Auto Warranty Offer: Explain??

[bigkats]

Hello,

I have been running a lot of traffic to auto warranty offers and today I realized, I do not really understand how the offer is generating revenue for the advertiser. Could someone please explain how auto warranty offers work?

Is it click arbitrage? Affiliate deals with major warranty providers? Both or something else maybe?

 

[johu]

Um, the advertiser either directly sells auto warranties, or sells the leads... What did you expect? In reality, these are more like vehicle service contracts rather than "warranties".

 

[bigkats]

Well I am almost 100% sure none of the offers I am seeing on networks are directly selling the auto warranties... I guess selling the leads direct to auto warranty companies could make sense.

 

[jryan21]

Apparently, these companies won't cover an Abrams tank:

Your Factory Warranty Is About to Expire … Absurd Delight

 

[johu]

Well I am almost 100% sure none of the offers I am seeing on networks are directly selling the auto warranties... I guess selling the leads direct to auto warranty companies could make sense.

Does it really matter whether the advertiser is the warranty company direct (even if whitelabeled/unbranded), or if it's an advertiser that sells the leads directly to one company, or if they sell the same lead to multiple companies, or any other scenario? Either way, the lead that you originate is being delivered to a "warranty" company in some form or another, probably resulting in the same end result for the consumer.