Affiliate programs are one of the most popular ways for people to make money online. They can also be quite profitable to the company whose products are sold. If you're only paying out on actual sales, you may be missing out on a valuable aspect of affiliate marketing.
Pay per click and pay per impression programs have been around for years. Many affiliate program owners consider them a waste of time and money. They can in fact be less profitable than other affiliate programs, because clicks and impressions do not necessarily generate sales. It’s possible to imagine that pay per lead programs are not worth the effort either but many businesses swear by them.
What Is Pay Per Lead?
A pay per lead program pays out when an affiliate gets a customer to sign up for more information. This is often in the form of a mailing list or free Ecourse but it can take on other forms as well. Insurance companies, for example, might pay affiliates to get people to request free quotes. Those selling tangible products might pay affiliates to get addresses to which they may send free samples.
In essence you are paying for a chance to market your products or services to someone. On the surface this may sound somewhat futile but in reality it is smart marketing.
What Are the Benefits of Pay Per Lead?
When a potential customer gives put their email address and other contact information, it is a good indication that they have some interest in your products and services. Most people don't give out their email addresses freely for fear of being spammed and when they do share them it is usually to get information they really need or want. When you get a lead you know that there is the possibility of eventually turning it into a sale. Pay per click and pay per impression, on the other hand, require little or nothing of the visitor and are less likely to result in sales.
Affiliates like pay per lead programs because it is relatively easy to get the desired results. They can offer their visitors something that won't cost them a dime. While pay per sale programs usually pay more than pay per lead, getting leads is somewhat easier than getting sales. Affiliates might be willing to promote more actively and that will result in more leads.
How Do I Use the Leads I Get?
The key to making leads profitable is following up on them. If leads are coming from a mailing list, sending something out on a regular basis will keep them informed and interested in what there is to offer. Ecourses should be designed to inform while promoting offerings and are most effective when broken up into several separately emailed sections.
If offering free quotes, samples or some other type of incentive, make it clear at signup how the person's contact information will be used. This will keep you out of trouble with the spam police and earn the respect of your leads. Both are of vital importance.
Pay per lead programs give the opportunity to stay in contact with those interested in your offerings. When implemented properly, they can be more economical than pay per sale programs. They give multiple opportunities to make the sale rather than requiring the customer to buy right away.
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