Pricing Models Confusion

[MillionDollarAffMarketing]

As a good newbie, I have been going through the various threads in the START HERE. Lots of good info by the way.

This is where I start getting lost. There are at least 10 different pricing models and then multiple that by the number of affiliate networks. My head is starting to hurt.

Is there some generic logic that I should adhere to here in choosing a)choosing an affiliate network and then b)deciding the pricing model based on what I plan to market?

For example, I plan to market a "special widget" and since that's physical product I should be leaning towards this type of pricing model....

Or I plan to market a "special service" and since that's an electronic product I should lean toward this pricing model....

I guess that still leaves open which affiliate network to join...

I will say in advance that my questions may not make any sense to those that are skilled in this area....

 

[Graybeard]

You mean how affiliates get paid, i.e.; CPL, CPI, Rev-share, PPS, CPS, COD <Alphabet soup?

 

[MillionDollarAffMarketing]

You mean how affiliates get paid, i.e.; CPL, CPI, Rev-share, PPS, CPS, COD <Alphabet soup?

Correct. The page shows...

CPM, CPC, CPL, CPD, CPC, CPI, CPA, Tenancy, Hybrid, Revenue Share

There are probably more not listed as well.

 

[MillionDollarAffMarketing]

The short answer is that I don't really know at this point.

I have yet to choose "what" to market. I am leaning towards the "health" and possibly "debt" categories, but would need to drill down much deeper to a specific niche within each of those categories. On the other hand, both of those categories seem to be saturated like the ocean.

 

[Graybeard]

How do people pay for your 'special widget';

1. one time
2. monthly ?

What are your CPA (Cost per Action) payment options?
Usually your choices are limited by the specific *offer*

 

[MillionDollarAffMarketing]

Yes indeed....not interested in payday loans. So I will continue to let the waves move me around until I get hit with a good idea on what to market.

Not sure that is a reference to a string as in a variable in Java, but my string can hold 2147483647 characters.

 

[MillionDollarAffMarketing]

No. The proverbial answer to an open ended question: How long is the string in my pocket

I see my Java background has got the better of me. I suppose my answer to the question, "how long is the string in my pocket" would be.....Yes!

 

[Graybeard]

Mortgage loan leads may get good -- interest rates are going up -- so you have urgency.
Payday loan is just taking poor people ...
Nutra is just fad spam IMHO

But what you are saying is: what string and how long -- IDK

 

[Raj k]

IMO, if you have multiple options/offers for the same type of product, i'd test and see which ones earn you the best EPC, then go from there.

 

[azgold]

Product sales are usually PPS (Pay Per Sale) - straight up $X per sale.

RevShare means that you get a percentage of the sale and the product owner gets a percentage of the sale.

The mortgage loans, I assume would be a PPL (Pay Per Lead), where you get $X for each lead you bring in to the advertiser (person/company who owns the offer)

Nutra offers often have an initial trial offer, followed by monthly sales/shipping of the product. You need to check the terms of the offer to see if you only get paid for the trial, or you get recurring income for the monthly sales, too. If you're going through an affiliate network, you'll likely just get paid for the trial.

With any offer with any network, you have to read the terms of each offer. They tell you how you can or can't promote, when the offer is considered a conversion, how much you get paid per conversion.

Have I just confused you more?

 

[Graybeard]

No. The proverbial answer to an open ended question: How long is the string in my pocket

 

[MillionDollarAffMarketing]

Product sales are usually PPS (Pay Per Sale) - straight up $X per sale.

RevShare means that you get a percentage of the sale and the product owner gets a percentage of the sale.

The mortgage loans, I assume would be a PPL (Pay Per Lead), where you get $X for each lead you bring in to the advertiser (person/company who owns the offer)

Nutra offers often have an initial trial offer, followed by monthly sales/shipping of the product. You need to check the terms of the offer to see if you only get paid for the trial, or you get recurring income for the monthly sales, too. If you're going through an affiliate network, you'll likely just get paid for the trial.

With any offer with any network, you have to read the terms of each offer. They tell you how you can or can't promote, when the offer is considered a conversion, how much you get paid per conversion.

Have I just confused you more?

Maybe, but it's still all good info. Thanks.