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Why Pay Per Lead Programs Work

Nov 30, 2007
One of the most popular ways for people to earn online is through affiliate programs. Such programs can also be profitable to the company selling its products because it means more people will be aware of the product. This results in greater sales. If you only pay out on actual sales, you might be missing out on one important aspect of affiliate marketing.

Pay per impression and pay per click programs have been around for a long time. A lot of affiliate program owners think of them as a waste of money and time. They can be less profitable than other affiliate programs because impressions and clicks do not necessarily generate any sales. Pay per lead programs might not be considered worth the effort but plenty of business owners have great faith in them.

What is Pay Per Lead?

A pay per lead program pays commission to an affiliate when a customer signs up for more information. This might be in the form of a mailing list or a free ecourse but it might be something different. As an example, insurance companies might pay affiliates to get people interested in receiving a free quote. Someone selling a tangible product might pay affiliates to collect addresses of interested people, to which they can send samples.

Pay per lead is paying for the chance to market your goods or services to somebody. This might sound like a bit of a waste of time but it is clever marketing and can lead to sales, so it is worth using.

What are the Benefits of Using Pay Per Lead?

If a customer is willing to give their contact information and email address, it usually means that they have some interest in what you are selling. Most people don't like to give their email address because they are worried about spam emails. When they do give this information, it is because they have an interest in buying something or they want more information so they can make a decision. When you get a lead, you know it might turn into a sale. Pay per impression and pay per click are less likely to result in sales because the visitor might or might not be interested.

Affiliates like pay per lead programs because it is quite easy to get results using them. They can offer their visitors something for free. Pay per sale programs usually pay more than pay per lead because leads are easier to get than sales. Affiliates are often willing to promote more actively, resulting in more leads.

How Do I Use the Leads I Get?

You need to follow up on leads to make them profitable. If leads come from a mailing list, sending something to the leads regularly keeps them informed and interested in what you are offering. You can design ecourses to inform and offer other things too. When broken up into emailed installments, this kind of communication works better, by keeping your products or services in the customer's mind and not expecting them to read big chunks of information at once.

If you offer free samples, quotes or another kind of incentive, make it clear at the sign up how the person's contact information will be used. This will reassure them that you won't spam them and keep you out of trouble.

Pay per lead programs mean you have the opportunity to stay in touch with people interested in what you are offering. When used properly, they can be more economical than the pay per sale programs. Pay per lead programs give various opportunities to make the sale and the customer does not have to buy immediately.
About the Author
Robert Paul Williams is the Editor of Work At Home Business Website. Are You Promoting a Product or Service Online? Come Visit WAHBWS. Get Free and Low Cost Website Advertising Ideas to help you promote your website.
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