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High payout/Low payout offers: Pros and Cons? (7)


09-14-2016 01:04 AM #1 tkthepoet (Member)
High payout/Low payout offers: Pros and Cons?

I want to earn my money in affiliate marketing by promoting high-payout offers, maybe something like Biz Opp or Legal verticals. However, I seem to get more information and "motif" on the Internet to start with low pay-out offers, often through the medium of pops/display.

If that route truly is the best way for me to get my toes wet and start earning in IM, then I will probably take it. But are the learning curves for promoting higher-payout offers equatable? I have the most experience with media buying, majority coming from Facebook advertising, but I didn't get to be profitable before I got banned. I have a hair's worth of experience advertising on Pop, but does promoting high-payout offers work well on pop/display as well? Or would it be better to build a website and start a foundation.

I would love to hear some more experienced people chime in on this. My preference once again is to start with promoting high-payout offers.

Thank you


09-14-2016 11:48 AM #2 affiliaxeoran (Member)

Why do you prefer to earn mony by promoting high payouts and not low/medium payouts?

I mean, if you have a reason for it then ok, but if you are in this industry to make money then low payouts can be just as good...


09-14-2016 12:57 PM #3 matuloo (Legendary Moderator)

There is one big difference between high and low paying offers, which is actually responsible for the payout level difference. It's the flow itself, so what exactly the user has to do in order to finish the conversion.

Low payout offers are usually 1-click subscriptions, SOI leadgen, simple app installs ... these all have one thing in common, they DO NOT cost anything for the user or it's only a few cents. Naturally, these are easier to "sell" to the general public, so you can approach these with broad or no targeting, you can promote them in 3rd world GEOs etc ... the benefits are the available traffic volume and the fact that you can get conversions fast.

With high payout offers, there is usually a credit card submit required or an initial payment, order of some goods or recurring subscription ... one way or another, this is pretty much always about a larger amount of money. So contrary to the low paying offers, these require precise targeting and you cannot sell them just to anybody.

So this is like making a decision between two worlds :

A) shotgun approach with low paying offers - simply throw traffic at a ton of offers, test a ton of LPs, test a ton of offers and find something that works. Don't care about the targeting much and just attack the whole GEO.
B) sniper approach with high paying offers - this would be about precise targeting, filtering targets by interests, retargeting, promoting a select amount of quality offers and focusing on high quality traffic sources.

Both approaches can work and it's really hard to say which of them has higher profit potential. Thou the biggest affiliates usually work with higher paying offers.

There is one thing to keep in mind when starting out, it's easier to optimize ANYTHING when you are getting a steady flow of conversions. And quite obviously, lower paying offers can bring in MUCH more conversions at the same price.


09-16-2016 12:49 AM #4 tkthepoet (Member)

Matuloo: Are there any guides on promoting high-payout offers on the forums? I understand that with low-payout the flow is easier so it's easier to convert, but once again if the learning curve is the same, I'd rather go with the high-payout offers.


09-16-2016 10:39 AM #5 matuloo (Legendary Moderator)

Quote Originally Posted by tkthepoet View Post
Matuloo: Are there any guides on promoting high-payout offers on the forums? I understand that with low-payout the flow is easier so it's easier to convert, but once again if the learning curve is the same, I'd rather go with the high-payout offers.
You don't need a different guide for high payout offers, the system is the same. You just need to work with lower amount of conversions, which means you will need a bigger testing budget and be prepared to loose more in the initial phase. In order to cut a placement or ad with certainty, you still need to spend about 2x payout on it for example, so with a $1 payout you are looking at a different spend than with $50 payout. This is the part that makes high payout offers more complicated to master.


09-18-2016 02:44 AM #6 tkthepoet (Member)

Ah, I understand. I think for the sake of my budget, I will start out with lower-payout offers. Thanks for clarifying, Matuloo, and affiliaxeoran!


09-18-2016 04:52 PM #7 matuloo (Legendary Moderator)

Quote Originally Posted by tkthepoet View Post
Ah, I understand. I think for the sake of my budget, I will start out with lower-payout offers. Thanks for clarifying, Matuloo, and affiliaxeoran!
Yup, this decision is very often related to the budget limits too, it's close to impossible to start with high payout offers in case you don't have the budget for it. The risk tolerance also needs to be higher in this case.


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