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YNOT University: Educational articles and tutorials

How to Maximize Profit Margins with Affiliate Programs and Parterships

Posted On 28 Feb 2003
By : admin

AD PROGRAMS

Affiliate Programs and Partnership Models are abundant in the online adult market, and both are a great way to increase your profits. Due to the nature of the industry, programs are ever evolving.AD PROGRAMS

Affiliate Programs and Partnership Models are abundant in the online adult market, and both are a great way to increase your profits. Due to the nature of the industry, programs are ever evolving. There are many different types of programs — they are aimed at every niche and target. By examining your traffic, experimenting, and targeting your marketing strategy, you can maximize profit margins.

AFFILIATE PROGRAMS

Per-Signup Programs

You send traffic to a sponsor, and are paid a set rate for each signup you generate. Per-Signup Programs pay you for every member that was referred to their website by you. The Per-Signup Programs vary in payout amount, and range from about $25 to $50 per trial membership signup. This is an opportunity to make great money with smaller amounts of traffic than you could with Per-Click Programs.

A good amount of money can be made through Per-Signup Programs with general traffic. Using program banners, photo and blind links, consoles, and redirects (if allowed in that specific program) can be very effective. Many Per-Signup Programs have very lenient terms and conditions on promoting the sponsor’s website(s).

There are also commission-based programs, where you earn a percentage commission (instead of a set dollar amount) for each surfer you refer. You may also earn a percentage of the recurring membership (when your referred surfer renews the membership).

The advantage of Per-Signup Programs is they can afford to pay top dollar for each join you send. The sponsor is generating a profit, and some will even pay you more than the price of actual membership. They can do this, because they are counting on retaining that membership for more than one period.

Per Click Programs

The Per-Click Program (or “click through”) pays you for each unique referred hit to the sponsor’s website. The sponsor pays even if your referred surfer does not buy anything from them.

The two primary categories of Per-Click Programs are flat rate and conversion based. Flat rate per-click programs pay a set amount for every “unique” or “raw” click on a banner or text link. Unique clicks (“uniques”) happen when an individual surfer clicks on something one time. If that unique surfer then clicks on anything using the same link code, that creates a second “raw” click.

The flat rate model works best when used as the first banner at the top of a free site’s main or home page. Putting a flat rate per click banner here will make money, as this ad space pulls the best on a site. Flat rate programs also work well on exit consoles, and with non-targeted traffic (such as TGP’s).

Conversion based (sliding scale) programs pay a variable amount per click, based on the number of clicks sent, divided by the number of sales made. In most cases, unless a sale is made, you may not get paid anything for the traffic you send.

This conversion-based model works very well if the bulk of your traffic is coming from the Asian and Eastern European countries. Surfers from these countries are likely to not have credit cards to access the sponsor’s websites. This model also works well with a large repeat-user base, or your own member section to which surfers return repeatedly. The repeat model can usually spot a pay-site tour from the first click, however, you just need to get the surfer to that first page and let the affiliate program convert them. The disadvantage of Per-Click Programs is you have to send a good amount of traffic to make any money.

PARTNERSHIP MODELS

Partnership Programs

Partnership programs allow the advantages of making recurring payouts. You are paid a percentage of the membership sale for as long as that surfer maintains the site membership. So you will get three checks instead of one if the surfer remains a member of the sponsor’s paysite for three months.

You need to be careful when choosing Partnership Programs. You are forfeiting a larger initial payment, and hoping your partner is able to retain members long enough for you to profit through the recurring membership (or “back end”).

Other Options

Some affiliate programs offer products that do not directly compete with what you are already advertising. Programs such as adult stores and email collection are two good examples of this kind of program.

Adult stores pay you a commission on sales generated by your referred surfers. The clear advantage of this type of program is that you need only to place an adult store link on your website. The store does not compete with other sponsor sites you are promoting. If the surfer wishes to purchase a toy or video, you earn a commission.

Email collection programs generally ask you to place a box on your website in which a surfer can enter his or her email address and subscribe to the program’s mailing list. This type of program pays you for each email address you gather. This program works for every type of traffic, and is (usually) a free, no-risk service to the surfer.

Final Thoughts

It is very important to read the terms and conditions with each individual program. Each type of program has advantages and disadvantages. Easy money can be made in non-conversion based click through programs. But some of the best money can be made using partnership programs. However, the most consistent money is in per-signup programs. It is most profitable to use of all types of programs in combination. Depending on your traffic, experiment, and use various programs to create a formula that works best for you.

Jessica Black, aka “WolfCat”, is the Website Director for Price Communications/Cyber Trend, Inc.; Silver Cash: www.silvercash.com; 909.509.7676; 909.688.0247 fax; ICQ: 22099427 AIM: WolfCat999 2900 Adams Street, Suite C37 Riverside, CA 92504

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