Official Offers with low payouts: Why do they make more money?

[Vimmy]

Offer payout $0.50 or less - take it or leave it?

Newcomers are torn between “a simpler offer, less money” or “more money, but a more complicated offer”.

So what about offers that pay less? Should you take them? Or work on something “normal”? And earn more?

Let's find out in this article.

Low payouts - is it worth the bother?

At first glance - no. It’s more productive to invest in an offer with medium or high payouts. And it will pay off faster. Right?

Not always.
Yes, if the payouts are higher, then 5 to 100 conversions will be enough for profit. But they are difficult to obtain. How much will you spend until that kind of conversion comes?

Read more about high-paying offers, their features, and how to work with them here.

Affiliate marketing is like riding a wave. To overcome heights, you need to learn to balance. To get conversions on “normal” offers, learn how to get them.

Affiliate marketing is like riding a wave. To overcome heights, you need to learn to balance. To get conversions on “normal” offers, learn how to get them.

The higher the payouts for the offer, the more hassle, namely:

• restrictions on GEO, traffic, source
• competition is higher
• the target action requires the user to be more involved or pay for a product/service.

The lower the payout, the fewer restrictions, the simpler the target action.

You need a substantial budget for offers from Tier1. Even for tests. It is not a fact that the costs will be recouped. The money cannot be returned. How often do you come across converting offers? Read in this article.

Test your skills

The first rule of a trader: the main thing is not to lose your deposit.

In the beginning, the budget is limited. You can test your skills and test as many offers as possible using TIER 3 offers.

The crowd in TIER 3 countries is not as solvent as in TIER 1. But there will be plenty of people! India alone is over a billion people, Africa is even more.

There are several hundred people who want to win an iPhone or a gift card. Install a game or application on their phone. Click, write, try, anything.

The target action for the user will be simpler for offers with lower payments. “Enter email, agree to notifications, download the game”.

Competition

Experienced affiliates often work with “more serious” offers. Most newcomers carelessly chase three-digit numbers in the ROI column and “fly” into offers from TIER 1. Having previously read green cases with the same ROI in the title. Why you shouldn’t do this was written here.

Therefore, the competition for these offers is significantly lower. They are simply of little interest to anyone. The audience is not tired of endless push notifications and banners, the market is not oversaturated with offers. The likelihood that a million more people are using the same offer as you is also low.

Scaling and automation

On an offer with a small payout, you need to launch as many campaigns as possible and scale them. How to scale campaigns was written in this article.

Judge for yourself: with a payout of $0.20, even 100 conversions will bring only $20. So, more conversions for the conversion "god"!

It’s not easy to endlessly check and scale campaigns. It is a lot of effort. But what an experience! Here quantity is what counts. Volume compensates for low payouts.

To manage this circus, avoid confusion and make a profit, you need to automate processes.

Fortunately, Vimmy, like most networks, has this option using Smart Optimization Tools.

Simple difficulties

Nobody wants to work for pennies. But every penny counts.

We’re not saying that expensive offers don’t convert at all; and not “only target Africa or Latin America”. And you will have a profit. Of course not. There are different operating strategies in affiliate marketing.

One of them - offers with low payouts. It is suitable for beginners because it gives a lot of options. Learn to scale, optimize, waste your budget without tears, and try again after failure.

Do you work or have you worked with low-paying offers?

 

[Albertomax1]

Affiliate offers with low payouts can sometimes make more money for affiliates due to several factors:

1. High Conversion Rates: Low-payout offers often have products or services that are relatively inexpensive, making it easier for customers to make a purchase decision. This can result in higher conversion rates, meaning a larger percentage of the leads generated by the affiliate turn into paying customers.
2. High Volume: Affiliates can generate a higher volume of leads or sales with low-payout offers because the barrier to entry for customers is lower. Many people are willing to try out or purchase low-cost products or services without much hesitation.
3. Less Competition: Low-payout offers may have less competition among affiliates. Many affiliates prefer promoting higher-payout offers, leaving lower-payout niches less saturated. With less competition, affiliates can dominate a particular market or niche more easily.
4. Upsell Opportunities: While the initial payout may be low, some offers have upsell or cross-sell opportunities built into the sales funnel. Affiliates can earn additional commissions when customers upgrade to more expensive products or subscribe to related services.
5. Recurring Commissions: Some low-payout offers, particularly in subscription-based industries like SaaS (Software as a Service) or membership sites, provide recurring commissions. Affiliates can earn a commission for every month or year that a customer remains subscribed, leading to a steady stream of income over time.
6. Trust Building: Promoting low-cost offers can be an effective way for affiliates to build trust with their audience. When customers have positive experiences with affordable products or services, they are more likely to trust the affiliate's recommendations for higher-priced offerings in the future.
7. Lower Advertising Costs: Advertising and marketing costs can eat into affiliate profits. With low-payout offers, affiliates may spend less on advertising because they don't need to bid as high for ad placements or invest as much in marketing efforts to generate conversions.
8. Diverse Portfolio: Some affiliates diversify their portfolio by promoting a mix of low-payout and high-payout offers. This strategy allows them to balance risk while still generating income from a variety of sources.

It's important to note that the success of an affiliate offer depends on various factors, including the niche, target audience, marketing strategy, and the quality of the product or service being promoted. What works well for one affiliate may not work for another, so it's essential for affiliates to experiment and analyze their results to determine which offers are most profitable for their specific situation.

......

 

[Graybeard]

Free is better for low value targets. But what is free for them?
It may cost $15 for a day's existence in some of these Tier3 locales but somehow they saved up to buy a smartphone so they can be onlne too?
I think everything is relative ...

 

[thelegend]

Well i prefer to go with high ticket offers or middle but never slow ticket like 1$ or 2$ for example .I think its not worthing the effort

 

[GB Scriese]

Thanks, Vimmy,

a good topic to discuss! Being an affiliate manager, I find that the degree of effort the affiliate needs to put in to get a lead is one of the factors that matters most.

I work with individual media buyers who manually monitor their social and native campaigns, adjust settings regularly, action the reports I send them, et cetera. They work hard to get a lead, and thus need hefty payouts. On the other hand, they are flexible and can hit complicated KPIs or strict targets.

I also work with offerwalls and large, highly automated networks which rely on algorithms and general settings to deliver traffic. They might take lower payouts to run any given offer, and send higher volumes, but are often rigid, lower quality and sometimes susceptible to fraud.

In the end, most of it is a zero-sum game with some anomalous offers or partners. Succeeding involves noticing and capitalizing on these anomalies.

 

[Graybeard]

In the end, most of it is a zero-sum game with some anomalous offers or partners. Succeeding involves noticing and capitalizing on these anomalies.

Why waste your bait fishing for minnows?

 

[GB Scriese]

Why waste your bait fishing for minnows?

Because if you know where to fish, minnows bite onto the cheapest bait by the dozen.

 

[Graybeard]

That's like hunting chipmunks with a shotgun --why bother?
Affiliate networks my make a bit in aggregate. I get that part