to determine where the big majority of fools live then a mass postcard mailing could be done..
    Posted via Mobile Device
     
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  3. mil0x

    mil0x Power Member

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    Networks don't make money on the submits, they make money of the advertiser (IF they make money). You should go through one of those 'free' email submits yourself (not with your aff link, just a random LP), use a junk email address. The email address itself is worth about $0.15. Your address is worth $0.30 (this all for the advertiser). Then the real money comes, they send you through a co-reg path. You have to answer questions about yourself to 'receive' the gift (like, do you have a mortgage? do you have kids?), then they match the co-reg offers according to your answers. These are also one page submits, except they are way more valuable. It could be a health insurance quote, auto insurance, dating or whatever. It depends on what you choose as an answer to whatever you were asked. These kind of submits get the advertiser paid anywhere from $2 to $12, you never see any of this money. Then AFTER that, you have to complete 2 gold offers, 2 silver offers and 2 platinum offers to 'receive the gift' (this is just an example, the number of offers you have to do varies). These are more (trial) offers the end user has to go through, only then they can actually win the gift.

    So, as you can see, the reason why the payouts are low and scrub rates are high is because the email submit itself is not where the money is for the advertiser. They decide what % will turn into an actual profit. Then they decide on their scrub rate (what % of the time the pixel actually fires, giving you commission). Some submit offers have scrub rates as high as 80%!

    If you actually have valuable traffic that is genuinely interested in getting the gift - these are very valuable to the advertiser. They can turn that $1 they're paying you into $18 with that kind of traffic. You could look into setting up your own email submit offer - without the scrub rates, your own co-reg paths. Now you can also see why the advertiser is not happy with your traffic if they're only entering their email - sure, they'll get spammed to death (Its in the terms and conditions you agree to when submitting), but thats not where the REAL money is. THEIR advertisers want the fresh leads and more likely then not they'll call the lead within minutes if they answered 'yes' or 'no' to a 'do you have a mortgage/car insurance' question. That is commission that the advertisers on the networks never get to see ;)

    This game represents a lot more than just email submits. If you were to run your own, you could've probably made 3 times more than whatever you've been paid for email submits so far. And I know some have been paid a lot :)
     
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  4. Whisker

    Whisker Moderator Staff Member Moderator Premium Member

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    Just go through the backend path of a few different ones and see yourself. At first they will target down the traffic by interests, education, age, location, income etc and fwd that data along with the name, address, email, etc to 3rd party companies for money and market the targeted data for themselves. Then they try and get them to do a few higher level offers to squeeze more out of them.
     
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  5. ``Yousef

    ``Yousef Power Member

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    I'm curious what the margins can be on this kind of stuff (junk). It would be interesting to get some data on the average $ amount that advertisers make on each submit they don't scrub out.
     
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  6. locknload007

    locknload007 Jr. VIP Jr. VIP Premium Member

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    OK, there is a lot to read here and I have glanced over it and will read more.

    I did not see how they make money with zip submits, because as best I can tell, they have no way to contact the person who entered their zip code. Now, if they drop a cookie, then that is something. Also, if they are just trying to get them to complete offers once inside, OK, but to be paying $1.50 per zip submit, it is un realistic to have a high amount of people completing offers, they are in because it is easier to post your zip than your email.

    I have heard that an email address is worth like $25 over its lifetime, obviously the amount they hope to get from offers they send to the address. But a zip code?

    Thanks for all the replies, and I am off to read over the replies more.
     
  7. locknload007

    locknload007 Jr. VIP Jr. VIP Premium Member

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    Thanks for the replies. Thanks mil0x for the long reply. Very well written and very informative. Should be a sticky for newbies to CPA offers.
     
  8. Whisker

    Whisker Moderator Staff Member Moderator Premium Member

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    They don't make money off the actual zip code, it's just another action where you the publisher get paid. Like you said it's easier and thus more enticing for you to promote since it's just a zip and not their email address.

    As far as your assumption that "it is un realistic to have a high amount of people completing offers" you don't really have any position or data to claim that unless you are running your own path. Some full reg offers have higher epcs than email/zip submits because the users are very engaged into whatever the offer is, so a high percentage of the people that enter their email or zipcode will also fill out the 2nd page "address information" and then offers afterward. If that doesn't convert well they will just scrub your ass till it reaches a converting level for them, that's how they stay in business.