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Run an affiliate network

Discussion in 'BlackHat Lounge' started by dadecotti, Jul 22, 2014.

  1. dadecotti

    dadecotti Power Member

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    Anyone ever had this idea?
    Do you think it's very hard? What's the investment startup required?
    I see many networks starting every day but very few of them became very big companies.
    I see hasoffers gives the script, pro and enterprise version, doesn't look a difficult task.

    What do you think?
    Any successfull stories?
     
  2. genesis86

    genesis86 Registered Member

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    dont bother lol there are to many already and you just asking this question shows you do not have the experience to do so. I owned a rather large CPA network few years ago. And now its even harder.
     
  3. sashablack

    sashablack Elite Member

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    I would think the most of where your investment will go to is finding new affiliates. Look in to proper hosting or even a VPS.

    goodluck!

    P.S. I think $10k would be a good start!
     
  4. K.H.R

    K.H.R Jr. VIP Jr. VIP Premium Member

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    Success Depends on Activity & Business Plane.
     
  5. dadecotti

    dadecotti Power Member

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    If you want someone to give up from running a new affiliate network, you are doing it properly.
     
  6. dadecotti

    dadecotti Power Member

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    Did you closed it? Why?
    If I may ask.
     
  7. ferma231

    ferma231 Elite Member

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    If you want to run your own CPA network. you should get at least $100k to start, thats to maintain positive cashflow, take out the loss and shit like that.

    You will need to provide Weekly payments thats 100% all big players want weekly payments or daily, but weekly would be good, not all advertisers pay weekly, some could pay NET 30 or so, as you are new player in field, also some advertisers will avoid your payment, so thats why you need $100k, to take out that loss, before you get bigger.

    And if you go for hasoffer, you might run in problems, it isnt really that reliable, you should go for CAKE tracking , just disable shaving, or avoid that, you will run in troubles if you shave your Affs.

    Prices for CAKE - $1500 set up, then $1500 each month, so with $10k you will afford it for 4 months or so , and you are out of cash.

    And if you get big aff, lets say $10k/month dude in, you wont be able to pay him weekly, And that will turn him off, and i can guarantee that, he will want to get weekly, or else his campaigns or whatever can go bad. if you pay on time, he might stay with you and make you $xxxx/month or when he grows $xxk profit for you.

    So if you want to start network with low figures, you can run in problems.
     
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  8. dadecotti

    dadecotti Power Member

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    I understand what you mean, but I don't think this is the way to startup.
    I think at the start you have to work hard and get patience to get a small but fluent income, and pay you affiliates when you get paid from the advertisers. Big fish won't like that? No problem, I will have some that will let me grow up steady.
    With the first earned money I can setup the best affiliates weekly in order to keep them with me.
    In addition many and also big companies use hasoffers.
    Step by step.


     
  9. ferma231

    ferma231 Elite Member

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    Okey, but that isnt really going to make you much money ;)

    If you want to get small affs lets say $1000/month affiliates, even they want weekly payments, especially in new network, where they dont know if network will pay or not.
    If you go for cake tracking, you still got to get like 10-15 affs to pay off your tracking system cost.

    I doubt you will want to turn down some big aff, when he joins and says he make $xxk/month you will be : Well i cant accept you because im small guy and im accepting small guys at start to build up my income so i can get you, but ill hit you up after a year when i have financial backing

    That isnt going to work really well.
     
  10. BassTrackerBoats

    BassTrackerBoats Moderator Staff Member Moderator Jr. VIP

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    10K is fine for a used car but not even close to start a CPA network.

    And when they do not pay you because they are short on cash or fail? You need to man up and pay your people so you will need to have reserves. Real reserves.

    Hasoffers is fine for a start but you'll want to upgrade to Cake.

    It is a lot of work and the margins are a little thin so you will need to be on it hard if you choose to move forward but you are going to need a fair amount of cash as collecting from Peter to pay Paul is a bad business model for a CPA network to thrive.
     
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  11. LordCameltoe

    LordCameltoe Jr. VIP Jr. VIP Premium Member

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    Maybe you know me, maybe you don't.. but either way, here's my advice:

    a) Don't start an affiliate network unless you have traffic of your own or have access to people that do have traffic. These are essential to starting a successful network. Without them, you're a clone ,of another clone of a clone.

    b) get exclusive deals

    c) If you have all of the above, then get cashflow
     
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  12. madoctopus

    madoctopus Supreme Member

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    Or you incorporate offshore, move the money to another offshore as payment for a bogus service and when you have to pay publishers you file bankrupcy. You wouldn't be the first network to do this :p

    Then again if $10k is your budget, you don't have the head to do this setup in the first place.
     
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  13. ferma231

    ferma231 Elite Member

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    You dont need to be start up to do, there are big examples who steal millions ( EWA )
    Not the right way to do biz for sure