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  1. #1
    Newbie NewBadStyle's Avatar
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    trying to get the most money to the affiliate
    Iím thinking about doing some changes to my existing mainstream affiliate program and wanted to get an idea if it could work.

    Existing campaign:
    One-time immediate CPA of $25 to affiliate for free trial. (credit card # required) and then the consumer is put into a recurring billing model, 7 days later we bill them $20, and monthly after that. The consumer does have the option to cancel before the 7 days and anytime after.

    New idea:
    $5 immediately for the free trial, $10 after 7 days, $7.50 a month after that. (Numbers can vary)
    The advantage is that the affiliate can potentially make a lot more over time. But they don't get that quick big payout.
    And for us, it really helps us keep our costs/risks down.

    Thoughts from everyone will be welcomed.

    T

  2. #2
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    I've been going back and forth on the question of recurring vs. one-time payments. On another thread I saw someone post that affiliates strongly prefer one-time, even if recurring might actually pay more over the long run.

    Is this the case?

  3. #3
    Super Dawg Member Phil Kaufman aka AffiliateHound's Avatar
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    A lot depends on how the "recurring" event is set up. If the customer has to go back each time to the merchant site, and the commissionable event depends on the customer's cookie, then the risk over time is too great that the cookie has been washed, customer has different computer, customer bales, etc. If the customer does nothing, but the merchant charges the customer's card each month and automatically sends the commission, then "recurring" commissions can be ok. Bottom line overall to me, though, is one-time higher commission is better.
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  4. #4
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    I have it set up now to be automatic, that once the purchase is made, commissions recur until the customer cancels. But I'm thinking that my life would be made easier if I switched to one-time. If that's also more attractive to affiliates, that's an even stronger reason to switch.

  5. #5
    Newbie NewBadStyle's Avatar
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    thanks for the reply.
    for our campaign the consumer doesn't have to come back to make any more purchases. I don't want to get into offer specifics as i dont want to violate the forum rules, but it's a credit monitoring program.
    All recurring revenue is tracked by an affiliate ID assigned to each consumer.
    Which we would provide complete reporting for affiliates.
    We also manage the call-center that does it's best to prevent cancellations.

    A reason I would like this to work, is we have a negative cash flow for the first 2 months as we recoup the CPA.

    Before this, I've been an affiliate, and I know I wasn't to keen on recurring revenue.
    But I have friends that did it (mostly gambling sites) and they are collecting from users that signed up years ago.

  6. #6
    Newbie NewBadStyle's Avatar
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    to set up the recurring payout, did you do your own programming or use a 3rd party software?

  7. #7
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    Third-party; idevaffiliate.

  8. #8
    Newbie NewBadStyle's Avatar
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    thanks.
    how long have you been running the recurring payout offer? and would you say it's been successful?

  9. #9
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    It's too soon to say. We're in soft-launch mode...soon to do our actual launch.

  10. #10
    Moderator MichaelColey's Avatar
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    In this case, I would prefer the recurring model. In a little over two months, the affiliate makes as much as they would have in the CPA model. Everything past that is just gravy.

    I think it's almost always best to compensate based on the actions you want to see. If you compensate on a free signup, affiliates will promote you to get free signups. If you compensate on recurring actions, affiliates will promote you to get recurring actions.
    Michael Coley
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  11. #11
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    I decided to stick with the recurring model, which I like better since it aligns everyone's (the customer, the affiliate, and the merchant) long-term interests. But I'm now also allowing affiliates to request a one-time payment instead, so as not to turn anyone off who prefers that.
    [URL=http://themoneyforums.com]The Money Forums[/URL]

  12. #12
    Newbie NewBadStyle's Avatar
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    thats a good idea, give the affiliates an option. and if the recurring revenue model is truly better, hopefully it will catch on.

  13. #13
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    I'll let you know once the results start coming in.
    [URL=http://themoneyforums.com]The Money Forums[/URL]

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