How much do the networks keep?
- Thread starter Webwonder
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Smaxor is right, its a big range but it is the range.
The majority of networks are part of a publicly traded company. You can find their revenues very easy.
You can determine their profit margin by taking their gross sales and reducing it by their cost of goods sold.
PrimaryAds is under think partnership or Kowabunga
C X Dig ital trades on some canadian stock exchange
eadvertising is part of First Advantage
neverblueads is part of Vertrue (formally Memberworks)
Performics is under google
And probably a lot of others i cant think of right now.
All of them report earnings you can figure out what % they keep if you know how to read a financial report for a company.
The majority of networks are part of a publicly traded company. You can find their revenues very easy.
You can determine their profit margin by taking their gross sales and reducing it by their cost of goods sold.
PrimaryAds is under think partnership or Kowabunga
C X Dig ital trades on some canadian stock exchange
eadvertising is part of First Advantage
neverblueads is part of Vertrue (formally Memberworks)
Performics is under google
And probably a lot of others i cant think of right now.
All of them report earnings you can figure out what % they keep if you know how to read a financial report for a company.
Actually webwonder, it doesnt matter how much the networks pay you. You will fail anyway, and that is because you are thinking wrong.
What matters is network transparency, payout flexibility, cashflow, conversion rates. Not payouts.
I currently work with a small network, with the smallest payout of all similar offers, and I think I am the one out of two affiliates promoting their offers. Conversion rates are insane, and I am making 3 paychecks.
All that because I look at the right metrics.
What matters is network transparency, payout flexibility, cashflow, conversion rates. Not payouts.
I currently work with a small network, with the smallest payout of all similar offers, and I think I am the one out of two affiliates promoting their offers. Conversion rates are insane, and I am making 3 paychecks.
All that because I look at the right metrics.
As a merchant who has run offers on several networks, I can confirm the 10-30% figure. Some of the networks (who I won't mention by name), will go beneath the 10% threshold just to have the best payout and pull volume from competing networks if the merchant hasn't set a maximum street price on the offer.
Pretty sure Hydra does this with a lot of the offers it has comparing the same offer to other networks.
There are usually other things involved in this process - like reporting discrepancies, arbitrage deals, etc...
As an example, there are deals that have such ridiculous overage's that the networks can pay out their gross payout and make a profit on the overage that is not being reported in their system.
As an example, there are deals that have such ridiculous overage's that the networks can pay out their gross payout and make a profit on the overage that is not being reported in their system.
Either they accept smaller margins or just drive a ton more volume (or a little of both.) They definitely have a large enough affiliate base to do this. They've grown exponentially in the past 4 years alone, my aff id is in the low 3000's and I just saw one that was well over 30,000 -- That's just huge.
You are absolutely correct.
I use liveHTTPheaders (FF plugin) to see all of the quick redirects that go on in an offer.
Can we stop using the word transparency? The word itself has been dirtied by pepperjam, and I'd hate for it's use to increase and give legitimacy to their "only benefits the merchants" bullshit version of it.
What a network makes doesnt matter. What matters is what you're yielding on the offer. i.e what you make per click or on an eCPM basis, depending on your metric.
With respect to brokered offers some may perform better than a direct deal. Same landing page and everything but acceptance might be better from that network so the adv loosens the filters on it. You see this a lot in the email/zip submit world. If you got crappy traffic sometimes it blends in with really good traffic and the advertiser doesnt care, once that really good traffic is gone, you stand out more and begin to get scrubbed or kicked off.
Yield matters thats it. Higher yield means less scrubbing, more accurate tracking, and a good payout (network taking less) Focus on your yield, and count clicks on your own system as I have heard of programs shaving clicks to trick you in to thinking its converting better.
With respect to brokered offers some may perform better than a direct deal. Same landing page and everything but acceptance might be better from that network so the adv loosens the filters on it. You see this a lot in the email/zip submit world. If you got crappy traffic sometimes it blends in with really good traffic and the advertiser doesnt care, once that really good traffic is gone, you stand out more and begin to get scrubbed or kicked off.
Yield matters thats it. Higher yield means less scrubbing, more accurate tracking, and a good payout (network taking less) Focus on your yield, and count clicks on your own system as I have heard of programs shaving clicks to trick you in to thinking its converting better.
One thing to consider....
What do you think should happen if the advertiser doesn't pay? Do you think the network should try and cover what's owed? If so where does that money come from? If someone came to that was doing good volume and said I'm ok to take the terms that advertisers are giving, lets say monthly payments 15 days after the end of the month. And if the advertiser doesn't pay I'm not going to bother you about it. I may give them a better payout. But I've had a couple advertisers not pay and always never really said anything when covering the funds to the affiliate.
So yeah, we as affiliates may be giving up a little chunk but we get weekly payments, probably are getting paid on advertisers that don't pay. We also as affiliates don't have to go deal with advertisers which can be a HUGE pain in the ass. Is that worth a small %?
As an affiliate I've always chosen to work through a network other then a couple cases. As it always let me focus on what's important, figuring out how to get more traffic for more offers to make more money
What do you think should happen if the advertiser doesn't pay? Do you think the network should try and cover what's owed? If so where does that money come from? If someone came to that was doing good volume and said I'm ok to take the terms that advertisers are giving, lets say monthly payments 15 days after the end of the month. And if the advertiser doesn't pay I'm not going to bother you about it. I may give them a better payout. But I've had a couple advertisers not pay and always never really said anything when covering the funds to the affiliate.
So yeah, we as affiliates may be giving up a little chunk but we get weekly payments, probably are getting paid on advertisers that don't pay. We also as affiliates don't have to go deal with advertisers which can be a HUGE pain in the ass. Is that worth a small %?
As an affiliate I've always chosen to work through a network other then a couple cases. As it always let me focus on what's important, figuring out how to get more traffic for more offers to make more money
One thing to consider....
What do you think should happen if the advertiser doesn't pay? Do you think the network should try and cover what's owed? If so where does that money come from? If someone came to that was doing good volume and said I'm ok to take the terms that advertisers are giving, lets say monthly payments 15 days after the end of the month. And if the advertiser doesn't pay I'm not going to bother you about it. I may give them a better payout. But I've had a couple advertisers not pay and always never really said anything when covering the funds to the affiliate.
So yeah, we as affiliates may be giving up a little chunk but we get weekly payments, probably are getting paid on advertisers that don't pay. We also as affiliates don't have to go deal with advertisers which can be a HUGE pain in the ass. Is that worth a small %?
As an affiliate I've always chosen to work through a network other then a couple cases. As it always let me focus on what's important, figuring out how to get more traffic for more offers to make more money
This is a good point
Jason we should share info on who pays and who doesnt. Half this industry pays very slow and sometimes not at all.
I have about 20 companies in collections right now for over $1 Million, that i paid out to affiliates already, think being a network is easy?
One client of ours sent this us, and said it reminded him of us YouTube - Family Guy - Stewie Beats Brian
We told them they had to 5 o'clock to wire or we were pulling their offer
Now you know why some offers come down with little notice, unfortunately as a network you need to ensure payments always flow and advertisers never want to pay on time as agreed or try to get credits for "bad" traffic with no proof
There's nothing I'd love to do more than share some of this info. The only thing that sucks more than a merchant that doesn't pay us is seeing that merchant continuing to "succeed" by going to get traffic from other networks.
The AM sub-forum maybe? I can start with one who burned MB. Not for a ton of money, but nevertheless they didn't pay their bills.
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