Hey there, colleague! 

If you've been in affiliate marketing for a while, you know that a high payout can seem like hitting the jackpot. But, like with anything, there are some nuances to consider. Let's dive into why a high payout is cool but not always the deciding factor.

High payout = bigger profit?

Not always.

Let’s start with the obvious. A high payout can mean bigger profits. But it’s not a guarantee. Why? Because high payouts don't always come with high approval rates or good conversion rates (CR). You might get a super payout, but if the advertiser rejects most of your leads, your earnings will be minimal. So, it’s crucial to look beyond the payout and consider the average approval rate for the offer.

Product Price, CR, and EPC

If you find an offer with a high payout, you need to analyze the competitors. If a higher payout means a higher product price on your landing page compared to the market, your CR could suffer. Let's consider an "ideal world" scenario where the only differences are in lead payouts and CR, with approval rates and click costs being identical.

CR refers to how many clicks it takes to get a lead.

As we can see, a high payout isn't always the key factor.

P.S. Even if advertisers have the same product prices, CRs can still vary, so always split test offers to see which one performs better. CR can be influenced by many factors, so it's best to run split tests on small volumes (50-70 leads per day) to determine what's best for you.

Competition – A Real Challenge

The higher the payout, the more affiliate marketers rush to promote that offer. And here’s where the problems begin: traffic costs rise, similar creatives start popping up, and your ROI drops. A high payout attracts more competitors, meaning you’ll need to work harder on optimizing your campaigns to stay profitable.

Lead Quality and Loyalty

A high payout might indicate that the advertiser is willing to pay more for customers who are ready to purchase a high-ticket item. But sometimes, advertisers offer high payouts just to quickly grab affiliates’ attention, which could be just a short-term promotion.

Conclusion

A high payout is great, but it’s just one part of a successful strategy. Always consider approval rates, competition levels, the potential for long-term collaboration, EPC, and the product price on the landing page (the higher the price, the more expensive the lead). So, don't chase quick profits—build your strategy based on thorough analysis. This way, your earnings will be not only high but also stable.

And don’t forget to do split tests! We’ll explain what a split test is in our next article, so keep an eye on our blog to stay in the loop.

Good luck with your campaigns!