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Why do they pay so much money for a lead?

Discussion in 'CPA' started by Mangamarie, Dec 4, 2009.

  1. Mangamarie

    Mangamarie Registered Member

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    I'm sure there is a good reason why a company would pay $1.50 for an email address, but I would like to know why?

    I figure if they have enough money to pay out the whazoo $1.50 per person they have to be making even more bank. Plus if I knew perhaps I could do my own thing. I don't mind making $100 a day promoting their products and leads in the dark, but I wouldn't also mind knowing why they do it.

    Anyone know the process or can give a ballpark estimate why companies pay for leads?
     
  2. badassmamma

    badassmamma Regular Member

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    The leads they pay us for they email a billion times and its simple investment strategy. They pay us $1.50 they make back $5.00 or more. They basically spam and get them to complete other offers so they make good profit from the leads.
     
  3. Quattro

    Quattro Junior Member

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    They are basically paying for the leads to opt into their mailing list. Based on the type of offer they are getting targeted leads for offers they can promote endlessly.

    I suggest you read up on list-building and see the value and money to be made in well targeted mailing lists :)
     
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  4. Mangamarie

    Mangamarie Registered Member

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    I never thought emailing offers could be profitable. I'll be honest I have never once opened an email for an offer and always provide fake email addresses to things I want to try out. I just assumed others did the same thing, but apparently not.

    Anyone know of a good ebook that explains this in more detail?
     
  5. MarketerMac

    MarketerMac Regular Member

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    why don't you put one of your own email addresses into the field and find out exactly what they are doing to make money from the leads...it's as easy as that.
     
  6. Mangamarie

    Mangamarie Registered Member

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    Well I do use one of my junk emails to test out things to see if I want to run the campaign myself (obviously I don't use my link), and I do receive tonss of spam, but I would never open any of those. Maybe 1 out of 1000 I would open if it had something to do with my hobby, but I probably wouldn't buy it.

    Then again I'm not like most people so I should investigate it more.

    Wouldn't it be cheaper to just buy a mailing list though?
     
  7. Katarsis

    Katarsis Registered Member

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    Bingo! ;)

    More and more people every day use computers/internet/email, but you can bet your firstborn that a significant amount of them aren't as net-savvy as you are, and are unlikely to ever be.
     
  8. Lukedell

    Lukedell Junior Member

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    Have you seen what you have to go through on the other side once you submit your email? I am surprised people actually go through the whole process with the crap they make you go through.
     
  9. ghettogong

    ghettogong Regular Member

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    So now how to get the email from the sucker that is filling in a cpa offer on our sites people????
    Posted via Mobile Device
     
  10. lordgiap

    lordgiap BANNED BANNED

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    for example for email submit:get an free iphone.Inside the submit there have lots more CPA offer.So with $1.50 per lead they actually earn more than that.
     
  11. bizzybee76

    bizzybee76 Junior Member

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    It is the basic principle of advertising. You have to spend money to make money. Every single business has a pay per lead ratio. It is just that with IM they are paying us to send potential customers their way. I used to sell cars, and the dealership I worked at sold around 200-250 cars a month. Their goal was always 300 cars a month. They knew that each customer through the door cost them $250 on average based on their advertising spending. Did all of them buy? No, of course not. But many did, and we would make thousands on those sales. So, if a CPA co is paying $2 a lead it is because they know that in the long run a certain percentage of them will become paying customers.
     
  12. Mangamarie

    Mangamarie Registered Member

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    I think doing cash incentives is too much work for the amount of people who will do it. It's better to offer them content since it doesn't force them into a commitment.

    They would prefer a free ebook worth nothing than $5 that they have to work for. People are funny.
     
  13. billrolls

    billrolls BANNED BANNED

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    They pay you a buck for a lead and make thousands in turn.....thats the basic idea behind it
     
  14. stunna

    stunna Jr. VIP Jr. VIP Premium Member

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    Haha not quite.

    They make a solid return though. Somes a 2 to 1 or even 3 to 1 return ratio, which is obviously solid.
     
  15. nullacceptance

    nullacceptance Registered Member

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    dig $$$$ online! :)
    $1.50 ???? wow that's high! or that's the standard now? oh i'm behind. :confused:
     
    Last edited: Dec 5, 2009
  16. Mangamarie

    Mangamarie Registered Member

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    $.90 to $3 is pretty good. They have some for $.35 and stuff, but it's not really worth your time.
     
  17. pes7md

    pes7md Registered Member

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    what sites run this kind of programme? Please let us know