Media buys and getting traffic on credit

lemon116

lemon116

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Oct 16, 2008
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The way I understand the game, its possible to leverage a bank account that has $10k in funds and buy traffic worth $100k. ie applying for $10k credit line with 10 different publishers.

I dont have previous experience thus my questions;

It may work with large ad networks, can you apply this to smaller direct buys?
Do you ask for a credit line right away, in your first phone call?
From your experience, how much credit do "they" give (for your first buy)? 1:1 (bank funds = credit line) more or less?

I know they might ask for a pre-pay, but my goal is to play rough and try to avoid pre-pays (leveraging my bank as much as I can). Possible?

And last, do you have any tips on how to build credit with your business/lcc? You are in your first tracks, have no trade references and no bank history. How do you make a name for yourself, without having to suck dick?


Lots of questions, I'd appreciate any help!
 


Not sure why people aren't giving you legitimate responses. I also read the traffic tactics book that discusses this, and I'm starting to apply it. I have the exact same questions... just setup an llc, got my D & B number, and asked my bank to be a reference. I'm going to apply for credit from these networks right off the bat and if I get turned down, I'll just end up using my own cash flow.
 
In any business, unless it is selling Coke or suchlike, never borrow, or at least try to limit your borrowings.

You sound like you are starting out media buying, and want to leverage from day 1..

OK. I am not an expert on media buy by experience, but I can read between the lines and I know business.

You can leverage, no doubt if you have a Traffic source, that is constantly giving you a constant ROI as you scale up slowly.

usually, scaling up take jumping from One Orbit to another and in between there are losses.

But in case you have a Massive traffic source, and without changing other variables like LP, Creatives, AND DEMORAPHiCS, you are confident that you can maintain the said ROI, then by no means LEVERAGE...

But if you are leveraging to test an offer or to start out...

Like, you see a fake News Blog with an ACAI offer. You rip the LP, grab the offer from your network, and say you buy that 100K worth of traffic.. Then you end up filing bankruptcy..

PS; This was on Scaling and ROI.. Not on media Buying. I suck at media buying.
 
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My VERY Limited Experience With This....

I made a few meager experiments with this awhile back and every single time I spoke on the phone with a rep from one of the traffic/ad networks, they were trying to give me credit - or at least wanted me to apply for some.

My manner of approaching something in this manner is more cautionary than normal. If I'm not 95% sure of what I'm doing (which I didn't at the time), and don't already have a winning campaign (which I did in ppc but untested with this type of traffic), I'm not quick to borrow. That's just me though.

In answer to your question, though - Don't worry, they'll offer it to you.

I'm probably out of line here, but I'm going to say it anyway - be careful my friend. This is exactly the type of area where you could find yourself using someone else's money to "chase the dream". Find the winner first, and then use credit - if you want - to leverage the winner. Very dangerous to use credit to "look" for the winner.

Good luck with whatever you decide to do. Let us know how it goes.
 
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2thetop said:
I made a few meager experiments with this awhile back and every single time I spoke on the phone with a rep from one of the traffic/ad networks, they were trying to give me credit - or at least wanted me to apply for some.

My manner of approaching something in this manner is more cautionary than normal. If I'm not 95% sure of what I'm doing (which I didn't at the time), and don't already have a winning campaign (which I did in ppc but untested with this type of traffic), I'm not quick to borrow. That's just me though.

In answer to your question, though - Don't worry, they'll offer it to you.

I'm probably out of line here, but I'm going to say it anyway - be careful my friend. This is exactly the type of area where you could find yourself using someone else's money to "chase the dream". Find the winner first, and then use credit - if you want - to leverage the winner. Very dangerous to use credit to "look" for the winner.

Good luck with whatever you decide to do. Let us know how it goes.
Click to expand...

That is some solid Advice right there
 
media buys arent an automatic win, you can definately lose alot of money. So, trying to spend 100k if you only have 10k, doesnt make much sense.

The 1st one i tried i ended up spending $5500 to make $500 back
 
cousinvinnie said:
That is some solid Advice right there
Click to expand...

Solid post man, +rep. If you negotiate an out clause of 24 -48 hrs and a spending cap of a maximum of $200 per day for first 5 days it makes sense to get the money on credit.

Let's say I have $10,000 total that I can actually spend on media buys, I can go out and negotiate 10 media buys on credit with different networks and sites (this is assuming you MUST do a 10k buy with the network). This way, I can use my initial 10k investment to test 10 different networks at the same time and use my out clause to get out of the ones that are doing garbage from the get go and keep the winners.
 
2thetop said:
This is exactly the type of area where you could find yourself using someone else's money to "chase the dream". Find the winner first, and then use credit - if you want - to leverage the winner. Very dangerous to use credit to "look" for the winner.
Click to expand...

OP: Hope you're following this or else you are just setting yourself up for fail.

Do you borrow money to hitup the tables at a casino? I mean your odds are obviously better with a buy, but you're a fool to just start borrowing money to get shit going without money in the bank. Hope this isn't the case.
 
Read what blogspotter said....

First off... many ad networks will be scared to extend you credit seeing that you only have $10k in your bank account and that you're in a foreign country. They will most likely ask you to pre-pay. Consider yourself lucky if you receive any kind of terms.

Next, media buys usually lose quite a bit of money before becoming day over day profitable. Many media buys never reach profitability.

Lastly, like what others have explained above... the only time where this strategy is appropriate is when you know you have a very very good chance of being profitable with the campaign you've created. Leveraging yourself out with an uncertain media buy is never a great idea.
 
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