Pay Per Lead Affiliate Program Lagos Nigeria - Generate More Sales With Pay Per Lead Affiliate Programs
Pay per lead affiliate program Lagos Nigeria - Pay per lead simply means that affiliates are paid when they send one or more leads to the merchant they represent. (Don't know what affiliates or affiliate program means? Click HERE for a short explanation ).
But you may have noticed too that businesses that use the pay per lead affiliate program model have done so for years and are not showing any signs that indicate they want to change that business model.
Why are they not changing from the pay per lead affiliate program model to pay per sale model?
Obviously, it's because they are making good money through their chosen affiliate program model.
Naturally, the next question is, "which is better?"
Which should you go with? The pay per lead or the pay per sale model?
The affiliate marketing model you go with will obviously depend on the one that favours your business . . . the affiliate marketing model that grows your business profitability.
Review the benefits of the pay per lead model below to see why many companies choose to use this model.
Benefits of Pay Per Lead Affiliate Programs
The advantages of the pay per lead affiliate program model to the merchant include:
1. You Get The Traffic And Pay For It Later
Pay per lead affiliate marketing is very similar to pay per click advertising offered by major search engines. But with pay per lead affiliate marketing, you pay affiliates for leads sent to your business at the end of the business or accounting cycle.
For example, if you pay affiliates on the first day of the following month, you will get all the traffic for the month without paying a dime. And you get to pay at the close of the month after you have made sales through the volume of traffic sent to you.
On the other hand, with pay per click (PPC) advertising with major search engines, your credit card is billed as the clicks occur. In effect, PPC advertising is like "Pay As You Go" billing while the pay per lead affiliate program model is "Post paid" billing.
2. Increased Number of Affiliates And Increased Sales
Since website owners know they will be paid per traffic or leads sent to the merchant, they do not have to worry about whether the traffic will convert to sales or not. Nor do they have to worry about the conversion ratio of the merchants sales page eve if it looks like it may have a poor lead-to-sale conversion ratio.
Therefore, website owners are more inclined to join the affiliate program. And this can quickly result in the merchant having thousands of motivated affiliates promoting his products.
This will ultimately result in more sales.
The key benefits of pay per lead affiliate programs to website owners include:
1. The website owner does not have to worry about conversion ratio as mentioned above and
2. The website owner is paid the same amount per lead sent to the merchant unlike search engine PPC affiliate programs that offer different commission for different ads that appear on different pages of the same website.
Disadvantage of The Pay Per Lead Model
The key disadvantage of the pay per lead model is that pay out to affiliate per lead is often low.
This means that the amount paid to the affiliate pay per lead sent to the merchant is low.
In fact, the pay out or commission is often slightly better than what search engines offer with their PPC programs, except that search engine PPC earnings per click vary with varying ads.
All in all, pay per lead programs have strong benefits to the affiliate and the merchant.
However, it is important to note that the pay per lead (PPL) affiliate program model is suitable for merchants that have high margin products because many of the leads sent to the merchant may turn out to be untargeted leads . . . leads or potential customers that may not be highly qualified to buy the merchant's products.
Therefore, they may not become paying customers. Hence, conversion ratio is likely to be low.
But if the profit margin per sale is high, the merchant will still grow his business profit exponentially when he has tens of thousands of motivated affiliates promoting his products.
Want to start your own affiliate program?
Decide whether you need to go with the pay per lead or pay per sale affiliate program model.
It's your business. You get to make that decision.