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  1. #1
    Newbie
    Join Date
    August 19th, 2008
    Posts
    2
    Pay per sale vs. pay per lead for debt settlement
    Hello,

    I am looking for input from lead sellers out there about selling debt leads and getting paid per sale. Sellers want the up front money of pay per lead, but would actually make much more per lead using pay per sale if they are quality debt leads. Earning 1.5% of the debt enrolled earns up to $450 on average $30k debt. If the leads close at 10%, 1 $30k lead sold in 10 leads would net $450. If pay per lead is $20 per lead, that's $200 earned on 10 leads. A $100k deal would earn up to $1,500 for that 1 lead!

    I understand pay per sale is best if you need the cash in your hand tomorrow, but for maximum return, pay per sale will give you that. I enroll many debt clients via pay per sale format, but I still get a lot of sellers just not interested at all with pay per sale. What are the deep hidden concerns?

    Thx for the input!

  2. #2
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    Deep concerns are how long it will take to get paid for a $150k debt negotiation. the best scenario is a hybrid of pay per lead and pay per sale.

    When is the commission paid on the sale, when the debt is paid. Or, when the upfront fee is paid to the agency? You would have to have a really strong relationship to trust that something taking 60-90 days gets paid versus a lead commission paid net 30.

  3. #3
    Newbie
    Join Date
    September 9th, 2011
    Posts
    16
    Question
    So I came across this thread and it got me thinking about my own program I'm developing. We're going to be a PPL program, and was just thinking of paying a flat commission per lead.

    However, I think paying for closing of a lead would be an additional buffer against fraud, and ultimately we'd be able to reward our affiliates more if they supply good leads.

    Which of the below hypothetical scenarios would be preferred by an affiliate?

    Option 1: Pay $10 Per Lead Flat Rate

    OR

    Option 2: Pay $5 Per Lead / An additional $25 if Lead closes(Average Lead time to close is 7-10 days)

    The additional $25 for option 2 would be added manually on a weekly basis based on a report.

    I realize profitability to the affiliate really depends on our Lead to closing ratio, but is option 2 something that is common or may seem reasonable to an affiliate?

  4. #4
    OPM and Moderator Chuck Hamrick's Avatar
    Join Date
    April 5th, 2005
    Location
    Park City Utah
    Posts
    16,646
    Moved to Midnight Cafe as this is its own discussion.

    IMHO if you do not have a history with lead gen affiliates then they would choose the $10 per lead. Once you have established a payment record with your top publishers you can offer the second to better motivate them. In my experience they stay with the first and ask for a higher CPL if they produce sufficient leads.

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  6. #5
    Newbie
    Join Date
    September 9th, 2011
    Posts
    16
    Thanks Chuck! That seems reasonable, we were planning our setting our initial commission amount low enough so we had room to grow so we could provide incentive and motivate them. The additional commission for lead closure leaves us with another option down the road.

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