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  1. #1
    Affiliate Manager deannab's Avatar
    Join Date
    July 30th, 2010
    Austin, TX
    Arrow Ideal Commission Structure - Rev Share, CPL, Hybrid?
    Which structure do you think would attract the most partners?

    Background: We're B2B and we qualify raw leads. The qualification (which would be the "sale") usually happens the same day as the conversion and can take 3 days max. Average revenue per qualified lead is $400. Average qualification (ie. sale) rate ranges from 10-30%.

    For 100 leads, average of 20 would qualify, for average revenue of $8000.

    - 25% revenue share ($2000 on average)
    - $10 CPL ($1000 guaranteed)
    - $5 CPL + 10% revenue share ($500 guaranteed + $1000 average)

    Right now all of our partners are at the 25% level, but I've heard some feedback that bigger networks might prefer CPL or a hybrid. I look forward to your feedback!


  2. #2
    Moderator MichaelColey's Avatar
    Join Date
    January 18th, 2005
    Mansfield, TX
    The best model is the one that aligns the affiliate's interest (commissions) with your own. Leads can be very problematic when it comes to fraud. If you pay a $10 CPL, you're going to find that you get hundereds or perhaps even thousands of affiliates who generate a lot of leads, but whose leads don't convert into sales.

    I would highly suggest a pure revenue share, if it's possible. That most closely aligns interests.

  3. #3
    Affiliate Manager deannab's Avatar
    Join Date
    July 30th, 2010
    Austin, TX
    Thanks, Michael. I would prefer the straight revenue share (and that's what we do now), I'm just thinking of ways to possibly attract larger partners. Great point though, I definitely don't want tons of bad leads!

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