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Old 02-08-2006, 02:02 PM  
Dollarmansteve
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Join Date: May 2005
Location: T.O.
Posts: 2,849
Here's my take:

Affiliates are paid on a CPA basis, so it's probably not a great idea to buy traffic for a flat rate unless you have good data on click-through and conversions.

In general, flat rate bulk traffic buying is a risky business and in my experience is almost always unprofitable (based on effective CPA). People who have the higest quality traffic have absolutely no problem working on a CPA basis, because they know their traffic will convert. It does not make any sense that flat rate traffic would generate a huge ROI, otherwise the traffic seller would perfer to work on a CPA because they would make more profit. Any business that says "we dont want to maximize our profit" is lying to you. Therefore, one can only assume that the flat-rate traffic seller is maximizing their profit by selling it in such a way. There is nothing inherently wrong with this, as there are many different types of traffic buyers out there with different goals - some buyers may not have a need to see an ROI based on their conversions because there is other value obtained from the traffic (that is they do not only make money on a conversion, they are able to extract some VPC regardless of a conversion, this is generally not true in the case of an affiliate promoting a sponsor program.)

The future of advertising (i.e. traffic brokering) is action based. Only in cases where the traffic involved is known by both parties to be low-quality bulk traffic (asian traffic, etc.) will flat rate deals make sense. Persons who are paid on a CPA basis will demand to buy on a CPA, to do otherwise is not smart.
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