Pay-per-lead affiliate programs are ones in which a third party receives a set commission for bringing a possible customer to your site when that customer takes a desired action, such as requesting a quote or signing up for a trial membership.

While the programs offer concrete benefits for both sellers and affiliates, not every business works well with this marketing method.

Ideal Businesses for Pay-Per-Lead Affiliates

Some businesses work better with this type of pay-per-lead affiliate programs than others. The perfect business would be one that offers a product or service with a high profit margin. This marking approach is also most common in highly competitive industries where companies are competing for a small number of customers and their dollars.

Insurance is probably one of the best examples. Health insurance companies today use online brokers to market to potential customers. When these brokers secure a lead – either by closing a sale or just giving them a quote from the company – they receive compensation from the insurance firm. Because the profit margin on insurance policies is so great, the companies can afford to pay out this extra money for highly qualified leads.

Do They Work?

To answer that question, we just need to look again at those insurance companies. These folks certainly aren’t in the business of wasting money. If pay-per-lead affiliate programs didn’t work, they would have abandoned the practice. However, more and more insurance brokers are popping up all over the Internet.

Clearly, these types of pay-per-lead affiliate programs can work very well, especially for businesses that meet the criteria outlined above.

Source by Fabian Tan

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