potter

Seeing another thread on here just made my eyes pop out of their sockets. Seems there are some people who don't understand the logistics of running a promo.

X sponsor says send 150 sales to receive an iphone. 150 sales on $30 per would be $4,500. Anyone with that kind of traffic and sales either already has an iphone or some other incredible phone and wouldn't need one. The rich get richer right? This is backwards thinking when running a promo. A promo is short for PROMOTION. Definition; "something devised to publicize or advertise a product, cause, institution, etc.". When a promo is run, the idea is to promote your program. Not to run a get rich quick scheme.

Promos should be the very least in sales to receive an item. Example, Sponsor pays 60% rev, with $20 per sale. So they're making $8 per sale. They do a promo with a $300 item. They'd need 38 sales to break even with spending $300 on that affiliate. Well, the sponsor SHOULD be able to take into consideration rebills and upsells. The program will also have increased traffic, a larger affiliate base, more publicity, and possibly SE higher spots. ALSO the program will have tons of affiliates not making X sales, which is all profit. So they give out the promo at say 30 sales. They need about a 27% return rate on that new traffic and they make their money back. This 27% return rate should include rebills, upsells, increased traffic, affiliates who don't make the X sales to get the gift. That's where the money comes from to pay for this new PUBLICITY.

The point of a promo is supposed to be to get your name out there. To gain affiliates and get publicity. You gain traffic and affiliates. It shouldn't be about "makes us $5k and we'll send you a free gift." Any sponsor who has an affiliate making them $4k+ per month should already be giving that affiliate an increased payout rate in the first place. It's the proper way to do business.

__________________