The Pay-Per-Lead Affiliate Marketing Model For Profit

Under this model, you generate commissions by generating leads (also called Cost Per Action – CPA  for those using these services). Rather than referring people directly to a product, you refer them to product information.

Let me give you some examples to clarify this...
Common Types of Pay-Per-Lead Offers:
• Refer prospect to a mortgage refinance company, where he fills out a form to get pre-qualifying information about potential loans.
• Refer prospect to a health company offering free vitamin samples in exchange for filling out a contact form.
• Refer prospect to a trial version of a product or service
You see, the prospect is not making a purchase in any of these cases. Instead, he's getting free stuff. The freebie might be a sample of a product, a trial or just an information request. In any case, you get paid for generating that lead. Now, you must be careful in the types of pay-per-lead program you promote. Always make sure that your merchant collects lead information ethically and unobtrusively. This means that your prospect shouldn't have to take too many steps in order to get what he wants. Filling out a simple form or two is the most it should take. The better the offers and the easier they are to complete, the more you'll build a reputation for quality, and for protecting your prospects' privacy.  You have some leeway when it comes to promoting pay-per-lead programs because the imperative towards pre-selling is not as strong (we'll talk more about why in a moment). This means you can promote your programs through 'simple' methods, like: 

• Direct links to the merchant via Adwords, Blogs, Classifieds

As well as use the more involved method of collecting leads and publishing a newsletter.
Also, in most cases, a lot of your work will be focused on driving as much traffic as possible through your links for as long the merchant is running the pay-per-lead program. Some merchants run them all the time, while others set them up only for limited-time special offers. The real key here is to know how to best position the offer. Pay-per-lead is trickier because, often, there's only so much you can say.
Whereas as a traditional product would offer you ample opportunity to generate follow up content like special reports, e-courses and the like, a pay-per-lead offer just isn't suited to that level of detail.
At the heart of the matter is that the pre-selling tactics you'll need to use will be opportunity- focused, rather than benefits-focused. Ok, So What Do I Do…? 
“One of the most common approaches to pay-per-lead marketing is the freebies website or freebies newsletter”
This is a scatter-shot approach which allows you to promote a variety of unrelated programs under the guise of being a sort of freebies clearing house.
In order to narrow things down to a manageable level, you'd want to create your site or newsletter around some sort of theme, like ‘Top 10 Freebies Per Month’, or ‘Best Internet Free Trials’.
You'd then choose a couple of categories to focus on something like health, computers and finance - and build your website/newsletter around those.
In this sense, you're providing a service as a publisher of hard to find information. Now, if you really want to limit things down to one niche, you'll need to choose high-paying pay-per-lead programs. This means looking into the professional services like financing, debt reduction, attorney referrals, insurance and the like.

 >> Commission Junction ( http://www.cj.com ) has many of those. 
Those niches will allow you room to publish more content.
What you'd do is set up a content-focused website or newsletter, and concentrate your efforts on publishing educational articles. For example, let's say that you're promoting a life insurance pay-per-lead program. What types of content would you use?
• Articles about choosing a life insurance policy, estate planning, reviews of different
insurance providers.
• Interviews with experts in the field
• Quizzes that help people determine their overall health and life expectancy
• Useful tools – maybe a life insurance calculator that helps people compare plans side-by-side to see how much they'll spend for a $1 million policy over X numbers of years with Company A versus Company B
Now, in order to monetize this, you'd need to place your affiliate link in as many places on site (and in every newsletter) as possible. For example, at the end of each article, you would have a hyper-linked text-ad saying: “Need life insurance? Get a free quote in under 5 minutes”. You would also benefit from using well-placed banner ads across the site.  All the Best.
Read More Here on How To Make Profit From Affiliate Marketing Business Model

6 Factors To Consider When Building Customer Profiles

 1. Affinity profiling – analyzes current buying habits to better match customer to product.

Knowing what kinds of product a particular customer is buying gives you the ability to build an “affinity matrix” showing what related products would stimulate more sales from him/her.
  

2. Demographic and psychographic data is also used for profiling.

Demographics tells you a client is a 29-year-old, unmarried, male who earns $45,000 and drives a 2-year old Lexus.

Psychographic data suggests that single young men who buy status-symbol cars are excellent prospects for other highly visible status products.

Combining the two types of data yields a customer profile to someone marketing, say, the latest cellular phone.
  

 3. Lifestyle Coding is used to enhance basic demographic information.  Simply put – people in certain demographic categories will likely have similar hobbies and other interests.
  

4.  Mapping is another useful tool in building customer profiles.

Census data, topographic information, geographic coordinates, and zip code+4 postal data can be fed into a computer yielding maps that can be color coded to certain characteristics of consumers in particular neighborhoods.


  5.   Cluster Coding is a popular means of grouping people by lifestyle characteristics.

Remember hearing the terms “Urban Up-and-Comers, Settled In, and White Picket Fence” used to describe market segments?

These are known as “clusters”, each given a score according to affluence, social position, activities, and aspirations.


  6.  Survey data – can be used to enhance demographic, lifestyle, and other data to build a profile.

This is collected directly from your customers via application forms, surveys, and credit histories.

This provides a more personal portrait of the customer than merely census or demographic data.

The Direct Marketer of today has become more of a “surgeon” than a “shotgun hunter”.


It’s no longer cost-effective to shoot at 400,000 prospects to get 40,000 clients, and with computers it’s easier to slice-and-dice data today.