Creating products to serve as loss leaders, funnel prospects into affiliate offers?

[NamEno]

Hi!

I've been absent from the affiliate landscape for several years -- long story.

Here's my request...

Would anyone care to share their experiences building standalone product offerings that are designed to serve as 100% loss leaders as a means to generate topically relevant prospects that are then systematically funneled into related affiliate offers?

(That was a really long sentence.)

In essence you're a product creator/vendor solely as a means to generate enough margin to buy ads and then plow your buyers/customers into relevant affiliate offers.

My rationale for asking this question stems from my initial test results that appear to suggest there's insufficient affiliate commission to buy ads and drive the traffic directly to an affiliate offer. Could be that I'm just not optimizing my ads or picking the right landing pages.

Thanks in advance!

 

[accord96]

There were a bunch of big words in there.. but to my best understanding are you not just wondering about payouts on offers. Acai, Grants, etc all were loss leaders if you look at initial charge vs. ltv.

Right now if you are running the traffic, look at your ltv and take rate on other offers. Determine how much money you can put back into initial promotion and go from there?

Split test while you are running to ensure your ads and lps are working but there is nothing more really than test, watch earnings and put those back into initial promotion. Once you have that make it an offer, payout less than your ltv ( but enough to promote) and go from there.

 

[antoseeg]

If you are talking about creating a product and selling it for a very cheap price, in order to make money on a bigger product sell later, then I know what you are talking about. This is actually a very common strategy used by many Internet marketers to get subscriber lists full of product buyers.

This strategy is very simple. You sell a product for a low price, then you sell products that relate to it for a much higher price. In order for this strategy to effectively work, your related products have to provide an extreme boost to the product you used in order to get your lead.