How to Determine Best Payout Compared to Similar Offers

In this space a competitive offer is paramount. One of the biggest aspects that makes a campaign competitive, besides the design of the landing page and its conversion rate, is it’s payout.
Figuring out what you can offer publishers to send quality leads to your campaign can be tricky to figure out, but one rule can apply above all when figuring out the correct payout – profitability is key.
Anybody can come in and aggressively compete with the payout to affiliates, but can your company and your campaign sustain at that payout over time?
A number of factors need to be considered when determining the best payout:

1 Do your homework on the space. It is always best to start by analyzing the top offers similar to yours in the space. By studying the similarities and differences between the offers you can determine what you can learn from the offer and apply to yours, or what you do differently and better. Look at all the details from the consumer price points to amount of fields and information collected to get the best gauge of where you stand.

2 Consider all your costs. Understanding how the payout plays into your overall costs is an extremely important part of ensuring profitability. Can you afford that payout along with your cost of goods, shipping costs, overhead expenses, merchant reserves, etc.? Run a full analysis of what it truly costs you per lead or sale and back in the highest payout you can afford to pay out to affiliates while still remaining profitable. Not only think about costs at day one, but how that payout plays into the life cycle of your lead or sale. By offering a higher payout, does it change your break even time frame? Do you need to depend on the leads and sales backing out at a higher percentage?
3 Be aggressive, B – E – Aggressive! A trend in thinking among advertisers is to start off at either the base level of their competitors or to give themselves room to increase payout at a later time. At Clickbooth, we remain objective about offers that come into the network. Offers that come in are directly split tested against already top performing offers. By coming in at par, what incentive are you giving affiliates to test your offer against an already proven campaign? If you know you can profitably afford to give affiliates more, it will be passed directly on to those affiliates and help give you a head start against already competitive offers in the space.

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