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How can low payout offers be profitable? (10)


02-05-2022 05:36 PM #1 larsometer (Senior Member)

I know everyone recommends starting with low payout,
Yes, for the reason that test cost are lower and thus you can test more offers for a small budget.

BUT

ZA is a very competitive geo. There are way easier / less competitive geos.

Another factor is that in some geos people like to click on everything. Clicks are cheap but CR per click is rather low.

Then there are geos where people hardly click... but when they do, they are fully commited and convert

Of course also depends on your creative. Easy to get clicks with baity creatives, unfortunately they tend to convert not so well.

You need to find a good balance between baity and converting. Then magic can happen if you also have the right offer at hand.


02-05-2022 07:25 PM #2 larsometer (Senior Member)

Well, you don't need to run such offers with push traffic. You can also use pops.

Very low payouts offers usually convert more often than higher payout ones. The counter side is that you need a lot of volume to get them profitable.

But at least you get conversions. They are really important to understand how things work.

Once you have conversions you can learn how to optimize and scale.


02-06-2022 03:08 AM #3 vortex (Senior Moderator)

Push traffic is indeed more expensive than pop. If the payout vs. CPC really don't look like it would be possible to turn a profit, try pop.

I never ran a lot of push, and don't remember push prices for ZA, but if you want to try pop for this geo, try bidding low.

The $0.50-0.55 CPM range worked well for me when I was running pop for ZA on PropellerAds. Don't know about now.

In general (for pop), when running in geos that have a lot of competition, I would test very low bids, and sometimes I would luck out.

(This tactic can work for other geos as well, not just super-competitive ones.)

But only bid low when you have previous experience running the specific geo on the specific traffic source, and KNOW you can probably still get OK-quality traffic at low bids. Otherwise, if the offer doesn't convert, you'd always have the question in your head that says "is the offer garbage or is it the traffic?"




Amy


02-06-2022 01:49 PM #4 twinaxe (Senior Moderator)

Not all low payout offers are the same and shouldn´t be treated equally but there are several factors that can make low payout offers good for testing and making money.

Often low payout offers have a simpler conversion flow than high payout offers (for example 1 click flow vs credit card submit).
This means that the conversion rate is often higher.
An offer with $0.20 payout at 20% CVR will give you same results as an offer with $2.00 payout at 2% CVR.

Many low payout offers are also available in geos with cheap traffic.
That way you can make good profits with low payout offers because the ratio between CPC and payout can be the same or similar to other geos with higher bids and higher payouts.
Together with high volume it can be really worth it.

Larsometer said it already, ZA is highly competitive and can resulot in very expensive clicks.
ZA was probably one of the best geos worldwide in 2016-2017 or so when the traffic there was cheap and there were lots of high converting 1click offers with $4-$5 or so payout.
Then everyone jumped on it and made ZA extremely competitive to run, bids also went up alot.

but like this kind of offer in the picture, the payout is only $0.04 or less, and the minimum bid for some traffic sources is $0.01.

Wouldn't it be hard to make a profit?
Check my thread about the finance survey offer and larsometers case study about it.

Will anyone try it?
Don´t wait till others try something, just try it yourself

Push traffic is indeed more expensive than pop.
Funny that you mention this, I just thought about posting a thread about the "myth" that push is more expensive than pops

Although it´s absolutely true in some ways it´s also not true in others.

Will try to make the thread ASAP to solve that mystery


02-08-2022 04:10 AM #5 vortex (Senior Moderator)

Funny that you mention this, I just thought about posting a thread about the "myth" that push is more expensive than pops

Although it´s absolutely true in some ways it´s also not true in others.

Will try to make the thread ASAP to solve that mystery
Yup we briefly discussed this this morning in our call.

Push is generally speaking more expensive, but the quality is higher mainly due to the "pre-qualification" nature of the ad (whereas pop is just a lander). Meaning the conversion rate can end up being higher.

There are offers that require the extra preselling, that can convert better on push. In fact, for some types of offers like cc sweeps it would be hard to make them back out on pop, but they Thrive on push.

But in the post above, we were talking about super-low-payout offers specifically - running those on push may be overkill - like trying to kill an ant with an atomic bomb.

Of course generally speaking, for different traffic types, prices are usually commensurate with traffic quality. So "more expensive" traffic should in general have the potential to fetch higher profits. This is assuming market equilibrium has been reached, i.e. we're not talking about some novel untapped traffic source.



Amy


02-08-2022 11:27 AM #6 matuloo (Legendary Moderator)

Not all offers are meant to work on "premium" paid traffic, keep that in mind lightning. Sometimes the payout is too low for this to be possible indeed. But there are people with free or extremely cheap clicks who can still run them profitably. Networks always have some unsold inventory, so they can push these too, for example.

Sometimes the offer owner just doesn't set the payout right or they are greedy... and these are not the advertisers you want to work with.

On the other hand, as has been mentioned already, these low payout offers usually have a VERY simple flow, sometimes all it takes to get a conversion is a single click on some CTA button. That's why some of them can work, even though the payout is just a few cents.

It works the other way around too, there are many offers with very high payouts so we are all tempted to run those, but the flow is too complicates or the scrub rate is too high and it's not possible to run those profitably.

It's all about finding the "balanced" offers, where the flow is simple and the payout is not too low.

The good news is, as soon as you have a set of proven creatives or a solid funnel, it takes just a quick test to see whether the offer has potential or not.

When starting out, you simply have to start with low payout offers though. You need to learn how to setup a campaign, how to setup tracking, how to do basic optimizations... and for that, you need at least some conversions, no matter what the initial ROI is. And it's almost ALWAYS easier to convert a low payout offer than it is with a high payout one. Which means you need less clicks and hence less $$$ to get some conversion, that's all there is to it


03-13-2022 11:12 AM #7 anthonyh (Senior Member)

Ok, so I just read that ZA is highly competitive...this is the geo I've been running in.

So, which of these Geos should I run with and stay away from: Thailand, Singapore, Malaysia, Indonesia, Hong Kong, Philippines, Taiwan.

Or if a Geo recommendation would be awesome as well.

Thanks.


03-13-2022 02:14 PM #8 aiden l (Member)

Quote Originally Posted by anthonyh View Post
Ok, so I just read that ZA is highly competitive...this is the geo I've been running in.

So, which of these Geos should I run with and stay away from: Thailand, Singapore, Malaysia, Indonesia, Hong Kong, Philippines, Taiwan.

Or if a Geo recommendation would be awesome as well.

Thanks.
Depends what the offer is mate. If its a sweeps or gambling offer I found that they convert well in Latin america. Apparently its something to do with their culture and religions. Then again i'm still a novice so take my advice with a grain of salt and use your own due diligence.


03-13-2022 03:46 PM #9 anthonyh (Senior Member)

Yea I run sweeps as well


03-13-2022 09:56 PM #10 matuloo (Legendary Moderator)

Have you guys seen our recent "Whats Working in AM" report? Some of the respondents shared GEOs and offer types that they think are the best for newbies.

https://stmforum.com/whats-working-2022/


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