Offers with low payouts are so often underestimated that most marketers think they aren’t able to bring any substantial profit. However, it’s the part of Affiliate Programs and Marketing world, where you can actually make tens thousands of dollars.
So, why do this category of offers is thought to be not worthy for online business? Well, in most cases it’s lack of knowledge and money making myths, which are not true.
The reality is that offers with low payouts can bring you very high profit and they often work better than the ones with high payouts. There are a couple of reasons for this. Let’s now take a closer look on the whole issue to see what will make you more money.
Offers with low payouts: GEOs you choose
Affiliate Programs mostly give you a wide range of GEOs to choose from. Almost every marketer thinks that it’s always better to pick tire 1 or tire 2 countries, cause they have high payouts.
At the same time, offers with low payouts in tier 3 seem to be worthless for them. It’s a big mistake and there are several reasons why it is so:
1. It’s not an easy thing to get a conversion in top GEOs. You’ll apply a lot of efforts, spend tons of money on testing and precise targeting etc. So, in the end it often happens that the actual income is very small because of tiny volumes and high expenditures. Also, your audience will be relatively small here, cause it includes traffic with high purchasing power only.
2. On the other hand, offers with low payouts are way easier in terms of conversion on paid traffic arbitrage. They usually don’t include any payment or complicated flow.
Think of such GEOs as India, Latin America, Arabic countries. They’ll deliver immense volumes and you don’t have to spend much money and efforts on your affiliate campaign. So, the final income will be often higher here than in top GEOs.
3. High-paying countries won’t always bring you good money because of huge competition. Unlike tier 3 GEOs and offers with low payouts, there are tons of trained and skilled marketers, who search for their luck here.
Not every affiliate can compete with them, especially as a newbie, who has just entered the business. Some spheres are such saturated that only marketing genius will make good money there. As for tier 3 countries, they have such big volumes that there is usually a place for everyone to try their skills and luck.
The reward will be more than decent. Offers with low payouts, together with high volumes, will bring tens thousands of dollars per month.
Conversion flow and the level of payouts
There is one more reason why high reward per conversion is not always the best option. The thing is that the bigger it is, the more complicated flow will be required to reach this conversion. There is a couple of examples, which show how it all works:
1. One of the simplest flows is single opt in or SOI. Offers with low payouts often use this type. The idea is that users have to do only one step and the conversion will be valid.
A common option is to give their email address. The reward won’t be high here, but potential volumes are really huge, so the final profit will be more than decent.
2. A bit more complicated flow is DOI or double opt in. This one requires 2 steps to make the conversion valid. It means it’s way harder to get a reward. Though, it’s higher than the ones offers with low payouts may deliver.
Actually, in the DOI case it all depends on many things, cause this flow is not very complicated. There are situations when it’ll bring more money with CPA traffic than SOI, and there are options when SOI will be much more profitable.
3. There are flows that require a direct payment. They’re the most high-paying, but it’s not so easy to get a conversion here. You have to be a skilled marketer to get here more money than with offers with low payouts.
A lot of efforts and time have to be applied to reach success here. Though, it’s worth trying, if you’re experienced and have all the essential knowledge. At the same time, it’s way easier to make money with a more simple flow.
4. If we talk about the shortest and the easiest flows in terms of conversion, it can be something like clicking “Agree” button. This will deliver only few cents per conversion. At the same time, high volumes will help you make a decent amount of money.
Such offers with low payouts give you a very simple and fast way to earn some buck. Such option is perfect for newbies and for low budget, cause it doesn’t require a lot of testing.
Payouts and market regulation
Every affiliate wants to get as high conversion rate as possible. At the same time, some GEOs and verticals have additional obstacles, which reduce the possible income.
If we talk about developed GEOs, there is a strong consumer protection there and many marketing tricks just won’t work there. On the other hand, offers with low payouts in tier 3 countries give you a chance to use way wider range of methods to reach conversion.
As for verticals, think about such ones as financial products, medicine, alcohol etc. There are a lot of rules to follow here and it has a really bad influence on your conversion rate. It’s often better to choose less regulated spheres, where rewards are a bit smaller.
Competition between CPA networks
Marketers often think that offers with low payouts won’t deliver a lot of money. They search for CPA Networks, which will offer them more. But how can two different networks have completely different rates for the same offers?
The thing is that the one, which offer higher rewards, will scrub some part of your conversions. That’s why it promises more money. Note that it’s about really big differences about 20% and more.
If it’s only 50 cents - $1, it can be explained by the network’s special agreements with advertisers. Anyway, offers with low payouts are nor always a bad option. Sometimes they’re the only right choice.
If you wanna try yourself on paid traffic arbitrage with CPA Networks I recommend you to start with: