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Old Black Hat trick to generate lots of affiliate sales

Discussion in 'Affiliate Programs' started by delnabo, May 21, 2010.

  1. delnabo

    delnabo Regular Member

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    I just read on another forum that some guy was promoting a site that paid him $150 per each $20 sale generated through him.

    So, this guy started paying people $40 to purchase the $20 digital product for him. So, he made $80 per sale.

    I'm sure he will eventually get caught but it surprises me that people are actually doing these things.
     
  2. SmileAtmyWins

    SmileAtmyWins BANNED BANNED

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    Yes, but in the end, does the company ACTUALLY come through with the payment? Or is it instant withdraw?
     
  3. nilomas

    nilomas Regular Member

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    It doesn't make any sense unless the company that was paying him that much had some sort of subscription fee set up for new members, otherwise they'd lose so much money.

    Just like the Direct TV thing you sign someone up you get a hundred dollars, but the people who you refer have to sign a minimum contract for like a year or some shizz.

    That's crazy though, I mean they will probably cut him off eventually, but who knows if hes not dumb about it he could make some decent dough for awhile.
     
  4. delnabo

    delnabo Regular Member

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    No, it's not a subscription. It's a digital service that people may want to buy over and over. It's like addictive.
     
  5. SmileAtmyWins

    SmileAtmyWins BANNED BANNED

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    What does the service entail?
     
  6. nilomas

    nilomas Regular Member

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    Yeah, seriously I'm starting to think the guy was bluffing, I mean paying someone 150$ so you make 20$ doesn't add up.
     
  7. topsytips

    topsytips Regular Member

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    I've seen this done with some subscription type services. However, if the subscription is subsequently cancelled then either all or some of the money is clawed back.

    As Smileatmysins infers, I doubt that this money will be "cleared" to be withdrawn straightaway and that there will be some hold on it.
     
  8. nilomas

    nilomas Regular Member

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    I remember seeing an E-book on Black Hat Team 2-3 months ago where it gave a few sites that gave money for each refer you brought in, and you would basically buy the people.

    But each person was only worth 10$ not as much as this. Scaled down dramatically, and from what I remember it was a LOT of work.
     
  9. delnabo

    delnabo Regular Member

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    He obviously didn't reveal the service. He just posted that it was something that people might want to buy again and again. Obviously, this only applied to people who were interested in that service. The people he hired to make payments would not continue purchasing the service. Again, this was not a subscription but a one-time payment

    By the way, I just remember he said he didn't abuse this method. He would only do 5 purchases a month ($400 profit)
     
    Last edited: May 21, 2010
  10. oxonbeef

    oxonbeef BANNED BANNED

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    What's this **************** again? One sure way to get you're ass banned from the networks.

    Edit, I guess that system is not to be talked about on here anymore.
     
  11. zebrahat

    zebrahat Elite Member

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    It's a more dramatic variation of some principles behind incentivized CPA or pay for performance concepts. In traditional marketing you may advertise a $10 item with a $200 ad, so if 20 sales result, you break even. This means your cost per sale is $10 ($200 divided by 20 sales) with little control over the outcome of a given ad campaign.

    If the business goes to a different marketing model, however, and design an incentive program to directly reach customers to offer them $5 rebate to buy the $10 item, and 20 buy, they've cut their cost per sale down to $5 ($100 divided by 20 sales). So depending on the product and pricing set up, the company or affiliate marketer can jimmy an incentive based approach that overall makes or saves more money.