PPL VS. PPC
Submitted by KE on Fri, 05/16/2008 - 18:26.
I've seen a number on posts here about PPL (pay per lead) and the people who are PPL have said it is more profitable than PPC simply because it doesn't require people to purchase anything and thus, makes them more willing to sign-up.
What are some of the advantages and disadvantages of both however?
PPL VS. PPC
From Page 16 in Jeremy's Book HPAM
Advantages of Earning a Percentage of Sales
• You can earn a ton of cash on big ticket items.
(Example: You refer a customer who buys a $2,500 computer).
• You can earn a ton of cash when your visitors buy multiple items at once.
(Example: You refer a customer who buys a pair of shoes, matching purse and
jacket).
• Some merchants will pay their affiliates commissions on repeat purchases.
Disadvantages of Earning a Percentage of Sales
• Your visitor may buy a small ticket item.
(Example: The customer you referred buys a pair of socks, and never returns to
purchase anything else).
• Your visitor may return the merchandise, which could result in your commission
being reversed.
(Example: The shirt your visitor bought last week just doesn't fit right. They
return it, and your commission is reversed).
Advantages of Pay Per Lead Programs
• The conversion rate for pay per lead programs can be better than pay per sale.
• You can earn big commissions in industries like mortgage loans and insurance.
Disadvantages of Pay Per Lead Programs
• The commissions can be less than pay per sale programs.
• Some of the leads you send from your website may not be qualified.
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As you mentioned in your
As you mentioned in your original posting and I've said this so many times on the board I probably sound like a looping MP3 file LOL,
In a day and age when people are very skeptical about giving out their email address for fear of SPAM, it's still much easier to get someone to give you their email address than it is to get them to give you their credit card. Get their email address, get paid and then let the merchant worry about getting their credit card number.
The only disadvantage I’ve seen is lack of content. When you’re doing Pay Per Sale, you can have customer reviews, product descriptions and lot of other content, but with PPL, I usually end up with a page that just has a very short description and maybe a few customer testimonials. I’ve never been a big fan of content, so this works well for me. I don’t want to pay for my customer’s education on a product, I want a customer that has already been educated somewhere else and is ready to fill out a lead form. Unfortunately Google doesn’t share this opinion, so I mainly use Yahoo. I’ve been doing this for over 2 years with much success.
James
James,How do you get a high
James,
How do you get a high ranking for your site without good, quality content?
Also, if I decide to go the PPL route, what would you recommend in terms of designing a website that will rank well? Would you recommend adding a blog style site where users can leave their own reviews?
Do your websites show up in google searches? or do you just not use google' adwords for your advertising?
Also, don't some PPL offers make it harder to get paid because they may not pay you until the customer not only signs up, but purchases something?
I mainly focus on Yahoo for
I mainly focus on Yahoo for my PPC. If I do duplicate a campaign to Google, I'll usually create a Google version of the site. I don't like having content on my site, because users are too easily distracted. I don't want them to start reading content and forget why they came to my site. Also, if they're reading content, they're probably trying to educate themselves and I don't want to be the one to pay for their education. I have enough content to let them know about the company and the process and then the call to action.
For PPL, I only work with merchants that pay for the actual lead. Some merchants I've seen will pay one commission for the lead and then a second commission if the user buys a service, but I haven't worked with any merchants like this yet.
Some merchants will reverse the commissions on leads that are submitted with bad contact info. This can make it difficult to figure your ROI and be a big surprise at the end of the month when a lot of your leads get reversed. Usually, if you can prove to the merchant that you can generate a lot of volume for them, then they will start paying you a flat rate for all leads, regardless of the quality of the lead. Just make sure you don't use this as an excuse to be lazy. You should still constantly be working to improve the quality of these campaigns so the merchant can see you're a valuable asset to their affiliate program.
James