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Payday Loan Blog - We Will Outperform Google Adsense CPA

 Wednesday, 28 March 2007

How's that for a title? Before I get too deep on why I think private label lead generation affiliate programs will outperform Google Adsense CPA from the affiliate perspective, some great points have already been made here, here, and here.

One of the scenarios discussed above by the Daily Domainer is that a free-for-all environment may be created with literally thousands of affiliate programs openning up to automated content MFA sites that will be paid differently than before, with a greater focus on conversions (CPC affiliate managers that aren't currently looking at the conversion data available to you, shame shame). Will this hurt MFA sites that are already using Adsense? Maybe. I am open to the possibility that the conversions from this type of traffic are good enough to warrant a switch-over from the PPC format to CPA within Adsense, but I can assure you that MFA developers watch their core stats closer than most affiliate managers I know, so if there is a dip, expect a flight to quality (or in this case, more sign-ups at Panama or an opt-out of CPA ads).

How will it affect higher quality sites like direct navigation based portals and SEO/SEM landing page programs? Jeremy nailed this one: CPA fraud is likely, on the affiliate management side of things, as the conversion data isn't that difficult to fake…look at it this way, with Google Adsense CPA, you might make more than the original Google Adsense PPC model, but do you know which programs you are even promoting? How can you track to see which programs are saying your traffic converts at 5% and others at 0.5%? If they pay the same $/lead, I'm betting you'll have a hard time tracking that down.

The customization and industry-specific monetization issues are also likely to be nightmares for serious affiliates looking to get into the payday loan affiliate market. Do you want to tweak your own graphics, tailored to your own site? With a private label program that likely won't be a problem, but with Google you'll probably get stuck with the same tired creative or a text link that doesn't exactly scream "this ad was editorially chosen by me for you because it will enhance your user experience on my site." As for the industry-specific monetization, forget about it. The top guys in most financial industries use some form of XML ping/post capability in order to maximize both the placement percentage and $/lead for the leads they generate; I'll go on record right now to say that I don't expect Google to even consider offering something like this for another 3-4 years, and by then, our industry will have evolved into more efficient mechanisms for the acquisition and sale of customers. 

In short, that's why we at the PLAN will outperform the Google Adsense CPA, hands down. On one hand, I'm disappointed in how they are going about the launch and execution of their eventual affiliate network, and on the other, I'm elated. If you'll remember, I had a few thoughts on why affiliate programs are better than Adsense; what I expect to see now is a lot of marketers that have been married to PPC, testing out the CPA waters, and getting hooked on the increased profits. Whenever something like that happens, quality programs with good reputations flourish.


Wednesday, 28 March 2007 09:25:44 (US Mountain Standard Time, UTC-07:00)  #     

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