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Category: Articles » Internet & Online Businesses » Affiliate Programs » Article » Article Code

The Death Of Affiliate Commissions?

I've noticed an interesting trend that I wanted to comment on and hopefully give you an idea of a new unique way that you could generate leads, affiliates, and customers. For the past 4 years, one of the things that I've done to build my business is to run my own affiliate program. I've built my affiliate program to over 30,000 affiliates who drive traffic to my sites. Now, what's powerful about this is that I don't pay them anything until AFTER they make a sale... So they make a $97 sale - I give them $50. ... read more

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I've noticed an interesting trend that I wanted to comment on and hopefully give you an idea of a new unique way that you could generate leads, affiliates, and customers.

For the past 4 years, one of the things that I've done to build my business is to run my own affiliate program. I've built my affiliate program to over 30,000 affiliates who drive traffic to my sites.

Now, what's powerful about this is that I don't pay them anything until AFTER they make a sale...

So they make a $97 sale - I give them $50. Something like this usually happens.

But just recently I've seen a unique trend...

Instead of paying commissions on product sales (pay per sale), some people (and lots of large companies) are paying commission on leads sent to a website (pay per lead or PPL).

That person doesn't have to buy ANYTHING... They just fill out a form and become a lead - and you get paid!

Now, before we get deep into the logic behind this, I want to show one example that I saw last week in the internet marketing niche - that was brilliant.

Mike Filsaime put out his now famous "Death of internet marketing" report. In it he talked about how everyone and their dog is launching products, and how it's killing this niche, and what to do to overcome it.

It was a great report - I printed it out and read the whole thing and recommend that you do too.

BUT....

What was most interesting to me was the fact that he wasn't selling the report, he was giving it away free!

You can check it out here:

http://www.dotcomsecrets.com/reviews/deathof
 
Now, a few important things I wanted to point out here are:

1st - if you downloaded that report from the link above - Mike sent me $1

2nd - if you get anyone else to download that report - Mike sends me $1 AND he sends you $2

... And he's not charging a cent for it!

Crazy? At first you may say yes - until you realize a few things.

1st - Mike understands the lifetime value of a customer. Mike and I have had this conversation a few times, and we both know and understand that we can and should be making $1 per name per month from everyone on our email lists.

(with an offline direct mail list, it's usually 4-5 times that much - so be sure to gather offline info!!! - notice that Mike did?)

So - if we have a list of 20,000 names, we normally can make $20k a month from that email list.

2nd - From this campaign, Mike generated a fresh, double optin list of over 30,000 new names during the first 48 hours that this report was available... and probably closer to 60k+ now.

So - it's going to cost Mike probably somewhere in the neighborhood of $100k for letting people download this report.

Seems crazy until you know the lifetime value of a customer. Mike's new list will pretty easily generate him $30k X 12 months = $360,000+ this year. (and just think if he sends some direct mail to them also)

Would you trade 100k for $360k? I sure hope so.

So, seeing this made me really think more about PPL.

One of my close friends Keith Baxter owns a fast growing PPL company called ModernClick. You can get yourself an account to sell products OR to promote other PPL programs here:

http://www.dotcomsecrets.com/reviews/modernclickPPL

I went in there, and started to look to see what type of things I could get paid for telling others about.

Here are just a few things that I found:

1st - some ebay course that you can get shipped to you for like $2.95. When I get someone to fill out the form, and pay the shipping costs, I get paid $12.80. Check out the course here:

http://www.dotcomsecrets.com/reviews/ebayPPL
 
2nd - Here's eBay ANOTHER course that I get paid $18 everytime someone becomes a lead (NOTE: they don't have to buy ANYTHING!!!)

http://www.dotcomsecrets.com/reviews/ebaymillionsPPL

3rd - Bargin Auto's pays me $20.80 when someone fills out the membership trial!!!

http://www.dotcomsecrets.com/reviews/barginautosPPL

Ok - those are just 3 examples out of hundreds in tons of different niches that are in modernclick! ... now, if that doesn't get you excited... the I'm not sure what will.

So - there are a few things I want you to think about with PPL

1st - Should I be using this instead of Adsense? (the answer is almost ALWAYS YES!!!)

2nd - Should I be offering PPL for my affiliates? (Some affiliates would rather get paid a $ for each referral then for each sale... and if you know how to work a list - it could cost you a lot less to make a lot more)

3rd - (and this one is especially for those who took Stu McLaren and my affiliate inferno course) Should you offer PPL when people get others to signup for your affiliate program? What if it cost you $20k to get 20,000 affiliates? Would that be worth it if each affiliate averaged you $1 or $2 in sales per month?

So - with that said... think about PPL. Will this be the end of affiliate commissions? Probably not, but those who capitalize on PPL now are going to have a huge advantage over those who don't.

If you're looking for a company to earn PPL or to set up your program to be PPL - I recommend Modern Click - again the URL is here:

http://www.dotcomsecrets.com/reviews/modernclickPPL

ALSO - A close friend just launched a new service that will help you to jumpstart your PPL on your own sites. You can use this service to quickly replace your adsense with something that will make you real moolah.

Here's some info on his new service (this site will become one of my secret weapons. I'm already working quickly now with my adsense/SEO team to implement this service ASAP):

http://www.dotcomsecrets.com/reviews/PPL-Power-Ads

To add your comments to this article please go to:
 
<a href="http://www.dotcomsecrets.com/blog/2006/11/the_death_of_affiliate_commiss.html#more">http://www.dotcomsecrets.com/blog/2006/11/the_death_of_affiliate_commiss.html#more</a>

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