Are you sitting comfortably? Here's the scoop...
High quality publishers subsidise poor quality ones in majority of online lead generation campaigns today.
So it's like Mr X publisher crossing the street to hand over half his hard earned cash to Mrs Y publisher.
Why does this happen? Well partly it's down to the law of averages. Most marketers will average things out to work to an overall campaign target. If these numbers are hit, everyone's happy right? - well nearly everyone as unfortunately this model favours high quality low volume publishers balanced out by higher volume, lower quality ones at each end of the spectrum. Plus, it's more convenient for the marketer to manage the campaign in this fashion, i.e. pay £1 for every lead and tinker with the volumes to try to get the desired effect but at the same time being severely hampered by the capped lead price.
So the next time you see a lead gen. campaign pop up at your local affiliate network with a headline rate you know the campaign is being run on a average meaning good publishers lose out financially to the poorer quality ones and the marketer struggles by being hamstrung to a fixed cost per lead.
Fortune favours the brave and those who are willing to deal with the complexity of using variable lead pricing will reap the huge reward this technique offers.
Either way, the secret's out now...