JakeMA
Active Member
PPL vs PPS which is best for you?
Hey Dojo, Just something i'd like to share with you all as some affiliates overlook this.
Having previously worked for a dating advertiser I have a very unique advantage and understanding on how affiliates traffic will convert on the back end for the advertiser.
This is VERY important to consider that the ultimate goal of promoting an offer is to be able to run the offer for a long time and make a ton of money over a long period of time rather than a little bit of money quickly.
Most affiliates want to run PPL (pay per lead) or CPL (cost per lead) offers because they get a return on the traffic almost immediately which can be a good idea if you need an immediate return on your money. At this point, its important to optimize your campaigns to improve your EPC and provide good quality traffic overtime for the advertiser. The goal is for your free joins or leads to turn into a paid membership in the long run. This is how the advertiser makes money and if your traffic only signs up as a free join or lead and never becomes paid, the advertiser loses money because they paid you for that lead. If the advertisers aren’t making money they will sooner or later pause your campaigns and you’ll have to start over with a different offer.
The advertiser should be able to tell within the first 500 leads and about a week or so if the traffic is profitable for them and feasible for them to allow you to continue. Once you break through this barrier you’re on to a winner providing the offer converts well for you. After sometime you’ll find that your campaign is running like clockwork and you’ve been promoting the offer for a few weeks. With this the advertiser will have a great understanding on your traffic by the CPA (cost per acquisition) This is calculated by the amount of revenue they pay for your leads e.g. 100 leads X $6 = $600 divided by the amount of sales your leads have converted on the back end e.g. $600 / 4 = $150 CPA
Your CPA is what the advertiser will use to base their decisions on the future of the campaign. Every advertiser is different and will all have a target CPA that you will need to meet for them to make money on the traffic. If you perform within their estimate they will be happy with the steady volume you send. If however your CPA is well under the desired amount (meaning they are making more money) they will want as much traffic from you as possible. You may even find they will offer a pay bump for more volume. When you reach this stage it will mean your traffic converts well on the back end i.e. sales and your making the advertiser money.
A lot of advertisers won’t share the exact amount of sales you make as you could then calculate if you would have made more on the traffic by running it as a PPS offer. If you are getting asked for more volume and offered bumps, it may be a good time to test their offer on a PPS basis if they offer one. On a PPS offer, you send a free join or lead and don’t get paid until the lead turns into a paid member. Whiile it takes more time for that to happen, sometimes as much as a week, if you can be patient it will often payoff in a higher ROI on your traffic as the PPS offers pay as much as 10-20 times what the PPL offers are paying.
If you would like to discuss PPL vs PPS offers and see which one is right for you, please reach out to me any time on skype: Jake.MonsterAds
Cheers
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