Alternate Payment Models

I was pretty intrigued when I saw this, mostly because it’s a really straightforward affiliate marketing concept that uses some product, in my case it was Foxit’s PDF app, as bait for converting a new customer for a service partner.

Although I find it interesting, I remain skeptical just because I can’t imagine the finders fee for a new eBay or Netflix customer is more than a few dollars. I do know that eBay pays out some percentage of the first transaction as an affiliate fee but not sure how much. At any rate, Offerpal Media must have a complex financial model to drive this business.

I think this could work for products that have little opportunity to maintain a price point in the market, but beyond that I’d see this as creating an artificial barrier between you and a potential customer.

Anyone know what affiliate deals are worth today?


4 thoughts on Alternate Payment Models

  1. For subscription services the rate is somewhere around one month of revenue. For IP products that are downloads (i.e. Get Rich on the Internet schemes) around 25-50% of gross sales price. For product sales 5-10% of total sales made in the next 30-60 days (most programs set a cookie that compensates the referring affiliate for return visits during a set period). Most programs offer elevators for performance.
    Think of affiliate programs as lead generation/pay-per-action programs. Some big ticket items pay on a PPC basis but its rare.
    I’ve been on both sides of this model (used programs to sell and created site monetization based on affiliates) and they work really well if they are taken seriously and policed by their managers and third party systems (CJ, Clickbank, DoubleClick Performics,Linkshare, etc.). Please note that Google now owns one of the largest affiliate networks which tells us something…

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