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Old 23rd October 2007, 08:30 AM   #1

Join Date: Oct 2007
Posts: 3
Default Pay Per Click Vs. Pay Per Sale

Hi, guys.

Just a look at the problem from the side of an affiliate program. Definitely, we prefer to pay on the "per sale" basis. Otherwise very soon you will be cheated by some dishonest partners who'll be generating absolutely worthless traffic. So, you'll have to pay less for all clicks, including those which are good. This way what economists call "adverse selection" is being created.

But maybe there are some strong pro-s for the Pay Per Click system?
Can you share your experience with both?

Best regards, Seopharmacy

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Old 23rd October 2007, 11:47 AM   #2

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I think the biggest advantage of the pay per click system is the depth of distribution. While I understand the advantages of the pay per sale approach, the size of the potential audience is much greater for ppc. I think that is a distinct advantage, and while you can't completely eliminate the worthless traffic you mention ... you can (a) monitor your traffic closely and remove sources that don't provide any conversions (b) factor a certain percentage of the cost in as expected and the cost of doing business. If the roi is there, ppc is certainly viable ... but you must take steps to run a successful campaign because of the potential worthless traffic. Its not always the traffic as well, some times the site, keywords, cart, etc have issues from the user side. Test, test, test... for either pay per click or pay per sale.

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Old 24th October 2007, 09:16 PM   #3

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If you ever plan to pay on a per click basis you better get ready to hire more staff just for fraud monitoring purposes... The words "pay per click" bring out the cheaters in flocks, and if one is successful, even for just a brief moment, that will attract even more and so on.

I am sure pay per click can work but I don't think the collateral damage is worth it.

I used to own and operate a pay per click network back in the affiliate program pioneering days.

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Old 25th October 2007, 06:31 AM   #4

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Ok, guys. We at Seopharmacy would also like to learn more about what affiliates actually need and how we can improve our terms and conditions to meet your needs best and make the most attractive offer.

Please, advise, how do you prefer to receive settlements from the affiliate program? By which payment method? Credit card? Wire transfer? Moneybookers? E-wallet?

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Old 25th October 2007, 07:32 AM   #5

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I prefer good ol' fashion checks. But it is always best to give as many payment options as you can. Also, keep the minimum payment threshold low and don't make affiliates wait more than 30 days per pay period.

Looking at your main page I see you already offer attractive features like that. I think your commission scale is pretty good too. It gives affiliates reasonable goals.

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Old 25th October 2007, 07:47 AM   #6

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Ok, after reviewing your website in more detail here are a couple of reasons why I would not sign up with you if I was a potential affiliate.

Minimum payment amount is $100, payment methods are bank wires and direct Fethard and WebMoney transfers.
The min payout is ok but I don't see a payment by check option. I really don't feel comfortable giving out my bank account info to affiliate programs I don't know. I never heard of the other options before.

Currently we accept only Visa cards, but we are looking for a way to accept other cards. As practice shows, 80-85% of all online orders are processed using Visa cards so this is not so crucial for our affiliates.

But what about the 15-20%? That's a good chunk of change missing from my potential commissions.

Also, I am not seeing any terms and conditions listed anywhere other than no spamming. Is that the only rule your affiliate program has? I would hate to join your program, make alot of money, and then get canned for breaking a rule I didn't know existed.

Just my two cents

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Old 2nd February 2008, 10:44 PM   #7
Gary Luckner

Join Date: Feb 2008
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Default Pay per click

I agree pay per click does bring out the scammers, but the same goes the other way. How would someone know on a pay per sale basis that you are being honest with them. I think you just need to keep a good handle on which leads are converting and get rid of the ones that are not.

Gary Luckner

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Old 2nd February 2008, 11:03 PM   #8
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You have a real hodge-podge affiliate program. I should not comment on your operation, it may be quite successful, but without accepting PayPal you are missing a good portion of prospects. Of course, you need a full merchnat account with MasterCard as well.

If you want an affiliate program, you need to have one managed for you by someone like Commission Junction that people have confidence in.

If you are determined to have your own, study some others, join CJ just to look around. Keep the rules simple and have a verifiable program.

Pay by PayPal, 95% of your affiliates will accept it.

I have no idea what your average sale is, but in general I would avoid a program that made me wait until I had accumulated $ 100.

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Old 4th February 2008, 08:58 AM   #9
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Location: Belfast
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I think it all depends about your financials, conversion rates and ROI, what Internet Marketing method you should use.

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Old 1st November 2008, 02:32 AM   #10
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I have read out your discussion but still i have an illusion that what is the basic difference between "pay per click" & "pay per sale"??

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