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Your Pay-per-lead Program - How Much Should You Pay A Pay-per-lead Affiliate?

Posted on June 5, 2008 - Filed Under Business

While most affiliate programs pay very little for the traffic they generate, pay-per-lead affiliate programs tend to pay significantly more. You need to consider this fact before starting your own program or else you may end up spending more for the leads than what you are earning from them.

Why They Deserve More

The key difference between pay-per-lead affiliates and others is that the traffic you pay for has already taken some type of action that makes it more likely they will become your client. For example, they may have requested more information or downloaded a free demo of your product. Regardless of the action they have taken, these visitors didn’t just stop for a few seconds, browse around, then jump to another web site.

This traffic is more likely to be converted into an actual sale so it’s much more valuable to you; therefore, you’ll end up paying your affiliates more.

How Much to Pay

Calculating the amount to give your pay-per-lead affiliate program team depends, in part, on the action you want the site visitors to take. You could also set up two levels of payment: one for an initial action and another for a more important action, such as making a purchase.

Let me give you an example. One popular online meeting program offers a two-tiered pay structure. When an affiliate drives a person to the site and that person signs up for a free trial membership, the affiliate receives up to $30. If that person converts to a paid membership during that trial period, the affiliate earns an additional $100.

While you may not pay this much to your pay-per-lead affiliate program team, this gives you some idea of what potential affiliates will be expecting from you.

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