Hey Fellow STMers,
Can someone shed some light on how advertisers set there initial price for new affiliates to promote their offers? Any input on the topic helps
Thanks
most of the advertisers have a fixed payout on what they are willing to pay for their affiliates, there isn't a price for new affiliate or old affiliate but there are some changes.
even if the rate is different its still should be in the boundaries of the "fix" rate the advertiser is willing to pay.
so affiliates who have proven their quality will likely get a bump in the rate (even if they are new affiliates).
once you sent traffic to an offer and the advertiser is happy you can then ask for a payout bump, its more likely you will get the bump after proven your traffic quality
There's no general answer to this question. It depends on the margin they want to take and what their objective is.
They will calculate their cost structure (user acquisition + general overhead) and based on that will determine the cost per use they can (your CPI/CPL/CPA).
But some companies want to make money straight away, others want to grow & are backed by huge investment funds so its really hard to give a conclusive answer on this.
As an affiliate you don't have insider info about the workings of company x,y,z so you can't know how they set their affiliate pricing schemes, what is more important is making sure you get a competitive pay out. You can user odigger and offervault to check upon this!
Christoph is right. There are no hard and fast rules. Take glispa for example, we don’t differentiate payouts for affiliates based on how new they are, rather we do that by quality. To begin with, all affiliates are offered a standard payout, and those with higher quality than others receive a special payout.
However, trusted affiliates who’ve been working with us for a while have an advantage due to the consistency of their traffic quality on similar campaigns.
Like most things in business, it boils down to supply and demand.
Networks get $x from advertiser, so any payout to affiliates from the network will be lower than $x. Just how much lower depends on a while slew of factors. From the networks' perspective, of course they would like this to be as low as possible to maximise their profit margin, but if it is too low or there are other competing networks offering more, then they still not be able to get the volume.
For new affiliates the payout and terms will be less attractive than for high volume affiliates with a reputation. Once again this is a function of supply and demand. There is a large supply of new affiliates doing low volume, much lower supply of experienced affiliates with high volume. With large affiliates there is also the risk of them bypassing the network altogether and working directly with the advertiser.
Just wanted to add on to what cmdeal mentioned. The more a network knows about an affiliate’s traffic capabilities, the higher the chances affiliates will receive a special payout. You’d be surprised by how often networks are willing to squeeze margins when the right opportunities arise.