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What is benefit of PPL offers for advertiser?

Discussion in 'CPA' started by ad2007, May 10, 2016.

  1. ad2007

    ad2007 Newbie

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    Hey guys!

    Hope you are all fine and making good profit with IM )

    I'm interested to know what is benefit of PPL offers for advertiser?

    I'm working on different CPA networks and want to know how they make money when I find leads for their sites? If they offer both free and premium services, are they looking to have some premium members from my leads or it does not important for them? ( I think most of my leads prefer their free service and of course I get real organic traffic, not spamming or any BH methods ). Do I need to be responsible for my leads if none of them will not get their premium service... How they calculate my traffic's quality and what's important for them?

    Thanks a lot in advance and sorry for all questions that came together! )
     
  2. LordCameltoe

    LordCameltoe Regular Member

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    The Free Leads you give them need to turn into paying members.

    Let's say you are promoting SiteX.com. They estimate that a premium member is worth about $100. They also know that the 1:20 free members convert into premium members. So if they want to keep a 20% profit margin, they will pay you:

    $100 - $20 (profit margin) = $80 / 20 = $4 per lead.

    If you send traffic that convers 1:5 instead of 1:20, they may increase your leads. However, it would probably be better for you to take a PPS deal at those ratios. If your leads don't convert, they will drop your payout or kick you from the PPL program because they are not making any money.

    Hope that helps!
     
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  3. ad2007

    ad2007 Newbie

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    Hey! Thanks. ) What about PPD offers? I'll get paid when someone only download a file, so how those sites make money when they offer PPD? Is it only important for them to get more traffic?

    Thanks again in advance )
     
  4. ad2007

    ad2007 Newbie

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    What if they offer free service not paid service? They are paying for leads that for example only sign up for free on their sites. I want to know how they are marking money from these leads...
     
  5. ad2007

    ad2007 Newbie

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    Any help guys...?
     
  6. THUNDERELVI

    THUNDERELVI Elite Member

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    Data is more important these days than trying to convince people immediately to buy something. The way they are making money is by either selling the data or using it for more marketing campaigns. So, for example, they get 100 free sign ups. They pay you $1-2/sign up, so they spend $100-200. After that, they send promotional emails every month and with only 1% CR, 1 person will buy whatever they are promoting or offering. Let's assume the profit per sale is $20, so they will make $20/month and in about 5-10 months, they will get back their investment and from that point on, everything is profit.

    I assumed the very worst case scenario only, but even a newbie will achieve better rates than that, let alone large companies that have been doing split testing for a very long time. So, assume at least a 10-15% CR with a higher $ profit/sale, higher frequency of emails sent each month and you can see they make back their investment in a short time and then it's only profit. On average, an email subscriber is worth 1$/month, so if you spend $100 to get 100 emails, you will make back your money in 1 month only. It's the same idea with what LordCameltoe explained above regarding PPL/PPS, but with different promotion tactics.
     
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    Last edited: May 11, 2016
  7. ad2007

    ad2007 Newbie

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    Hey THUNDERELVI,

    Thanks for your info. Your answer looks more logical. Because it looks a little strange if they will drop my payout or kick me from PPL program if my leads do not convert... . I'm getting PPL offers because I'm working on these better and it should not important for me if my leads convert or not, right? And I should not responsible for leads that will convert or not because I'm getting paid for leads not sales and if the sale part was important, I was looking for PPS offer instead of PPL.
    I want to make sure that it'll be ok if I get only leads for them and do not want to focus if the leads convert or not. (this is maybe their task to make money from their list and as you've mentioned they will make money from the list and subscribers that they have sooner or later... right?)

    Of course I'm getting real traffic and I'm investing to get that traffic but I focus on free service that advertiser offers to engage people to submit in their site and I do not know if people will use their paid service in the future or not. So you think that it's ok if I continue on this way or I need to take care of sales?
    Thanks!
     
  8. eMonetize

    eMonetize Regular Member

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    No one is going to buy leads that don't convert.

    It makes no difference what they are paying you per lead, if they do not convert at the rate they consider acceptable, eventually you will get tossed from the offer.
     
  9. Wolston

    Wolston Regular Member

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    Yup. Thats when you hear people complain about getting their clicks and conversions shaved by networks. You need tp have real targeted traffic. I haven't had success in it either.
     
  10. ad2007

    ad2007 Newbie

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    Thank you guys.