Is Pay Per Contact Really Better Than Pay Per Click For MLM Marketing?

 


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Most people involved with MLM Marketing are familiar with pay per click but few are aware of pay per contact. In this article I will touch upon the pros and cons of what many are seeing as the holy grail of internet marketing in pay per contact and some of the reasons for the attraction to pay per contact.

Education is the name of the game in today’s competitive Internet, especially when it comes to MLM Marketing. It seems that every guru and guruette is now spilling the beans on how to create effective pay per click campaigns. The market is also seeing a number of keyword research tools that are making it easier for newbies to find those hidden gems they would generally not uncover without these new software tools. Many newcomers and veteran pay per click promoters are fast realizing that the cost of an effective pay per click campaign is rising and profitable keyword bids are becoming increasingly popular which is also driving the price up at a steady pace.

As in any market when the return on investment starts getting lower people generally begin to look at alternatives to reduce their expenses while simultaneously increasing their ROI. There is no doubt that pay per click, aside from an email blast is the fastest way to get traffic to your website but the cost prohibits it from being a long term viable solution to traffic for most marketers. This is the primary reason for the emergence of the Pay Per Contact industry. This industry includes CPA or Cost Per Action, Co- Registration and the infamous Pay Per call. Let’s cover some of these options one by one. First let’s talk about CPA. The concept is simple rather than paying per click you offer a flat price you will pay for a targeted prospect to take some type of action. This could be providing their name email and phone number for someone to contact them for more information about your mlm business opportunity or as little as providing their zip code. While this seems to be a great alternative to pay per click most CPA networks generally have a sizeable minimum order you need to place and in many cases you will have to make a deposit up front before you can begin a campaign. In addition, with many offers on the network paying a lot more than you may be willing to pay for a lead the publishers (website owners who have tons of traffic) will generally focus their efforts on targeting traffic to the offers that pay them more money. For example if you are going to pay 50 cents per lead and another company is willing to pay $5.00 per lead for similar info your offer will not be chosen. With CPA you have eliminated the cost per click but you may end up paying a hefty fee per lead. In addition you may not get a lot of leads if what you are willing to pay is less than others. It is worth investigating but your success will largely depend upon what you are marketing and your profit margin.

Co-registration is becoming very popular as well in the pay per contact arena. This is basically where someone signs up for a service like hotmail and before they can access their account they see a number of ads and offers they can opt to get more information about. This is where your ad would be placed. While this is a viable way to get leads there are a number of variables to consider in generating a campaign that gets results. The purpose of this article is not to delve into what makes a campaign work, and there are many, but the particulars. The biggest drawback to co-registration is that most networks have high minimum orders, in many cases the minimum is $1000 or more. This is a major factor you should consider when deciding between pay per click and pay per contact using co-registration. With that said the advantage over pay per click is clear, your cost is fixed per lead, NOT per click!

The next topic is the biggest one to watch out for which is pay per call. Quite frankly I suggest a lot of thought and research on what you are marketing before you consider this option. On the surface this seems like the holy grail of marketing! You only pay for each person that calls you after reading your ad! It should be a piece of cake to get sales when people are calling you right? Not necessarily! With Pay Per call there are two methods I am aware of.

First is using a bidding system where you deposit an amount of money into your account, the minimum I have seen is $25. Then you create your ad and place a bid for how much you will pay for someone to read your ad and dial your phone number for more information. While this seems intriguing there are some little known things you should know before you rush out and deposit money into a pay per call campaign. The way the bidding system works is you have a minimum bid you can offer per call you will need to pay only 1 penny more than the next highest bidder when your bid wins. What most people don't know is that many people are willing to pay up to $20 or more per call! This works against you even f the company you are contracting with has a minimum bid of $2.00 because most people are bidding $10.00 or more! The minimum bid really means nothing if others are bidding a lot more than that. If you bid lower your ad will virtually never get shown! The networks similar to CPA networks will want to show the ads that pay them the most per contact. The other drawback is since they only show a few ads per page your ad may go unseen for quite some time if it is seen at all since your bid is so low! Here is the worse part, if you deposit your money and are not bidding high enough your money just sits there giving you no benefit and most likely will never give you any benefit unless you increase the amount of money you are willing to pay per contact. This virtually puts you into a similar situation as with pay per click competition except you get NO exposure and no results unless you keep raising your bid to be amongst the top few. Once your money is deposited you may find it very difficult to get a refund if you can get one at all. I do NOT recommend a pay per call bidding system especially if you are intending to market an MLM Business Opportunity unless you have a high ticket item that pays you a hefty commission and you are good at turning prospects into sales, even then I recommend the second option.

The second pay per call option I want to cover is a flat rate pay per call system. This is the best way to go with pay per call but still has a gotcha or two. In this environment you pay a flat fee per call depending upon the category you are interested in generating calls from. For home based business the cost is around $12.00 per call. This option may seem to cost more than the pay per call bidding system but when you find out what is truly going on your cost will most definitely be less with the flat fee. The only other difference with the flat fee is that you have to deposit more money up front. The minimum I have seen is $250. In addition there is no guarantee how many calls you will get or how often. After you deposit your money you may get an average of 2-5 calls per week! This is generally not enough activity to keep you busy after spending that type of money.

In summary pay per contact has some benefits over pay per click but don't be mislead by the hype. In my opinion a proper co-registration campaign is the most cost effective and consistent producer of all pay per contact options. Do some research and you will find a good source that can help you set up a proper co-registration campaign that gets results on far less of a budget than you are using for pay per click. If you are interested in pursuing a co-registration campaign but do not have a lot of money I wrote an article about how to get opt in leads for your business for less than the cost of a moderately popular keyword in pay per click. Visit MLM Marketing Pro Dot Com and look under the MLM Article section.

Owen Brown is an MLM Marketing Consultant, Coach, Trainer, Author and Student. He has trained hundreds of ordinary people online and off-line, inspiring and turning them into MLM Marketing Pro's. Owen has the rare ability to present complex information at a level that is easy to understand. If you are smart enough to learn what someone else is willing to teach you visit http://www.mlmmarketingpro.com and subscribe to the MLM Marketing Tips Ezine For More Tips & Advice Today!

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