Buying media comes at a huge risk. If the campaign doesn’t backout, you’re out real money. Buying media via CPC/CPM is an exact science that few have mastered.
What many people don’t know is that large ad networks such as ValueClick, Engage, and Pulse360 do in fact work on a CPA basis – on a case by case basis that is. There are many advantages to working directly with the ad networks:
– full transparency on campaigns.
– instant access to consumers.
– no bs that comes with dealing directly with affiliates or affiliate networks.
Personally nothing is more aggravating than having to rely on someone else to bring you sales. By working directly with the ad networks, you in effect become the affiliate. (Most affiliates buy their media via ad networks.)
Here’s 3 tricks to getting your foot in the door with an ad network on a CPA basis:
1. Bring them a well capitalized campaign with a proven track record. This tactic only works on campaigns that are well capitalized. If you have a smaller budget <200k a month, then you’ll need to rely on affiliates or buy media on a CPC/CPM basis.
2. Have your presale pages ready and tested. Ad networks are completely risk averse so you’ll need to have 100% compliant presale pages. You’ll need to back every claim you make via testimonial affidavits, clinical trials, etc. So make sure you lawyer is geared up and ready to talk to their lawyer.
3. Price your CPA higher than what affiliates are paying via CPM. Affiliate marketers work on arbitrage. If it costs an affiliate $30 to acquire a customer (that’s what they pay the ad network) and the affiliate receives a $45 CPA (payment from the advertiser), then all you have to do is price your CPA to the ad network above a $30 CPA. Make it large enough for the ad network to want to assume the risk of running your offer on a CPA basis. Afterall, ad networks are buying traffic directly from high volume websites such as Weather.com or WhitePages.com. An ad network’s profit margin is made on the spread between the person buying the media and what they’re paying for the media.
From there you can enjoy lower CPAs, higher volume, and avoid the hassles of working with affiliate networks/affiliates.
P.S. Buy going directly to the ad networks, you cut out 2 middlemen – the affiliate network and the affiliate. Hence your profit margins are much higher.
P.S.S. If you discover the best placements you can cut out the 3rd middleman, the ad network, and buy placements directly on the websites you’re targeting with 😉