The truth about affiliate marketing and CPA offers. While I won’t call everyone who runs an affiliate program a crook let me share some of the results we have seen in testing with one of our other business associates. Before I do that let me tell you this. Most affiliate companies do not want to pay you a commission. Why? because it eats away at their margins plain and simple.
For the past 90 days we’ve been testing several affiliate offers with one or peers in the industry. We both started with the same offer. Their first month, generated over $50k and we hit $6k. For both of us it represented about a 25% conversion rate on our click throughs to the same offer. During the 2nd month both of our conversions dropped to 15% and now in our 3rd month of testing we are at 10% conversions.
We tested another affiliate offer and saw the same exact results. First month conversions are high and then subsequent months slowly deteriorate.
Affiliate marketing can be lucrative and there is certainly money to be made, just be aware of this. Affiliate and CPA offer providers are always looking for ways to reduce payouts. I’ll even throw this out into the blogosphere as an open challenge for someone to prove me wrong.
So what do the heavy hitters do? The heavy hitters in online marketing have direct marketing contracts with product and service providers. They get paid on a percentage of the overall sales. No affiliate links or affiliate IDs to mess with.
As you look at affiliate offers, don’t get hung up on a specific product, brand or payout. The bottom line is conversion rates and how much your affiliate check is each month. Some offers may pay less, but have a higher conversion rate than offers with high pay outs.
Monitor and track your conversion rates every month. If an offer starts to drop find something else.
Look for more updates to come on this fun and sometimes frustrating area of opportunity.