With companies like Jumpline offering affiliates $80 per sign up for plans starting from $9.95, I was wondering what is the most you would spend to obtain an individual customer?

If it meant compromising our service and network I wouldn't

I spend up to $60 right now...but if i was getting the same amount of branding and sign ups i wouldn't mind paying $80..

one thing you have to realize is end of the day if they have 100 clients sign up. they hardly paid for 30 of them but still the other 70 were direct result of the advertisements...hopefully this made some sense its 5 a.m

Customer is priceless...

Company that pays for their customer only will end-up in loss.

I mean, I can refer a customer to you (hence, you pay me $80/$60) but apparently, the customer I set-up to you only buy your package for a month (say $10x1=$10) because I teamed up with him to get the money.

Customer that comes to you is always priceless

Originally posted by GrahamC
With companies like Jumpline offering affiliates $80 per sign up for plans starting from $9.95, I was wondering what is the most you would spend to obtain an individual customer?
Well IMO, $80.00 for a $9.95/mth account is a tad excessive. Guess it comes down to how much capital a company is willing to invest into their customer acquisition.

I prefer the organic approach to expansion, but each to his/her own. :)

It's nice to have clients that come directly to you but they're not priceless. If you offered my $25,000 for each client I had right now I'd say "Thanks very much, where do I sign".

Hence, they're not priceless.

As for paying $80 in commission for an account that yields $120 per year: it doesn't seem prudent to me speaking with my business head on, but it's certainly a good way to build up a client base (marketing head on).

You'd need a truck full of cash though initially - for every client who signs up you're $70 down straight away. So 300 new clients per month = better get an increased credit limit on your plastic.

Kevin

Originally posted by H-U.net
You'd need a truck full of cash though initially - for every client who signs up you're $70 down straight away. So 300 new clients per month = better get an increased credit limit on your plastic.


New client need to pay 1 year hosting fee upfront. So, Jumpline will get $40.

there are few people on this board who are well respected 1 of them is Aussie Bob and I seriously look hard into his posts and try to learn some thing but he doesn't like to spend a $ on advertising...when it comes to this I seem to have a different point of view...

sure word of mouth is good and the way to go if you intend to stay in long term but it is not enough for many...

ipowerweb seems to be the most populor on the internet. they pay about $70 i think... they get atleast 100 clients a day and i doubt they pay $70 for more than 30 clients.. these 30 clients need to sign up with atleast 3 month contract with a setup fee..

the end cost is about $40 for each customer who signs up with them...getting 100 clients paying for 30 in commission and having 100 of them pay $40 doesn't seem to bother me atleast...

all the branding they get i am sure many clients just type in there site and go there and sign up...looks good to me not sure abt others :)

If i had customers who were happy as they are they with Aussie Bob I would be more than happy to pay $100 sure once they come they aren't go no where :eek:

Originally posted by Aussie Bob
Well IMO, $80.00 for a $9.95/mth account is a tad excessive. Guess it comes down to how much capital a company is willing to invest into their customer acquisition.

I prefer the organic approach to expansion, but each to his/her own. :)

You grow your customers over there? :eek2: :D

Some good points there. Jumpline does ask for a year up front so that's how they cover their affiliate fee. Infiniology give out $70 affiliate fee and charge a setup fee to cover most of it.

The biggest loss maker I found was Apollo who give out $65 to affiliates and pay monthly with a $10 setup fee. The minimum monthly is $19.95 though so they are shelling out $35 for each customer on their basic plan aquired through affiliates.

There's not really much difference between giving away $80 from a $140 p/year plan for a referal and running a special just dropping the plan itself to $40 p/year.

With the second option you then have customers who feel they are getting a better deal and are more likely to tell their friends but with the first they are more likely to build a customer base much quicker.

There's an up and a downside to each.