Making the transition from affiliate to lead selling

L

letsmakemoney

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Feb 11, 2009
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Ok, I have been wanting to transition away from being an affiliate to a position with more control. If I currently promote one affiliate program, how should I negotiate with them to let me sell them leads instead of getting paid commission off sales?

I was thinking that it would probably actually benefit them more because if I sell them a lead, then I can provide them with a name, phone number, and email address. With that information, assuming they know what they are doing, they can achieve a much higher conversion rate they they would be able to with just a click to their site and no information about the consumer. I might be able to sell them on that, but is that convincing enough to do the trick?

I mean, it should be a win-win for both of us - I can have a much higher conversion rate and even with a much lower cost of lead vs sale my earnings per visitor should be much higher. The vendor can achieve a higher conversion rate on my leads than they would from my clicks and they only have to pay me a fraction of what they would if they were paying me per sale.

I'm thinking they will probably want to let me give them leads for free for a while to gauge the effectiveness of them before paying for them.

The other thing that I could do is to sell leads to more than one vendor (insurance quote style) - but this might devalue the cost of each lead and discourage vendors (mainly one that I already have an affiliate relationship with) from signing up. Still, selling 1 lead worth $5 to 5 vendors is worth more than selling 1 lead worth $20 to 1 vendor.

Has anyone made the transition from affiliate to lead-seller? Any advice?
 


Lead selling is definitely very lucrative and 'the next' step into becoming a really high volume affiliate. My suggestion to you would be to begin capturing your own data (email address, name, phone number, etc.) and then monetizing your front/back end with CPA offers.

While you could use a service like aWeber to collect this information, your best bet is to write some code that will allow you to store this to your own mySQL database. You can then utilize aWeber's API (and others) to send the information you want to monetize on your back end.

Once you begin to initially monetize the data (and you have thousands of fresh leads your collecting daily) you can then approach lead buyers to further monetize the data.

Good luck.

- RG :stonedsmilie:
 
Hmm, I can collect the data, but testing it would be tricky, I think. I mean, I currently promote a physical product as an affiliate, making a certain percentage as commission. If I collected my own leads, I'm not sure how I would monetize them the same way as the vendor could (just for testing, obviously I couldn't use the leads the exact same way they can without being the vendor myself).

I imagine that if I provide them leads with contact info, they would either call or email them and try to sell them. I would think that this conversion rate would be much higher than the conversion rate of a single click.

I'm just not sure how I would be able to gauge the value of my leads. I would love to be able to say that my leads are worth X, for example, because I collected 1,000 leads and made Y amount. Then, I would have information that might persuade the affiliate program that I currently promote to let me sell them leads instead of commissions.
 
There are people who buy leads at 35 pounds each even , depends on your niche . You don't really need to convince them there are advertisers out there who already buy these leads or search for middle man brokers who take small commisions which still allows you to take quite a handsome profit .
 
Mike90 said:
There are people who buy leads at 35 pounds each even , depends on your niche . You don't really need to convince them there are advertisers out there who already buy these leads or search for middle man brokers who take small commisions which still allows you to take quite a handsome profit .
Click to expand...

Where might you find these middle man brokers? Depends on the niche, I'm sure, but generally how do you find them? BTW just to make it clear I want to sell the leads to the advertiser that I already run traffic to as an affiliate, but if they don't accept then I might have to look elsewhere.
 
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