Private lead generation with example

I have mentioned in a few other posts how a big percentage of our income is from private offers. Some people are wondering what this means so I thought I would give an example of one of our biggest money makers.

How it came about:

A friend of mine from I.T. days went to work last year for a mid sized investment services firm as a network admin. This company does a lot of business all across the U.S., but is still mostly old school offline with it’s marketing. They were looking to increase their online presence and my friend gave me a call to see if I would be interested in helping. I had a few calls with their marketing department to find out their goals and what I could help them doing with paid search and lead generation. Basically, the main goal they wanted was to get customers into their sales funnel via their qualified investment lead form.

The setup:

I helped them setup a backend system to track the leads coming in through the page. We both (myself and the company’s accounting dept) have access to the stats for the leads. It’s a simple script that were able to have a php developer build in only 3 hours. But it works great, and lets me track down to the sub id. I then consulted with their web designer to totally re-do the form page and make a few landing pages for my campaigns.

The payment:

We then worked out a payment plan where I am paid a CPA action for each lead, as well as a percentage of any final sale that is derived from that lead. The CPA part is important because it helps by set bid prices and know my profit margins. The secondary payment is key because it gives me an incentive to find better leads, and makes the client feel like its more of a partnership. Not to mention a great money maker for me :)

I run PPC campaigns on all the networks as well as now some media buys for this offer, and the traffic just keeps increasing. A great benefit is that I am the only person running ads for the company. Obviously there is other competition in the investment services niche, but not for this specific company and group of services they provide.

Replication:

This kind of setup and arrangement could be duplicated in almost any niche. It’s a pretty easy sell to the small to medium sized business that doesn’t have an internet marketing team in house and doesn’t wand to hire someone. The benefit to the company is that you front all the advertising costs and risk. They only get the benefit of a performance based system that delivers leads or sales. The possibilities are really endless.

You can even be proactive and sell yourself to companies that you know you could drive leads to with existing campaigns and keyword lists. The best deals and partnerships are not always going to fall into your lap, or be offered on your favorite affiliate network. Sometimes you have to work for them. You could research a list of companies in a niche you are good at then send an email to their marketing department. Tell them you are an established online lead generator, and can provide them with risk free leads. Throw in a bunch of impressive RIO stats from your previous efforts, and you would be surprised at the response you get.

It’s just another way of thinking about applying skills you have learned with CPA networks to more profitable relationships and campaigns. I see this as a much more stable and long lasting income source than network based offers.

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Posted in Affiliate Marketing, General, Lead Generation by cdfnetworks on 06|02|08
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21 Comments »

Comment by Jason Tibbons
2008-06-02 20:53:09

This is a really eye opening post for me. i have not really considered this tactic.

Comment by Chris Alexander
2008-06-03 01:11:51

I agree. This is one of the better affiliate marketing posts I’ve seen in a while.

Comment by CPA Affiliates
2008-06-03 16:43:48

it is a great tactic the harder part is dealing with someone you trust. as i ahve tried doing this some success and some not.. the ones that were not the people got greedy and tried cutting me out… later realized there flaw in doing so..

(Comments wont nest below this level)
Comment by Ken Savage
2008-06-04 03:49:02

Isn’t it great when you get that call saying, “ahhhh we screwed up and can you help us again…”

hangup!

 
 
 
 
Comment by Matt Larson
2008-06-02 21:45:19

This is also a great exit strategy for b2b client work where the relationship either goes sour or we realize our mgmt fee could make us much more on a CPA basis. If there is plenty of competition, one could either switch to the cpa model at renewal time for the contract, or if the client balks, discreetly shop around for a compeitior willing to give it a go. Have the campaign and keyword research already composes so as long as there is no contractual right to the campaign itself….

 
Comment by Matt Larson
2008-06-02 21:46:21

This is also a great exit strategy for b2b client work where the relationship either goes sour or we realize our work in exchange for a mgmt fee could make us much more on a CPA basis. If there is plenty of competition, one could either switch to the cpa model at renewal time for the contract, or if the client balks, discreetly shop around for a compeititor willing to give it a go. Have the campaign and keyword research already composes so as long as there is no contractual right to the campaign itself….

 
Comment by Gagan
2008-06-02 23:57:29

Wow Chad, this is brilliant. Never thought of it this way.

I had a security-guard company I build the site for approach me about marketing online. Back then I didn’t have much experience in this.

Maybe I can approach them again.

So, they pay you after the lead converts for them or is it per lead?

Comment by Chad
2008-06-05 17:47:54

Per lead.

 
 
Comment by Juice
2008-06-03 00:31:08

They pay you for upfront and backend.

 
Comment by David
2008-06-03 01:38:51

Hey Chad, for investment services, wouldn’t you have to be securities licensed to receive your back-end percentage? Investment commissions cannot be shared with non-licensed individuals.

Comment by Chad
2008-06-03 02:30:45

The service they provide is not direct investing so, they don’t have to worry about those rules. At least that’s how they explain it to me.

 
 
Comment by WayneDog
2008-06-03 12:02:03

As usual your posts have a way of opening up the floodgates to creative thinking… When there are so many smuck “super affiliate bloggers” out there publishing crap content, it’s good to come here and always know I am about to read some quality informative information on internet marketing. Good stuff Chad.

Comment by Chad
2008-06-05 17:47:22

Thanks Waynedog

 
2008-06-08 14:46:24

I agree. Chad’s blog feels a little ‘old school’ in the sense that he is sharing some real information. Not just ‘tips’ that have been shared a hundred times already.

 
 
Comment by SpotOn SEO
2008-06-04 14:04:31

Great post Chad. What measures do you have in place, to ensure you get paid on the backend? How would you know if the person turns into a customer or not?

Comment by Chad
2008-06-05 17:46:35

Conversion tracking code on the thank you page.

 
 
Comment by kris
2008-06-05 03:23:01

Excellent post! Do you happen to have a copy of that php tracking your using that you can sell or give away :)

Comment by Chad
2008-06-05 17:45:27

It wouldn’t work for anything else, its totally customize for their system…

 
 
Comment by sipboy
2008-06-05 05:23:01

Great stuff. I also would like to know how much would you sell the php tracking for? You have inspired some new ideas for me. Thanks!

 
Comment by Mike
2008-06-06 16:25:04

Chad,

This is a great post. I think a large part of the affiliate marketing world is very limited in their scope because they get into it via someone’s affiliate network link and then they think “oh, I’m limited by what CJ or SAS or whatnot have to offer.”

In reality you are just taking a more direct approach and taking out the network middleman which saves the merchant money.

For my newest project I’ve been talking directly with the company and while they use CJ, I’ve expressed interest in partnering directly. This has led them to offer me a free 800 number to use for my site, additional higher convering creative option, and contract flexibility down the road in terms of payment terms and commission (ie. switching from a CPA for new customers model to a rev-share model).

At the end of the day the best business deals tend to be the ones that give you the most flexibility and going the route of person-to-person communication will give you infinitely more options than browsing through the merchant list on CJ.

 
2008-12-30 17:02:53

[...] What I consider one of the more helpful posts was on Private lead generation [...]

 
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