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June 19th, 2013, 10:16 AM #1
Affiliate Using "Get Paid" Website To Generate Leads?
- Join Date
- July 19th, 2011
I just had an affiliate join that is using a "get paid" website where he pays each user half of what I'm paying the affiliate for each user that submits my lead form.
I'm getting a bunch of sign ups, which is good, but I'm not sure if they would be valuable future customers because their only incentive to submitting my leads form is because they are getting paid for it.
So I'm deciding if I should "decline" this affiliate or maybe wait to see if any of these signed up users end up becoming customers?
Or maybe these signed up users are just creating fake emails to sign up; which wouldn't be helpful at all.
June 19th, 2013, 12:36 PM #2
Regardless if they are using their own information to sign-up or fake are they converting? I would guess not and that these are garbage leads. You should be able after a handful of leads to know if there is any worth otherwise boot the affiliate. Incentive may be fine to try for a retail site but if you get a ton of clicks and no conversion its just screwing up your numbers.
June 19th, 2013, 09:48 PM #3
One of my first rules for any lead program is "no incentive traffic permitted." I've run many lead programs during my years, and that rule has applied every time. I'll echo Chuck here - they are probably mostly junk. Don't pay for them until you get a sense of their quality. Pause that affiliate now before more are generated, until you know whether they are good or bad.
Ine fast story - I had someone try doing this to me with insurance leads once. Because our system was automated, the leads were sold and the buyers started working them right away. Turns out the fraudsters had pulled actual names and addresses out of phone books, and the real people didn't want insurance quotes. I had to answer phone calls from 4 different sheriffs.
Incentivized leads - no way!
June 24th, 2013, 04:51 PM #4
As a site that offers incentives, I would have to disagree with the above but with some caveats. It really depends on the type of service you offer and how much is being paid back.
For example...I would get $10 for someone to sign up for Netflix. My terms would state that the member has to stay active for at least a month. That costs them $10. I pay them $3 for signing up. It isn't worth it for them to sign up for $3 if they are going to have to pay $10 to try it.
For a free service, it depends if it fits the demographics. We run a lot of surveys so we have members who love taking surveys for money and prizes. So survey companies do run lead gen with us. They just discount that X percentage of the leads are doing it only for the reward. We work together to find a payout that works on their side as far as ROI goes as well as what makes it worth it for us to promote it on our site.
We've been in the business long enough now that merchants DO run lead gen with us because they trust us. We just make sure that we set out everything in advance so that no one gets screwed on either side. And if one of my members ever submits fraudulent information to a merchant, their membership will be revoked and their IP address blocked.
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