offers testing & network payment - contradictory info (4)
hello stackers,
i've read two pieces of great advice but am having a hard time putting them into one piece 
1) test offers first; once you find the best offer, test the same offer from different CPA networks & see which one converts the best and use that
2) instead of $100 with one network & $200 with another network, run traffic with one CPA network so that you can get paid faster;
what if this particular network is the best for one offer and another network is the best for another offer!?
anyone else share the same puzzle i have? 
could anyone help? thanks a lot!!
anyone could help with this one? thanks!
Since you're still looking for an answer, I'll try to help by outlining my approach.
Short version: Compare the relative value of the payments over a common period of time, with the end objective of maximizing total ROI.
Longer version is explained below:
Simplified Scenario
To illustrate, here's a simplified scenario (assuming that you have no other priorities or concerns, such as payment risk, performance stability, offer caps, AM relations, payout changes, etc.):
- Let's say there are two networks (A and B) and two offers (1 and 2).
- The networks are similar except for conversion rates and payment periods.
- You're running an offer (Offer 1) at Network A and need to decide where to run Offer 2.
- Network A pays once a month whereas Network B pays every two weeks.
- If you run the offers at the same network, you can get better payment terms (let's assume that both AM's indicate the payment period would get shortened to one week).
With two offers and two networks, there are four possible combinations:
Case 1. Offer 1 and Offer 2 at Network A
Case 2. Offer 1 and Offer 2 at Network B
Case 3. Offer 1 at Network A and Offer 2 at Network B
Case 4. Offer 1 at Network B and Offer 2 at Network A
It was assumed that you're already running Offer 1 at Network A, but all of the combinations are listed for the sake of completion (it may be possible to improve total ROI by moving).
If one of the offers isn't available at both networks, then just use the combinations that apply.
Methodoloy
Split-test the offers at both networks to find the different ROI's. Determine the least common multiple (LCM) between the various payments periods (here it's one month), and figure out your budget for each offer for that period.
For each combination listed above, using the appropriate ROI's and budgets, calculate how much you would have at the end of the LCM period if all of the interim payments were reinvested into running the offers:
Case 1. Four weekly payments from Network A (three reinvested plus one at end) ---> use final payment from Network A
Case 2. Four weekly payments from Network B (three reinvested plus one at end) ---> use final payment from Network B
Case 3. One monthly payment from Network A and two bimonthly payments from Network B (one reinvested plus one at end) ---> use payment from Network A + final payment from Network B
Case 4. Two bimonthly payments from Network B (one reinvested plus one at end) and one monthly payment from Network A ---> use final payment from Network B + payment from Network A
For each case, calculate the total ROI by dividing the total ending payment by the total starting budget. You can maximize profitability by selecting the case with the highest total ROI.
Over time, if there are changes in performance or payment terms, rerun the calculations. If you want to add more offers and/or networks, follow the same method with different combinations.
This may be confusing to read but it's really quite straightforward to do. If you wanted to be more precise you could include factors such as cost of capital, time value of money and revenue/expense adjustments, but that's not necessary.
Wow vector that's such a detailed and logical approach!
My hat's off to you...
Amy
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