Is pay per lead affiliate marketing for you?
Is it for you?
Pay per lead affiliate marketing is among the most popular ways for affiliates to earn income for their efforts. Due its popularity, many novice affiliates make the assumption it is also the best choice for them, but is it? Here we examine pay per lead affiliate marketing and whether it is something you should be looking at to be a more profitable affiliate.
Different affiliate payment methods
First, let us determine how payment methods differ and where pay per lead sits to ensure we understand
- CPA or cost per acquisition – this is a one-time payment affiliates get for leads they refer to the merchant.
- Revenue share - affiliates will earn a percentage based on the amount their lead will spend at the merchant's store. Typically, revenue share programs last for life, meaning you can earn revenue for as long as your customer continues to shop there.
- Pay per lead – affiliates get paid when a customer completes a specified action like installing an app, downloading software, completing a form, etc.
Who is pay per lead affiliate marketing for?
Between the two action-based payment methods, CPA involves actual registration and pays out for each lead while in pay per lead you may earn income for clicks or forms; however, there may be a required minimum lead number before payment is made.
Exactly what does that mean?
If you are seeking an affiliate program and you do have a choice between pay per lead and CPA programs, look carefully at your niche, your target audience and previous experience. If you niche has a high click-through rate generally but lower conversions, choose a pay per lead affiliate program. Of course, there are other factors to consider as well.
Pay per lead strategy
There are times when you will not have much of a choice. Pay per lead will be the only option you have and if you want to work with the advertiser or like their products, you will have to take it. In this case, we offer a few strategies you can use to make the most from that deal, even if your niche is not designed for pay per lead affiliate programs.
Cost per lead vs pay per lead
The first thing you need to do is design everything in a way for you to know how much each lead costs you. Then, do the math. In the majority of cases you be able to negotiate greater pay per lead. That is why you will have to find out ways to reduce your costs per lead.
Find what works and increase it
You need to find methods that allow your costs per lead to be smaller than your pay per lead. That is simple. However, it is not all. Make sure your method is scalable and can be expanded. If you spend $2 to earn $4, can you spend $20 to earn $40? Can the process be automated?
Mobile pay per lead
If you are planning to or you have already signed up for a pay per lead affiliate program, make sure you find out all mobile terms. Does the program track mobile clicks? Does it track sales? What is the experience for the user? Use of mobile devices is rising constantly and if a visit to the merchant's website is going to be a nightmare for your referrals, think a little more carefully before you consider taking up the deal.