The Mechanics Of Lead Generation Arbitrage

Last week I wrote about how that Lead Generation Arbitrage was one of the methods I suggest to making the “big bucks” in 2011 with affiliate marketing.  This is  one of the easiest ways affiliates can evolve towards becoming an advertiser.  Today, I want to walk everyone through the “basic” lead generation arbitrage process…  Consider this figure:

These six steps outline the path of what I like to call a conversion funnel.  Traffic simply flows into an optin landing page, after entering data (ie: name/email), visitors are shown an offer wall with multiple CPA offers, and once they confirm their email address they are directed to another offer wall before being monetized via an email sequence on the backend.

The top three steps are what I call the front-end with the bottom being the back-end of the offer.  Your front-end path should help you recoup any costs involved with traffic generation while the back-end should purely concentrate on increased ROI (return on investment).  Some companies (such as Convert 2 Media) offer external data management where leads are monetized many ways, one of which being email distribution on a revenue share basis.

Traffic to a lead generation arbitrage offer can quickly be purchased through any of the major search engines or those experienced in search engine optimization can simply rank sites organically.  Obviously SEO traffic takes a bit longer to generate traffic, but ROI is a lot higher.  This is why a lead generation arbitrage offer is good for both amateur and experienced affiliate marketers.  Those with liquid capital can begin sending traffic almost instantly and can begin optimize.  Those with very little start-up capital can simply use the power of unique content to rank in the search engines are generate traffic organically.  There is no wrong or right way, I actually recommend generating traffic both ways.

Ruck and I both have created countless lead generation arbitrage offers and have experienced success in multiple verticals.  This concept can be applied to literitly almost any niche as long as you have enough offers to support both the front and back ends…

We’re going to be providing much more detailed information on this entire process, so stay tuned!


  1. says

    Hey Ryan,

    Great article! I already have setting up my pages inlcuding the paths but not really know how I can track each path with CPVlab. Do you ever promoted this with CPV? Any help would be appreciated, thanks.

    • Ryan says

      Yeah I've used CPV traffic to push optins A LOT. Basically you want to have your landing page look like the site you're bidding on and filter the clicks on down your funnel. Don't be too intrusive with the visitor though, offer them something of value (what they're looking for). Good luck!

  2. JohnnyBetts says

    Hey ryan, great blog here… Any reason you guys use double optin confirmation? Any loss in deliverability ive made up with in not losing subs that dont confirm. Im probably not doing close to the ballpark of your volume, so just wondering.

    • Ryan says

      Using double optin your SPAM complaints are much lower and your list is more valuable. I've had a list of 20,000 double optins that convert nearly FOUR TIMES better than a list of 50,000 single optins. I'm not saying that a single optin can't work though, but I highly prefer double. Thanks for the compliment!

      • JohnnyBetts says

        Wow 4 times, interesting. Thanks for the reply. Id imagine if you rev shared those leads you could get more for double perhaps?

        • Ryan says

          I was prob a bit overzealous saying four times. But it IS DEFINITELY more… You always want to do a rev share with at least 2 different companies. You can only monetize so much, it only makes sense to diversify.

  3. Matt says

    When you go the organic/seo route, are your CTAs for your email (like you have a pop-up or inline form w/a CTA) or are they for the offer(s)? For example, you have a blog post about writing from home; would you just do something like:

    "Click here to learn how you can make $xxx writing from home"

    And then the link takes them to the email opt-in, and then to the first offer wall?

    And would you suggest having the opt-in on a different URL then the blog/unique content?

    Any thoughts on this would be appreciated.

    Thanks Ryan!

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