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The Mechanics Of Lead Generation Arbitrage

By Ryan Gray on June 25, 2011 12

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Last week I wrote about how that Lead Generation Arbitrage was one of the methods I suggest to making the “big bucks” in 2011 with affiliate marketing.  This is  one of the easiest ways affiliates can evolve towards becoming an advertiser.  Today, I want to walk everyone through the “basic” lead generation arbitrage process…  Consider this figure:

fig1

These six steps outline the path of what I like to call a conversion funnel.  Traffic simply flows into an optin landing page, after entering data (ie: name/email), visitors are shown an offer wall with multiple CPA offers, and once they confirm their email address they are directed to another offer wall before being monetized via an email sequence on the backend.

The top three steps are what I call the front-end with the bottom being the back-end of the offer.  Your front-end path should help you recoup any costs involved with traffic generation while the back-end should purely concentrate on increased ROI (return on investment).  Some companies (such as Convert 2 Media) offer external data management where leads are monetized many ways, one of which being email distribution on a revenue share basis.

Traffic to a lead generation arbitrage offer can quickly be purchased through any of the major search engines or those experienced in search engine optimization can simply rank sites organically.  Obviously SEO traffic takes a bit longer to generate traffic, but ROI is a lot higher.  This is why a lead generation arbitrage offer is good for both amateur and experienced affiliate marketers.  Those with liquid capital can begin sending traffic almost instantly and can begin optimize.  Those with very little start-up capital can simply use the power of unique content to rank in the search engines are generate traffic organically.  There is no wrong or right way, I actually recommend generating traffic both ways.

Ruck and I both have created countless lead generation arbitrage offers and have experienced success in multiple verticals.  This concept can be applied to literitly almost any niche as long as you have enough offers to support both the front and back ends…

We’re going to be providing much more detailed information on this entire process, so stay tuned!

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Ryan Gray

Ryan Gray is the founder and CEO of NameHero, one of the fastest growing independent web hosts in the United States. Ryan has been working online since 1998 and has over two-decades experience in Internet Entrepreneurship.

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Comments

  1. dapo says

    June 25, 2011 at 7:34 pm

    I'd love to see the whole funnel in action, even if i have to sign up to one of ur optin pages

    Reply
  2. Manuel says

    June 26, 2011 at 7:37 am

    Hey Ryan,

    Great article! I already have setting up my pages inlcuding the paths but not really know how I can track each path with CPVlab. Do you ever promoted this with CPV? Any help would be appreciated, thanks.

    Reply
    • Ryan says

      June 26, 2011 at 11:27 am

      Yeah I've used CPV traffic to push optins A LOT. Basically you want to have your landing page look like the site you're bidding on and filter the clicks on down your funnel. Don't be too intrusive with the visitor though, offer them something of value (what they're looking for). Good luck!

      Reply
  3. Paul says

    June 26, 2011 at 7:43 am

    Great info Ryan! Waiting for more.

    Reply
    • Ryan says

      June 26, 2011 at 11:23 am

      Thanks Paul… More to come for sure!

      Reply
  4. JohnnyBetts says

    June 26, 2011 at 9:11 am

    Hey ryan, great blog here… Any reason you guys use double optin confirmation? Any loss in deliverability ive made up with in not losing subs that dont confirm. Im probably not doing close to the ballpark of your volume, so just wondering.

    Reply
    • Ryan says

      June 26, 2011 at 11:28 am

      Using double optin your SPAM complaints are much lower and your list is more valuable. I've had a list of 20,000 double optins that convert nearly FOUR TIMES better than a list of 50,000 single optins. I'm not saying that a single optin can't work though, but I highly prefer double. Thanks for the compliment!

      Reply
      • JohnnyBetts says

        June 26, 2011 at 1:21 pm

        Wow 4 times, interesting. Thanks for the reply. Id imagine if you rev shared those leads you could get more for double perhaps?

        Reply
        • Ryan says

          June 26, 2011 at 3:51 pm

          I was prob a bit overzealous saying four times. But it IS DEFINITELY more… You always want to do a rev share with at least 2 different companies. You can only monetize so much, it only makes sense to diversify.

          Reply
          • Ethan says

            November 18, 2011 at 3:03 pm

            Can you share any of those rev share companies your referring to?

          • Ryan Gray says

            November 18, 2011 at 3:07 pm

            ROI Rocket, Unique Lists (division of Unique Leads) are just a few that have solid guys working. 🙂

  5. Matt says

    July 14, 2011 at 11:56 pm

    When you go the organic/seo route, are your CTAs for your email (like you have a pop-up or inline form w/a CTA) or are they for the offer(s)? For example, you have a blog post about writing from home; would you just do something like:

    "Click here to learn how you can make $xxx writing from home"

    And then the link takes them to the email opt-in, and then to the first offer wall?

    And would you suggest having the opt-in on a different URL then the blog/unique content?

    Any thoughts on this would be appreciated.

    Thanks Ryan!

    Reply

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