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  1. #1
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    How can I find affiliates to bring leads to my Website to make $1000 per sale
    Not sure where to post this please let me know if its in the wrong place

    First of all i'm a newbie in this business.

    I'm a real estate investor looking to expand my business through he internet.

    I'm looking to find a few of affiliate that can bring us a lot leads for our real estate website.

    What we want to do is to pay $1000 for any sales that we make if it comes from our affiliate

    I just need to know where and how i can start looking for people like that and how should i approach them.

    Any information are welcome.

    Thank you all in advanced

  2. #2
    ABW Ambassador Ron Bechdolt's Avatar
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    The first thing you can do is sign up with a trusted affiliate program like Shareasale. The second thing you can do is hire a good affiliate manager to market your program (here is a good place to look http://forum.abestweb.com/forumdisplay.php?f=236).

    Otherwise, if you are doing it on your own, you need to take the time to do your homework and find out how this business works, what software you will need to run a program, do you have the time to run a program, who in your organization can run it, etc. Just starting a program does not guarantee you will have sales, you need to promote the program and seek out affiliates.

    Remember also that all merchants are trying to find "few of affiliate that can bring us a lot leads". Getting those super affiliates requires both trust and the ability to work with them around their format, not necessarily yours.

    But you have done the right first step in coming here and asking the important questions. Keep asking and good luck with your future program
    Ron Bechdolt | Affiliate Program Management Consultant
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  3. #3
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    you might also try paying for an announcement here at ABW once your progran opens.

  4. #4
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    Thank you for the great Information.

    I was wondering How Would I know if the manager is credible, or not. I have run many lead generation companies that will promise me the world and it didnt deliver what was promised.

    That's why i'm looking the information myself.

    Also. Do you guys think that anyone would do a partnership with me with my company and just make money on the sales?

    I'm not looking for just a person that will advertise my website. I'm looking for partners that will help so we both can make money. I'll Be the one doing the leg work, and the other person will do the automating of online marketing.

    Again. Thank you very much for the great information

    Quote Originally Posted by 7-days
    The first thing you can do is sign up with a trusted affiliate program like Shareasale. The second thing you can do is hire a good affiliate manager to market your program (here is a good place to look http://forum.abestweb.com/forumdisplay.php?f=236).

    Otherwise, if you are doing it on your own, you need to take the time to do your homework and find out how this business works, what software you will need to run a program, do you have the time to run a program, who in your organization can run it, etc. Just starting a program does not guarantee you will have sales, you need to promote the program and seek out affiliates.

    Remember also that all merchants are trying to find "few of affiliate that can bring us a lot leads". Getting those super affiliates requires both trust and the ability to work with them around their format, not necessarily yours.

    But you have done the right first step in coming here and asking the important questions. Keep asking and good luck with your future program

  5. #5
    Believe knight01's Avatar
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    Quote Originally Posted by cashflowsyndrome
    I'm a real estate investor looking to expand my business through he internet.
    Are you are looking to purchase or sell real estate? SFH/Multi/COM/Land?

    Quote Originally Posted by cashflowsyndrome
    What we want to do is to pay $1000 for any sales that we make if it comes from our affiliate
    If you are buying, your use of the words 'sales that we make' is confusing. It sounds like you may be looking for lead hounds or stringers.

    If you can be more detailed without posting website information or addresses, which would make this an advertisement, it would help understand what your goals are.

  6. #6
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    Be very careful when creting (or joining) an affiliate program that promises payment based on real estate transactions. In general, most states prohibit a person who is NOT a licensed real estate broker or agent from receiving or sharing in any commissions from the sale of real estate or issuance of mortgages. Some states have narrow exceptions allowing payment of a "finder's fee," but with severe restrictions that effectively make it unenforceable by the "finder" (affiliate).

    There are similar restrictions that can "trip up" commission arrangements in other fields. Attorneys are prohibited from sharing their fees with non-attorneys (to prevent unethical "runners" and "cappers"); state and federal laws prohibit payment of commissions to unlicensed persons in connection with the sale of securities (stocks, bonds, etc.); Medicare rules prohibit payment of commissions by pharmacies for ion-drug sales covered by Medicare, and I believe similar rules may extend to all ion sales where insurance is involved; similar rules probably apply to physicians and other health-care practitioners.

  7. #7
    Believe knight01's Avatar
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    Quote Originally Posted by markwelch
    Be very careful when creting (or joining) an affiliate program that promises payment based on real estate transactions. In general, most states prohibit a person who is NOT a licensed real estate broker or agent from receiving or sharing in any commissions. Some states have narrow exceptions allowing payment of a "finder's fee," but with severe restrictions that effectively make it unenforceable by the "finder" (affiliate).
    Mark, almost, but you missed the keyword in the law. Closing. You are forbidden to pay a referral fee to a non-licensed person in relation to the closing of a transaction.

    As you point out, you may pay a finders fee, but this is only in cases of per lead, not per closing. There are exceptions to it, but it is in regards to the amount that may be given. Known as the 'gift clause', you may provide a nominal gift (usually under $50) to someone who provided you with a lead that turned into a closed transaction. Generally speaking to avoid having our friends at HUD come knock on the door, the entire subject is treated with kid gloves and avoided at any cost.

    Financial institutions are governed by the same law commonly referred to as RESPA, Real Estate Settlement Procedures Act, they are not allowed to even pay other licensed lenders based on a closed transaction. Only on a per lead basis, without regard to the outcome of the lead.

  8. #8
    Analytics Dude Kevin's Avatar
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    The brokerage I've worked with in New York wouldn't dream of doing it, I can promise you.

    At a $1000 per pop though, sounds like there are clsings involved...
    Kevin Webster
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  9. #9
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    Dont worry, We have 2 great attorneys that will be drawing our contracts between the 2 parties.


    Quote Originally Posted by markwelch
    Be very careful when creting (or joining) an affiliate program that promises payment based on real estate transactions. In general, most states prohibit a person who is NOT a licensed real estate broker or agent from receiving or sharing in any commissions from the sale of real estate or issuance of mortgages. Some states have narrow exceptions allowing payment of a "finder's fee," but with severe restrictions that effectively make it unenforceable by the "finder" (affiliate).

    There are similar restrictions that can "trip up" commission arrangements in other fields. Attorneys are prohibited from sharing their fees with non-attorneys (to prevent unethical "runners" and "cappers"); state and federal laws prohibit payment of commissions to unlicensed persons in connection with the sale of securities (stocks, bonds, etc.); Medicare rules prohibit payment of commissions by pharmacies for ion-drug sales covered by Medicare, and I believe similar rules may extend to all ion sales where insurance is involved; similar rules probably apply to physicians and other health-care practitioners.

  10. #10
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    Quote Originally Posted by knight01
    Are you are looking to purchase or sell real estate? SFH/Multi/COM/Land?



    If you are buying, your use of the words 'sales that we make' is confusing. It sounds like you may be looking for lead hounds or stringers.

    If you can be more detailed without posting website information or addresses, which would make this an advertisement, it would help understand what your goals are.

    Ok here is a brief explanation what we are trying to do.

    We got 2 websites.

    1) is for Teaching Real Estate Investment. There will be a sale for these classes. and every class sold we will pay $1000

    2) is to bring buyers for our real estate houses that we have on our inventory.
    For every house sold through the list that was built through our web marketing partner. We will pay $1000

    I dont know if this sounds appealing or not for internet marketers or affiliates.

    I'm wide open to any suggestions and ideas to make this work.

    Thanks again for all your help

  11. #11
    Believe knight01's Avatar
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    Quote Originally Posted by cashflowsyndrome
    Ok here is a brief explanation what we are trying to do.

    We got 2 websites.

    1) is for Teaching Real Estate Investment. There will be a sale for these classes. and every class sold we will pay $1000

    2) is to bring buyers for our real estate houses that we have on our inventory.
    For every house sold through the list that was built through our web marketing partner. We will pay $1000

    I dont know if this sounds appealing or not for internet marketers or affiliates.

    I'm wide open to any suggestions and ideas to make this work.

    Thanks again for all your help
    OK, in regard to 1) Not sure about how you will be doing the classes, if this is an ebook that you are selling you'd be better off going through something like clickbank. If it is a real life in person training session you are offering or some type of online interactive classes/tests you could possibly set up an affiliate program and make it workable. Sort of a mentorship. I've actually kicked this around a bit, but not sure there is a market for it. Also there is a saying in the industry... all real estate is local. What is common in Chicago may be unheard of in Atlanta. You even get into localization of laws and common practice. But this is getting off topic...

    2) yeah, you got problems here. the great attorneys writting your contracts may not be great real estate attorneys or they are hoping to slide through on the term 'partner'.

    Either way I'd run from that. Although many here post about our affiliate 'partners' in the eyes of the law, we are not partners, we are independent contractors and are paid and taxed that way. That is the nature of this industry.

    This would likely not be something you should pursue as an affiliate program. What I'd do is contact some of the real estate agent message boards and offer them this opportunity. As long as you are the owner on the deed, they would likely have no issue with sending you names, with the persons permission, of buyers they are unable to help.

  12. #12
    Classic Rocker Mack's Avatar
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    Quote Originally Posted by cashflowsyndrome
    2) is to bring buyers for our real estate houses that we have on our inventory.
    For every house sold through the list that was built through our web marketing partner. We will pay $1000

    I dont know if this sounds appealing or not for internet marketers or affiliates.

    I'm wide open to any suggestions and ideas to make this work.

    Thanks again for all your help
    There's a reason there aren't many, if any, programs out there like this. As others have pointed out, and I'll throw in my $0.02, I think there are legal issues involved that would make me steer clear of this type of program.

  13. #13
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    Ok

    Thank you For your insights. I'll take that in consideration

    Besides the legality issues, I'm trying to find out how can i find a online marketer that would be willing to do the part of the online marketing and will be satisfied to be paid $1000 per sale.

    Again Thank you all for helping me in this issue

    Quote Originally Posted by knight01
    OK, in regard to 1) Not sure about how you will be doing the classes, if this is an ebook that you are selling you'd be better off going through something like clickbank. If it is a real life in person training session you are offering or some type of online interactive classes/tests you could possibly set up an affiliate program and make it workable. Sort of a mentorship. I've actually kicked this around a bit, but not sure there is a market for it. Also there is a saying in the industry... all real estate is local. What is common in Chicago may be unheard of in Atlanta. You even get into localization of laws and common practice. But this is getting off topic...

    2) yeah, you got problems here. the great attorneys writting your contracts may not be great real estate attorneys or they are hoping to slide through on the term 'partner'.

    Either way I'd run from that. Although many here post about our affiliate 'partners' in the eyes of the law, we are not partners, we are independent contractors and are paid and taxed that way. That is the nature of this industry.

    This would likely not be something you should pursue as an affiliate program. What I'd do is contact some of the real estate agent message boards and offer them this opportunity. As long as you are the owner on the deed, they would likely have no issue with sending you names, with the persons permission, of buyers they are unable to help.

  14. #14
    ABW Ambassador Ron Bechdolt's Avatar
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    Also realize you are not just paying the affiliate $1,000 but also the person running the program.

    How do you know if the manager you hire will be good or not? Stick around here and read the forums. For example, read the forums of all the Outsourced Program Managers and see what is being said there. There is also a forum here at ABW for merchants and companies to list open positions for affiliate managers. Inteview very carefully and take your time.
    Ron Bechdolt | Affiliate Program Management Consultant
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  15. #15
    Full Member ske9963's Avatar
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    why not take the $1k and put it in PPC. If you do it right, u should see a 2-3 times ROI
    Ma, where the beer? :escape:

  16. #16
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    knight01 wrote: > "Mark, almost, but you missed the keyword in the law. Closing. You are forbidden to pay a referral fee to a non-licensed person in relation to the closing of a transaction. // As you point out, you may pay a finders fee, but this is only in cases of per lead, not per closing." <

    I used the word "transaction," which is synonymous with "closing" -- a transaction does not occur until there is a closing. And a finder's fee can be paid based on a "closing," under limited circumstances.

    My law firm once advised a "finder" who had been deliberately "duped" into doing "too much work" in order to deny him a finder's fee. California law (at that time, 15 years ago; the law may have changed) allowed payment of a finder's fee for an unlicensed person who "located" a buyer, but the "finder" could not be paid if s/he had done certain tasks. Our client was tricked by the broker into doing a very trivial 'prohibited' task (I think it was delivering paperwork between the parties), in order to deny any payment.

    Note that one purpose of the real estate licensing laws is to protect agents from unscrupulous brokers; in this case, the broker abused those very laws to take advantage of people. The broker used (abused) a succession of naieve, unlicensed people in order to obtain "agent-like" services without paying any fees. That's why I raise the red flag every time I see one of these offers; as often as not, the real purpose is to get business without paying for it.

    The fellow who started this thread has indicated that he intends to get legal advice, so hopefully this will turn into a very legitimate and perhaps lucrative opportunity for someone -- but I suspect that the 'affiliate manager' will probably be required to be a licensed broker.

  17. #17
    Analytics Dude Kevin's Avatar
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    Out of curiosity, Mr. Melch (or others). If the AM was licensed, could the AM then turn around and pay non licensed individuals? (i.e) essentially, the AM get $1000 per sale directly, then turns around and sends $925 to the affiliate, or whatever)?

    In that case, the affiliates truly are just "finders fees"....
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  18. #18
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    ske9963 wrote: "why not take the $1k and put it in PPC. If you do it right, u should see a 2-3 times ROI"

    I assume it's because the property owner only wants to pay for closed transactions. In real estate, you can spend a lot of money on advertising and still not generate a sale transaction (most often, if the property is listed at too high a price, or if the property is in some 'special situation' such as pending litigation or if major work is required before occupancy -- or if the property is unusual in some way that results in a very, very small list of prospective buyers).

    Of course, a property owner would pay a lot more to a licensed real estate broker to locate a buyer, so the $1,000 would be a "discount" price for the seller, if no broker is involved in the transaction, or if the seller hires a discount broker to handle only the closing, without listing or showing the property.

    I wouldn't join an affiliate program like this, but I do think there might be an opportunity for some publishers, if the legal issues can be resolved.
    Last edited by markwelch; July 17th, 2007 at 09:20 AM.

  19. #19
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    Noth asked "If the AM was licensed, could the AM then turn around and pay non licensed individuals?"

    My thought was that the AM would be "engaged" on a regular basis, which would probably not be permissible for an unlicensed person (that is, any "finder" exception would probably not apply to someone who is engaged to actively recruit "finders").

    I am still doubtful whether unlicensed affiliates could be paid based on transactions/closings. However, as I noted, my understanding of the law is quite limited and is also quite dated.

  20. #20
    Analytics Dude Kevin's Avatar
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    Thanks Mark. I'll ask our attorney, who carries a license.
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  21. #21
    Believe knight01's Avatar
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    I was hoping this thread would just go away.


    If an A.M. was licensed, they could not pay a fee to someone who is not, period. The only exception is a nominal gift as described above, to anyone who is not licensed for a closed transaction. If this became a routine, gifting the same person or persons repeatedly, HUD would likely look at it as a payment for service and not a 'thank you gift'. Creating an employer/employee relationship. Licensure must take place with all parties.

    RESPA is very clear about this, there are literally dozens of case each year where HUD has fined people for doing this and in extreme instances they have done jail time. (only a couple I can think of in the past 18 years, and those were also involved in other fraudulent activity.)

    I found a simplistic explanation on the HUD website, http://www.hud.gov/offices/hsg/sfh/res/sc2secti.cfm .

    I am still learning about affiliate marketing and best practices, I learn something for all of you almost every day. But on this topic, truly, I know what I'm talking about and am happy to offer advice in return for all that I've taken from you. But even the thought of this discussion makes me nervous and would like to see this end as people read it and get the idea 'I won't get caught!'. Just as there is blackhat in SEO and parasites in affiliate marketing, there are people in real estate that do this and tell others to do it. When they are found out, they are reported to the proper authorities. Lets not encourage this person or anyone to break the law.

  22. #22
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    knight -- you referred us to a site that deals with payments for referrals between professionals, and specifically refers to "settlement costs" and (effectively) deductions by a mortgage lender or payments out of escrow. It's intended to prevent improper relationships between real estate brokers, lenders, title insurance agencies, and escrow companies, and to prevent "piling on" of fees and "fees on fees."

    I don't think that those provisions apply to the payment of fees outside of that process, to unlicensed persons; as I noted, when I researched this issue in the early 1990's (long after RESPA was enacted), I determined that neither RESPA nor any other federal law appeared to prohibit the payment of a "finder's fee" by the seller (contingent on a sale to the buyer located by the "finder") but California law (I'm not sure if it was statutory or case law) imposed special restrictions on such payments to unlicensed persons.

    In the end, I think we agree that it is probably illegal for someone to set up an affiliate program with payments based on real estate transactions (closings) -- but we certainly disagree on whether RESPA is the reason it's illegal. I think we also agree that such a program is highly unlikely to attract successful affiliates, nor to generate sales. I just don't think it makes sense to over-generalize and claim that payment of a "finder's fee" to unlicensed persons (outside escrow) is prohibited by RESPA, or that people should be discouraged from researching the law applicable to this area.

  23. #23
    SEO: A Specialty - Web Design: Slow or outsourced andbeyond's Avatar
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    I dont think this is so difficult.

    He needs a internet marketer who has a license for the state he is looking to do this. Maybe look locally for someone and deal with them directly.

    Or help a local marketer get licensed. It is not impossible. I have some of the credits from college accidently, could study a bit and take the test. Not that I want to but its possible. Some time to take classes and the test though.

    Then pay them directly, no AM.

    Not sure but there are probably other ways.

    Then this gets to the trust issue. The marketer has to trust that they will get paid. Maybe in some way the leads get sent to both parties and they have some way to verify sales, student enrollment, or for some reason they trust the company. Maybe past business or a personal friend.

  24. #24
    Believe knight01's Avatar
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    Mark - Yes, lets just agree to agree.

    No matter how you cut it, this is a bad idea for affiliates. I stand by that the only way it would work legally is if the marketer is a licensed real estate agent. I know of numerous sites and networks that are already established and running referral programs like this. Which is why I suggested to the OP to visit some real estate agent forums. Although, I don't think this is exactly what he was hoping for...

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