Hi Guys,
I wonder if there are people here doing revshare instead of PPL ? If that's the case, where do you get your data ? How do you calculate your media buys (free signup price) ?
I think there are a few important factors:
- Ratio: Pay per free
- Ratio: Free to paying
- Amount per K of traffic (in case of pops)
- Earning back period
- average spend per account
I have had a campaign that I was running that gave me a return of 380% over a year. But now i'm trying to reproduce this outcome, but looks I'm paying a lot more with current tests (paid per free member).
How do you guys go on with media buying for revshare ? I'm new too this and want to figure it out (and I like to play with numbers) :-) But really want to know what your guys strategy is.
Regards,
WW
The offers i have ran rev share with also had the possibility to get paid on a PPL basis. So for the beginning i just used the PPL payout to calculate how i was doing.
If possible, run PPL first trough a network and ask for a quality check. If you get a good payout bump, chances are you will do great on rev share.
Also if you start with a small campaign, make sure you don't base all your numbers on the revenue of 1 customer with deep pockets.
We need more info - vertical/markets/your budget.
I don't know that I'd be going straight to pops on a rev share deal unless you've got escort pop traffic.
You have to look at this on a case by case basis as you need to understand what the advertiser can report, how you can track and what other data you'll get. You also need the right method to tracking a longer funnel which is what revshare essentially is.
You are right in how you're looking at the metrics and extrapolating your funnel. There's more but I am assuming you already know that. You calculate how you acquire traffic based on how you would any other buy, however again it depends what you get back from the advertiser. If you can see sign ups (common) you can optimise the top of your funnel etc. Obviously you need to adjust how you measure and be really methodical - you need to look at cohorts and their impact down the funnel and make sure you're measuring what is/isn't working. You also need the flow to sustain the window.
If you have an advertiser in mind see if you can kick off on a SOI/DOI deal so you can assess feasibility without having to 3-10x your testing budget. For example if they are willing to let you run uncapped and increase your payout then you're in a good place for a rev share deal. If thats not possible then see what you can do to figure out who is out there already, find out how many other buyers are on the offer etc.
Either way if it's an offer thats out there in full force make sure its the best one. Exclusives or an offer that converts in line with your metrics with a smaller pool of active buyers can also be one the better scenarios.