Starting Your Own CPA Offer - Minimum Spend?

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rmkauf

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Mar 30, 2008
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Pardon me if this has already been addressed but I know there are a few people on here that run their own CPA networks -- I have a new site up that I am currently developing a pay-per-sale program for but I also want to experiment with a CPA offer (basic lead form on the visitor's way in to the sales engine). I'm curious, when you sign up your own offers what is a typical minimum financial commitment.

I know people that ask for minimums are generally not the type you want to deal with... (obviously if it works out I'd want to spend as much as possible) I'm just trying to get some idea of the commitment I'd be looking at so I can better judge when it will be practical to give CPA a spin.

Thanks
 


Thanks. Is there usually a time duration or can you let them know the 10k deposit or whatever is a test and if its exhausted and you're not happy with results call it quits then?
 
rmkauf said:
Thanks. Is there usually a time duration or can you let them know the 10k deposit or whatever is a test and if its exhausted and you're not happy with results call it quits then?
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Test the offer your self, then you know it'll convert.

If you exhaust your 10k, then in theory you should be in profit and it shouldn't matter.

I doubt most will let you pull out early, but you could talk to them about an out clause.
 
yeah i'm going to try to set the payout to where i should come close to break-even on sales from the affiliate traffic then let the revenue from my call center working the leads be the profit, but i try to approach every investment in third party traffic with the mindset that it could return absolutely $0, so i'm trying to get an idea of what the minimum amount of burn money i'll need to put up is to see how well the third party traffic works out
 
I've looked in to this myself and here is what I've learned (to the best of my knowledge).

Smaller CPA networks sometimes will require a small advertiser "fee" to integrate your offer into their backend. Some might not even require anything, especially if it's a newer offer hungry network.

Larger networks typically always require a fee to have your offer put on their network and will typically require a minimum spend with them.

One thing that you also need to look at are what networks are most strict with fraud. Are you doing nothing but sale offers? Or will is be a one page-two page submit?

Just something to think about...
 
Sohan said:
Test the offer your self, then you know it'll convert.

If you exhaust your 10k, then in theory you should be in profit and it shouldn't matter.

I doubt most will let you pull out early, but you could talk to them about an out clause.
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This is excellent advice. Before you approach a network with your offer, you should already know the approximate conversion. You should already know that you can properly monetize the traffic to get your expected ROI.

Whether you are doing small spend or large spend, there aren't many networks that want you dicking around with your offer (i.e. conversion) too much when it's live. Most affiliates I know absolutely hate it when they've setup a campaign and it's running well, only to find out a few days later that the merchant had an "oops" moment and realized they couldn't afford the traffic so they played with the site until conversion dropped in half.

Once you've got your metrics figured out, then approach the networks. Anything less isn't fair to the affiliates, the networks, or even to yourself.
 
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