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  1. #1
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    Eliminating Ad Networks
    Has anyone considered eliminating or reducing their dependance on the 'middleman' and focusing on a vertical market and making your own deals?

    I spent two years generating leads for a company using adwords and made a nice commish of 5% per total contract price. (B2B deals averaged $50k per contract!)

    I am setting up a web site for that vertical myself and will be able to get an industry standard 10% now that I have broken away from that company. And I will provide leads for all competitors and let them fight it out for the sale...Which dramatically increases my chance of making a sale 8)

    Anyway, I have noticed there are *many* local businesses out there who would gladly pay a commish for any lead that turns into a sale.

    I like the idea because I have more control over the merchants I do business with.

    On the downside, which I don't mind, is that I will spend more time working by handing all the admin, but I think it is worth it for more control. And if all goes well, I will just hire someone to look after things for me.

  2. #2
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    Affiliates do that all the time.
    However, they get the best deal when they focus on one merchant...

  3. #3
    ABW Ambassador phillyburbs's Avatar
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    No, don't deal with local businesses. Stay with large networks. There's no money in dealing with local businesses. Seriously. No, really. Honest.

    ;-)

  4. #4
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    Karl:
    I was thinking in terms of dealing directly with a Real merchant. Not a local business.

    I would have to agree with your post except where someone might have 13 Million local businesses. - wink
    http://www.truelocal.com/about.aspx

  5. #5
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    Quote Originally Posted by phillyburbs
    No, don't deal with local businesses. Stay with large networks. There's no money in dealing with local businesses. Seriously. No, really. Honest.

    ;-)

  6. #6
    Analytics Dude Kevin's Avatar
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    Melty: In the past, how have you gone about identifying local businesses that have a national scope.

    And btw, I agree with you 100%. The people who have the most to gain from affiliate marketing (well, in a sense) are small businesses without a gigantic internet advertising budget. Pay for Performance is perfect for them.
    Kevin Webster
    twitter: levelanalytics

    Kayak Fishing
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  7. #7
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    Quote Originally Posted by Noth
    Melty: In the past, how have you gone about identifying local businesses that have a national scope.
    Are you saying local businesses that can serve outside their local area?

    For example, a software developer who works in Maryland but could contract out to California?

    Actually, one company I am working with has that kind scope...Although, to get some experience and cut my teeth I am spending a lot of energy fousing on small biz that serves people within a local area. If I do well there, I will perhaps get into the local biz that can serve anyone in the US...

  8. #8
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    Quote Originally Posted by Noth
    And btw, I agree with you 100%. The people who have the most to gain from affiliate marketing (well, in a sense) are small businesses without a gigantic internet advertising budget. Pay for Performance is perfect for them.
    Yup. If you think the risk is worth it, and you can deliver quality leads, what does a merchant really have to lose if you are sending them "free" leads?

    And yes, you have other lead broker competition...But from what I have seen is a lot of this competition charges small biz per lead, and the feedback I got was commission only is much, much better and people are wide open for that...Even if you ask for a higher than normal commission rate...

  9. #9
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    One more thing:

    Playing around with keyword tools, I have seen some keyword phrases that are looking for local services with NOBODY running PPC ads under those phrases. And I'm not talking 30 or 40 searches a month...But searches in the thousands and ten thousands...

    There are a lot of gret un-filled niches out there...

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