Incentive Website Method

admin — Sun, 11 Jan 2009 10:29:31 +0000

Get your free ipod now!!!, FREE FLAT SCREEN LCD!!! Free $250! , Free Iphone, FREE XBOX360, FREE WII, FREE PS3, FREE GAMES FOR CONSOLES!!

AHHH!! FREE INCENTIVES!!! WOOOT

Sample Incentive Web Site

So who has heard of these offers? Anyone who has been on the internet for a certain period of time has seen these ads. There are 2 ways where I have seen this done. One of them is when you have an advertisement on a page and a user clicks on it and all they do is enter an email or a zip code. After the User enters the required information the affiliate gets paid from .70-$2 depending on the email submit then the user usually just clicks the “X”on their browser. The second method is actually the most common one and you can actually count the web sites. There are only a few that create these sites. I will not list them due to privacy of other web pages. Basically you Sign Up > Fill out the amount of offers required > Get free ipod or whatever they are going to give you as an incentive. I’m going to explain the 2nd one in this case because I believe it is very important to know.

These web sites give you a FAQ but they never tell you how they are actually marketing their offers. A sample would be an offer that says something like this.

This is a Sample FAQ from incentives

These type of incentive web sites are slowly getting banned by different affiliate networks because the affiliate offers are getting a lot of refunds. I’m not talking about the simple survey offers but the “free trial” offers that these incentive sites make you do. Usually you have a script that generates the links to all the affiliate offer the web site has. The publishers are realizing that by giving out free samples and getting refunds back they are actually losing money instead of a normal organic traffic that somebody would actually buy the product. These web sites, publishers know a huge percentage would refund.

But how does Incentive Web sites work? The first step when a user signs up they have are told to fill out an offer or refer someone. Some of them are based on “points” for each offer completed. For example lets take an ipod. Ipod nowadays cost around $250-$300. When you want to get a “free ipod” you will have to get about 500 points. The points are probably based on the amount of profit they will gain after the ipod is sent. I don’t have an accurate number since I don’t run any of these sites. The following is an estimate of how many points an offer makes

Shopping Essentials+ 46
Buyers Advantage 36
GE Critics Choice Entertainment 60
Everyday Values 34
HudHomesNow.com 52
At Home Rewards 46
Passport to Fun 46
Video Professor 80
Value Max 46
Advantage Language 74
True.com 66
Todays Escapes 46
Simply You 40
Price Store 44
AutoVantage 44
Health Saver 36
Pc Safety Plus 34
NetMarket 36
The Grant Assistant 42
eAuction Tutor 56
Privacy Matters 123 46

When you sign up with the offer they have some script that credits your account. The cheap easy surveys give you easy points. The more information they get from you like a Credit Card, the more points you get. The reason being for that is when you sign up for a “free sample” those offers actually pay the affiliate over $15-$30 a sign up. Once you hit 500 points by adding up all the offers above, you get an ipod within a few weeks. As a matter a fact I don’t know how much they would profit from the offer but maybe they are hoping that someone will stop and get lazy with the offers and not accumulate enough points to be eligible for the reward to be sent.

A simple calculation for this would be Amount of offer/sign ups vs the cost of the reward vs the amount of points per revenue made. So meaning the person willing to receive a free gift, has to complete at least the minimum reward costs (ipod). Now if that is not the case for these web sites then we would have to use another formula. The amount of uncompleted offers has to exceed the amount of completed offers. So a margin of the uncompleted offer has to compensate for completed rewards.

EXAMPLE:

10points to complete reward < This is an EXPENSE OF $1,000

User X has 8 points and quit. < $800 Profit since no reward is sent

User Y has 5points and quit. <$500 profit since no reward is sent

User Z has 10points. < Expense of $1,000

Lets assume @ 10points the offer only gave the affiliate $700. That would mean that he can not give the user $1,000 since he would have a net loss of $300. So what do you do? Take profit from User X & Y to compensate for the reward. Whew! that was confusing. But its just pretty simple technique that tricks many people including people like myself when I didn’t know much about affiliate marketing.

Summary : User Signs up, Script is generated to offer, User signs up with offer. Affiliate gets paid and User gets credited points. Affiliate sends user an ipod. If that sort of made sense, that is ok since I will be going over this in deep detail in my next post.

The Final Question is, does it work? Answer, YES

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Incentive Website Method