Recently I spoke at two different seminars and even though both presentations were different, there was one thing I emphasized right at the beginning.

There Is A Shift In The Online Marketplace

Average marketers are getting good.

Good marketers are getting great.

Great marketers are making such a HUGE leap in their marketing that it’s making it virtually impossible to catch up – especially if you don’t recognize important trends early on.

In the affiliate marketing industry one of those important trends is starting to take place…

It’s called “Pay Per Lead” vs. “Pay Per Sale”.

Now this isn’t anything dramatically new but here’s what’s happening…

Advanced marketers are paying closer attention to their metrics and are starting to put marketing strategies into place that are much more long-term focused.

What… long-term?

Yup.

That means they are actually looking further out in their schedule and they are looking at the lifetime value of a customer.

So here’s what you need to ask yourself if you want to stay up to speed…

How much is the average customer spending on my products once they come into my marketing funnel?

If you know this number then you know how much you’d be willing to spend to aquire a new prospect.

For example, if you generate an overall average sales of $5/subscriber in a one year period, would you be willing to spend $1 to bring in new targeted subscribers?

You should because for every $1 you spend you’ll average $5 (if those are your metrics).

Russell gives several great examples in his blog post entitled “The death of affiliate commissions?” so make sure you take a few seconds to read it.

The point is this.

If you run any affiliate program of anykind then you need to start considering alternative methods of compensating your affiliates in additon to what you’re already doing. Paying on a per lead basis is growing in popularity but it only makes sense for marketers who know their metrics and what a customer is worth to them.

So start paying close attention to your metrics and spend the time to figure out the lifetime value of every subscriber and customer that enters your marketing funnel.

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