Network Fees for Running Your Own Offer?

dogfighter

dogfighter

Irish Prick
May 21, 2007
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Rain City
I've been creating offers for others for a while now, and have recently begun exploring the possibility of launching my own offer with a colleague. Can someone from a CPA network or anyone who has experience in this area comment on the network fees?

It's very difficult for us to put together good financial estimates when we don't know how the networks charge advertisers. Is there an average range? What is it based off of? A percentage of the CPA? We'd like to figure out how much we can afford to offer initially, but part of that depends on how much we need to fork over to the network.
 


Are you just asking about possible set up fees? I have never had a set up fee from a network. You can also read through various networks Terms and Conditions to find out what their policies are.

You will have to give trade refrences (usually 3) and go through a credit check. Pretty simple process.
 
It really depends on your offer(s) and where you are looking at placing the offer.

If your offer is for a line of products and you'll be paying your affiliates a percentage of the sale, you'll need to look at an affiliate network like CJ or Shareasale. On those, you will definitely pay setup fees.

If your offer is a lead get form-fill type (insurance quote, email submit, etc.), then you'll want to look at a CPA network (of which there are hundreds). The CPA network will not charge you up front. They'll charge you a per-lead fee, and keep a cut of that for themselves before paying the affiliate.
 
Thanks for all the responses so far. It's a CPA offer, info submit, for the sake of an easy number we'll say $5 payout. The reason I ask is if I have to pay an extra $2/lead to the network, then my cost is higher than if I only pay $1/lead. At $1/lead, perhaps I can even raise the payout to $6 and attract more affiliates or modify the conversion funnel to further qualify the leads.
 
you give the network your payout that you want to give.
the network then lowers it to whatever margin they want for the affiliates.
 
some networks have boutique services and baby you (walk you along, etc) when setting up your offer. this is great for merchants with physical products and have no internet experience. since you are on this forum, i'm going to assume you know what you're doing on the backend so these fees may be wasted $$.

some fees, though, are just prepay. i don't mind working with a network that asks for a prepay, it just shows they are looking out for their pubs. in my personal opinion, we don't work with networks that charge network fees or setup fees. we have internal sites that focus on quality lead generation, and don't need to have an account manager baby us through their network or the internets - we just want quality traffic/leads sent to our sites and will pay them for each one.

most networks take a portion of the offer in two ways. first example, an offer that pays out 3.00/lead from the advertiser (you), we would take 50 cents and give our affiliates 2.50/lead. just an example. you wouldn't pay for this since you are paying us already for the lead. we decide how much margin to make off this offer. second example: other networks take a commission on top of the payment you give that network. you would simply lower the rate you want to give per action to accommodate for the commission. it's the same way, just reverse: the profit is static.
 
If you have an idea of what you make on your back end per sale/per action then I suggest you set it low to start and once you see good traffic come through the networks you can increase the payout to networks or publishers that deliver good traffic.
 
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