Sunday, 11 September 2011

CPA Network Application Process

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CPA Network Application Process: Part I

I WROTE THIS SOMEWHERE ELSE BUT THOUGHT YOU WARRIORS WOULD FIND IS USEFUL. HOPE YOU LIKE IT!

As you know, CPA marketing is one of the easiest and most lucrative ways to make money on the Internet. You must belong to a CPA network to have access to the CPA offers so in this Report, you will learn all about CPA networks and then learn exactly how to apply and get accepted to the top networks. Instead of simply giving you a short blueprint for the CPA network application process, we also decided to explain some background information so you can understand why you are doing things instead of doing them with blind faith. The more you understand how everything works, the better prepared you will be to take advantage of the lucrative world of CPA marketing.

Here’s a short overview of what we will cover:

  • Role of the CPA network
  • Dangers of CPA networks
  • CPA networks and fraud
  • Role of affiliate managers
  • The CPA application process
  • The affiliate screening process
  • My personal experience
  • Some other brief points

CPA Networks are effectively the middlemen in the process of CPA Marketing. On one side, they negotiate deals with advertisers like eHarmony and Netflix who are looking to buy leads. They also help these advertisers set up their CPA offers. On the other side, they manage all the affiliates in their network who are looking to make a commission by getting traffic to the CPA offers and getting leads for the advertisers. The CPA networks are thus facilitators. They essentially create a CPA offer marketplace for advertisers to find affiliates and affiliates to find advertisers.

CPA networks also take care of the tracking and cash flow between the advertisers and the affiliates. They track which affiliates are earning what commissions and they get money from the advertiser for these leads and then payout the money to the affiliates. The CPA Networks make a small cut of each transaction, and that’s how they make their money. So, if Netflix is willing to pay $20 per lead, the CPA network may pay the affiliate $19 per lead and keep $1. You may be asking yourself, “Can the affiliate just bypass the CPA network, work directly with the advertiser, and negotiate a better commission, such as the full $20 instead of the $19?” The answer is both yes and no. If you are a super affiliate pushing a lot of traffic and leads, then the advertiser may work a private deal with you. But, if you are new or don’t have the ability to push a lot of traffic, advertisers won’t work with individual affiliates. Unless you are doing at least 4 figures a day for one advertiser, you should take the traditional route and run through the CPA network.

Another important point to remember is that there are literally hundreds of CPA networks out there, but many of the smaller networks have far fewer offers and may be less reliable and more risky. It would really be a bummer to earn $5,000 in commissions and the network decides they don’t want to pay you or the network goes out of business before paying you. This doesn’t happen often, but it can happen. With the development of software platforms in recent years, it is extremely simple to set up a CPA Network, so many pop up all the time. Your best bet is to stick with the larger, more established networks we have provided at the end of this report. They have become large and successful because they do things the right and honest way.

Another interesting fact about many networks that many people aren’t aware of, is that the networks themselves are also affiliates. This “proprietary marketing” is when networks drive traffic to their own offers. They aren’t always just facilitating transactions; they are also generating them as well!

However, everything isn’t all rainbows and butterflies at CPA networks – there is a lot of risk and garbage that networks have to deal with on a regular basis, which is why they have an application process instead of just accepting everybody. As mentioned above, networks deal with the cash flowing from advertisers to affiliates. In the ideal scenario for the CPA Network, they will tell the advertisers how many leads their affiliates generated; they will then receive money for the leads from the advertiser and then pay out the commissions to the affiliates. There is zero risk for the CPA networks here because they are waiting to get money from the advertiser and once received, then they pay out the commission to the affiliates.

However, this isn’t always how it works, and networks can take on considerable risk at times because of the timing of cash flow. In many circumstances when there are affiliates generating sizable daily commissions, the affiliates don’t want to wait up to a month for the network to collect from the advertiser first. Remember, some affiliates are pushing $20,000 or more a day, so they want to get paid right away.

Imagine this scenario....one of the network’s super affiliates earns $5,000 a day in commissions from a particular insurance company CPA offer. Because the affiliate is pushing such large volume, the CPA network decides to wire commissions every day to this affiliate. But, perhaps the insurance company who is running the CPA offer only pays the CPA network every few weeks. In this example, the network is essentially paying the affiliate the $5,000 in commissions every day out of pocket with the expectation that the insurance company will reimburse them in a few weeks. So there is a time period where the network is giving out their own money and must then wait to be reimbursed by the advertiser. But what happens if the insurance company comes back to the CPA network in a few weeks and argues that the leads were terrible or even fraudulent and they aren’t paying for them. In this scenario, the CPA network just paid the affiliate $5,000 per day for a few weeks and isn’t getting reimbursed by the advertiser. So, there are many scenarios where CPA networks take on considerable risk.

Since there are many CPA marketers who scam and deceive people into filling out their CPA offers, the above scenario is very real and very much a concern for CPA networks, hence the reason they have an application process.


Affiliate Managers at CPA Networks

When you join a CPA network, you will be assigned an affiliate manager, who is sometimes referred to as an account manager. Affiliate managers represent a group of affiliates and they are your point of contact if you have any questions about the network or CPA offers at the network. Your affiliate manager is a great resource because they know all the details about the CPA offers on their network and they know which offers are converting well and which ones aren’t. They have access to a wide range of information and data from all the affiliate’s campaigns, and therefore it’s very important to get to know your affiliate manager and begin a good relationship with them right from day one.

What we normally suggest is to give your affiliate manager a call, text, or instant message as soon as you get accepted to the CPA network. Let them know you just joined their network and wanted to reach out to say hello and introduce yourself. This will get your relationship off to a good start.

I would also suggest communicating with them on a weekly basis to keep communication open and to keep your name in their memory. Remember, your affiliate manager can help you tremendously and if you have a good relationship they may divulge some pretty powerful information or let you promote ‘private’ CPA offers, which aren’t available to the general public. If they become comfortable with you, they can also be more lenient on the rules of the CPA offers.

Your affiliate manager is your ally and a phenomenal resource. Now, let’s move on to the actual application process so you can start applying to networks and getting access to CPA offers!


CPA Network Application Process: Part II

Applying and getting accepted into CPA networks is not difficult if you know the right steps to take – and that’s the goal of this guide. When I was a complete newbie, I knew very little about CPA marketing when I applied and I got accepted into something like 12 of 13 networks I applied to. And this is with substantially less knowledge about CPA then you learned in the NAME TAKEN OUT IM Boot Camp and without all the knowledge you are learning in this report, never mind everything you will learn on the rest of this site...but more about my experience later. The point is that you shouldn’t freak out about the application – it really is super simple!


The Application Process

This report is literally the longest and most comprehensive CPA network application resource I have ever seen. Even the $17 and $27 eBooks about applying to networks don’t go into this much detail! What I fear is that because this is long and details everything you need to know, that you will automatically assume the process is hard. Let me assure you, it’s not. I just want to give you the most information and most ammunition possible. Remember, our goal is to actually help you make some serious money online, not just go through the motions. And just to ease any fears you may have, I HAVE NEVER heard of anybody who couldn’t get into at least two CPA networks.

As we discussed in an earlier section, networks take on a lot of risk by accepting affiliates. Sometimes CPA Networks must pay commissions out of pocket before they receive money from the advertisers so they have financial exposure. If these commissions are “bad leads” such as those from scammers and fraudsters, then the network probably won’t get paid from the advertisers, which means they just forfeited all that money. This is why CPA networks have a screening and application process to try and weed out the fraudsters and scammers. There are dozens of scammers and fraudsters trying to get into these networks every day, so this is a very serious concern for the CPA networks. There is common misunderstanding that networks are trying to weed out “newbies” or newer marketers in the screening process. For some networks this may be true, but the vast majority of network care less about how experienced you are and care more about whether you will be doing anything sketchy as an affiliate -- they are weeding out the fraudsters, not the newbies.
What are the networks looking for in the screening process? Well, they are generally looking for affiliates that will promote offers the right way and for affiliates that have a good base understanding of what CPA is.
Now there are certain countries and regions that are known for having rampant fraud, so affiliates from these locations will be scrutinized more in the application process. For example, if you are from Nigeria, it will be more difficult to apply, but it’s certainly not impossible. It just means you will need to demonstrate more proof you know what you are doing and will promote the offers the right way. If you are from the United States, the UK, Australia, or any developed nation, you won’t have anything to worry about here.

Again, I have never met ANYBODY who hasn’t been able to get into at least two CPA networks! Here is a brief rundown of how the application will work:

Step 1: Find a CPA Network You Wish To Join 
Step 2: Go to Their Site and Find the Affiliate/Publisher Application 
Step 3: Fill Out The Application 
Step 4: 
Try Reaching Out To the Network (optional, but will help) 
Step 5: Phone Screening (sometimes) 
Step 6: Once Accepted, Take A Look At All The Possible Offers To Promote Step 7: Make Some Serious Money Promoting The Offers



Step 1: Finding a CPA Network to Join

At the end of this report, we have listed some of the best and most reputable CPA networks there are. Most of the larger networks we recommend have a wide range of CPA Offers so you really only need to belong to 1 or 2 of these networks to start off with. If you want to have even a wider variety of offers, you can certainly belong to more networks though.

If you are looking for a network that carries a specific offer, you can go to one of the CPA offer directories we have for you at the end of this report and find out which networks host the offer.


Step 2: Find Application on the Network

We have conveniently given you the links to the affiliate/publisher applications of a few of our favorite CPA networks at the end of this report. If you need to find the application of a network not listed, just go to the CPA Network’s home page and find the affiliate/publisher section and the Join Now or Apply Now directions should be right there.


Step 3: Fill Out the Affiliate/Publisher Applications

The applications of all networks are pretty similar and very simple to fill out. The following are the main pieces of information the networks generally ask for on their applications:

Personal Information: Name, address, email, etc
Tax ID Number: Social Security Number if you are getting checks made out to you. If you are running through a business and want a check made out to your business, you will put in your business EIN number, which is the Tax ID for businesses. If you do not have a Tax ID number, just put in zeros and explain you are from a different country when you reach out to them. Sometimes they have a separate application for affiliates from other countries.
Web Site: If you have a website, it may help to submit it. (discussed later) Experience: Your internet marketing experience 
Your Plan: How you will be promoting the CPA offers (PPC, SEO, etc)


Step 4: Try Reaching Out to the Network

Networks look favorably at affiliates who show initiative...it shows they are willing to take action and shows you are probably not a scammer. Most scammers try and slide by the application process unnoticed. By calling the network, this will give them a good feeling you are legitimate. Many networks will reach out to you, but it’s a good practice to try reaching out to the network first. Some networks approve/disapprove applications without ever doing a phone screen, but we will go into that in the next step. You can sometimes find a contact phone number at the network’s web site you are applying to or you can try doing a Google search. If you can’t find a number (some networks don’t make it public), try finding an email address of somebody at the network. If you still can’t find a phone number, don’t worry, this step is an optional step.

When you call or reach out to the network, you should ask to speak with somebody regarding a recent application you submitted. You should call within 24 hours of submitting the application. When you speak to the appropriate person, just explain that you submitted your application and wanted to make sure they received it because you are looking to promote some of their offers. Then just tell them they can reach out to you if they have any questions about the application. In many cases, they will review your application right on the spot and either accept or deny you or ask you a few questions about how you plan to promote their offers. This is super simple stuff. And should take 2 minutes max.

Again, this step is optional, but you will get better results if you take the initiative to do it!


Step 5: Phone Screening

The phone screening is when the network will call you and ask you a few short questions to make sure you aren’t doing anything sketchy. Some networks just pick and choose who they decide to call and automatically accept or deny other applications. This is a measure they do to prevent fraudsters. The phone questions shouldn’t take more than 2 or 3 minutes to complete, so it’s certainly nothing to stress about. I will tell you the exact questions I was asked in the next section and tell you exactly how I answered them, and I got accepted into all but one network when I was just starting in CPA. Here are some common questions:

  • How long have you been promoting CPA offers?
  • How do you plan on promoting the offers?
  • Do you belong to any other networks? If so, which ones?
  • How much traffic do you anticipate generating?
  • How much do you spend daily/weekly/monthly?
  • How did you hear about our network?
  • What kind of offers do you like?
  • What niche of offers are you interested in?


Step 6: Once Accepted - Explore the Offers

Once you get accepted, start looking around to check out the network and the different CPA offers they have. Just explore a bit so when it’s time to promote, you know how to navigate the site


Step 7: Make Money

Now that you are accepted, spend some time learning everything there is to learn about traffic generation here at Warrior Forum.


My Experience

I don’t remember the exact stats, but out of the 13 networks I applied to, maybe 5 of the networks called to speak with me. Most of the phone screenings were about 2 minutes long, I was only vaguely familiar with CPA marketing, I didn’t have a web site, and I still got accepted into all but 1 network. Trust me when I say this special report is far more information than I had when I was applying so you are already ahead of me!

I will admit that when I applied, I inflated certain answers a bit because although networks don’t mind accepting newbies, if they think you have some experience, I thought at the time it would help get accepted. Of course honesty is the best policy though! This is how I answered the above questions when I was first starting out and applied to the networks.

How long have you been promoting CPA offers? I have been promoting Clickbank products for about 5 months and have seen decent success so I am looking to start using my experience with Clickbank marketing to get into CPA Marketing. I just started in CPA about 1 month ago.

How do you plan on promoting the offers? I plan on using PPC (pay per click) to drive traffic to a landing page and then having CPA offers on my landing page. I have used review style landing pages with success.

Do you belong to any other networks? If so, which ones? Yes, I have recently been accepted into Copeac but am looking to have a wider range of CPA offers to choose from and that’s why I am looking to get accepted into your network. I have heard great things about you.

How much traffic do you anticipate generating? I have my budget right now at $50/day so the amount of traffic depends on the cost of clicks for the keywords I pick. I look to focus on long-tail keywords to get cheaper clicks to start with.

How much do you spend daily/weekly/monthly? Right now I am budgeting $50 a day, but I have been seeing success on one of my weight loss campaigns so I may start increasing my budget when I get my commission checks.

How did you hear about our network?
 I heard about your network through Warrior Forum. (You can tell them you heard about it from the Warrior Forum Internet Marketing community!)

What kind of offers do you like? As I said, I’ve had success with weight loss right now, so I am hoping your network has some good weight loss offers I can test out. I am also running an email submit campaign on one of my sites right now, which is doing okay.

What niche of offers are you interested in? I am looking to test out different niches. I look forward to speaking with my affiliate manager to see what is hot right now on your network so I can test out!
The networks that did call normally asked just 3 or 4 of the above questions. I sounded confident and got accepted on the spot to every network I spoke with on the phone. So it’s not that bad guys and gals!


CPA Network Application Process: Part III

In this section we will discuss a few other issues relating to CPA network acceptance. This will include various tips and tricks as well as one of the most common questions relating to CPA network acceptance..."should I submit a site or not?" If you still have any questions after reading this section, please head over to the forums and ask. We are more than happy to help resolve any lingering questions.


To Submit a Site or Not to Submit A Site

“Should I apply with a site?” This is one of the most common questions I get asked regarding CPA network acceptance. When I applied I didn’t submit a site at all. I told the network I was promoting on the search engines (PPC) and built landing pages around each offer I promoted. In the spot where it asked for my domain I put www.will-discuss-in-phone-interview.com or www.LandingPageisOfferSpecific.com so they knew I didn’t have a main site I would be promoting the CPA offer on, but rather I would build a landing page to promote each offer. The general purpose of the CPA networks wishing to see your domain is just to see if you know what you are doing. If it’s your first day in Internet marketing and you don’t even know what a domain is, then they probably don’t want you in their network. It’s more or less just to prove you can make a site and one more barrier to weed out the scammers.

The way I approached it is certainly a possible way around the site rule, but many people say submitting a real site of your own is better, and that’s probably true. Luckily, here at NAME TAKEN OUT we show you exactly how to build a WordPress web site and I promise it’s super easy so don’t worry. There are two types of sites that people generally use. You can either build a company web site like a marketing company site or you can build a sample landing page like one you would use as a pre-sell page for your CPA offer. Alternatively, you can pay to have somebody else create a quick site for you. The videos show you how to build a quick and beautiful site, but this is the basic process:
  • Get a domain and hosting
  • Install Wordpress
  • Install a free theme/skin (Skinpress.com o Free-wp-themes.com o Wpskins.com)
  • Create your own content or buy PLR rights to some content to use  Install privacy policy and contact form plugin

If you go to the Video Training section of NAME TAKEN OUT, you can follow along and we will show you exactly how to build a word press site step-by-step! Once you build one site the above process won’t take more than 20 minutes to do from start to finish.
Please note, if you submit somebody else’s web site in the application, it’s possible the CPA network may ask you to prove you own the domain. They sometimes look at the public Who Is records of web sites people submit and if it doesn’t show you as the owner, or if its listed as private, they can ask you to prove ownership by sending them proof of purchase or a receipt. I’m really not sure how often this happens though.

Please remember that the site you submit is more or less a dummy site intended to show the network that you know what you are doing and you have a basic understanding of how things work – which after reading this guide you should! This IS NOT the site that you must promote your CPA offers on. This is a common misunderstanding. You can promote CPA offers on any domain you wish once you are accepted.


Some Other Quick Tips...

Start With Second Tier Networks – Use As Leverage
This is something that can help tremendously in getting into the larger, more established networks. Most people go right to the top and start applying to the top few CPA networks. When they are asked what other CPA networks they have worked with, they say none and then get denied. If you start applying to the 2nd tier networks, it’s substantially easier to get accepted and there may be auto- approval so no phone screening. Once you get accepted to one or two of these networks, then you should approach the larger networks. Once you say you already belong to a few networks (even if they are smaller), you are much more likely to get accepted because it gives you instant credibility.

Email@Yoursite.com
If you registered a site, set up an email address at that domain. This is normally free. For example, if your domain is kenster.com, then set up your email as yourname@kenster.com. We go over this in the training videos that show how to set up hosting. This instantly shows you own the site and gives you credibility, as most scammers use free email addresses like Gmail or Hotmail. This is what I did when I applied and may be the reason I got instantly approved by many of the networks.

Confidence - Telephone Verification Process
The most important part of your telephone verification (if you have one) is to be confident and have a full plan to promote the CPA offers. Read through the training material here and come up with a few good strategies. If you show you have a plan of action, it will demonstrate you are serious about promoting their offers! One of the main purposes of the telephone verification process is because they know most scammers and fraudsters like to fly under the radar and not give away their phone numbers, so just the mere fact that they are speaking to you on the phone makes them a little more comfortable you will be promoting the offers the right way. Have a good plan of attack will seal the deal!

Honesty Goes a Long Way
Honesty is the best policy. Some people inflate a little bit when applying and in truth, the networks probably expect it. But, don’t go around boasting huge numbers or pretending you are a super affiliate unless you really are. They don’t mind having newer marketers in their network but they do mind having liars, so don’t say you will be spending $10,000 a day in advertising if you haven’t spent a dime yet! Use common sense.

Fraud Swap List
I don’t expect anybody here at the NAME TAKEN OUT community to be a fraudster or scammer, but just so you are all aware, network owners know each other and sometimes share information about scammers. If you scam one network, there is a chance you will make it on the “fraud swap list” so other networks know to look out for you. Just do things the right way. There is plenty of money to be made the ethical and honest way so there is no reason to start scamming people.

If You Get Denied
If you get denied, just move onto another network. There are literally hundreds of networks so don’t give up you don’t get in the first few. I have never heard of anybody who got denied to 20 in a row, but if for some strange reason it happens, just move on. My bet is that most of you will get accepted to at least one of the first few networks you apply to. CPA marketing can be incredibly lucrative for non-quitters, so don’t quit, just move onto the next network!

Reapply after a Month or Two
If for some reason you want to go back to a network that previously denied you, just wait a month or two and then reapply. Make sure to call the network or write a note in the application to let them know you already applied and weren’t accepted but you’ve been doing well the last few months and you want to try testing some of their offers. You can tell them which networks you are currently working with and that should help them change their mind about your application.

Referral Helps – Forums
Believe it or not, many members here at NAME TAKEN OUT are affiliate managers or owners of CPA networks. Affiliate managers and owners also visit forums like Warrior Forum, so you can always reach out to them there. As a hint, start a conversation FIRST and after some communication, then tell them you will be applying to their network and if they have any suggestions. They can give you a referral right on the spot or automatically accept your application if they like you. This is yet another weapon to add to your CPA network application toolbox.

If International - Say Most Traffic is US Based
If you happen to be an international affiliate from outside a developing country, making the network aware that your traffic is US based can help a lot. So, put a note in the application or when you speak to the network, make sure to bring it up!

Company Name Works Better
If you started a company to do your Internet marketing, it’s probably better to register as a company as opposed to an individual. Of course this only works if you have a company.


Parting Words

Alright, I promise you that the application process isn’t terribly difficult. I know this special report is more than you ever probably wanted to know about CPA networks and about getting accepted but I would rather err on the side of giving you too much information than too little information.

Be confident, come up with a plan, start reviewing the information on this site, and then start applying to networks. CPA is a great way to make a lot of money this is the first critical step you must take!

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Sunday, 31 July 2011

My live campaign

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By now you must surely have guessed which campaign I'm going to talk about. Yes it's the Napster free trial promotion. To reiterate in case you forgot from the previous sections or you decided to skip directly to this section,

Napster is an advertiser with Commission Junction. The offer is a $10 commission for every new user that downloads a 7 day trial of Napster or Napster To Go. Basically during those 7 days the user has access to all of Napster's millions of songs and can cancel at any time during those 7 days. There is one thing that I need to mention about this offer; the user needs to have a credit card or a paypal account. The reason for that is because they are required to create a recurring payment plan which they can cancel before the 7 days is over. As a result you'll need to target users who are 18+.

I've been running this campaign for two days now and so far I've made $400 with $75.97 spent on advertising which gives me a profit of $324.03. Not bad for 5 mins work if you ask me.

* Another note about Napster's affiliate program: I don't know who's in charge of submitting leads received butthey can take a really long time to appear in your CJ account. It's kind of a pain in the a** because it can make tracking your conversions very difficult.

Below is a screenshot of my Facebook advertising account displaying stats for my campaign.
And below is a screenshot of my Commission Junction account for those two days running this campaign
Now here's the reason why I'm not too afraid of sharing every detail with you; in addition to targeting a general audience who likes "music", I also target users who are fans of a particular group. 

For example:
Free Metallica Songs
Unlimited access to every Metallica songs
and thousands of other artists. Download
Napster for your free 7 day trial.

My target market here is people who's interests include "Metallica". I'm targeting a much smaller market but now my campaign is much more focused and my CTR improves drastically because I'm giving these people what they want.

Depending on the artist I choose I also target men or women. For example if I'm promoting Avril Lavigne I'm going to target girls between 18-25 whereas if I'm promoting Iron Maiden would target men in 18-35. I'm sure there's a lot of guy Avril Lavigne fans just as there are plenty of girl Metallica fans but that's the great thing about Facebook it tells you exactly how people you're targeting with "men+metallica" vs. "women+metallica".

There are thousands of artists you can promote, so get creative. If you want to know what's hot right now go check out MTV's top charts, or Billboard's top 100 singles chart.


Final Thoughts

The Napster offer is one of the best affiliate offers I've seen in a long time, and I'm already thinking of new ways to promote this. Here's my next strategy:

Create a video for a popular song using images. I'm sure you've seen these on Youtube, it's just a slideshow with images of the artist and the song playing in the background. It'll take you about 10 minutes to create this with Windows Movie Maker.

Create an image with the words "Get this Jack Johnson song and millions of other songs absolutely free for 7 days. Visit www.YourDomainRedirectToTheNapsterAffiliateLink.com for more details".

Insert the image at the beginning and end of your video and set it to run for 3 seconds. Upload the video to Youtube/MySpace e.t.c. and promote the video using social bookmarking.

It might seem like a lot of work, but this once you get started you'll see it takes just a few minutes to assemble these videos. Create a few of them for different artists and let the money roll in.


I hope you enjoyed this guide and I wish you success with your Facebook campaigns.

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Tips & Tricks

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Reducing your CPC

I've mentioned several time throughout this guide that the basis for determining your starting CPC is absolutely ridiculous. If I was promoting "shrunken midget heads" I would need to start off my ads at $0.35 the same as I would for "DUI lawyer". Ridiculous no? Well if you try starting it off at $0.05 you just won't get any impressions.

So how do you get your CPC to go down? You have to improve your CTR. That's the same basic logic as with any other CPC program. The only problem is that your ad is still being displayed to hundreds of thousands of people who are not actively looking for what you're advertising, they just have it listed as an interest.

The key is to target very small niches. I mentioned in the "testing and tracking" section that you should experiment with different demographics to see what brings the best conversion, well let me emphasize the point again because it will also be crucial to improving your CTR and in turn lowering your CPC.

In the end it all comes down to testing, whether it's targeting a smaller market or creating a more eye catching graphic.

After a few days, you should lower your bid amount by $0.05 and gauge how it affects your impressions. If you see that your impressions drop dramatically then bring them back up $0.01-$0.02. Do this gradually over the next week and within two weeks  depending on what niche you're catering to you can easily have your bids as low as $0.05.


Getting your ad approved

There's a lot of debate regarding whether or not Facebook actually reviews every single ad manually. It's more likely that they have filters in place which makes it much easier to get away with some slight deviation from the guidelines. There is one factor that will trigger a manual review and that's if you're advertising to people under 18. If your ad is borderline do not advertise to people less than 18 years old. This will result in a flag on your account, and if it happens again your account may be suspended.


Landing page or direct linking

I've played with the two a lot, and from my experience landing pages are not effective with lead campaigns. Your purpose is to get your visitor to enter their personal information to get something free. There's no need to pre-sell them, they clicked on your ad because they want that "free trial" or they're interested in "applying for a credit card". Take advantage of Facebook's loose policy on affiliate links because it may not be long that they're going to enforce it.


Type of campaigns

While I'm not going to reveal the details of every lead campaign I'm running on Facebook I'll give you an idea of what I found converts extremely well:
  • Contests. It doesn't even matter what the prize is, if you tell people they can enter a contest to win something just by entering their e-mails they won't hesitate for a second. The  payouts are generally small, around $1.00-$1.50 per lead but if you're getting a 100 leads per day at $0.05/click you're looking at a $95 profit. 
  • Free games. You'll see these often especially on Neverblue Ads. They payout can be as much as $2.50 just for the user downloading a game. 
  • Columbia House. As of writing this they were no longer associated with any of the affiliate networks, but I'm positive they'll come back soon. Their offer was $25 per subscription. With their new policy that the user only needs to buy 3 dvd within a 2 year period, it was an easy sell.

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Testing & Tracking

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Unfortunately Facebook's advertising platform is nowhere near where as sophisticated and functional as Google Adwords or Yahoo. This can make testing and tracking a little more complicated.

With so many different demographics on Facebook you could spend an eternity testing out different combinations to see what converts best and this is where tracking would come in handy. So we'll have to rely on our judgment to see what converts.

The kind of testing you should do from the start:

Geographical location: If the offer you are promoting is applicable to different countries, create a different ad for at least two of those countries. Don't automatically assume that US impressions will convert better, I've had several campaigns where Canadian impressions converted almost 30% more than US impressions.

Sex & Age: Depending on the offer, males or females of a certain age may be more prone to convert. Again create a different campaign for males and females of certain age groups.

Of course none of these tests mean anything if you have no way of tracking. For this you'll have to read your affiliate program's help section to figure out how to add a tracking code to your affiliate URL. 

These are the basic tests that you should perform when you have found a successful campaign. The test should be done over a period of a day or two to get some basic information. Once you've successfully identified which demographics are converting and which are just costing you money, it's time to test even more.

After you have enough information, you can test even further by testing if there's a difference in conversions between college freshmans and high school seniors.

Hopefully someday Facebook will implement a system that can display stats on who's clicking your ads, but until then it's all manual.

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Step 4 - Set Budget

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Daily Budget: To start set your daily budget to a minimum, along the lines of $10-$20. It'll give you enough wiggle room to see if your offer converts at a profit. If your conversion rate is positive (you are making more than you are spending) consider upping your daily budget and see how well the offer performs.

Pay Per Clicks vs. Pay Per Views: ALWAYS set it to PPC. Because of the inordinate amount of traffic on Facebook you'll easily gather up hundreds of thousands of impressions in a very  short time but have a CTR of under 1%.

Confirm
The next step asks you to confirm the details. Make sure that  everything is in order because once you submit your ads you can not make any modifications (except for the bid amount).

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Step 3 - Create Ad

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If you have any experience with Google Adwords or any other PPC program you will find this very similar.

Title can only contain 20 characters and unlike Adwords you can not capitalize the first letter of every word. Your title should be catchy, but do not place too much stress on it as it's your photo that's going to do most of the talking. If you are promoting a free offer be sure to include the word "Free" as the first word of your title.

Body again you can only capitalize the first letter of a sentence. Keep it short and only list the benefits.

Photo your photo will be resized to 110px x 80px. Depending on your original photo you may want to edit it otherwise it might come out squished if it wasn't in a 4:3 aspect ratio. Your photo is the first thing that a visitor will look at, make sure to use something flashy to attract attention.

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Step 2 - Choose Audience

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This is going to be the most important part of your Facebook  campaign.

Location: Based on the offer that you are promoting select the  country accordingly. Be sure to have read the description of the  offer, you do not want to waste $20 in UK clicks when the offer is  only open to US visitors. If you are promoting a general offer such as Napster's music trial leave the Location to Everywhere.
Male/Female: Depending on the offer.

Keywords: This is the power of Facebook and why it's a marketer's wet dream. Basically by entering a keyword such as "music" you can target everyone who has "music" listed in their their list of  interests. Better yet you can also dig deeper and find people that are interested in a particular artist, say Metallica. The only downside is that Facebook doesn't cross-reference these keywords, instead it shows your ads to anyone who matches one of those keywords.

So if you're promoting Napster, and your ad has Green Day in the title do not choose the keywords "music" and "Green Day" just choose "Green Day".

Education: This is a fantastic feature and a great way to get clicks. Let me explain by using an example:

Say we're promoting a Citibank credit card offer that pays a lead for every new application. A great way to get clicks would be to target to university students who the vast majority are struggling with tuition fees and book fees. Create ads targeted directly at specific schools or universities.

NYU students credit card offer A special offer for NYU students. Get a zero % interest rate credit card with 2% cash back.

Now when our NYU student logs on to her facebook account you  can be sure this ad will catch her attention a lot more than a generic "get a 0% interest credit card" type ad. 

It doesn't matter if the program you are promoting has any offers specifically for that particular school, it's just a way to increase your CTR and your conversion rate.

Workplace: Similar to Education you can target specific workplaces (Browse the networks and find the largest workplace networks to advertise to.

Relationship status: This is mostly useful if you're going to be  promoting affiliate dating leads. Needless to say, choose "singles" to advertise to.

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Creating Your Ad

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Now that you have a few lead campaigns selected it's time to create your ad.

Step 1 - Getting Started

The URL address. As of writing this Facebook does not disapprove direct linking. So you can enter your affiliate link in the address bar. The URL does not appear below an ad when it is shown in the social pages on Facebook so do not worry about having a long ugly URL.

You can also use Tinyurl.com to shorten the link and avoid  commission theft. Better yet if you have a website and domain (check the first page of this guide for information on how to get a free domain+hosting) you can use a simple PHP redirect. Open notepad and type in the following

<?php
header("Location: youraffiliatelink.com/");
?>

Save the file as index.php and upload it to your hosting account.  Visitors will automatically be redirected to the merchant's site with your affiliate ID attached.

Next steps will be discussed further.

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What To Promote

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In case you’re not familiar with leads, it is basically a company that will pay you when you refer a visitor that performs a specific action. It could be anything from filling out a short survey, to entering their zip code, or requesting more information on a loan. There are hundreds of leads to choose from and that is why I suggested you sign up for the affiliate programs above.

Let's browse through Commission Junction and find a good lead offer.


Click on Napster to find out exactly what the action criteria is. From the description: "User signs up for a free trial of Napster or Napster To Go". How easier could this be? You're essentially offering a free 7 day access to millions of songs and unlimited downloads.

The characteristics for a good lead offer are:

1) It has to be free.
2) It has to offer something of value to the user. In this case we're offering 'free music', it has value because everyone loves music. If we were to offer a 'free coupon for $2 off a box of Tide detergent" it doesn't offer the same value and it doesn't appeal to everyone.
3) The form has to be short and simple. Put yourself in the user's shoes and fill out the form, is it painfully long, does it ask questions that you need to think about? The simpler and shorter the form, the greater your conversions will be.
4) The payout should be minimum $2.00. Anything below this and you're dealing with a very small profit margin that doesn't give you much room for testing.


"Free iPod" type website leads:
You will also come across a lot of "free ipod" websites that offer you $1.00-$1.50 per e-mail submit. My advice is to stayaway from these offers. The profit margin on these is too low to promote using CPC and you'll end up losing money. Ifyou choose to advertise these types of leads be careful when writing your ad description not to write anything about theuser having to enter an e-mail address as your ad will be disapproved immediately.

Credit cards and other financial leads: 
A lot of people are tempted to advertise credit card offers because of the huge payout which can often be as much as $100 for an application. The problem with these types of leads is that

1) There's a lot of competition which means the starting CPC to get your ad displayed can be  very expensive.
2) The conversion rate is significantly low. Most of the clicks are "tire kickers" that just want to have a look at what you're offering but will not fill out the application.
If you focus your campaigns narrowly and do a lot of testing it's possible to make a decent ROI. In the next section I'll show you what I mean by this.

What you can NOT promote:
Unfortunately there are a lot of restrictions with Facebook advertising. While the application manager will tell you if you are not allowed to have a certain word in your title or description they have not posted a specific list of products and services that can not be advertised on Facebook. The only way to find out is to wait until one of your ads gets flagged. Here's a recent collection of what's not approved by Facebook:

1) Ringtones - Facebook also blocks any derivative such as "ringer", "cellphone music", e.t.c.
2) Gambling - This includes everything from poker to bingo.
3) Tobacco, Alcohol, Firearms
4) Drugs, pharmaceutical products (even herbal products)
5) Adult content
There are several other regulations that are just common sense such as "Hate speech" or "Illegal activity", but I'll trust that you can use your own logic to know what's acceptable.

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Facebook Advertising Secrets

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Getting Started


Because we are going to be dealing with leads you'll need to apply to some of the major affiliate networks if you have not already done so. Apply for an account with the following affiliate programs:

Commission Junction
Azoogle Ads
Rocket Profit
Never blue Ads


You need to have a website set up in order to be approved with these programs. If you don’t have a website, sign up for a free blog at Blogger or Word press, write up a few posts about anything (you can also use articles from ezinearticles.com just make sure you credit the source).


Your application can sometimes take a few days to process, so be patient. If you have an account with any other affiliate network you should review their offers for any lead affiliate campaigns.


If you do not have a domain and hosting you can get a free one at http://www.freehostia.com

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YouTube will Develop in Some Predictable Ways

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Thanks to academic studies of the way consumers adopt innovations, we have a good idea of how YouTube will develop over the next few years. We think that YouTube will follow the patterns and timelines of the consumer adoption of technological innovations such as the internet and television. The basic trails are well-blazed.


Consumer adoption of technological innovation moves from younger to older people. Young people adopt or grow up with innovations. As they age, the proportion of older people in the total population using the innovation increases. You can count on the user base for YouTube to get older until it is more like the total population.


Consumer adoption of technological innovation moves from urban to rural locations. In the case of YouTube, that is likely to be an infrastructure issue. The number of broadband connections will need to increase in rural areas before the number of YouTube users will increase but you can count on the YouTube user base to become more evenly distributed geographically.


Consumer adoption of technological innovation move from more affluent to less affluent households. In countries where broadband is not subsidized that means that YouTube use is likely to move down-market as more broadband connections become affordable. You can count on the YouTube user base in the future to more accurately reflect the income distribution of the countries where you do business.


Consumer adoption of technological innovation moves toward the mainstream at a predictable pace. It takes most technological innovations about fifteen years to move from first public trials to a saturation point. If YouTube follows a similar pattern, saturation will come around 2020. But there's a more important point to pay attention to for marketing purposes.


The adoption curve for most innovations is an S shaped, or Sigmoid, curve. The log phase of the curve, the part with the most rapid growth, usually begins around two years in and lasts until the midpoint is reached.


Using our dates from YouTube history, the upturn should have been around early 2007. But the YouTube curve turned up earlier.


If we use videos viewed as a guide, the fast-growth phase for YouTube began in the first quarter of 2006 when usage was almost doubling every month. That early turn was the result of two things. First, YouTube was an elegant service, a simple solution to a mass market problem. Second, the enabling technology, broadband connectivity, was already in place for many affluent households.


If you're a marketer, what's most important is that the time from the introduction of YouTube to the midpoint on the adoption curve is likely to be seven years. That means that by 2012 at the latest the mainstream adopters will be onboard in the US and the UK. In other countries, that date may move slightly in either direction depending primarily on the prevalence of broadband connections.


That gives you a window of less than two years to gain some early-mover advantage.


Action Ideas
Act now to gain a presence on YouTube and position your company so you're established by the time the mid-point of adoption is reached. Mine the video you already have. Just be sure to edit your clips for a length and tempo so they fit YouTube.


Key Points
However, be careful, just because you have video doesn‟t mean it‟s good or meaningful to the people in your market. Either modify it so it is, or don‟t use it. Key Points: Just because it‟s easy to do, doesn‟t mean it‟s the right thing to do. Check everything you intend to post on YouTube to make sure it represents your brand and moves your mission forward.

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YouTube is Part of Three Key Trends

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YouTube is at the center and at the forefront of some key trends that affect the world of marketing. The three most important are increasing bandwidth, user-generated content and social networking.

  1. Increasing bandwidth in developed countries is what makes video viewing on the web and video sharing possible. According to a study by Gartner, published in July 2008, "Consumer broadband penetration worldwide will grow from an estimated 323 million in 2007 to 499 million in 2012."

    As a practical matter, Gartner's projections contend that broadband penetration of the consumer market will be above two thirds of households in almost all developed countries by 2012. For YouTube this means substantially bigger audiences, increased sharing and a substantially higher level of user-generated content.
  2.  User-Generated Content (UGC). This is an area where YouTube is at the forefront. Not only is the vast majority of the video on YouTube generated by users (29 percent of them have uploaded a video within the last three months) but commenting and rating are key activities that constitute content and simultaneously help determine the viewing performance of the associated videos.
  3. Social networking sites are obviously amongst the hottest internet properties today. YouTube is a part of it in a unique way. The purpose of social networking sites like MySpace or Facebook is to help people connect with their friends and to find others with whom they have something in common. But YouTube is not a social networking site.
    Jon Gibs, senior director of media for the market research firm Nielsen/NetRatings follows the social networking sector. He says of YouTube: "You don't create a buddy list and share your buddy list, but you do have consumer generated (or at least consumer-added) content. You have tagging around that, and you have conversation around that, and you have association between elements. To me that's social networking." Even so, Gibs describes YouTube as "a video-sharing site with social networking tacked on." That's a good way to consider the marketing power of YouTube and it's an important one. The true social networking sites are the converse – users can add video but the video (typically user-generated snippets of films, TV shows and comedy clips) is generally secondary to the "friends" motif.
YouTube will increasingly become a more hospitable environment for marketers. If you have a good video, like the Sephora videos, they can carry your brand message without conflicting with the purpose of the site.

Key Point 
Because of its video focus, YouTube should offer more marketing possibilities and flexibility than the social networking sites.

YouTube today is uniquely positioned as a marketing channel on the net. And we have a good idea of how it will develop in the months and years ahead.

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    YouTube is Already a Market

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    Marketers using YouTube benefit from the commercial infrastructure that is already in place on the internet and the extent to which people around the world have become accustomed to shopping online. According to Nielsen Global, as of February 2008, 875 million people worldwide have bought something online. Buying is strong across many countries.

    "Among Internet users, the highest percentage shopping online is found in South Korea, where 99 percent of those with Internet access have used it to shop, followed by the UK (97 percent), Germany (97 percent), Japan (97 percent) with the U.S. eighth, at 94 percent. Additionally, in South Korea, 79 percent of these Internet users have shopped in the past month, followed by the UK (76 percent) and Switzerland (67 percent) with the U.S. at 57 percent."

    This matches up with the numbers we see on YouTube. 91 percent of YouTube users have purchased something online. 63 percent have done so within the last three months.


    When it comes to direct buying influence, the numbers are lower but remember we're considering the influence of a single site so the statistics are impressive. 35 percent of YouTube users have purchased something online that they saw advertised on YouTube and 30 percent have followed a YouTube link to make a purchase. These figures are almost certainly depressed since users include a sizeable proportion of teenagers who do not have a credit card to make online purchases.


    Online purchases are only the tip of the iceberg. Many people who shop online are likely to buy offline. According to a 2007 study by eMarketer: "for every $1 in online sales, the Internet influenced $3.45 of store sales." Our survey found that 37 percent of YouTube users have purchased something offline that they saw advertised on YouTube.

    In general, the purchasing demographics of YouTube follow those for the internet as a whole. With the exception of teenagers, younger people are more likely to purchase online than older people. Men are more likely to purchase online than women. The commercial action on YouTube isn't limited to consumers. 25 percent of visitors to YouTube have used the site for business. About half of them do so regularly or at least occasionally. From our research we identify that YouTube‟s commercial usage breaks down into three main categories. Almost half of business users are looking for more information about a subject that will help them commercially. 45 percent are seeking information about products or services to purchase and 28 percent are checking out the competition. YouTube is already a market that you can exploit. There are some key trends that YouTube is part of and that will define what YouTube will become.


    Action Idea

    Make YouTube a part of your e-commerce strategy. Links from YouTube can drive traffic to your web site.


    Action Idea
    Mine your own experience and research to identify topics that your customers want more information about. Identify the questions they ask about your product or service. Then create a simple YouTube video that can answer their questions.

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    YouTube Now and in the Future

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    In some ways it's the classic Silicon Valley success story, complete with garage. Chad Hurley, Jawed Karim, and Steve Chen became friends when they worked for PayPal where Karim was one of the founders. In early 2005 they were at a dinner party to which many people had brought their camcorders. Conversation turned to how hard it was to share videos with others using the internet. That inspired the friends to set off to Hurley's garage to write some code that would make online video sharing easy.

    By February they were testing their system online and receiving a great response. The response was strong enough that in November YouTube received $3.5 million in venture capital funding from Sequoia Capital. Millions of people seem to have been waiting for YouTube. When the site launched officially, in December 2005, it already had more than a million short video clips. Later that month visitors were uploading 8000 clips a day and viewing 3 million.

    By April 2006 visitors were watching 35 million videos a day. The company received another round of funding from Sequoia Capital: $8 million to expand sales and marketing efforts and build-out the data centers. In October, Google agreed to buy YouTube for $1.65 billion in Google stock. At that point YouTube visitors were downloading over 100 million videos a day. The purchase was finalized in February 2007.

    Speaking at the Library of Congress in June 2008, Professor Michael Wesch of Kansas State University described the impact of YouTube. "YouTube produced more hours of video in the past six months than the three major networks have produced since 1948."

    Clearly, YouTube is an important force on the internet and in digital media but as Professor Wesch also noted, the vast majority of videos on YouTube today are short, amateur videos of three minutes or less. YouTube today is not what YouTube will be in a year or three years. The changes are driven by some powerful trends and will follow predictable patterns; Understanding them will help you get out in front of the curve.

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    Youtube for Business-Introduction

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    Forbes magazine says that YouTube generates over a billion views per day. To put that in perspective, in the time it takes you to finish reading this page YouTube users will view around a quarter of a million videos.

    An audience this size is hard to ignore. In our work with clients we searched for studies about this audience and what one can do to reach it as part of a marketing program. When we established there was little that has been published we decided to create it. After all, Entertainment Media Research was founded over a decade ago by the former head of music information for MTV Europe with the belief that the coming digital revolution would bring together the worlds of entertainment and marketing.

    With entertainment expertise and quantitative research skills we serve entertainment, media and consumer businesses around the world from our base in London and are therefore ideally positioned to study the impact and opportunities that YouTube has come to offer. We started by undertaking a comprehensive audit of usage, attitudes, and preferences of YouTube users in a robust online survey of 1,758 US residents. The sample was then weighted to the demographic representation of the US online population. We then applied the findings from this proprietary research to inform our YouTube User Guide and in doing so, remove wherever possible assumption from the marketing process. YouTube Revealed: a marketer's guide to understanding and making the most out of YouTube.

    Our primary objective in writing this report is to help marketers sharpen their understanding of the YouTube phenomenon, grasp the marketing implications and flatten the learning curve to putting this knowledge to highly effective use. The User Guide therefore combines detailed practical advice at the functional How To level, with strategic thinking and background information. Here's a brief overview of what you'll find in the User's Guide.

    YouTube is already a place where many kinds of businesses are starting to promote their wares so we begin with a review of how YouTube was founded and developed. But YouTube is developing fast, as changing demographics and evolving possibilities make it a place that is even more attractive to marketers of all kinds. Of course, teenagers and young adults are the dominant users right now but they're far from the whole story. We fully expect YouTube to change to such a degree that over the next three years its demographics will more closely match the online population as a whole. Every marketing-driven business needs to understand this market-place and how best to exploit it before its competitors.

    The key marketing objective is to achieve a viral impact through user recommendation or "word of mouse." This is much easier said than done so we detail why and how people come to YouTube today, what are their primary reasons and how this is changing as the demographic usage mix inevitably changes. We identify the most popular types of video by demographic and we review the controllable and non-controllable factors that affect viewing of a particular video.

    We move on to review the patterns of typical YouTube sessions. We cover what the "Watch Page" looks like along with advertising possibilities to ensure you get the most out of the available feedback. We analyze what happens after a YouTube visitor has watched a video and then recommend how you should structure your content to exploit this trend and optimize your opportunities for engagement and branding.

    Much has been made in the mainstream media about the YouTube community. We cover some of the ways that marketing into this community is uniquely different. We will suggest to you that brand channels are an effective way to concentrate your marketing efforts on YouTube. In our chapter on channels we look at the place of channels on YouTube today and how to make your brand channels work most effectively. We review what YouTube users think of advertising on YouTube and what some of your options are today. Those options are bound to change as YouTube seeks more ways to make the site profitable.

    Throughout the report we share key insights on how best to apply your marketing skills to YouTube whilst pointing out where the fundamental principles still apply. People or businesses who buy your product or service will still buy for the same reasons they always have. The marketing research you've done about important benefits and messages will still be relevant; only the environment of YouTube will be different.

    On YouTube, video is central. You will therefore discover ways to use video to build awareness, convey benefits, and support sales and service. On YouTube, word of mouse is crucial and the community is in control. We know that integrated marketing programs that tie YouTube marketing efforts to other marketing and branding efforts are generally the most successful so we‟ll show how best to facilitate the process.

    YouTube offers marketing challenges and opportunities for everyone. Giant companies like 3M, Nestle, and IBM are already using it as part of their marketing and so are individual service firms. Whether it's the mass market or the farthest end of a long tail, you have the opportunity to derive important marketing benefits from YouTube. As there are special challenges for different markets and companies, we offer suggestions about how to adapt your use of YouTube for different kinds of businesses. There are chapters for B2B marketers and small businesses as well as chapters on ways to use YouTube to improve your relationship with existing customers and ways to use YouTube for marketing research.

    We close the User's Guide with a look at the future of YouTube and recommendations about what you should consider implementing. Now, let's get started with "YouTube Now and in the Future."

    There's one more thing before we go on. If you aren't yet familiar with YouTube, just reading about it won't be nearly enough. You need to spend time familiarizing yourself with what it is and how it‟s changing. You'll also pick up ideas from other marketers who are already using the site.

    Action Idea
    Set up your own YouTube account. Then set aside fifteen minutes a day to explore the site and become familiar with it. 

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