Currently I have 1 client on a monthly retainer, for whom I'm generating 20 leads/day and since this was groundbreaking for their business, they are quite happy. And so am I, they are my favourite client who never asks for anything but the daily leads, and don't bother me with anything but feedback on leads.
Now, another client came up and we're meeting soon. He wants leads, and his niche is an ok fit. I'm not sure how should I charge for the leadgen service.
Monthly retainer is cool, but if I sell the leads per piece/lot I can make more money, however, with higher risk. CPA?!
Since there are many options, what would you recommend me, how would YOU charge direct client for leads?
The two most popular way of charging are obviously CPL and CPA.
I would analyze the revenue potential of the leads you're generating first in order to understand how much you can push on a CPA deal. On Crypto for example, you can easily go up to $800-$1000 for a CPA if your age range for the leads is above 25. Even if it's not, actually. Depositors in that industry tend to load up 3-4 times the amount easily, later on. Provided you didn't generate the contacts through a "get X product for free" LP.
Now that you have a track-record with them, you can tell them your team decided to move to CPL or CPA for the leads, but with prepayment on first X number of leads or. They already know you can deliver, so they should be comfortable in paying 10, 20, etc leads in advance.
So, you suggest starting on CPA to gain trust if the niche is worth it?
But in order for me to trust the client, I need more equipment for tracking, recordings, sims, etc.
To do CPA on a new client, especially if he is not familiar with affiliate marketing, I would ask anyway for an up front payment. Something like, I will bring you X leads for $XXX within 30 days. If not, you get your money back. Make it a contract. You can set a price per lead, and discount the first 10/20 so that you break even and he can test the quality.
Make X the number of leads small enough at the beginning, so the upfront payment is not too big.
If the client is not willing to pay you upfront for the service, in my experience, it is a waste of time. These are not the clients you want.
For thirty party tracking, look at companies like https://partnerize.com/en
You can always agree on a test period, say 1 month for example. During this time, you will have a chance to see how easy it actually is to get leads for them, you will be able to asses the scaling options and they should be able to determine the value of the leads. Make it clear it's just a test period and agree on some fixed payment for this test. Once it's over, you can go over the options and agree on what's the most beneficial for both of you. Since you will already know how much roughly you need to spend per lead, you can set a CPA rate that translates to good profit for you. Just don't flood them with leads straight away, start slow so they don't think it's very easy to get the leads as they might push for a very low price.
I just wrote down some stuff here, about possible methods. Maybe this helps!
https://stmforum.com/forum/showthrea...payout-methods